Sorry I'm having trouble doing a business plan, can anyone help me?

HSA 4170 Healthcare Financial Management Section U01 Group Project - Business Plan Outline due on October 24, 2016 at 5:00pm Business Plan due November 21, 2016 at 5:00pm Overvie w: Dade Internal Medicine Physicians, PA is a physician group of four internal medicine physicians in the Kendall and Aventura areas. Dr. Lois Lane is the general partner of the group and Dr. Clark Kent is a part-time physician looking to go full time with the group. DIMP is in its fifth year of operations and the centers have been profitable for the last two years with a large population of Medicare and Commercial patients. DIMP is considering expanding by opening a third office. They are interested in exploring how the Accountable Care Act (ACA) can benefit them. The physicians met three days ago to discuss this opportunity and where to open this new office based on payor mix and their contracted rates. They were enthusiastic and agreed to hire your group to do the business plan before they make the final decision. Curre nt State: DIMP medical practices: DIMP has a total of two locations, one in Kendall and one in Aventura. The general partners is located in one of the centers, the other three physicians are scheduled two at each location. All physicians cover for each other for after hours on-call coverage, vacation, travel and sick time. The offices are open from 8:00am to 4:30pm Monday through Friday with the staff taking one half hour for lunch. The two offices have a total of 6,000 active patients (patients that have been seen or assigned within the last 12 months). Other charts for patients that were seen or assigned over one year but less than three years ago totals 4,000 for a combined total patient base of 10,000 patients. The physicians average seven hours of work on 200 days of productive clinical time in the year, except for Drs Kent and Lane. Dr. Lane spends about a third of her time in administrative duties. The average physician sees approximately 3.6 patients per hour which will end the year at approximately 15,000 visits. The staff in each office consists of one checkin clerk, two medical assistants,. One of the offices serve as the administrative office and has a secretary, an office manager which alternates offices, a billing clerk and a referral coordinator. DIMP currently has contracts with various HMOs and is also participating with Medicare and Medicaid. The group has been successful in their negotiations with the HMOs, implemented an electronic medical record (EMR) two years ago, and have attended several symposiums on the future of healthcare. This led them to meet with the CEOs of the hospitals where they mutually serve the community to form an alliance under healthcare reform Exhibits A - C show current statistical data and Statement of Operations for DIMP. Expectations for the External Environme nt: Healthcare Industry Dr. Lane has notated the following two items as some of the changes that have taken place as The Affordable Care Act is fully implemented that will directly impact DIMP. Medicaid and Medicare will transition this population to Managed Care The uninsured and cash paying patients will be enrolled in some insurance plan within the Managed Care Organizations; most probably in lower coverage plans with high deductibles. The Economy The Medicare population is expected to increase as the Baby Boomers approach 65 years of age. Due to budget limitations for the State, Medicaid rates will increase only 2% for next year. After much consideration, Medicare will increase the rates by 1.5%. Inflation for next year is expected to be approximately 2.5% Cons ultant Engage ment: DIMP has approached your group to review the geographic areas of interest the market demographics and payor mix and prepare a business plan that will include the impact of healthcare reform and opportunities based on their contracted rates and historical expenses. The areas of interest are Homestead and Doral where they know there are a couple of physicians that will be retiring. They expect to get 600 - 800 patients within the first year. They give you the following data to consider in the business plan: DIMP's EMR came with a billing module. They do their own billing but will need an additional part-time billing clerk for the additional volume. DIMP has done some marketing in the past but believe that this would be a great opportunity to do a major marketing campaign that will include all locations. DIMP offers benefits to their employees which cost 8% of salaries for taxes plus $5,200 per employee for insurance. Insurance is only offered to full time employees. Annual salary increases average 3% Because they buy in larger quantities, DIMP has recently joined a purchasing consortium and is now able to get lower prices for medical supplies. They expect 5% savings. This is not reflected in their current financial statements. Dr. Lane estimates that it would cost approximately $35,000 - $40,000 to furnish the new office with two or possible three exam rooms. Rent is estimated to be approximately $30,000 annually. DIMP depreciates computer equipment for three years, medical equipment and furniture for seven years with no salvage value. They would also need to buy equipment, including EKG machine and six- month inventory of EKG supplies costing approximately $5,000 and $1,500, respectively. In addition, to add the hardware and software of their existing EMR will co st $5,000 initially and $1,000 annual fixed cost and $2.50 variable cost per patient visit. Each physician is willing to contribute up to $25,000 each towards the start up and operations of the office. They also agreed to take up to 80% of their 2015 net income and 50% of future income of their current offices to subsidize losses in the new office until it breaks even. They prefer not to have to borrow funds from the bank. Dr. Lane wants your firm to do some research on the demographics of Homestead, Doral or any other area that would optimize their revenues and would at least break even within two years.. The deliverable Prepare a business plan with all appropriate exhibits that will include: 1. Cover page 2. Table of contents 3. Executive summary - one to two pages 4. Company overview - one page 5. Services - one page 6. Industry/Market Analysis and Competitive Advantage - two to three pages 7. Marketing plan - two pages 8. Operations Plan - one to two pages 9. Development Plan - one page 10. Management Plan - one page 11. Financial Plan (including break even analysis) - two to three pages (this is the narrative not including the financial reports or tables) 12. Funding - one page 13. Appendices/Exhibits: 3 year patient base by payor mix 3 year revenue stream 3 year staffing and salary rates 3 year Statement of Operations (Years 1, 2 and 3 of operrations) Funding requirements for the first three years Break Even Analysis o What year will they break even? o What volume do they need to have to break even on year 2? any other exhibits that may be pertinent to the business plan (i.e. demographics) 14. References REMEMBER THAT TABLES, CHARTS AND REPORTS ARE IN THE APPENDIX/EXHIBIT SECTION. YOU MAY REFER TO THESE IN YOUR NARRATIVE BUT SHOULD NOT BE PLACED WITH YOUR NARRATIVE. Exhibit A Dade Internal Medicine Physicians, PA Reimbursement and Utilization by Payor Type Payor Type Number of Patients Annual Visits 14% 1,150 1,932 Reimbursement Reimb. Unit of Utilization Type Rate Service per month Commercial Payor A Fee for Service $140 Visit Commercial Payor B Capitation $18 PMPM 11% 1,350 1,782 Medicare Fee for Service $71 Visit 36% 2,150 9,288 Medicaid Fee for Service $39 Visit 12% 400 576 Medicaid HMO Capitation $15 PMPM 12% 950 1,368 6,000 14,946 Total Patients/Visits Exhibit B Dade Internal Medicine Physicians, PA Position Control with Salaries Position Physician - General Partner FTEs Salary per FTE 1 $ 175,000 2.5 $ 150,000 Office Manager 1 $ 40,000 Secretary 1 $ 28,000 Referal Coordinator 1 $ 30,000 Medical Assistant 4 $ 29,000 Check In Clerk 2 $ 25,000 Billing Clerk 1 $ 28,000 Physician Exhibit C Dade Internal Medicine Physicians, PA Financial Report Dade Internal Medicine Physicians, PA Statement of Operations For the Years 2013 - 2015 2013 Patient Visits Net Patient Revenues 12,131 2014 13,587 2015 14,946 $ 1,103,934 $ 1,261,134 $ 1,414,992 Expenses: Salaries & Benefits Medical Supplies Office Supplies Repairs & Maintenance EMR Fees & Maintenance Utilities Malpractice Insurance Rent Telephone Travel Miscellaneous Depreciation 920,879 9,099 7,150 700 35,000 4,100 26,393 64,568 5,100 8,300 3,000 19,850 948,505 10,190 6,068 750 35,968 4,200 27,184 66,505 5,800 2,500 830 13,000 976,960 11,210 6,250 800 39,365 4,300 28,000 68,500 6,000 2,000 1,500 12,000 Total Expenses $ 1,104,139 $ 1,121,501 $ 1,156,885 Net Income $ (205) $ 139,633 $ 258,107 Note to Statement of Ope rations: 1. 2013 EMR Fees & Maintenance, Travel and Miscellaneous include expenses of selecting and implementing Electronic Medical Record System. 2. 2014 and 2015 EMR Fees & Maintenance expenses are the usual operating expenses of: $2,000 annual license fee and $2.50 per patient visit transaction fees. RUBRICS: Deliverable Executive summary Company overview Services Industry/Market Analysis Marketing plan Operations Plan Development Plan Management Plan Financial Plan Funding Appendices/Exhibits References and Overall format and writing skills % of Grade 10% 5% 5% 15% 10% 5% 5% 5% 15% 5% 10% 10%