capstone project proposal

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________.

___________________ Signature

___________________ Name (typed or printed)

___________________ Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

This business plan describes the roadmap to sustained profitability for COOL, a private for profit District Of Columbia Company. As a private behavioral health services provider, we are committed to providing a comprehensive array of clinical services and treatments to individuals diagnosed with mental illness and substance abuse disorders. We understand the market and have developed vibrant plans to penetrate and increase our market share through the marketing and promotion of the level of services identified in this business plan. Our financial analysis is conservative in its projections and indicates a path to profitability that we are committed to executing while remaining flexible to continue to take advantage of opportunities presented by the market.

COOL is a multidisciplinary behavioral health services provider committed to the provision of comprehensive consumer driven services In addition, our target population will include individuals with mental health and co-occurring disorders. We are dedicated to providing quality and cost effective treatments/services that are undergirded by culturally competent best practices in the field of behavioral mental health. The aforementioned population will be the focus of our certified Free Standing Mental Health Clinic (FSMHC). COOL as part of our future development will consider becoming a CSA.

The mission of COOL is to provide excellent comprehensive, consumer driven, and quality mental health services for individuals and families in the community in order to enhance their quality of life. It is part of our mission to promote active recovery models and be accountable to our consumers by fostering positive customer relationship.

To be the leading industry provider of mental health services in the Region.

Quality: Our services will be cost-effective and incorporate high standards, cultural competence, best practices and consumer satisfaction as part of its outcome measures. Our board of directors, executive management team, support staff and clinicians are committed to professional integrity, ethical business practices and objectivity.

Respect: We are committed to treating all persons with respect and dignity. Each individual is valued for their abilities and contributions that they bring to the therapeutic relationship.

Caring: We will foster a spirit of genuine partnership with our clients/consumers, family members, providers and others through unconditional positive regard for their concerns.

As a for-profit company which will be located in the SE quadrant of the District of Columbia., with our initial focus being residence of Ward 7. The future plan is to expand offices within other segments of the District of Columbia.

COOOOL is organized to provide a wide array of quality behavioral mental health and substance abuse/addiction treatments and services to the population of individuals diagnosed with mental illnesses, substance abuse and co-occuring disorders.

FSMHC will include:

· Medication Management

· Psychopharmacology

· Psychotherapy

· Substance abuse/Addiction

· Group therapy for substance abuse

· Integrated mental health/primary care services via MOU agreement with a primary care facility, Unity or FQHCF

· Family Therapy

· Family Conference

· Complete Psychological Testing

·

All new and expanded services will be consistent with documented service needs of the target populations and be clinically and fiscally viable.

The target population comprises mostly of adults with a mental illness, substance abuse problem, and co-occuring disorder. The primary referral sources will consist of Access Helpline, CSOSA, CSA’s, MCO’s, APRA, family members, and the general community.

COOL PROGRAM (CONSUMERS SERVED)

While the graph show an initial consumer base of 300, which reflects 3-4 months from start up, the 2nd year is expected to grow at a pace of 1/3 trend from the initial 3 months. The 3rd year is expected to have a 25% increase in volume of consumers.

The objectives of COOL in targeting our services to these populations are:

· Expand access and coverage to all eligible individuals in the population

· Provide positive treatment and service experience to consumers.

· Identify and develop strategic alliances with the network of community providers to better serve the individuals in the target population.

· Become a premier provider of mental health services in the region.

The local market, just as the national market for behavioral health services, is highly segmented and competitive. Currently, the national trends impacting service delivery are: increased use of Medicaid managed care organizations (MCOs), contracts with health maintenance organizations (HMOs), and preferred provider organizations (PPOs). The other national trends likely to impact service delivery are the recently passed Affordable Care Act of 2010 and the Republican Party- controlled House of Representatives’ proposal to reform Medicaid and Medicare. These trends will most certainly affect local DC market although the form and extent of the likely effects are currently unknown.

Locally, the major trend impacting public behavioral health delivery is the 2009 privatization of services. In 2009, DMH ceased to be the dominant, primary provider of public behavioral health services in DC. It certified private providers to deliver its MHRS programs to DC citizens diagnosed with mental/emotional illnesses. These changes, coupled with the increasing use of MCOs , are impacting not only the range of services and financing of public mental health in DC but also the issue of access, reach and effectiveness of public behavioral health programs.

The DC local market for behavioral health services is alive and well. It boasts abundant supply of providers that include psychiatric hospitals, community service agencies (CSAs), residential crisis and non-crisis facilities, and outpatient multidisciplinary group practices that vary from private group practices to solo practitioners. Our competitors are all of these providers, with the CSAs being our direct competition and FSCMH clinics.

We plan to differentiate ourselves not only by being customer-driven in terms of providing superior customer service but also by focusing on our niche market. We will vigorously market our services through the network of private and public providers, and directly to potential customers through various media outlets. Our differentiation strategies equally include developing reputation for providing quality services, demonstrating respect for our clients, responding promptly to the needs of our referral sources, and making psychopharmacologic services available to our consumers.

The need for behavioral health services in DC for our target population is illuminated by the following statistics:

COOL will focus its market activities initially in the SE quadrants of the city with projections to expand in other DC wards for the target populations, however more targeted outreach will occur in quadrants with the largest populations of potential consumers. Our services will include the FSCMH services of diagnosis and assessment, psychopharmacology, psychotherapy, substance abuse/addiction services, family therapy, family conferences, and complete psychological testing.

Our customers are consumers belonging to the target population who are referred to us by DMH, CSOSA, CFSA, DYRS, MCO’s. and its affiliate agencies (public and private), self-referred individuals, couples and/or families, and referrals from area psychiatric wards and PPOs. We anticipate that adults will constitute about 90% of our consumers, and children/adolescents about 10% initially.

Targeting our marketing activities in a strategic manner will be critical to growth. Strategies will include:

· Emphasizing our customer-driven, quality, and innovative services

· Focusing on CSOSA, DMH, CFSA, CSA’s and the general population for referrals (expectation is that 70% of our initial client populations will be referrals from DMH’s access helpline).

· Building strategic business relationships with other private providers in the community

· Increasing our market penetration of the target population

Our focus will be on increasing visibility and creating a unique brand. We will engage in the following promotion activities:

· Advertise in local newspapers to promote our services and interventions

· Create logo, brochures, and business cards to promote the agency.

· Host an open house

· Collaborate and network with various providers network groups in DC and its Metropolitan area.

· Ensure follow-ups with our referral sources through the use of phone calls, letters and email as necessary

· Organize and offer informational workshops and seminars to the public

· Visit other providers and referral sources at their sites to provide information and awareness about our services and interventions.

· Develop public service announcements

· Host referral breakfast and lunch

Our referral strategy will target potential purchasers and seek referrals from the following sources:

· DMH and its public/private affiliates

· PPOs and MCOs

· Local private and public psychiatric hospitals

· Medical groups

· CFSA and DYRS

· Employers and EAPs

· Private individuals

Our pricing for services and interventions will be market-driven and based on the DMH for the services we are certified to provide. Our fee structure will also reflect other payors’ (Medicaid/Medicare, MCOs, PPOs, Private insurance, Self paid etc.) fee schedule. In view of the structured nature of the prices that can be billed to our customers, it becomes imperative that we monitor and control costs in order to operate profitably. Thus, staffing will be based on level of clinical needs.

Cool is a privately incorporated company in the District of Columbia. The company was founded by a group of individuals with over 45 years of combined experience in behavioral health and executive management.

Cool LLC Management Board, is made up of the followings:

Carroll Parks, Chairman

Guillaume Kengni Vice Chairman

Michele Mba, Chief Executive Officer

Brian Fallon, Chief Financial Officer

The day-to-day management of COOL, LLC. operations will be under the President/CEO, Michele Mba . Ms. Michele Mba has over 6 years of experience both as administrator and clinician in the behavioral health industry. A management team consisting of senior level managers will incorporate the programs and services within the operations of COOL. The policy and practice guidelines will reside with the Board of Directors. The President/CEO and the Medical Director will ensure that the company maintains a fidelity to best organizational and clinical practices.

The company will be managed by the President. A Medical Director will assist the President in all clinical decision-making. Clinical services will be provided to our consumers by teams of behavioral health professionals consisting of psychiatrists, nurses, psychologists, social workers, mental health therapists, and certified addiction counselors. The company’s support staff will consist of a Chief Financial Officer (CFO), a Receptionist, a Billing Staff and a medical record personel. A QA committee made up of the company’s staff , one consumer, and chaired by the QA Director will be constituted and assigned the task of developing a plan to implement and integrate continuous quality improvement. A customer relations committee will be formed to develop, formulate and implement activities to enhance level of satisfaction among all consumers.

Organization Chart

Some of the company’s staff will be hired as salaried employees and others as contract staff. The salaried employees are expected to work 40 hours weekly and will be paid every two weeks. The contract staff will be paid for the hours of services billed based on contracted rate for each service. Contract staff will be paid once monthly.

The following assumptions undergird the company’s financial projections:

· We will commence operation with initial enrollment of at least 80 adult consumers in November of, 2013.

· The wrap of staffing and consumers will be operational by December of 2013

· The billing for services rendered will maintain a 30 day adjudication cycle based upon Medicaid usual payment and processing. COOL anticipate 98% clean rate for claims and a less than 45 day aging on receivables.

· The company will achieve an annualized base of consumers of 900 by 2nd year, then a 15% increase in volume of consumers for years 3-5. The 5th year base of consumers will be 1400 active consumers.

The business will require initial start-up capital. The start-up capital needed is estimated at about $150,000. Please see the Start-up Requirements and Start-up Funding tables below. This amount will be funded through direct cash infusion by the company’s president and CCS ownership.

Start-up Requirements

Our projections assume that operations will kick off in November, 2013 with 80 adult consumers. With these numbers, we expect gross total revenue between December of 2013 and March of 2014 to be 106,060. In 2014/2015, our first full year of operation, consumer volume are projected to be 900.Our annualized revenue will be 757,980.

Total operating costs (administrative, personnel and payroll expenses) for 2014/2015 will show a deficit of ($37,899). This amount does not include the start-up funding which is projected as indicated above at $175,000. By 2015, net income will be a 15% increase from prior year which will be $871,677. As a result of our profit margin for year ending 2015 which is estimated to be 113,697 variance from prior year.

COOL FY 2013/14

The above figures assume commencing operations with 50 enrolled consumers in October, 2011and increasing enrollment to 70 by December, 2011.

MULTICULTURAL REVENUE 2011

These figures assume start-up enrollment of 80 consumers and increasing to 100 by December, 2011.

INCOME & EXPENSE STATEMENT 2011

INCOME AND EXPENSE STATEMENT 2012