This is a proposal for a process improvement and/or process reengineering project:

VR Consultation Rooms for Banner Healthcare

Problem Statement: Currently, patients with serious illnesses in remote areas face significant challenges accessing timely healthcare services. They are required to travel long distances for in-person consultations, resulting in increased travel time, expenses, and prolonged wait times for appointments. This not only inconveniences the patients but also exacerbates their health conditions. The existing process is inefficient, costly, and limits the reach of quality healthcare to those in need.

Core Technology: The proposed project leverages the transformative power of virtual reality technologies to address the challenges faced by patients in remote areas. By setting up VR-based remote consultation rooms, Banner Healthcare can revolutionize the way patients receive healthcare services. These venues would be equipped with state-of-the-art VR technology, enabling doctors to remotely diagnose and consult with patients, replicating an in-person experience.

Feasibility Analysis: The VR-based remote consultation rooms demonstrate a promising outlook. The technology required for such venues is already available and continually advancing, making it practical and cost-effective to establish these facilities. VR technologies have matured over the years, providing high-quality immersive experiences, and are increasingly being used in various industries, including healthcare. The integration of VR into the healthcare sector for remote consultations is a logical and feasible next step. Considering the risks and benefits of this project, the advantages such as delivering high-quality care to remote areas, establishing a tech-savvy reputation, and gaining a first-mover advantage, outweigh the potential challenges of technical hurdles and legal compliance. The benefits align with the organization's goal of providing accessible healthcare and embracing technology, making it a viable and strategic initiative.

Preliminary Opportunity Evaluation: The proposed solution presents a significant opportunity for Banner Healthcare to expand its market share and enhance patient care. By establishing VR-based remote consultation venues, Banner Healthcare can effectively bridge the gap between patients in remote areas and specialized healthcare professionals. This approach enables patients to access high-quality healthcare without the need for extensive travel, reducing their expenses and improving their overall experience. Moreover, by reducing the strain on physical hospital infrastructure, Banner Healthcare can optimize its resources and allocate them more efficiently to critical cases.

Benefits:

1. Increased Accessibility: Patients in remote areas will have easier access to specialist consultations, leading to timely diagnosis and treatment.

2. Cost Savings: Patients will save on travel expenses and associated costs, while Banner Healthcare can optimize its resources by serving more patients without the need for additional physical infrastructure.

3. Enhanced Patient Experience: By leveraging VR technology, patients can receive personalized, immersive consultations, replicating an in-person experience.

4. Streamlined Workflow: Remote consultations will expedite the entire process, reducing wait times and enabling doctors to see more patients within a given timeframe.

In conclusion, the implementation of VR-based remote consultation rooms by Banner Healthcare presents a compelling solution to address the existing challenges faced by patients in remote areas. This technology-driven disruption will revolutionize healthcare delivery, providing accessible, cost-effective, and personalized care to patients while optimizing resources and streamlining the workflow. By embracing this solution, Banner Healthcare can expand its reach, enhance patient satisfaction, and establish itself as a leader in remote healthcare services.

Project Payback:Banner Healthcare's revenue in 2022 was reported as $7.8Bn. Considering that 50 remote consultation rooms have been successfully implemented across remote locations with strategic importance, Banner Healthcare's market share will significantly increase and assuming that the 35% of patients continue to stay with Banner Healthcare after consultation, we perform the NPV Calculations. We assume that the labor costs increase by 5% every year. Year 0 (Initial Investment Costs): $1,174,000

To calculate the updated NPV with a 5% increase in operating costs, we multiply the baseline operating costs by 1.05 for each year (1, 2, and 3). The discount rate of 8% remains the same.

Updated Operating Costs: Year 1: $810,000 * 1.05 = $850,500 + $48,000 + $126,000 + $190,000 = $1,214,500, Year 2: $810,000 * 1.05^2 = $893,025 + $48,000 + $126,000 + $190,000 = $1,257,025, Year 3: $810,000 * 1.05^3 = $937,676.25 + $48,000 + $126,000 + $190,000= $1,301,676

To calculate the forecasted benefits, we have assumed an increase of 15% in Banner Healthcare's income of $7.8 billion in 2022. Therefore, the projected revenues for Years 1, 2, and 3 would be: Year 1: $7.8 billion * (1 + 15%) = $8.97 billion, Year 2: $7.8 billion * (1 + 15%)^2 = $10.31 billion, Year 3: $7.8 billion * (1 + 15%)^3 = $11.85 billion

The NPV Calculations are as follows:

NPV = (-$1,174,000) + ($8,970,000,000 / (1 + 0.08)^1) + ($10,310,000,000 / (1 + 0.08)^2) + ($11,850,000,000 / (1 + 0.08)^3)

Simplifying further: NPV = (-$1,174,000) + ($8,970,000,000 / 1.08) + ($10,310,000,000 / 1.1664) + ($11,850,000,000 / 1.2597) -$1,174,000 + $8,302,777,778 + $8,852,491,485 + $9,402,454,780 $26,378,724,043

Therefore, with the updated operating costs and forecasted benefits, the NPV is approximately $26.37Bn. This indicates a highly positive NPV, suggesting that Banner Healthcare should invest in this project as it is expected to generate substantial returns.

Basing on the above given Information, answer the following:

1) Why is this worth allotting a budget to complete?

2) How will you know the project was a success?