Proposal For Opening A Physiotherapy Center Within The Hospital Premises, Essay.

This unit provides health leaders with an introduction to financial management in health and aged care settings as a basis for understanding the impact of leadership decision-making on financial outcomes and how financial decision-making impacts on clinical service delivery. Content includes an overview of health economics and economic evaluation, health care funding models, the principles, practices and tools for financial planning and management,basic accounting principles and financial terminology and using financial information and reporting for negotiating financial plans, tracking and evaluating financial performance and using financial information in decision-making within the clinical environment.

Due to the lack of proper physiotherapy clinic in the surrounding areas, the need of a new physiotherapy center can be observed among the people live in the surrounding areas (Rivera & Delaney, 2015). The demand for such center is growing day by day and as a result, the management of Nepean Blue Mountain Local Health District. Particularly among the elderly citizens, the need of such clinic is growing day by day. The facility which is offered from the hospital premises is not specific and thus it cannot fulfil the need of the people. Thus an approach has been made in order to fulfil these demands so that the people live in surrounding areas can have a proper treatment regarding their needs without any trouble.

Up to the present time, the people need to go to the surrounding towns to get the physiotherapy facility but the trouble during their journey lessens the effect of the treatment. Thus, it is required to open a new physiotherapy center in order to solve this problem. Due to this, some expenses needs to incur due to the opening of the health care center regarding the salary of the doctors, nurse and support stuffs. Some equipment is also needed to be purchased in this regard. Thus, it is required to follow certain business plan so that the incurred expenses can be recovered within a particular period (Seargeant & Spence, 2018).

The Proposal

In order to fulfill the growing demand, the physiotherapy center is needed to open within the hospital premises. But it should also be taken into consideration that the incurred cost due to the development of the infrastructure and the operating expenses in this project are being recovered within a specific period of time. In this case, the revenues gained from the patients are considered as the main source to recover all the invested capital in this project.

Aims

The main focus of this project is to lessen the harassment of the patients who needs to go outer towns in order to get the physiotherapy treatment by providing them a proper and specific treatment center within their locality in a reasonable cost. The availability and price of the service are the two key points for which the healthcare center is expected to attract more patients in the hospital which will also help to obtain a good name and the cost incurred in this project can be recovered (Doherty et al., 2017). In order to track the exact progress of the health center, a short time break even analysis is necessary for this project by the hospital management.

As the health center is particularly aimed for the satisfaction of the patient regarding a particular service, it is also expected that the hospital will be able to obtain more revenue during its operations by collecting the fees and other charges from the patients. In order to make this happen, the healthcare center needs to provide quality service in a reasonable price in order to attract more patients. 

The Proposal

Benefits

• Efficiency gains

As the main aim for the physiotherapy center is to provide quality service to the patients, the overall effectiveness of the hospital will certainly increased due to the course. This will increase the efficiency of the hospital and thus the resource management of the hospital management will be developed. The human resource management engaged in this project will also be developed due to the course and the support stuffs, nurses and doctors needs to put the utmost efficiency in order to offer the ultimate patient satisfaction (Finkler et al., 2016). Thus, by improving the service quality of the physiotherapy center, the efficiency of the health care center can be increased.

Thus, in order to recover all the invested capital in this project and make some substantial profit out of it, it is necessary to put utmost efforts in terms of the client satisfaction as it will help the management to increase the revenue.

• Potential savings/increased costs

As many patients is moving to another center for better treatment regarding the physiotherapy service, opening a specific center for particularly this purpose will help to attract those patients which will increase the gross revenue of the center. But in order to do this, the hospital authority needs to incur certain costs due to the increased expenses regarding the appointment of new staffs, maintenance of the center, purchasing new equipments and other costs regarding the medical supplies (Floyd, 2016).

            Due to these costs, it is necessary to recover the capital investments within a short period of time due to the risk factor inclined in this project. Apart from the healthcare related expenses, there are certain other costs which is needed to be considered such as electricity bills, insurance premium, advisory services and other charges (Rivera & Delaney, 2015). Apart from that, the depreciation value of the equipments which will incur during the operations of the physiotherapy center in the upcoming time will also needed to consider in order to evaluate the exact cost structure of the center.

• What are the expected benefits of this proposal?

Risks

List the risks (in the table) that are associated with this proposal either perceived or real

Process

• Action (insert as a flow chart as attachment 1)

The specialised physiotherapist and the trained nurse and other stuffs are required for the utmost efficiency of the organisation. An advising committee should be made in which, the departmental heads, specialised doctors and a financial advisor will be involved. The management procedure should be governed by the committee whereas the operational factors should be inspected by the department head.

Resources

Apart from the employees and equipments that are engaged with the project, there are certain other things which are required for the project. First of all, a nurse should be appointed in order to maintain the medication and for other official work such as appointment to the doctors, a representative should be appointed. An employee should be responsible for maintenance of the equipments and other necessary things such as electricity, water and waste disposal in order to provide an ultimate client satisfaction (Marino, 2017).

Reporting of outcomes

All the data regarding the financial and operational activity should be accounted by the receptionist and this is needed to be reported to the head of the department. The other staffs such as accountants, cashiers doctors should provide the reports to the representative from which, it will be collected and reported to the designated official (Reid, 2016).

Aims

Financial Information

Some of the primary requirements that are needed for the preparation of the budget from a zero base are:

• Physician
• Nurse
• Receptionist
• Cleaning staffs
• Medical equipment
• Marketing
• Insurance
• Advisory services

In the given business case, the total cost for the operations of the project is being calculated as $10,53,844. Certain values have been decreased in terms of reducing certain expenses such as production cost, rent, and interest premium. After accumulating all the costs, the overall reduced cost of the project is being calculated as $ 9,48,459.

The cost of the operations for the project is being calculated as $10,58,200. But in terms of the calculated income for the first year is being calculated as the same. Thus, it can be stated that the organisation will not be able to generate any kind of profit from the business. Thus, the operational cost and the incurred revenue of the organisation have been broken even.

References

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