Would like someone to do the first 3 pages and get me started. The information on the spreadsheet charts should be added to support the document. I also attached the template.

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 health care. 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.

Rural Urgent Care Centers Business Plan Template I. Executive Summary: II. Market Analysis: Discuss how economic principles presented throughout the course relate to investment in the Rural Urgent Care Center (RUC), including the following: a. Macro- and microeconomic implications of market competition b. ACO payment incentives to the organization c. How the RUC impacts economic efficiency III. Financial Analysis: Capital Requirements To estimate the total funds required for launch prior to commencement of operations, RUC has developed the following assessment of anticipated expenses related to the building of a single urgent care facility with 3,260 sq. ft. of usable space and 4,175 gross sq. ft. Capital Requirements RUC Site Total Construction Cost Contingencies, Professional Fees, Management & Overhead, Equipment Total Project Costs $ $ $ Reimbursement Model The RUC will charge a flat per-visit fee of $262, based on similar current hospital ED visit charges. This averages the costs of Level 1-Level 3 visits, with expected fee growth of 5%. The reimbursement would remain consistent with similar visits at the Emergency Department, thus local payers should be willing to accommodate the fee. Break-Even Analysis for RUC 2015 Laureate Education, Inc. Page 1 of 3 Revenue per Case Cost per Case Contribution Margin Direct Costs Indirect Costs Total Costs Break-Even Quantity (Visits) Cost per Patient Visit Cost per Patient Visit $ RUC Pro Forma A Pro Forma has been generated for each RUC based on proposed Phase I operating hours (both revenue and expenses will change significantly for additional phases). RUC Pro Forma RUC Line Item Patient Revenue Gross Revenue Government Grant Net Operating Revenue1 Operating Expense Salaries and Benefits NET CASH FLOW ANALYSIS Year 1 Year 2 Year 3 Year 4 Year 5 Variable Care Related Expenses Other Non-Personnel Costs Occupancy Costs Repairs & Maintenance 2015 Laureate Education, Inc. Page 2 of 3 Housekeeping Communications Miscellaneous Direct Operating Expense2 Income from Operations3 Indirect Expense4 Total Expense5 Net Cash Flow6 2015 Laureate Education, Inc. Page 3 of 3 FINANCIAL PLAN The following is the financial plan for RUC Break-even analysis 8000000 GENERAL ASSUMPTIONS Year 1 Plan month Current interest rate Long term inerest rate Tax rate Year 2 1 15% 15% 30% 7000000 Year 3 2 15% 15% 30% 3 15% 15% 30% 6000000 5000000 4000000 3000000 2000000 BREAK-EVEN ANALYSIS 1000000 0 Units revenue($) cost($) 1 2 3 4 5 6 7 8 9 10 11 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Units revenue($) cost($) 0 750000 1500000 2250000 3000000 3750000 4500000 5250000 6000000 6750000 7500000 3000000 3250000 3500000 3750000 4000000 4250000 4500000 4750000 5000000 5250000 5500000 Proforma Profit and Loss Year 1 Year 2 Sales $ 5,684,000 $ Direct costs of sales $ 2,842,000 $ Other production expenses $ - $ Total cost of sales $ 2,842,000 $ Gross margin $ 2,842,000 $ Margin percentage 10 Expenses Payroll $ 882,300 $ Sales and marketing and other ex $ 308,960 $ Telephone $ 36,000 $ Utilities $ 90,000 $ Payroll taxes $ 88,240 $ other expenses $ - $ $ - $ Total operating expenses $ 1,405,500 $ Profit before interest and taxes $ 1,436,500 $ EBITDA $ 1,436,500 $ Interest expense $ 29,820 $ Tax incurred $ 430,950 $ Net profit $ 975,730 $ Net profit/Sales 17.2% year yearly profit $ 7,389,200 3,694,600 3,694,600 3,694,600 10 970,540 310,460 36,000 96,000 97,060 1,510,060 2,184,540 2,184,540 23,500 655,362 1,505,678 20.4% Year 3 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1 975,730 $ 9,605,800 4,802,900 4,802,900 4,802,900 10 1,067,580 316,680 36,720 97,920 106,760 1,625,660 3,177,240 3,177,240 16,900 953,172 2,207,168 23.0% 2 1,505,678 $ Yearly profit 2500000 2000000 $ 1500000 1000000 500000 0 1 2 year 3 2,207,168 yearly profit 3 Pro Forma Cash flow Year 1 Cash from operations Cash sales Subtotal cash from operations Year 2 Year 3 $ 4,964,000 $ 4,964,000 $ 7,389,200 $ 7,389,200 $ 9,605,800 9,605,800 Subtotal cash received Expenditures Cash spending Bill payments Subtototal spent from operations Additional cash spent $ $ $ $ $ $ 4,964,000 882,300 3,489,080 4,371,380 - $ $ $ $ $ $ 7,389,200 970,540 4,976,700 5,947,240 - $ $ $ $ $ $ 9,605,800 1,067,580 6,344,700 7,412,280 - Long term liabilities principal repayment Purchase other current assets Purchase long term assets Cash dividends Subtotal cash spent $ $ $ $ $ $ $ $ 66,000 4,437,380 526,620 1,254,300 $ $ $ $ $ $ $ $ 66,000 6,013,240 1,375,960 2,630,280 $ $ $ $ $ $ $ $ 66,000 7,478,280 2,127,520 4,757,800 $ 1 1,254,300 $ Net cash flow Cash balance year Cash balance 2 2,630,280 $ Cash balance $ 5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 1 2 Year year Cash balance 3 3 4,757,800 Pro Forma Balance sheet Year 1 Year 2 Assets Current assets Cash Inventory Other current assets Total current assets $ $ $ $ 2,508,600 534,600 3,043,200 total long term assets $ Accounts payable $ Other current borrowing Total current liabilities Long term liabilities total liabilities Paid-in capital Retained earnings Earnings Total shareholders' equity $ $ $ $ $ $ $ $ $ 80,000 710,480 536,000 1,246,480 204,000 (376,640) 1,969,360 1,796,720 Total liabilities and shareholders' equity $ 3,043,200 $ $ $ $ $ $ Year 3 $ $ $ $ 9,515,600 1,144,680 10,660,280 3,043,200 $ 6,141,120 $ 10,660,280 630,480 $ 834,880 $ 1,061,600 $ $ $ $ $ $ $ $ $ 5,260,560 880,560 6,141,120 80,000 914,880 404,000 1,318,880 204,000 1,592,720 3,025,480 4,822,200 $ $ $ $ $ $ $ $ $ 80,000 1,141,600 272,000 1,413,600 204,000 4,618,200 4,424,480 9,246,680 6,141,080 $ - $ 10,660,280 - Ratio Analysis Sales Percent of total assets Inventory Other Current Assets Total current assets Long term assets Total assets Current liabilities Long term liabilities Total liabilities Net worth Percent of sales Sales Gross margin Selling and administrative expenses Advertising expenses Profit before interest and tax MAIN RATIOs Current ratios Quick ratio Total debt to total assets Pretax return on net worth Pretax return on assets Additional ratios: Net profit margin Return on equity Activity ratios: Inventory turnover Accounts payable turnover Payment days Total asset turnover Debt ratios: Debt to net worth Current liabilities to total liabilities Additional ratios: Assets to sales Current debt/total sales Acid test Sales/ net worth Dividend payout ratio Year 1 n.a Year 1 Year 1 Industry 30.00% 30.00% 20.00% 17.57% 0.00% 100.00% 100.00% 14.34% 0.00% 100.00% 100.00% 10.74% 0.00% 100.00% 100.00% 49.00% 23.00% 81.40% 100.00% 23.35% 17.61% 40.96% 59.04% 14.90% 6.58% 21.48% 78.52% 10.71% 2.55% 13.26% 86.74% 40.70% 15.20% 55.90% 44.10% 100.00% 50.00% 32.72% 0.00% 100.00% 50.00% 29.62% 0.02% 100.00% 50.00% 27.09% 0.02% 100.00% 38.30% 22.10% 2.10% 4.28 3.53 40.96% 156.58% 92.45% 6.71 5.75 21.48% 89.63% 70.38% 9.34 8.34 13.26% 68.36% 59.29% 2.22 0.62 55.90% 1.70% 3.80% 17.32% 109.61% 20.47% 62.74% 23.03% n.a 47.85% n.a 10.91 12.07 27.00 3.74 10.44 12.17 26.00 2.41 9.49 n.a 12.17 n.a 27.00 n.a 1.80 n.a 0.69 0.57 0.27 0.69 0.15 n.a 0.81 n.a 0.27 23% 3.53 6.33 0.42 15% 5.75 3.06 0.55 n.a 11% n.a 8.34 n.a 2.08 n.a 0.00 0.00 0.00 n.a