Business Plan for ABC Outpatient Facility

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School

Walden University *

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Course

7100

Subject

Medicine

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by teeteew28

Business Plan for ABC Outpatient Facility Name Institution Course Professor Due Date

Business Plan for ABC Outpatient Facility Executive Summary ABC, a not-for-profit health system, has lost market share over the past five years due to competition from other health systems and urgent care clinics. ABC may form a multi-facility outpatient center with ambulatory physician medical groups to innovate and compete. ABC's market evaluation predicts that 80% of an outpatient center's business would come from its existing facility, making this joint venture crucial. A standalone outpatient clinic loses money because the system loses money. In the face of increased competition, such an initiative must be evaluated for strategic and long-term benefits. The for-profit venture will provide surgery, urgent care, and radiology. This research will examine the joint venture's market, competitors, and services. The report will assess key financial metrics to establish the venture's feasibility and possible economic benefits for each business. With this joint venture, ABC may regain market share and rebrand as a forward-thinking, patient-centered healthcare provider. ABC may survive in the ever-changing healthcare sector with this unique method. II. Market or Competitive Analysis Healthcare providers are facing unprecedented challenges, including increased competition from alternative healthcare providers and urgent care centers. This section analyzes the current market and evaluates ABC's collaboration with ambulatory physician medical groups' pros and cons. ABC has lost market share over the past five years, according to recent market polls. This can be attributed to the heightened competition from three rival health systems operating in its primary and secondary service markets (Baker, 2001). Furthermore, a pair of nationwide pharmaceutical retail chains have established expeditious medical care facilities within the vicinity, augmenting the level

of rivalry. Consequently, ABC has faced pressure to engage in innovation and adjust to the evolving market conditions. The suggested collaboration presents a favorable prospect for ABC to recover its market share and enhance its competitive standing. ABC can expand its services and outreach by collaborating with ambulatory physician medical groups to offer primary care and outpatient services to community members. In addition, the establishment of a joint venture has the potential to assist ABC in sustaining its significance and standing as a prominent healthcare provider within the locality (Porter & Teisberg, 2006). Notwithstanding, there exist plausible hazards linked to engaging in a collaborative enterprise with ambulatory physician medical groups. As an illustration, the formation of a joint venture could potentially result in a reduction of the revenue generated by ABC. Additionally, the joint venture would need to be structured as a profit-oriented entity, thereby rendering it liable to federal and state taxation. Moreover, the duplication of equipment and staff by ABC would result in only a marginal increase in volume, rendering the venture seemingly unprofitable. Notwithstanding the aforementioned risks, the potential advantages of the collaborative enterprise surpass the potential hazards. The proposed joint venture is expected to enhance the scope and coverage of ABC's services, thereby facilitating the restoration of its market share and bolstering its competitive position vis-à-vis other healthcare providers (Baker, 2001). Furthermore, the collaborative enterprise has the potential to bolster ABC's standing as a cutting-edge and progressive healthcare organization. The suggested collaborative enterprise presents a distinctive occasion for ABC to adjust and contend in a swiftly evolving healthcare milieu. ABC can enhance its competitive standing and offer cost-effective healthcare services to the local populace by collaborating with

ambulatory physician medical groups. Although there exist potential hazards linked to the enterprise, the potential advantages surpass the potential risks. III. Service Lines for the Joint Venture The new outpatient facility proposed by ABC and ambulatory physician medical groups will offer surgical, urgent care, and imaging services. The urgent care center will treat acute injuries and illnesses, while the surgical center will execute numerous surgeries. MRI, CT, ultrasound, PET scans, and diagnostic radiology will be offered at the medical center. The surgical center's procedures are estimated to cost 5,000 dollars for the first three years, 6,000 dollars for the next three years, and 8,000 dollars for the last four years, totaling ten years. ABC's surgical performance and market analysis inform these estimates. The surgical center's demand is likely to rise due to rising outpatient surgery demand. General, orthopedic, ophthalmological, and urological surgeries can be performed at the surgical facility. Appendectomy, hernia repair, and gallbladder removal are examples of general surgery. Orthopedic surgery offers joint replacements, rotator cuff repair, and spinal surgeries. Cataract, corneal, and LASIK surgery are ophthalmologic procedures. Prostate, kidney stone, and bladder surgery are urologic surgeries. The joint venture can meet regional demand for outpatient surgical services by offering many treatments. Radiology center procedures are expected to reach 11,250 in the first year, 12,500, 13,750, and 15,000 in the next three years, 17,500, 18,750, 20,000, 21,250, and 22,500 in the last two years. These forecasts reflect the region's expanding radiology demand and ABC's radiological services. The radiology center will provide diagnostic and treatment services. Diagnostic radiology uses X-rays, CT scans, and MRIs. Therapeutic radiology will treat cancer with radiation. The

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