C A S Friendly Assisted Living Facility- In March 20X6,Fred had his Business Development team prepare a rough estimate of the potential return on the investment of an assisted living facility. He asked the team to klentify different options for facility construction and the assoclated costs. The team also did a complete competitive analysis and examined the options for services Friendly Medical Center, an urban, nonprofit, 450-bed rehabilitation hospital, began to see a significant decline in admissions. Friendly Medical Center's mission focuses on inpatient and outpatient rehabilitation of the severely injured and catastrophically ill. While the patient census varied from month to month, it appeared to the Friendly Medical Center Board of Trustees that the inpatient popu- lation was slowly but steadily declining. The hospital's market researchers reported that fewer people were being severely injured due to the popularity of seat belts and bicycle/motorcycle helmets. In order to get a handle on the future of the organization, the Fred Splient M.D. called for a major strategic planning expenditure needs, estimated income from operation of effort to take place. population base and catchment area. The Business Development team visited several facilities across the country. The team also interviewed companies that could oversee the design, building, and operation of the facility O for Friendly Medical Center. The duced a preliminary business plan based on the recom the facility, as well as projected reverues to other Medical in Janary 20X6, Frendly Mcdinal Cenie ikl a pCenter programs resulting trom the facility's ning retreat to identify future opportunities. The outcome of the retreat was that the Medical Center needed to focus its efforts around two major strategic initiatives. The finst, d a short-run initiative, was to be more cost-effective in the delivery of inpatient care. The second, a long-run strateg fxility would be set up as a for-peofit subsidiary of the was to develop new programs and services that woukd capi talize on the existing, highly competent rehabilitation he subjected to the strict guidelines of the hospital's The plan was presented at the May 20X6 meeting of usthe Board of Trustees. Fred Splient and his team intro- pening an assisted liv- Friendly Medical Center's campus. The duced the Board to the concept of ing facility on Medical Center so that it could generate a profit and not therapy staff and Frierdly Medical Center excellent repe accrediting agencies. As a subsidhary organization, how therapy staff and Friendly Medical Center excellent repu- tation in the region. ever, the Board would still have control At the time of the retreat, Fred Splient's parents were The chesen facility design was a freestanding living with him and his family. Fred was an active member of the "sandwich generation."His parents were aging and developing many problems common to the geriatric popu The facility would have 100 units with 15 to 30 of the lace. Their increased medical needs were beginning to units clasified as "heavy-assisted" and ailt to code to wear on Fred and his family. It crossed Fred's mind that life se the might be more pleasant if the hospital Board approved an the units would be "light-assisted," larger apartments. The ent-like facility with a sheltered connection to the Hospital for access to the kitchen and hospital services n of the Medical Center's campus to inclhasde an ppalation would be approximately 110 to 150 residents, assisted living facility. with most being single occupants rather than couples