Scenario: A city-based community hospital is looking at adding an urgent care facility in a rural area. Urgent care is the delivery of ambulatory care in a facility dedicated to the delivery of unscheduled, walk-in care outside of a hospital emergency department. Development of the Rural Urgent Care (RUC) facility will facilitate access to care providers through extended service hours within closer geographic proximity to patients, families, and caregivers. RUC will act to alleviate demand for emergency department services by shifting lower acute patients to a less resource-intensive environment.

This project is in response to the shift from volume- to value-based healthcare. Payers and purchasers are interested in improving economic efficiency by shifting utilization from emergency department to lower cost settings, such as RUC. Several competing hospitals have hired emergency department physicians, as part of their integration strategy to participate in accountable care organizations (ACO) contracts. The hospital needs to respond to the competitive situation by making a sound investment in the RUC facility that addresses both financial and economic situations. The facility will be staffed with physicians and will include a radiology suite, laboratory suite, and other health-related ventures to help the hospital grow. You must help the board develop a business plan for this urgent care unit.

To prepare for this Final Project:

Examine the provided scenario.

Refer to the document Background and Financial Data for Investment in the Rural Urgent Care Center in this weeks Learning Resources.

Analyze the background and financial data for the RUC facility.

Note: Use the Week 8 Business Plan Excel Template to complete the financial analysis portion of this assignment

The Assignment

Using the Rural Urgent Care Centers Business Plan Template document in this weeks Learning Resources, create a business plan (68 pages) that includes the following:

Executive summary

Market analysis, including:

Macro- and microeconomic implications of market competition

ACO payment incentives to the organization

How the RUC impacts economic efficiency

Financial analysis, including:

Capital requirements

Reimbursement model

Cost per patient visit

Pro forma, including:

Patient revenue

Operating expense

Income from operations

Total expense

Net cash flow

General Guidance on Assignment Length: Your Assignment should be 68 pages, excluding a title page, supporting Excel spreadsheet, and references. Please note that you MUST support your business plan with financial documents in an Excel spreadsheet. Refer to the Week 8 Final Project Rubric for grading elements and criteria. Your Instructor will use the rubric to assess your work.

	Pro Forma Income Statement
			Year 1	Year 2	Year 3	Year 4	Year 5
	Visits		4,882	5,126	5,382	5,652	5,934
	Revenue Per Visit		$450	$450	$450	$450	$450
	Gross Revenue
	Patient Reveue
	Gross Patient Revenue
	Deductions from Patient Revenue
	Contractual
	Total Deductions from Revenue
	Net Patient Revenue		$0	$0	$0	$0	$0
	Operating Expenses
	Salaries and Wages
	Employee Benefits
	Utilities
	Repair/Maintenance
	Housekeeping
	Telephone Service
	Depreciation
	Malpractice
	Miscellaneous/Other
	Variable Medical Supply Costs
	Other Non-Personnel Costs
	Total Operating Expenses
	Excess of Rev over Exp. From Operations		$0	$0	$0	$0	$0
	Cummulative Income		$0	$0	$0	$0	$0
	Net Cash from Excess Rev (excl Depreciation)		$0	$0	$0	$0	$0
	Cummulative Income Net Cash		$0	$0	$0	$0	$0