Outline
In the Nepean Blue Mountains Local health district, there are many such patients who are suffering from drug addiction and specifically this is effecting the youth to a high extent. They want to come out from the addiction but due to lack of systematic treatment they are unable to do so. Therefore, it is very important to create a drug rehab center where drug addicted people will get proper treatment.
Local health district will be highly helpful and it will create a lot of value for them if this drug rehab center is setup. Hence., in order to provide their patients with a better rehabilitation centre, Ray of Hope should be formed to suffice the need. The local people who are drug addict and whose family do not have enough money to give proper treatment to reduce this addiction and they will get immense help from the rehab center.
It is very important for the rehab center to remain in the business for a long time. Quality service is one of the important factor which should be kept in mind. Creative problem solutions technique is necessary to sustain the business in the market. Thus, this service of treating drug addicted patient is necessary to be introduced as a business plan. There are many drug addicted people who wants to come out of this deadly lifestyle into a normal one, but they are unable to do so because a proper treatment is necessary to stop the addiction. This is another reason which leads to the setting up of the drug rehab center.
There are a huge number of population across the world who find peace in drugs and alcohol which is illegal in nature. They cannot anticipate the consequences that may arise due to the perennial intake of this illegal drugs and alcohol. The young generation are mostly getting addicted to the drugs and before understanding the deadly consequences their lives are getting spoiled. In recent years, it has been noticed in the Nepean Blue Mountains Local health district that most of the people are getting aware of this types of addiction and they are also becoming aware of the health risks that are involved due to this addiction. It has been seen most of the drug addicted victim wants to get rid of this deadly feeling and want to start their life with a healthy note. Though they want to stop this addiction but they are not aware of the proper treatment. The reason behind the set-up of a drug rehab center is to provide proper treatment to those in need so that they can again star their life properly and in a healthier version.
Background
The cost involved for setting up the business includes hiring specialized doctors and nurses for the treatment. Psychologists should also be hired because after the treatment a proper medical counselling of the patients should be done to see the progress of the patients towards a normal life. An emergency service department should be there in order to take care of patients who is in a very crucial stage. There are many drug addicted patients who lose their sanity due to excessive addiction. This is the reason few security staffs should be hired so that they can have a clear eye on the patients and see whether the patients are creating any nuisance or not.
Nepean Blue Mountains Local health district has bene successfully imparting medical and health facilities to the patients in the area. Long with such provisions, it is quite important to provide drug rehab services in the center. Treating the patient with utmost care is one of the aim this means efficiency in service by everyone involved is of immense importance. Since, there are a significant amount of patients who are drug addicted it is expected that they will arrive to the rehab center for their treatment. Therefore, with more number of patients the business plans aim at generating more revenues.
Efficiency gains is generally measured by taking in to account the relationship between the earnings and the cost that has been incurred from the business. The drug rehab center will attract more number of local patients specially the youth generation. This will help the center to earn more number of revenues and thus there can be a significant amount of gain from this business.
- Potential savings/increased costs
In a drug rehab center too much of machines are not necessary for the treatment. Various machineries involved in the treatment of patients involve high amount of costs. Thus, this cost can be reduced. Estimated increase in costs can take place due to the involvement of more number of doctors and nursing personnel. In a drug rehab center psychiatrist are also required because it is very important to measure the mental condition of the patient more frequently because as discussed earlier such types of patients can sometimes lose their sanity. Estimated costs can also increase for setting up of few doctor chambers.
- What are the expected benefits of this proposal?
|
Factor |
Benefits |
|
Patients |
There are many victims of drug addict who wants to get out of this addiction. This rehab center can help them to do so. A proper treatment can help them to get back a heathier life. Along with the physical checkup the patients can also get assistance of psychiatrist for proper mental checkup. |
|
Facility |
In the rehab center all the patients will be kept under proper care. Along with the patients one family member of the patient can also stay with the patients. The food and place to stay of the patient’s family member is free. The rehab center also will have an attached medicine shop from where the medicines can be easily available. |
|
Clinicians |
Schedule for the checkup is arranged in such a way that doctors can easily check a significant amount of patient in one day. Doctors will be assisted with a nursing personnel so that there exists no problem while carrying out the treatment. |
|
Other |
There is an arrangement of mid-wives. So, if any family member of the patient finds it difficult to handle the patients they can hire mid-wives from the center itself. |
Risks
|
Risk Issue |
Severity |
Impact |
Mitigation Plan |
Notes |
|
Financial risk |
Due to the involvement of the huge capital investment, a risky financial factor is being involved in this project. The burden of incurred liability and other interest from the investment is quite big for the company and due to this; the obligation of the project management for the recovery of the stated amount is also great (Suchman et al., 2018). |
As the investment in this project is very high, the main aim of the organisation should be to recover the invested capital as soon as possible. Due to this, the service fees for the patient can be increased, or the production cost involved in the project can be reduced in return of compromising some of the facilities provided by the company. This can affect the quality of the service and in connection with this; the customer satisfaction can also be hampered (Erikson, 2015). As a result, the number of patient can be decreased and the collection of revenue will be lowered. |
In order to maintain the client base, the company need to make it sure that the services provided by the physiotherapy center fulfil utmost customer satisfaction in order to generate more revenue. If the management maintains the customer satisfaction, it will increase the reputation of the health care center and thus, will be able to generate more clients. As a result, the revenue will be generated more efficiently and the invested capital will be recovered. |
By keeping in mind about the demand of a physiotherapy centre in the nearby areas, it is important and worth to take such risks in the current scenario in order to generate more revenue and increase the reputation of the hospital. |
|
Patients |
As the expected number of patients for the physiotherapy centre is a mere assumption, it is very risky to invest such a huge amount of money in this respect as the recovery of the capital is totally dependent on the fees collected from the patients. |
The impact of the changes in the number of the patients can be seen upon the generated revenue of the physiotherapy centre, and thus the recovery of the capital is directly linked with the number (Cheung & Gu, 2016). |
In order to attract sufficient amount of patient in this hospital, it is required to maintain the quality and the price of service as it is the key point for maintaining the client base. |
The number of patients taking service from the physiotherapy centre is very important as this measurement is directly linked with the revenue generated by the hospital (Wright, 2017). |
|
Insurances |
The expenses which are being incurred due to the charges for the insurance premium is also big as it involve a huge amount of the invested capital. |
The insurance expenses can raise the operational cost which means the incurred capital liability in this project will also be increased. |
Though the insurance cost cannot be reduced, further expenses relating the fines and penalties can be avoided by paying the premium within the due time. |
The insurance of the equipment and other assets is necessary as it will serve as an additional security for the health care centre. |
- Action (see attachment 1 in the appendix)
For the process of developing the project, it is required to make a planning committee for the purpose of making the financial forecast and outlining the primary steps for collecting the capital and implementing the taken policies into work. Apart from that, it is also required to create an advisory committee which will track the progress of the project and suggest some strategies for any unexpected situations (Cleverley & Cleverley 2017). A management team should also build in order to maintain the overall progress of the project and this team needs to report the advisory committee for every action taken in the project.
The Proposal
For the next steps, required staffs such as physiotherapist, receptionist, nurse, administrative staffs, special rehabilitation doctors and the necessary equipment such as tilt tables, projector and gym equipment is needed to be purchased (Wright, 2015).
The additional resources that is necessary for the project is listed below:
- Consumable equipment
- Dynatron Solaris Plus 705
- Electric and non electric tilt tables
- Projector and screen
- Gym equipment
- Utilities
- Water
- Electricity
- Internet
- Administrative costs
- Repair and maintenance
- Insurance system
- Security system
- Building rent
- Depreciation cost
The cost for the consumables is very important as it involves the quality of the service for the centre. The utilities are also required in order to perform the basic operations. The administrative costs are also important in order to maintain the operations of the centre. The depreciation is also mandatory to calculate in order to reflect the overall cost structure (Enthoven, 2014).
The reporting of outcomes should follow the designated authorities. The administrative department should control the staffs and other operations made in the physiotherapy center. This department should report the advisory committee about all the financial and progressive data incurred from the project. The advisory committee is responsible for reporting the central management of the hospital (Wright et al., 2017).
The necessary requirements for the zero based budget in this project is considered are
- Special rehabilitation doctors
- Physiotherapists
- Administrative staff
- Oncost
- Dynatron Solaris Plus 705
- Electric and non-electric tilt tables
- Projector and screen
- Gym equipment
- Water
- Electricity
- Internet
- Repairing and maintenance
- Insurance system
- Security system
- Building rent
- Depreciation
In this case, the cost which is being calculated for the operations of the physiotherapy centre is calculated as $35,88,144. This cost is included all the maintenance and other expenses. After implementing the optimal 10% less from the incurred cost, the cost has been reduced by $149855 and resulting a total operating cost of $34,38,144.
After calculating the break-even analysis of the project, it can be seen that the company has managed to incur a total cost of $35,88,000 whereas the expected revenue for the project in the upcoming year is calculated as $35,86,500. Thus as a result, the profit generated by the physiotherapy centre is being calculated as $1499.
References
Cheung, A., & Gu, X. Y. (2016). Health finance. Social Policy Reform in Hong Kong and Shanghai: A Tale of Two Cities, edited by Linda Wong, Lynn White, and Shixun Gui, 23-52.
Cleverley, W. O., & Cleverley, J. O. (2017). Essentials of health care finance. Jones & Bartlett Learning.
Enthoven, A. C. (2014). Theory and practice of managed competition in health care finance. Elsevier.
Erikson, S. L. (2015). Secrets from whom? Following the money in global health finance. Current Anthropology, 56(S12), S306-S316.
Suchman, L., Hart, E., & Montagu, D. (2018). Public–private partnerships in practice: collaborating to improve health finance policy in Ghana and Kenya. Health policy and planning.
Wright, J. (2015). Essential package of health services country snapshot: Bangladesh.
Wright, J. (2017). The link between provider payment and quality of maternal health services: a framework and literature review.
Wright, J., Bhuwanee, K., Patel, F., Holtz, J., van Bastelaer, T., & Eichler, R. (2017). Financing of universal health coverage and family planning: a multi-regional landscape study and analysis of select West African countries: Guinea.
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