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New economic opportunity essay

New economic opportunity essay.

New economic opportunity essay

IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY.

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Implementation plan for a new economic opportunity.

During the previous shareholders meeting an economic initiative was proposed that aims at promoting not only benefiting the hospital through increased income but also the community by providing the necessary healthcare facilities. The senior management of Capella Health Centre (CHC) received the proposal and gave it a precise pass to continue with the preparation of the implementation plan. The initiative is about setting up a maternity wing (MW) within the hospital’s premises to provide the much-sought maternal services within the society. A maternity wing is a department that offers the childbirth services, pre-natal and post-natal care to pregnant women.

The goals and objectives of the maternity wing in addition to those of the entire health Centre will be to avail efficient, affordable and professional maternal care to members of the community. The reports regarding both the economic and environmental analysis were presented to the board of management. They were convinced that this initiative was capable of benefiting the organization in both long- and short-term basis. The feasibility study of this project was weighed against all economic and social barriers and seen as a worthwhile initiative. To comply with the requirements of the board, the implementation plan for putting up a MW has been prepared to show the program towards the execution clearly.

The plan prepared is inclusive of a 5-year budget for the MW and the time required for executing the initiative. It will also show the analysis of how the MW will result in the entire health centre, and the effort will deal with the changing environmental conditions. The initiative will have not just have a positive impact on the different sectors of this institution. Still, it will also pose some challenges that will need new strategies in solving the problems. The plan proves how the initiative will have met both legal and medical laws in its implementation in the administrative levels.

Budget for the proposed Maternity Wing.

To clearly show the amount of revenue that is being estimated as well as the cost of setting up the new maternity wing. This budget, therefore, aims towards showing the projected expenses and revenues in five years after the construction has been completed. Some assumptions, however, have been made to set up the budget clearly, one of the premises is that by the end of 2018 the MW will already be constructed to completion. This makes the budget estimates run from 2019 to 2023.

To determine the amount of revenue projected annually in five years, the expected number of patients has been multiplied by the average charges for consultation in an ordinary hospital. An estimated number of patients both inpatients and outpatients being 55 per day being charged an average of  $200  per visit, it implies that in one week the estimated revenue is $77,000 bringing the income within the first year of operation to be $3,696,000. In addition to this, with continued marketing and advancement of services, the revenue in the CHC is estimated to be increasing by 7.2% each year. The expenses expected to be incurred, staff salaries, administrative fees, essential utilities, insurance cost and miscellaneous costs. The average price, therefore of the MW will be determined by these expenses annually and any other changes that may take place within the five-year budget period.

For the five years the salary of staff will comprise of a part-time gynecologist ($300,000), surgeon ($400,000), full time theatre technician ($150,000), 3 nurses ($180,000), 10 clinical officers ($1,000,000), 2 medical assistants ($200,000) and a fulltime pediatrician ($200,000). Receptionist ($50,000), driver ($40,000) (U.S. Bureau of Labor Statistics (BLS), 2017). The staff, however, will be entitled to salary increment of 1.5% p.a. But only those employed on permanent and pensionable terms. The amount used in the essential utilities is expected to rise by 5% each year. The expenditure on insurance is however permanent on contractual terms of five years, and premiums will be $10,000 p.a. Other costs in the operations are estimated to be 11% of annual income concerning the CHC’s financial statement.

The expected working capital of this initiative is expected to be $100,000,000. According to the budget, we propose that half of this money be provided by the revenues from CHC reserves and the other half be funded through a bank overdraft. This, therefore, informs the board to take a loan of $50,000,000 from any bank that gives the most favorable terms. And with minimum interest to be expected at 10% per annum and the repayment period of five years, this implies that the annual installment of $110,000 per year.  

According to the budget the MW will have already earned a monetary surplus of during the first five years. The amount realized in the first year may be lower than the preceding years due to recruitment of staff on permanent terms. The cash surplus within the first five years is expected to $8,000,000 (see appendix for detailed information).

We are implementing out the economic plan.

The project will be rolled out in different phases, allowing the set timeline and approval by the board. The first stage, therefore, will be placing a schedule stating each even towards the rolling out and initiating services to the public. The estimated time in which the board of CHC is expected to approve the project, as well as loan approval by the bank, is two months. Bearing in mind that the construction work will consume around eight months, the process of implementing the plan is foreseen to begin by June and end in December 2018. This, therefore, means that by the first month of 2019, the board has discussed the budget of the project.

Stakeholders in this health center are very crucial towards the realization of the goals and objectives of this project. It is therefore essential to have an active mechanism on how to engage different stakeholders regarding how the provision of health care can be improved to realize the desired patient satisfaction in the maternity wing. Some of the participants that should be consulted and have their opinions included in them during the decision making regarding the project. Nurses, physicians and other junior staff of CHC should join the board and the senior management in the discussions concerning the project. We, therefore, propose a collaborative approach with the internal stakeholders before the project is by holding consultative meetings within the premises regularly so that the progress report can be made.

Agency for Healthcare Research and Quality, (2015) has given key concern towards the six aspects of quality health care to as outlined by the institute of medicine. Communication is very crucial in ensuring that stakeholders are aware that the project will uphold the set medical standards so that it can be a team effort in making the project successful. It is also essential to ensure that the new initiative will follow the legal rules as outlined by different laws that govern the medical profession. The roll-out, therefore, should be conducted, ensuring it is done both in an ethical and culturally sensitive way. Excellent patient services will be essential to promote trust from the public to keep control of the market. It is, however, important that the hospital be ready to deal with increased patients than it was estimated.

How to deal with changing environmental forces.

The dynamic business environment needs unique approaches to survive as a leading service provider in the medical sector—possible competition from other maternity care hospitals being introduced as a result of the increased demand. Various clinics also are easily availing pre and post-natal services, reducing the uptake of services from fully operating maternal centers. However, all our strategy is on the quality of healthcare and good customer relations by introducing a referral program that ensures that people keep on choosing services from our MW over others available. We also propose a patient-centered approach to marketing the maternity wing to ensure more people are informed of the high-quality medical services we provide.

Another challenge may be the changing technology and government policies. New and modern approaches to medicine are being introduced with new technology, some hospitals availing services and consultation online and may end up taking over the market. We shall, therefore, set up a department to be in charge of the digital department and regularly update our services with the existing technology Blumenthal, D. (2009).  Change of government policy, however, maybe something we can only deal with once there is any change, the most important thing, however, will be ensuring the operations follow all the set legal standards. These efforts are going to make the MW a viable asset even amid the dynamic environment.

Conclusion.

The budget and strategies proposed indicates how this initiative will be of benefit as an asset for the CHC. If the stakeholders are actively brought on board, there will be a successful implementation of the project. It is, however, crucial for management to promote an ethical organizational culture that ensures each of the members is committed to the success of the organization. This, therefore, indicates that the MW will also lead to improvement of health in the society as well as reduce the mortality levels in the community.

REFERENCES.

Agency for Healthcare Research and Quality. (2015). The six domains of health care quality.

Retrieved from https://ahrq.gov/professionals/quality-patientsafety/talkingquality/create/sixdomains.html

 Blumenthal, D. (2009). Stimulating the adoption of health information technology. West Virginia Medical Journal, 105(3), 28-30.

U.S. Bureau of Labor Statistics. (2017). Occupational employment statistics. Retrieved from

https://www.bls.gov/oes/current/naics4_621400.htm

                                        Appendix

5-Year Budget for Proposed Economic Initiative

 FY 2019 Year 1 ($)FY 2020 Year 2 ($)FY 2021 Year 3 ($)FY 2022 Year 4 ($)FY 2023 Year 5 ($)  Total ($)
       
Opening Cash Balance0.001,465,820.003,024,260.004,680,446.006,312,389.730.00
       
Fund Received50,000,,000.00     
Loan50,000,,000.00     
       
Operating Receipts      
Patient Service Receipts (CHC)2,730,000.002,866,500.003,009,825.003,160,316.253,318,332.0615,084,973.31
Total Receipts2,730,000.002,866,500.003,009,825.003,160,316.253,318,332.0615,084,973.31
       
Operating Payments      
Staff Salaries825,000.00849,750.00875,242.501,023,885.201,315,719.804,889,597.50
Basic Utilities55,000.0057,750.0060,637.5063,669.3866,852.84303,909.72
Insurance15,000.0015,000.0015,000.0020,000.0025,000.0090,000.00
Other Operating Payments327,600.00343,980.00361,179.00379,237.95398,199.851,810,196.80
Total Operating Payments1,222,600.001,266,480.001,312,059.001,486,792.521,805,772.497,093,704.01
       
Operating Surplus/Deficit1,507,400.001,600,020.001,697,766.001,673,523.731,512,559.577,991,269.30
       
Nonoperating Payments      
Annual Loan Repayment(41,580.00)(41,580.00)(41,580.00)(41,580.00)(41,580.00)(207,900.00)
Total Nonoperating Expenses(41,580.00)(41,580.00)(41,580.00)(41,580.00)(41,580.00)(207,900.00)
       
Investments      
Construction, Furniture, and Equipment(350,000.00) 
       
Cash Surplus/Deficit1,465,820.001,558,440.001,656,186.001,631,943.731,470,979.577,783,369.30
       
Closing Cash Balance1,465,820.003,024,260.004,680,446.006,312,389.737,783,369.307,783,369.30

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