pointers part 3
Amie1997
AmieOlmedaFinalSubmission_3rdreadercomments.docNEW LIFE SERVICES
BUSINESS PLAN
A THESIS
Presented to the Department of Healthcare Administration
California State University, Long Beach
In Partial Fulfillment
of the Requirements for the Degree
Master of Science in Health Care Administration
Committee Members:
Henry O'Lawrence, Ph.D. (Chair)
Erlyana Erlyana, Ph.D.
Nathan Gerald, Ph.D.
College Designee:
Erlyana Erlayan, Ph.D.
By Amie Olmeda
H.C.A., 2023, California State University, Long Beach
August 2023
Copyright Page
ABSTRACT
NEW LIFE SERVICES
New Life Services patients will be treated by professionals in the medical field who guide and direct them toward a healthier lifestyle. In addition to providing wound care and medication distribution, the services will also cover health and nutrition education and preparation for bariatric surgery. A management support coordinator will assist with all aspects of scheduling and copayments. New Life will be available around the clock to provide assistance and address any concerns that may arise. To define the entry point of the clinic, a full market analysis is required, just like for any other kind of business. It is essential to conduct market analysis in order to identify the trends that are present in a particular market. The potential areas in which one needs to invest are a guide for distinguishing the business from those owned and operated by competitors. They also help reduce the risks and losses that might arise from investing in an area that might be saturated, in addition to altering business services or products to suit a particular market. In the same vein, the market analysis identifies the factors that contribute to the success or failure of a certain company. When evaluating business success, expanding into new markets, or making any other important choice in the future, it will be necessary to refer back to the market study data.
TABLE OF CONTENTS
iii ABSTRACT
vii List of Figures
4 Marketing Definition, Potential, and Demand
7 Marketing Objectives and Goals
15 Strengths
16 Weaknesses
16 Threats
18 Federal Laws and Regulations
20 Human Resources and Employee Laws
20 Federal Laws and Regulations
22 Organizational Incorporation and Legal Framework
24 Miscellaneous Laws and Regulations
36 APPENDIX
38 References
List of Tables
27 Table 2: Summary of Assumptions of Expenses
29 Table 3: Summary of Key Annual Expenses
32 Table 4: Summary of Key Monthly Expenses
List of Figures
2 Figure 1: National Institute of Diabetes and Digestive and Kidney Diseases
12 Figure 2: Patient Flow Chart
15 Figure 3: Organizational Chart
Chapter One
MARKETING PLAN
New Life Services will be providing mobile healthcare services to qualifying patients. Medical professionals will treat them to guide and direct patients to a healthier lifestyle. The services will include wound care and medication distribution, nutrition and health courses, and bariatric surgery preparation. A management support coordinator will assist with all scheduling and copayments. New Life will be available 24 hours for assistance and in case of any issues. Like any other business, comprehensive market analysis is necessary to determine the clinic's entry point. Market analysis is critical for spotting the trends in a given market. The potential areas in which one has to invest guide in differentiating the business from those owned and operated by competitors and help reduce risks and losses which might arise from investing in an area that might be saturated besides altering business services or products to suit a specific market. Equally, the market analysis identifies the causes of success and failure for a particular business. Market analysis records are referred to in the future when monitoring business performance, exploiting new markets, or making any other critical decision.
Introduction
Obesity is one of the leading health issues not only in the U.S. but also across the world. Most of the studies which are centered on obesity study it alongside overweight. According to the World Health Organization (n.d.), obesity is the accumulation of excess fat in the human body, which leads to the body weighting the recommended weight levels, and an individual whose body mass index (BMI) is above 25 is considered over it; if it is above 30, they are declared medically obese. The statistics around the disease are alarming in the country, calling for urgent actions to address the issue. Both official and unofficial reports on obesity indicate that the number of those who are obese in the country has been on the rise in the last decade.
According to NIH (2021), over 70 million adult Americans are obese, while 99 are overweight. In about 37 states, more than 35% of their non-Hispanic population had obesity; in 10 states, they had data to cause reasonable belief that 35% of their Hispanic adults had the condition, while in 36 states, it was evident in the record that 35% of their population had non- Hispanic Black adults with obesity education and age, obesity in the U.S. decreased by education level and increased age (NIH, 2021). Similar data and information is illustrated by the National Institute of Diabetes and Digestive and Kidney Diseases, as shown in Figure 1 below. There is no sole cause of obesity among the American population. According to NIH (2021), the leading causes of obesity in the country are poor eating patterns, poor sleeping patterns, low physical activity levels, taking some medications, and social determinants of health and genetics. However, some studies have highlighted that though these factors are common, some are more prevalent in the U.S. than in other parts of the world.
Figure 1: National Institute of Diabetes and Digestive and Kidney Diseases
Table extracted from: NIH. (2021, September 30). Overweight & obesity statistics. National Institute of Diabetes and Digestive and Kidney Diseases. https://www.niddk.nih.gov/health-information/health-statistics/overweight-obesity
Like any other business, mobile clinics are founded on the conviction that they can get clients and generate come. According to (Yu et al. 2017), the prevalence rates are critical in determining the location, the costs, and the types of services a clinic should offer. With authoritative organizations and fractions converging that more than 35% of the American population has obesity, they open up fractions in potential investment areas (NIH, 2021). In addition, the cheap overhead of a mobile clinic makes quality medical care within reach of even the most financially strapped patients. The clinic helps improve health outcomes for individuals and communities affected by obesity by collecting data on obesity prevalence and results, contributing to research initiatives, and informing public health policies. With rising rates of obesity and associated health difficulties, the United States is confronting a major public health challenge. Healthcare clinics dedicated to helping people lose weight and lead healthier lives are desperately needed to solve this growing crisis (Yu et al., 2017). The mission is to improve the quality of life for Americans living with obesity by expanding access to qualified healthcare providers and subject-specific materials. However, the final decision can only be made after conducting a company analysis, defining the market, potential and demand, competitors, and customers. Establishing customized objectives and goals, besides establishing a comprehensive marketing strategy.
Company Analysis
New Life Services is based on the incredible urge to move health services to the people. Over the years, the American people have been decrying the need to have their benefits as close to them as possible. The establishment of mobile clinics has always been fronted as one of the most effective ways to take services to the patient's doorstep. According to Befort et al. (2020), despite their high demand, comparative statical analysis indicates that there are about 2000 mobile clinics in the U.S. This means that the number is not yet when considering that there are only 42 mobile clinics within the 47 states. All the services to be offered by the professionals will be provided by distinguished professionals.
The services provided by New Life Services include wound care and medication distribution, nutrition and health courses, and bariatric surgery preparation. Patients will offer guidance on the measures they can take for a healthier life. To ensure that the services are running effectively in the clinic, a management support coordinator will: be responsible for affecting schedules and copayments (Wan et al., 2020). The clinic's services will be available. The clinic's operations will mainly be in California, where all the communication with the clinic will be received.
Marketing Definition, Potential, and Demand
Most mobile clinics in the U.S. are made to respond to emergencies or function with a regular camping formula where they choose to stay in particular areas to serve their population. By doing so, they lose the sense of being " mobile," and they occupy just become hot of services of medical professionals attending to clients in a given location. This clinic will not discriminate against anyone within its daily service. Considering the increased number of mobile clinics in the U.S., it is clear that this is a potential area for investment. Between 1999- 2020, the prevalence rate in the country increased from 30.5% to 41.9%. These figures point to a market that has the potential to grow (NIH, 2021).
With the stains presented to the health system by the Covid- 19, there is an increase in demand for services tailored to meet the client's needs. One of the principal motor characteristics of obese clients is significantly less physical activity. Therefore, there is a high chance that they may not find it suitable to travel long distances in pursuit of receiving medical treatment. Some benefits that the patient will get by receiving treatment with New Life Services at the clinic are that they will have guidance and counseling on nutritional services for free, besides enjoying the interlink of the health facilities with which the clinic will be working. The cost for the services offered by the clinic will be set on the avatar market charges, which will open the clinic to all persons who need our services. Being a fully accredited clinic, national health and insurance policies will be accepted. The clinics' professionals will make all efforts that are humanly possible to ensure that they reach clients in remote areas.
Competitor Analysis
The U.S. is not yet saturated with mobile clinics. The main competitors will be mobile clinic services offered by learning institutions, other private entities, and government facilities (on rare occasions). An analysis of the services these facilities offer is that they are not fully customized to fit the needs of patients with obesity. Most of them are designed so that they should serve emergencies, respond to disasters, or camp in a particular area. New Life Services evolve around the idea that clients should not overcome distance challenges to get the best treatment services. The clinic's critical elements stand out compared to the competitor (Alam et al., 2020). Foremost, it will be among the few mobile clinics with members who can get subsidized services after paying a registration fee. Secondly, the client will spend quantifiable time offering guidance to obese clients. Thirdly, there will be professional follow-ups on all clients to ensure that they are adhering to the nutritional guidance given to them by the clinic specialists (Grewal et al., 2020). Besides providing quality at an affordable price, the clinic will have a coordinator with outstanding customer care capabilities available around the clock. In the future, the clinic expects to create an online interactive forum where seasoned clients will have their portal where they can log into and place service orders for themselves or their colleagues and relatives.
Customer Analysis
The clinic expects men and women at almost equal measure, with most being 45 years and above. According to NIH (2021), it is from the age of 45 that most American adults are diagnosed with obesity. Customers registered with federal and insurance health policies will also benefit from the clinic's services. New Life Services will also target more semi-urban and rural areas, which are traditionally lagging in access to health services. In addition to demographics like age and gender, information on the target market's income, education level, and employment might be helpful. Using this data, the clinic can gauge the interest in its services and better target it is advertising. If the clinic's intended clientele tends to have lower levels of education, for instance, it may be necessary to emphasize simplicity and clarity in its value proposition (Befort et al., 2012). It would be useful to get an idea of the other possible health issues the target audience may have besides obesity. The clinic can better cater to patients' requirements using this data. For instance, if diabetic patients comprise a sizable proportion of the clinic's anticipated clientele, the facility may wish to expand its diabetes care options. Clinics that do their homework on the local healthcare system can better serve underserved communities by zeroing in on regions with gaps in service. For instance, the clinic may need to provide all-encompassing weight management services if there are no other similar facilities in the target areas.
Marketing Objectives and Goals
The New Life Services will start with a single-module clinic and a communication center. After the quarterly performance, the clinic evaluates the areas it must improve. The most crucial objective is to offer quality services to the county, hosting the clinic offices. The clinic will build on the idea of the home first, then grow and prosper. The clinic aims that by the 4th year, it should have expanded to offer services in at least five counties. In addition, the clinic aspires that by the 5th year, it will have grown to have the capability to bid and compete for the provision of mobile clinic services in the state.
Marketing Strategy
The clinic will work with other hospitals, which will have formed an umbrella to distribute its material. In addition, it will take advantage of the social media space to ensure that it reaches all the clients in its service area. As a result, the clinic will buy advertising space from the leading social media platforms. The clinic can offer discounts or free services to those who refer their friends or family (Grewal et al., 2020). One way to encourage word-of-mouth advertising is to provide incentives to existing customers who bring in new ones. Referrals from satisfied customers are effective advertising, especially in the healthcare sector, where establishing credibility is essential. The facility might attend neighborhood celebrations, health fairs, and wellness seminars. This is a great chance to meet potential patients face-to-face and advertise the clinic's services. The clinic can produce content such as blog entries, films, and infographics to educate patients and the public about health and wellness issues (Alam et al., 2020). The clinic's reputation as a trustworthy information resource and its prospective patients' confidence will benefit from this. Patients may be eligible for reduced fees or other perks if the clinic works with their insurance provider. This may strongly entice potential clients interested in saving money on medical treatment.
Chapter 2
FEASIBILITY & SWOT ANALYSES
Pricing Management
New Life Services will focus on providing mobile healthcare services targeting qualifying clientele. The organization's main services include nutrition and health programs and bariatric surgery (Cole et al., 2020). New Life Services is a profit mobile healthcare provider and will focus on maximizing profits and value for its stakeholders. The initial capital for starting the business will come from shareholder contributions. Additional sources of funds will come from loans and grants associated with nutritional services around the globe. Therefore, the pricing management strategy employed by the organization is based on the costs associated with providing healthcare services, value perception from healthcare consumers, and the prices offered by rivals of the mobile healthcare providers (Encinosa et al., 2005). The pricing strategy is based on regular reviews and updates from industry trends, including price management planning changes, market conditions, and customer feedback.
Based on comprehensive market research, New Life Services will focus on a value-based pricing strategy once services commence. The value-based pricing strategy is most appropriate for New Life Services for various reasons. Since the business will focus on providing premium services to its clientele, the value-based pricing approach will allow New Life Services to set prices depending on the value perception of the services offered (Artenstein et al., 2021). This will be essential in avoiding the assumption that prices are based on the costs of service provision. Value-based pricing is effective for organizations focused on providing high-quality services. Especially businesses offering specialized or personalized healthcare services, which is highly applied in mobile healthcare services (Cole et al., 2020). New Life Services offers specialized healthcare services like nutrition and healthcare programs, bariatric surgery preparations, general wound care, and medication distribution.
The nature of services offered by New Life Services aims at helping patients attain and maintain healthier living conditions and lifestyles. Healthcare services help patients avoid heavy costs associated with treatment and interventions for obesity (Kaufman et al., 2018). Therefore, the perceived value of the services is significant for New Life Services' potential clientele. The organization will also implement a value-based pricing strategy to differentiate itself from competitors in the market (Encinosa et al., 2005). This will include offering premium services that align and justify the premium prices charged by the organization. This will also offer personalized care plans and access to healthcare professionals around-the-clock through physical, telemedicine, and concierge services. The value-based pricing approach will help attain and maintain high-profile customers who are capable and willing to pay for the exclusive healthcare services offered by the organization (Artenstein et al., 2021). This strategy will foster increased revenue and profitability for the organization.
Distribution Management
An effective distribution management approach is essential in ensuring New Life Services delivers healthcare services to patients efficiently and on time. New Life Services will focus on offering mobile healthcare services. However, the organization will have its head offices located in Southern California. The organization will concentrate more on offering obesity and nutritional services to patients in urban and suburban parts (Hinchliffe et al., 2022). This is attributed to the increased demand for healthcare services in such regions, which also offer an optimum service area, as depicted through demographic analysis, patient demand, and competition from other companies (Befort et al., 2012). The mobile clinics will visit patients at their homes, places of work, or community centers through regular scheduling approaches. The company will use a cloud-based inventory management framework and system to effectively manage inventories, including medical supplies and equipment (Serra et al., 2020). The cloud-based approach to inventory will be most appropriate for New Life Services based on the mobile nature of its clinics.
The patient flow plan will be initiated through the initial patient contact, and the patient must contact New Life Services by phone or email. The initial patient contact will facilitate appointment scheduling or service requests. A dedicated phone number and email address will be available to patients through social media platforms and the organization's website. This will be followed by appointment scheduling facilitated by the organization's patient management system. New Life Services staff members will have access to the patient management system, enabling them to view and manage appointments. Check-in will be conducted to verify identification and mode of payment at the front desk. Medical consultations will follow, where patients will meet medical professionals to assess their health conditions (Malone et al., 2020). Patients may receive treatment during their appointment, especially if they show urgent medical care. New Life Services will also offer follow-up services for continued care, in which this stage may also involve referrals or recommendations for further treatment. A management support assistant will help the patient with the billing and payment. Copayment will be collected at the point of treatment, while insurance claims will be conducted electronically. Patients will also be allowed to offer feedback on their experience and services offered by New Life Services. Below is the patient flow chart that illustrates the patient flow process.
Figure 2: Patient Flow Chart
Communication Management
Effective communication management fosters clear and effective communication in New Life Services. New Life Services will ensure effective and efficient communication between the clinic and its target audience, mainly high-profile healthcare consumers and personnel. This will be essential, especially in ensuring increased productivity and efficiency in the organization's operations (Fisher et al., 2017). The communication strategy employed in the organization will focus on improving trust among personnel and developing a rapport between New Life Services employees and patients. The organization will encourage increased transparency at all levels of communication. New Life Services will use various outreach strategies, including social media, community events, and campaigns, to foster effective communication with its target audience, especially clients and potential customers.
Internal communication will encourage vertical, horizontal, and diagonal strategies to promote effective communication across all facets of the organization. For instance, relevant patient medical data shall be shared between staff members during and during shift change (Young et al., 2016). The nurses will be informed of any complicated cases so that they can consult with the on-call physicians. The doctor will make any directives and important choices regarding his or her patients, and the nursing staff will be informed of those decisions and orders. The clinical and support staff will communicate consistently to expedite the patient's discharge. The director and administrative staff will coordinate to make business decisions that do not involve patient care (Scott, 2020). The director, the support staff, the doctors, the nurses, and the administrative staff will meet every week to review the previous week's activities and address any problems that may have arisen.
Management and Control
Developing an effective management and control plan aims to ensure New Life Services has the best personnel, leading to increased efficiency, productivity, and profitability. The director will be the organization's overall leader, oversee all teams, and preside over weekly status meetings to discuss the facility's performance and necessary adjustments (Kwedza et al., 2020). The director will also have input into the recruitment process and the final say over who is hired. The physician will be in charge of patient care from diagnosis to prescription to order placement. Most patients at New Life Services are potential candidates for bariatric surgery, so the doctor must have experience with these programs and preparation services. The physician will have admitting privileges at New Life Services and will review patient records before the visit to determine whether or not the facility can effectively treat the patient.
The administrative assistant is responsible for managing the daily operations and all non-clinical record-keeping. They will be responsible for sending and receiving invoices, processing payroll for New Life Services employees, and sending claims to insurance providers. The administrative help will also be responsible for scheduling the work of the cooks and housekeepers (Kuhlemeier et al., 2022). The administrative assistant and social worker will coordinate to provide the residents with various educational and fun opportunities. This role is crucial to the company's success and will assist all employees. The administrative staff will have an educational background of at least a Bachelor's in business or healthcare administration. There are five open R.N. openings at New Life Services. The first is the nurse manager, who is accountable for the actions of all nurses under their supervision. They will be responsible for putting together shift schedules for R.N.s and LVNs and answering any questions those workers may have. All nurses must have prior experience caring for patients who are mentally ill, as they will be responsible for providing day-to-day care and carrying out doctors' orders. Below is the organizational chart displaying the hierarchy and organizational structure.
Figure 3: Organizational Chart
SWOT Analysis
The SWOT analysis is essential in identifying factors influencing organizational decision-making for New Life Services. According to Benzaghta et al. (2021), SWOT is a strategic planning technique that offers assessment tools for determining an organization's strengths, weaknesses, opportunities, and threats.
Strengths
New Life Services depicts several strengths, including offering high-quality healthcare services. Patients will value the convenience of attaining premium healthcare services in the comforts of their homes or workplaces (Ostovan et al., 2013). Another strength is that the organization is flexible in terms of location, attributed to the mobile nature of its operations. This allows New Life Services to reach patients who may not have access to healthcare services. The organization also enjoys lower overhead costs, which translates to increased profit margins. New Life Services offers value-based pricing, which will help establish a competitive advantage over rivals and improve customer catchment.
Weaknesses
Being a mobile clinic, New Life Services faces the weakness of limited capabilities regarding its medical services. For instance, the organization is limited to offering complex and specialized medical services, which lowers its appeal to clients requiring advanced healthcare services (Borda et al., 2022). The limited availability of mobile clinics may not favor patients that require urgent medical attention. Other weaknesses include that New Life Services will have a limited patient capacity, reducing its ability to accommodate many patients. The organization's services depend on transportation, and the efficiency of the transport means and weather may weaken the service availability.
Opportunities
New Life Services can take advantage of several opportunities in the market and healthcare industry. One of the opportunities is the increased demand for healthcare services, especially in lifestyle diseases like obesity (Borda et al., 2022). The organization can also expand to new markets by targeting new geographical locations and patient populations. Partnerships are also available for mobile healthcare providers, which can help expand the organization's range of services. According to Haleem et al. (2021), the organization can leverage technology like telemedicine and mobile applications to improve efficiency and expand its capabilities.
Threats
One of the greatest threats for New Life Services is increased competition from traditional healthcare providers. Mobile healthcare providers face increased regulatory challenges, especially in licensing and compliance with federal and local government laws (Borda et al., 2022). The reimbursement of finances from insurance firms to mobile healthcare providers creates challenges that may limit New Life Services' ability to offer patients affordable healthcare. Below is the SWOT analysis summary table.
Table 1: SWOT Analysis
Chapter 3
LEGAL & REGULATORY ISSUES
Several breakthroughs in the last century have completely altered the course of medical care. Because of this, medical professionals can now make more timely and precise diagnoses. However, new legal and ethical concerns arise for those working in the field as new cures emerge and the healthcare industry evolves (Abraham et al., 2019). Healthcare decision-making is a highly personal process, and the law is there to protect people from themselves. The legal and regulatory issues in healthcare management for New Life Services include patient focus, human resources and employees, organizational incorporation and legal framework, and other miscellaneous laws.
Patient Focus
Compliance with patient-focused legal and regulatory issues is a primary responsibility in our mobile healthcare facility. The facility is dedicated to protecting patients against subpar service and exceeding their expectations. In order to reduce the likelihood of medical mistakes and malpractices, New Life Services personnel follows risk management procedures and practices the standard of care. The company has measures to guarantee proper medical history documentation and informed consent.
Federal Laws and Regulations
New Life Services offers and will continue to provide mobile healthcare services to its patients with an increased commitment to federal laws and regulations. For instance, the organization applies the Patient Protection and Affordability Care Act (PPACA) (Levine et al., 2022). This aligns with federal requirements in promoting affordable and increased accessibility to healthcare services. Although New Life Services provides value-based pricing for its premium medical services, the costs are not fixed and can be tailored to favor a particular patient. The organization also complies with the Health Insurance Portability and Accountability Act (HIPPA), which ensures increased protection of protected healthcare information (Gaia et al., 2020). New Life Services follows the HIPPA privacy and security rules to ensure patients' health information is always safeguarded. This has helped the organization encourage increased information security and integrity. Another special federal law and regulation strictly observed at New Life Services is the Federal Emergency Medical Treatment and Labour Act, which enforces that patients with medical emergencies are served regardless of their ability to pay. This is among the many ways New Life Services pays back to the community.
State Laws and Regulations
One of the state laws that is strictly adhered to in the organization is the California Health and Safety Code. The law is essential in controlling healthcare facilities, especially regarding operations, licensing, certification, and, most importantly, quality assurance (Stanfill & Marc, 2019). New Life Services has acquired all the necessary licenses and certifications, aligning with the California Health and Safety Code requirements. The organization is also committed to the California Patient's Bill of Rights, which is essential in describing patients' rights in a healthcare environment (Torres, 2021).
The organization ensures patients have informed consent, a right to participate in their medical treatments actively, and unlimited access to their medical records. New Life Services also complies with state laws and regulations on disclosure. The California Confidentiality of Medical Information Act (CMIA) is critical in regulating the use and disclosure of medical information (Pratt, 2021). The personnel at New Life Services have received training on best practices regarding the effective handling of patient data. The organization has also established strict policies prohibiting patient data privacy malpractices. The company has also fostered an organizational culture that encourages the adoption of the California Medical Injury Compensation Reform Act (MICRA), which is essential in regulating medical malpractice claims. The facility has established a risk management strategy, aligning with the requirements of the MICRA in preventing medical malpractices and errors.
Human Resources and Employee Laws
The success of any business must adhere to all federal and state requirements regarding human resources and personnel. Financially draining and publicly embarrassing litigation is another possible outcome of non-compliance. A further sign of an organization's dedication to responsible and ethical business operations is its compliance with rules and regulations about human resources and personnel. This can benefit organizational prestige, client retention, and talent acquisition. New Life Services has shown effective and strict compliance with human resources and employee-related federal and state laws and regulations.
Federal Laws and Regulations
The facility fosters increased compliance with federal human resources and employment laws and regulations. Effective application and utilization of federal laws and regulations are essential in streamlining healthcare organizations' human resources departments. New Life Services has created a culture that prohibits employment discrimination and mistreatment by aligning with most federal legal requirements. For instance, New Life Services follows the guidelines provided in Title VII of the Civil Rights Act of 1963 to promote equality for all employees and prohibit discrimination (Burrows & Berney, 2019). This has facilitated increased inclusivity and diversity in employees hired in the organization, as it allows hiring employees from all races, gender, sex, and nationality.
The Age Discrimination in Employment Act is another effective federal law that the organization strictly follows, encouraging individuals' employment regardless of age. New Life Services aligns with the Fair Labor Standards Act (FLSA) requirements and the Equal Pay Act (EPA) by ensuring workplace equality. The FLSA and EPA are also important in ensuring employees attain the minimum wage and related overtime. Through the application, an employee in the organization is entitled to a family or medical leave. The Occupational Safety and Health Act (OSHA) and the National Labor Relations Act (NLRA) federal laws are important in ensuring that the human resources in organizations allow personnel to form and join unions that can benefit them through collective bargaining power (Lieberwitz, 2022). New Life Services has continued to show high respect for employee rights, ensuring employees feel most secure through safe and healthy working environments fostered by the organization's human resources department.
State Laws and Regulations
New Life Services follows federal and state human resources and employment rules and regulations. The California Fair Employment and Housing Act (FEHA) is an essential state law prohibiting workplace discrimination (Detert, 2020). New Life Services complies with the FEHA by ensuring the hiring and selection processes follow and meet the requirements stipulated in the guidelines. As state law mandates, the business ensures its employees can take sick days when needed. State statutes in California mandate periodic reviews of employee performance and constructive criticism. The company ensures its workers receive frequent performance reviews and, if necessary, implements changes to help them do better in their jobs. California law also mandates that businesses identify their staff as independent workers or contractors (Detert, 2020). The facility is responsible for properly classifying its employees and adhering to all applicable state labor laws and regulations, such as those governing unemployment and workers' compensation. The workplace must guarantee qualified workers access to leave to comply with the California Family Rights Act (CFRA).
Organizational Incorporation and Legal Framework
The business model adopted by New Life Services is that of an LLC. Before opening for business in California, an LLC must file articles of organization with the state. At the outset, New Life Services, LLC will consist of a single member who will also serve as the company's manager. Unlike corporations, as an LLC, the facility has no obligation to hold yearly meetings or preserve published minutes to preserve its corporate veil (Vogenberg, 2019). However, a formal operating agreement will be established if New Life Services, LLC decides to add members. This agreement will spell out the distribution of earnings and losses, allocation of responsibilities, and ownership stakes. The mobile medical clinic must submit Articles of Organization to the California Secretary of State to form an LLC (Borzaga et al., 2020). Each individual's duties and rights will be spelled out in the operating agreement and the processes for making decisions and adding or deleting members. The mobile healthcare center will be a limited liability company for financial gain.
Since it is a limited liability company, the mobile medical clinic must follow all laws about such entities. Tax returns must be filed annually, and all healthcare facilities must follow federal and state laws (Borzaga et al., 2020). The operating agreement should detail the LLC's hierarchy of management. The organization will be a manager-managed LLC, where one manager will initially choose the LLC's interest. Members of an LLC enjoy minimal personal accountability for business financial liabilities because of the limited liability company framework. However, the LLC may be held responsible if members participate in fraudulent or illegal acts. In order to provide medical services in the Golden State, the mobile clinic needs the appropriate paperwork (Segrestin et al., 2021). Business permits, California Department of Public Health healthcare facility authorizations, and any other certificates or licenses mandated by local, state, or federal authorities are all part of this.
A limited liability company (LLC) or a corporation (C Corp) are inappropriate corporate structures for a medical practice or healthcare provider. In California, one requires a special license to own and run a Professional Corporation (P.C.). Physicians in California are only allowed to form partnerships with other doctors, osteopaths, and specialists specifically listed in California Government Code Section 2416 (Segrestin et al., 2021). Members of a California Professional Corporation are restricted in their ability to sell their shares, exercise their voting rights, and receive the distribution of corporate profits under the law. The attorney for the healthcare firm should offer advice on crucial governance and transition matters. A California limited liability company (P.C.) should protect its stockholders from personal responsibility for debts and responsibilities, such as contracts on equipment, commercial property, or contracts with suppliers. Each shareholder is shielded from the personal liability of any other shareholders, officer, or board in the Professional Corporation due to the medical P.C.'s limited liability structure (Borzaga et al., 2020). When a shareholder does not contribute to or oversee the wrongdoing of another, they are protected from liability. In addition to the tax benefits, forming a California P.C. allows one to contribute more to the 401(k) or another retirement plan than one could as a sole proprietor or other business structure. The P.C. can offer and deduct various benefits for its shareholders' profession.
Miscellaneous Laws and Regulations
New Life Services, LLC prioritizes adhering to the contract laws outlined in the California Code of Civil Procedure. New Life Services contracts with all its clients to ensure everyone's safety. The contract will define the project scope, delivery date, and payment terms. A legal contract must include four components (Burrows, 2020). The first is that all contracting parties must be of legal contracting age. The second is making and taking an offer. Third, consideration or value must be exchanged for the benefit sought. The contract's final requirement is to be used for lawful purposes; it cannot release either party from responsibility in advance or be for illegal services. An attorney will be retained to guarantee that agreements are legally binding (Burrows, 2020). There will be the creation of a standard contract. Before signing, an attorney will analyze any amendments or supplements to the standard contract.
Copyright protection for any intellectual property created for training or auditing is another factor to consider. There will be copyright protection for any new software as well. The Copyright Act safeguards the material embodiments of ideas (Tzeng, 2022). The Copyright Office at the Library of Congress must be properly notified of the copyright. Works protected by copyright are safe for the author's lifetime. An End User License Agreement (EULA) must be created alongside software copyrights. The terms of the EULA govern the connection between the creator and the consumer of a copyrighted work. When establishing a EULA, New Life Services will consult legal advice to ensure that New Life Services retains ownership of any software generated and that any restrictions on use are expressly stated. Members' assets will be protected from corporate debts and lawsuits if the company is formed as a limited liability company (Tzeng, 2022). The company will purchase general liability insurance to safeguard itself against claims of negligence resulting in bodily harm, property loss, or advertising damage. In addition, the company will safeguard itself against accusations of poor guidance or monetary loss by investing in an oversight or mistake insurance coverage.
As new treatments become available and the healthcare system develops, professionals in the sector face novel legal and ethical challenges. This blog will provide insight into the difficulties of working in the healthcare sector. Regarding healthcare administration, rules, regulations, laws, and ethical standards come together. The legislation exists to safeguard individuals against their recklessness regarding healthcare decisions. Our mobile medical clinic places a premium on adhering to all applicable laws and regulations about our patients. The center's priority is providing excellent patient care and preventing them from receiving anything less. New Life Services employees use risk management strategies and adhere to best practices to lower the incidence of medical errors and malpractices.
Any company serious about succeeding must comply with all state and federal laws governing its human resources and employees. Non-compliance can also lead to costly and potentially embarrassing lawsuits. New Life Services operates as a limited liability company. A limited liability company (LLC) in California must submit articles of organization before it may begin operations. There will initially be only one New Life Services, LLC member, who will also act as the company's manager. New Life Services, LLC strictly adheres to the California Code of Civil Procedure for all contractual matters. New Life Services uses legally binding contracts to protect its customers. The project's scope, timeline, and financial parameters will all be specified in the contract.
Chapter 4
FINANCIAL STATEMENTS
New Life Services will provide its services from a mobile unit that has been particularly outfitted with medical equipment and other facilities. Patients can expect a roomy, comfortable, and friendly atmosphere in the mobile unit. Everything necessary for telemedicine consultations will be there, including exam rooms, an area for waiting, a small laboratory for on-site examinations, and the necessary technology infrastructure. New Life Services will employ a committed, interdisciplinary staff to provide our patients with high-quality, all-encompassing medical care. Appointment scheduling, patient records, and efficient functioning of the mobile unit are all handled by trained healthcare assistants and administrative staff. New Life Services expects that the legal costs of its initial operation will be higher than those of its following clinic locations, as previously stated.
Start-up Costs
New Life Services has therefore budgeted $25,000 for these legal fees. This $25,000 estimate is based on the typical hourly rate charged by small business attorneys, which ranges from $150 to $325. The New Life Services budget of $25,000 was calculated based on an estimated hourly rate of $200. In addition, healthcare business attorneys frequently offer a flat fee service, charging between $500 and $2,000 to complete activities like business associate agreements (BAA). New Life Services has estimated that the average cost per BAA and other corporate agreements or filings will be $2,000. This is due to the anticipated degree of detail in the company's initial BAAs (Anderson et al., 2021). Common start-up costs include applying for a business license in California and having a fictitious business name (FBN) registered with the County Recorder's Office. New Life Services FBN registration is now $30, with an extra $7 required for each additional registration beyond the first two. The filing fee for an FBN also covers the cost of certifying a fictitious business name statement. The one-time cost of obtaining a business license in Westminster is $237. After the first year, the renewal of the license price will be a percentage of the company's annual sales gross receipts, which will be detailed further along with other annual expenses.
|
Legal Costs |
Estimated Amount |
|
Initial Operation Costs |
$25,000 |
|
Hourly Rate |
$150 - $325 |
|
Estimated Hourly Rate |
$200 |
|
Flat Fee for Activities |
$500 - $2,000 |
|
Cost per BAA and Filings |
$2,000 |
|
FBN Registration |
$30 (first 2), $7 each additional |
|
Business License |
$237 (one-time) |
Table 2: Summary of Assumptions of Expenses
Annual Expenses
Being a Mobile clinic, New Life Services incurs substantial ongoing operating costs yearly. These yearly outlays cover things like renewing licenses for clinical staff, online hosting, and registering the clinic with the Drug Enforcement Administration (DEA). New Life Services has budgeted for additional annual expenses that may occur as the company grows, including the cost of obtaining any new authorizations or licenses necessary if federal, state, county, or city rules evolve. New Life Services' highest yearly cost is the Drug Enforcement Administration registration which enables the clinic to write prescriptions and give drugs to patients. A clinic permit from the Department of Health is required in addition to DEA registration, and the combined cost is $731. The clinic's proprietor, administrator, doctors, and N.P.s/P.A.s must all be registered with New Life Services at the time of application submission.
New Life Services offers reimbursement for clinical license extensions for all relevant staff to stay competitive and ensure all employees keep active licensing. New Life Services will hire a single MD/DO during the launch phase and pay the $820 license renewal fee on their behalf every two years. The $37 cost covers both the Prescription Drug Monitoring Program (PDMP) and the Controlled Substance Utilization Review and Evaluation System (CURES), which is also known as the Physician Loan Repayment Program (PLRP). If the doctor does not pay to renew his license within 30 days, an additional $10 will be added to the $820 total. If the doctor is more than 90 days late with their payment, an extra delinquency fee of 50% will be imposed on the $820 balance due. New Life Services requires all employees to keep their licenses current and will only pay the initial $820, leaving the doctor responsible for any subsequent payments due to non-compliance.
If a business renews the N.P. license on time, it must pay $150 and get another two years. New Life Services will only cover the initial $150 of the N.P. license renewal price, which escalates to $225 if payment is late. New Life Services will pay for continuing all three nurse practitioners (N.P.s) working at the first clinic they open. New Life Services assumes that its clinical personnel should prioritize patient care and enable the company to help retain an active license, despite numerous medical facilities not paying reimbursements for part-time workers. New Life Services will cover the average yearly cost of $7,500 per full-time nurse practitioner (NP) for medical malpractice coverage. Due to the restricted number of hours the clinical professional performs, New Life Services has calculated that the medical malpractice coverage for the part-time N.P. will be only 25% of the full cost. In the following paragraphs, we will go into greater depth on the monthly charges associated with medical malpractice coverage. In addition to the coverage offered by New Life Services, N.P.s are not required to carry their medical malpractice coverage. New Life Services will create a user-friendly website to keep its online presence alive and attract new patients. The average annual cost of this service is $144, which breaks down to $12 each month. New Life Services will have access to infinite pages, galleries, and blogs on Square Space, as well as unlimited data transfer and storage space. A mobile-friendly site, analytics for the site, and access to help at any time of day or night are all features included with Square Space.
Finally, New Life Services will be ready to pay the payments associated with renewing the company license, as mentioned in the expected beginning expenditures section. The renewal fee for an organization's license in California is calculated as a percentage of the company's gross sales (Zhou et al., 2020). Whether this charge is flat or calculated as a percentage of New Life Services' gross sales filings in a specific category (such as tax rates), New Life Services will save more money upfront if the renewal fee for their business registration exceeds their initial $237 registration expense. New Life Services will have a clearer idea of how much money will need to be set aside each year to cover the cost of renewing its business license after the initial payment.
|
Yearly Operating Costs |
Estimated Amount |
|
DEA Registration + Clinic Permit |
$731 |
|
MD/DO License Renewal |
$820 |
|
NP License Renewal |
$150 |
|
Nurse Practitioner Malpractice Coverage |
$7,500 (full-time) or 25% for part-time N.P. |
|
Website Hosting |
$144 per year ($12 per month) |
Table 3: Summary of Key Annual Expenses
Monthly Expenses
New Life Services spends monthly money on things like renting a storefront at the mall, paying employees, and covering the costs of cleaning, general upkeep, communication, and advertising. Since all services will be fixed at a contractual rate and all staff salaries will be salary oriented instead of hourly, New Life Services does not anticipate monthly costs to fluctuate greatly from month to month. However, each month's costs will be recorded in a balance sheet and readjusted as necessary to guarantee the enterprise's smooth operation and continued existence. New Life Services hopes to negotiate a lower rent by taking advantage of the abundance of empty storefronts at the current mall. However, a rate of $41.05 per square foot each year will be used in all company calculations to prepare for the worst-case situation. To launch its first Mobile Clinic, New Life Services will enter into a contract with an established family or internal medicine practitioner. Family physicians earn an average of $230,456 per year, whereas internal medicine specialists make an average of $247,319 per year, as reported by the Bureau of Labor Statistics. New Life Services only requires a contracted rate for the physician, which does not call for comparable full-time hours, although these annual incomes are based on full-time work. New Life Services will pay its doctor a yearly compensation of $60,000 or $5,000 monthly. The doctor must discuss treatment plans with New Life Services and be available for N.P. discussions. The doctor is not committed to working for New Life Services and can pursue other career opportunities while assisting the company.
Two nurse practitioners (NPs) will spend 40 hours weekly on New Life Services for three N.P.s. The average N.P. pay in California is $126,000 per year, albeit this number does not account for differences in experience or training between a Family Nurse Practitioner and an Acute Care Nurse Practitioner. According to New Life Services' cost-of-living calculator, the typical FNP pay at CVS Minute Clinics is $97,000. New Life Services will pay all full-time N.P.s $90,000 a year to keep up with the market and cover California's high cost of living. The starting wage for the part-time N.P. is $25,000 per year because they are only required to work 75% of a full-time worker's hours. Each year, $200,000, or $18,750 monthly, will be spent on N.P. employees.
The combined salary of a doctor and nurse practitioner in a clinical setting will be $260,000 per year or $21,666.67 per month. Every New Life Services team member will get a 2.5% annual incentive raise based on their performance reviews and overall contributions to the company. As a result, in year two of processes, worker compensation is projected to be $266,500; in year three, it is projected to be $273,162.50. New Life Services originally intended to pay a clinic administrator $60,000 per year or $5,000 per month. However, a clinic administrator will not be employed until there are numerous mobile clinics to supervise. This is because of the high start-up expenses involved; just one clinic is needed. As a result, New Life Services has delayed the implementation of the facility administrator's effect on annual staff salaries until a later date.
New Life Services must pay an extra 500 dollars monthly for a cleaning company to come twice weekly to clean the clinic. The N.P. may tidy up a bit between patients, but the cleaning staff will be there to give the place a thorough once-over. Time Warner Spectrum Cable's current promotional rate for corporate T.V., phone, and the internet is around $200 per month in Westminster, California. New Life Services will reconsider its alternatives and either stay with Time Warner Spectrum Cable or look for a different provider with better contractual prices for a long time if rates increase after the introductory period. According to a recent survey of mobile health clinics, median yearly marketing budgets for these facilities sit at $16,500, with the range going down to $1,500 and up to $50,000. New Life Services will spend $750 monthly on advertising to stay competitive. This will mostly consist of web ads, SEO, and targeted billboard placement in highly trafficked areas of the mall.
|
Monthly Operating Costs |
Estimated Amount |
|
Rent |
$6000 per month |
|
Physician Compensation |
$5,000 per month |
|
Full-time N.P. Compensation |
$7,500 per month |
|
Part-time N.P. Compensation |
$2,083 per month |
|
Cleaning Services |
$500 per month |
|
Cable/Internet |
$200 per month |
|
Advertising |
$750 per month |
Table 4: Summary of Key Monthly Expenses
Assumptions for Revenue
Since its introduction to the American healthcare industry, mobile clinics have had to fight for their current prominence. Predicting how much money a mobile health clinic like New Life Services can make is challenging. The good news is that the increased visibility of mobile health clinics has resulted in more patients, leading to stable annual expansion. Mobile health clinics take an average of $60 for every patient visit, ranging from $45 to $75. This income can then be linked to the annual number of visitors to the clinic, which ranges from about 18,000 to 28,000 on average. With these numbers in mind, we may extrapolate that each clinic will bring in between $80,000 and $765,000 in gross income annually. New Life Services anticipates a mean annual revenue of $340,450, or $28,000 monthly, because of the region's favorable demographics. New Life Services plans to raise monthly sales by 3% in response to the rising demand for mobile health clinics. New Life Services plans to expand by adding a second exam room to its flagship location in the mall and opening additional sites in other well-trafficked city areas. New Life Services can sustain a steady growth rate of 2.5% each month because of its natural growth and expansion.
The services provided by New Life Services will be delivered from a mobile unit specially equipped with medical equipment and other facilities. The transportable unit provides a spacious, cozy, and welcoming patient environment. There will be waiting rooms, examination rooms, a small laboratory for on-site testing, and the technological infrastructure for telemedicine consultations. The dedicated professionals at New Life Services will work together across specialties to give each patient the best possible care. Trained healthcare assistants and administrative staff to manage patient records, schedule appointments, and ensure the smooth operation of the mobile unit. As mentioned, New Life Services anticipates that the legal expenses associated with its first clinic's operation will be higher than those associated with its subsequent clinic sites. New Life Services is a mobile clinic with high annual operational costs. These yearly costs include registering the clinic with the Drug Enforcement Administration (DEA) and renewing clinical staff licenses and website hosting. If federal, state, county, or municipal regulations change, New Life Services will incur additional annual fees, such as paying for new authorizations or licenses. Renting a space in the mall, paying personnel, and covering the costs of cleaning, general upkeep, communication, and advertising are only some of the monthly expenses incurred by New Life Services. New Life Services does not anticipate significant month-to-month cost fluctuations because all services will be fixed at a contractual fee, and all staff compensation will be salary orientated rather than hourly. Nevertheless, monthly expenditures will be recorded on a balance sheet and modified as needed to ensure the business's smooth operation and survival.
Conclusion and Summary
New Life Services will provide a variety of services, such as nutritional counseling, health education, and preparation for bariatric surgery. A management support coordinator will handle all scheduling and payments. Help from New Life is just a phone call away, any time of day or night. Like any other firm, the clinic's entry point must be determined after extensive market research. Spotting trends in an industry requires a thorough market study. The impetus behind New Life Services is a profound desire to bring medical care directly to the people. People in the United States have been complaining for years about how close their benefits need to be to them. The primary mission of New Life Services is to provide mobile healthcare to eligible clients. Bariatric surgery and nutrition programs are two of the organization's primary offerings.
New Life Services is a for-profit mobile healthcare provider that will prioritize financial sustainability and shareholder value. Several significant advances in the recent century have dramatically shifted the healthcare landscape. This allows doctors to make quicker and more accurate diagnoses. As new treatments become available and the healthcare system develops; however, professionals in the sector face novel legal and ethical challenges. The law protects individuals against themselves during the intensely private process of making healthcare decisions. New Life Services' legal and regulatory concerns in healthcare administration center on patient care, human resources, the organization's legal structure, and a host of other rules and regulations. Given the region's favorable demographics, New Life Services projects an annualized revenue of $340,450, or $28,000 monthly. New Life Services hopes to capitalize on the growing market for mobile medical clinics by increasing monthly revenues by 3 percent. New Life Services has ambitious growth ambitions, including building a second exam room to its mall flagship location and launching satellite locations in other high-footfall parts of major cities. New Life Services' expansion and growth naturally allow for a monthly growth rate of 2.5%.
APPENDIX
Financial Data
Appendix A: Start-up Cost
|
Start-Up Costs |
$1,054,231.00 |
|
Average Monthly Gross Revenue |
$133,593.75 |
|
Maximum Monthly Debt Payment |
$17,982.54 |
|
Monthly Break Even Sales |
$70,193.85 |
|
Average Monthly Pre-Tax Income |
$80,948.36 |
Appendix B: Financing Shortfall
|
Financing Shortfall |
$554,231.00 |
|
Percentage Debt Financing |
100% |
|
Percentage Equity Financing |
0% |
|
Amount Borrowed |
$600,000.00 |
|
Percentage of Company Sold to Investors |
0.00% |
|
Founder Ownership |
100.00% |
|
Amount Due To Shareholders |
$0.00 |
|
Number of Payment Periods |
36 |
|
Actual Monthly Interest Rate |
0.42% |
|
Total Cash Value of Loan |
$647,371.38 |
Appendix C: Break-Even Point Analysis
|
Break-Even Point Analysis |
|||
|
Monthly Rent |
$6,000.00 |
|
11.40% |
|
Monthly Utility Costs |
$200.00 |
|
0.38% |
|
Monthly Maintenance and Repair Costs |
$500.00 |
|
0.95% |
|
Monthly Insurance Costs |
$3,000.00 |
|
5.70% |
|
Average Monthly Wages and Benefits |
$22,212.85 |
|
42.19% |
|
Monthly Marketing Budget |
$750.00 |
|
1.42% |
|
Additional Monthly Expenses |
$2,000.00 |
|
3.80% |
|
Monthly Debt Servicing Cost |
$17,982.54 |
|
34.16% |
|
|
$52,645.39 |
|
100% |
|
|
Sales Margin |
75.00% |
|
|
|
Needed Revenue |
$70,193.85 |
|
Appendix D: Monthly Costs Chart
Appendix E: Monthly Costs Graph
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Appointment Scheduling
Initial Patient Contact
Consultation and Treatment
Check-in
Billing and Payments
Follow-up Services
Feedback
�These are largely generic sentences about business planning; you also repeat these in the first paragraph below. Use the abstract to refer specifically to your business. E.g., what population will it serve? What is the demand? Where will it be located? And what will this business plan include?
�Section needs more targeted research on your patient population, growth in health condition and/or demand/need to particular types of services for this population.
�You would also need to purchase your mobile clinic vehicle, right? These run $250K fully serviceable. This would be a start-up cost for a mobile clinic.
�Please include Questionnaire tab of Excel.
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