Week
11 Assignment
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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.
To prepare for this assignment:
- Examine the provided scenario.
- Refer to the document “Background and Financial Data for Investment in the Rural Urgent Care Center”. Analyze the background and financial data for the RUC facility.
The Assignment:
Create a business plan (8–10 pages) that includes the
following:
- Executive summary
- Market analysis, including:
o Macro-
and microeconomic implications of market competition
o ACO
payment incentives to the organization
o How
the RUC impacts economic efficiency
Financial analysis, including:
o Capital
requirements
o Reimbursement
model
o Cost
per patient visit
o Pro
forma, including:
§ Patient
revenue
§ Operating
expense
§ Income
from operations
§ Total
expense
§ Net
cash flow
Note: You must support your business plan with
financial documents in an Excel spreadsheet. The 8- to 10-page paper
requirement, submitted as a Word document, does not include the title, Excel
spreadsheet, or reference pages. Your Assignment must be written in standard
edited English. Be sure to support your
work with specific citations.
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