400845 Health Finanacial Management

A business case is being provided in relation to the Nepean Blue Mountains related to the expansion of the emergency department of the organization that will provide the economy with community health and hospital care. The business proposal which is provided is related to the implication of innovation and excellence of the health delivery centre. Regarding the proposal, it was made keeping in mind to provide services that are safe, high quality and equitable, which will be beneficial for the community and patients. As there is an expansion, it is done so that it can cover up most part of the districts that have a huge population. In the process of this proposal, there will be the recruitment of more staffs which includes nurses, doctors, technicians etc. The generation of income come from medical surgery and patient consultancy. The services that are introduced are mainly implemented, which will help the organization to process faster with the implementation of the advancement of technology. Through this business plan, it can achieve success at a major level and can expand its services throughout the district.

The proposal for this business strategy is being given so that the hospital can provide services to more patients. In this strategy, there are implications of advanced technology through which the staffs can work efficiently. The recruitment of staffs that will happen will be as per their specialization, if they work as per their specialization, then there will be less time consuming to do the work (Blignault et al., 2018). Under the category of staffs, there is nurses, doctors, assistants through which they will monitor all the operations. Under the consumable items, there is medicines and kits that are used at the time of operations. There are expenses on electricity, oxygen and lightning. Administration expenses consist of staff salaries, rent for building and office expenses. Depreciation is normally on lab and office equipment (Mkalaf, 2015). The organization will earn from patient consultancy, diagnosis centre and from surgeries. Thus, through expanding the structure, it will be beneficial for both the organization and patients as more patients will come to take the services, more will organization earn the revenue. 

The business strategy plan is made so that more patients should get the facility that the organization will offer great prices. It will help the patients to get all kind of services under one floor.   

Through this proposal of the business plan, emergency department of Nepean Blue Mountain can provide services to patients which will help the organization to earn more revenue. With the implication of new types of machinery which is used in laboratories and equipment's which is used at the time of operations. Though the plan is made with a focus on the analysis of break-even, where the budget will clearly provide an idea of how they can earn more revenue. Applying the budget, the organization can monitor all the expenses and income; they can make changes as per their requirement (Baio & Dawid, 2015). A contingency plan is also provided, which is done on the basis of less than 10% of the optimum budget, that will act as a guide to the organization by which they can organize.

This proposal will provide Nepean blue mountain hospital with some efficiency gains that are discussed. Firstly, there will be a benefit with the recruitment of efficient staffs as the time required in working will be much less. Secondly, with the addition of new technology equipment’s the staffs will work more professionally with advanced equipment’s. The medical assistants can use the technologies in hospitals thorough which they can work faster in case of emergencies (Rumbold et al., 2015). The costs can be reduced as there is less number of staffs required because, with technology, the tasks are done by in less time. The organization can earn more revenue if they provide services to more patients.

As per the budget, it was shown by the analysis of break-even where at the time of opening the emergency department of the hospital, there is no profit any loss. Through following the budget costs, they can interchange their quantity items as per their requirements, and it will help in cost reduction (Sparkes, Durán & Kutzin, 2017). The savings can be made if the organization can earn revenue in a huge margin and that will be possible if the patient takes to make use of the services which they provide.  

The costs can be decreased in some areas where there is more involvement of staffs, inefficient staffs should be eliminated from the organization, and in that place, skilled employees should be recruited so that they can do multiple tasks at one time. Through this process, there can be some cost-cutting done. In the other part, the savings can only be associated if the organization can earn more revenue, that means if they can cross the break-even point, form there, the organization can earn more revenue.      

Flowchart for emergency department of Nepean Blue Mountain Hospital

From the flowchart, it can be seen that at first, the patient should register their name. After the registration process is completed, then the nurses and doctors will check up the patient, and they will take the necessary steps (Nelson & Woodcock, 2015). The patient will be headed to the early treatment zone, in that department, the patient will be treated and from there upon the condition of the patient the transfer will be done for another treatment (Ross, 2018). The nurses will take care of the patients, and in the meantime, the doctor will come to check up on patients. If the patients are considered to be fit, then they will be sent home (Kister, 2015). But, if they need any treatment, then they will be treated in the hospital. Furthermore, if they want to checkup from the doctors, then they can come to visit the doctors in the hospital.   

The administrative department will implement this proposal as per their requirement, so it will be easy for them to go forward with the plan and the contract. There are managers of various departments who will take forward this proposal (Gallagher, 2016).

The resources that are required for this proposal are discussed below. Firstly, there will be more recruitment of skilled nurses, doctors and technicians. Secondly, for the consumables, the items included are medicines, drugs, injections and diagnostic kits, which will be required for the treatment of patients (Dishman, 2019). Under the third category, which is a utility, there is electricity, lighting which is mainly required to run the hospitals so that all the patients should get facilities. Thus, all these things are required so that this business structure plan can be executed.

1. In executing the business strategy, there are certain individuals who will monitor all the activities that will help in managing outcomes, savings, and if there is any possibility of cost-cutting in emergency department of Nepean Blue Mountain Hospital. There will be a floor manager who will take a report of all the activities, i.e. from registration of patient to discharge of patient. Nurses and doctors will report all the activities to the floor manager (Terzic et al., 2015). In the finance department, there are accountants who will take care of all the incomes and expenses that are shown in the budget. The accountants of hospital will report all the financial activities to auditors. After auditing the financial data, the auditors will decide if there is any possibility of cost-cutting. All the reports are to be sent three months periodically so that the manager can take some steps if required.

In the optimal budget, under the head of consumable items, most of the items will vary depending upon the number of patients. If the number of patients is more, then the items will be required as per the requirement of patients are more. Under the head of utilities, the demand for oxygen item is dependable as it will be required as per the demand of the patients. Nepean blue mountain hospital can only earn more revenue if the number of patients visited to consult doctors is more, then only there can be an increase in revenue.  

The optimal budget is being prepared for the expansion of the emergency department of Nepean blue mountain hospital. In this optimal budget, all the items are given that will be required for the expansion of the hospital.

The contingency plan is provided where all the expenses and income are shown with less than 10% of the optimal budget.

4.   BREAK-EVEN ANALYSIS

In the break-even analysis, it is shown that Nepean blue mountain hospital is in a position of earning no profit any loss. By following this financial analysis, the emergency department of Nepean blue mountain hospital can earn more profit if they can execute the optimal budget properly. Through this budget, Nepean blue mountain hospital will focus more to be in the budget rather than making a profit.

In the Gantt chart, the activities are shown which will be required in the expansion of the emergency department of Nepean Blue Mountain Hospital. Firstly, there will be a selection of staff which will be from January to April. The site selection and survey for the location will take two months i.e. January and February. The equipment that will be used in the hospital will take March to July as per the requirements of departments. The preparation of plans and execution will start in February and will end in July. The interview for the recruitment of staff and nurses will take place from April to September. The purchase and delivery of equipment will be from April to July. From June to August all the equipment will be bought and kept in hospital. For the construction of the Hospital, the time required will be from February to October. Installation of equipment will be done from August to November. From September to December, training will be given to nurses and staff. 

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