Financial management

The Marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do ( (Kotler, 2012).

The set of tactical marketing tools are Place, Price, Product and Promotion. The hospital will blends to produce the response to produce the response, we want in the target market.

The marketing environment is composed of forces and factors that affect the hospital’s ability to perform effectively in providing solution to the customers ( (Fahy & Jobber, 2012). There are a number of external factors in marketing. The elements can be separated into micro environment and macro environment.

Macro environment

These factors or forces not only affect the hospital but also affect the other factors influencing the hospital like providers, patients, distributors and competitors (Fahy & Jobber, 2012).

Demographic Factors

McAllen's populace has expanded by about 5,000 inhabitants in the course of the last two years supporting an upward development design that would put its populace more than 150,000 by the decade's end if not sooner, as indicated by 2012 U.S. Evaluation. There are many variables that can affect a city's populace, for example, the economy, birth rates, migration and lodging. Be that as it may, if McAllen can support its 3.7% populace growth rate like every two years, the city would approach 156,000 residents by 2020, or in 6 and half years (Texas Border Business, 2013).

Economic Factors

The City has made a colossal effort to improve McAllen with incredible amenities, financial and community development projects. The McAllen zone is being changed into a noteworthy worldwide exchange territory by growing top notch business, retail, office, mechanical, therapeutic, retirement and educational facilities. The advancement of international and retail exchange, tourism and manufacturing is among the best along the U.S.- Mexico Border.

As concerning to wages, while median wage fell by $642 over the U.S. somewhere around 2010 and 2011, median wage in the McAllen zone fell by an astounding $3,653 over a similar period. More than 37 percent of the populace did not have medical coverage, which was the most elevated rate of all metro zones in the U.S. The Median home estimation of $77,600, while up more than 11 percent since 2007, was still the second most reduced among all metro regions in the nation. About 29 percent of all homes were worth under $50,000, the most elevated rate of all metro regions (Sauter, Hess, & Weigley, 2012)

Social Factors

The populace is turning out to be extremely differing with populace influx from all over North America and whatever remains of the World, yet is characterized by two overwhelming statistic criteria: Hispanic and Young. The people group is likewise immovably bi-lingual, with English and Spanish talked fluidly and reciprocally by most of the crowded. Tex-Mex, a neighborhood blend of Texas English and Northern Mexican Spanish free of a particular linguistic use tenets, is as often as possible used by neighborhood inhabitants in ordinary discussion.

Consolidated with an inspirational demeanor toward life, work, family, and the future, this openness brings about a domain low in social strains and high in entrepreneurial soul, which enchants neighborhood occupants and additionally visitors everyday.

Other than solid financial development, the three foundations and focal points of McAllen social framework are its high Quality of Place, its excellent Education System, and its succeeding Health Care Environment.

Technological Factors

The pace of progress in the planning and delivery of healthcare is frequently identified with the rapid evolution and incorporation of healthcare technology. The effect of innovation stays huge and will keep on evolving rapidly.Technology, specifically, plays a huge part since it is always advancing and utilizing the methods and areas to deliver health care. The hospital would use Electronic Health Records for better care to the patients. To provide six IOMs of patient care that is, safe, effective, efficient, evidence-based and patient centered care. The implementation of Telemedicine will be helpful especially in controlling emergency visits, eventually reducing the demand on facility. Moreover, the statistics suggests that the population of McAllen was almost 100% urban and 0% rural, in 2014 (Informatics, 2016). Care will be delivered all day, every day by means of sound, video and information connections with areas across McAllen and in addition outside of McAllen through organizations with other healthcare providers and large employers.

Political Factors

On a local level, the Rio Grande Valley is contained by a four area district of Hidalgo, Cameron, Starr and Willacy Counties. The region is governmentally represented by three U.S. Congressmen, and has the solid support of the two Texas individuals from the U.S. Senate. In the Condition of Texas, the region is represented by eight State Representatives and three State Senators. The City of McAllen is the biggest region in Hidalgo County and is straightforwardly represented by the two Texas individuals from the U.S. Senate, two U.S. Congressmen, two State Senators, and two State Representatives. The change in government can lead to a change in the healthcare system.

2) Micro environment

Competitors

To be successful in market the services provided should be affordable, accessible and of greater quality than its competitors provides. The hospital must having the details about the competitors.

The direct competitors of the McAllen Health Center would be-

McAllen Medical Center

Indirect Competitors would be-

Location and target Market

The facility will be located at 908 Yuma Avenue, McAllen Texas-78503. The McAllen International Airport is about 2.1 miles from the facility and is surrounded by different popular amenities. It is situated in one of the growing regions of McAllen and the cost of living is 83.8 which is relatively very low as compared to the U.S. average which is about 100 (Informatics, 2016).

The McAllen range is ruled by nearby agribusiness, outskirt zone production lines, and business identified with the port of section at Reynosa into Mexico. Like other border towns, the zone has a prevailing Hispanic legacy, high development rate, and a minimal effort of living. McAllen is in the center of a broad, level horticultural range referred to locally as "The Valley" spotted with vegetable and citrus developing blended with residential communities and extending rural areas. The more working class Edinburg, 5 miles north, is home to the University of Texas Pan American grounds, the biggest higher education facility in South Texas.

Internal Factors

Branding the Organization: One function of marketing is to maintain the overall reputation or image of the organization so that it remains attractive to most members of the community-at-large. Image building, or branding, usually begins as a community-wide communications effort to convey the mission and the competitive advantages of the organization. Branding activities include public and community relations, image advertising and promotion, and media relations

Public and Community relations: Public Information is one of a few sources from which individuals infer a positive picture of the hospital. The hospital will frequently issues material for example, pamphlets, yearly reports, sites, news discharges, and regular mailings that portray the association as a general terms and highlight specific occasions. Clearly, achievement starts with having a decent story to tell. The hospital ought to likewise have an arrangement set up for communicating when a healthcare emergency happens. An emergency is anything that all of a sudden or out of the blue has unfavorable consequences for a hospital or its patients, partners, or community

Image advertising and promotion: It additionally incorporates relationship of the organization with different activities, such as athletic events, fundraising marathon or public services, and distribution of items bearing the name and logo of the hospital.

Influencing Health Behavior: The hospital would participate in the well being advancement development to support sound ways of life and cost-effective prevention behaviors. General promotional campaigns to well individuals from the populace incorporate sites, post office based mail, communicate what's more, print advertising material, media promoting, and print and video material in schools and work destinations.

Operations

McAllen Health Center, which is designed as an acute care hospital, will be build from ground and will cover 250,000 square feet area including the parking garage. The main purpose of this facility will be providing cost-efficient and high quality medical care to its patient via credible and advanced technology utilization. McAllen Health Center is designed to have 200 licensed beds and to be located at 908 Yama Avenue, McAllen, Texas 78503. The construction project will be completed in January 2018.

Secondary purpose of this facility is supporting population health and environmental safety as well as providing quality care to individual patients by utilizing eco-friendly features. For this purpose, the facility is designed to utilize as much as natural energy sources such as sun light. Also the design aims to minimize the city water usage and will include some level of water purification system as well to be able to recycle uncontaminated water. That way, it would be possible to reduce cost and minimize waste of resources. When it comes to parking garage, to encourage eco-friendly transportation, there will be designated areas close to the building for hybrid and low emission cars. In addition to it, management team will be running incentive projects for employees who choose to carpool instead of using one vehicle per person.

McAllen Health Center will be one building facility with 12 floors. Each floor designed to serve at least one at most two medical departments, excluding the basement level.

Basement will be serve to Environmental Services and Plant Management department. Equipments and beds that are not in service will be stored at this level and it won’t be accessible to unauthorized people. To prevent any risk of exposure to strangers, elevators will have a security system that will allow only employees with pass badges with their picture and name on it.

Ground level will have two entrance; emergency and main lobby. Emergency department will be open 24/7 and serve patients that are transported by ambulance and/or patients with emergency related conditions without an appointment requirement. There will be an information desk which will serve only regular business hours and also there will be a hallway that leads to outpatient clinic which will serve patients with no appointment and no emergency condition. It will accept patients first come first serve basis during regular business hours.

Second level will be mostly common areas, which includes cafeteria and gift shop, and will also serve to pharmacy department. This floor as well as the ground level will be accessible to everyone.

Third level will serve to surgery department and will have 6 operation rooms. 2 of the operation rooms will serve outpatient procedures and emergency department during the regular business hours and the rest will be reserved for inpatient surgeries. After hours, the same 2 operation rooms will be available for ony emergency department and other 4 rooms will be serving inpatient procedures. This level won’t be accessible to anybody other than patients that will go under operation and medical staff that will provide the care. There will be a designated room for patient’s close family members to follow the status of the operation from screens that will display some information about timing and status of the patient who is under surgery.

Starting with fourth floor and further up, levels will be serving to Cancer Center, Diabetes Department, Pediatric Care and Labor, Radiology, Weight Management Center, Rehabilitation, Stroke Center, Orthopedics, and Women’s Health respectively.

To be able to gain competitive advantage as well as developing credible reputation, McAllen Health Center will be equipped with high quality supplies and proven best technology medical devices. Utilizing latest technology will NOT be the priority since latest does not necessarily mean best technology in the market. To be able to make an fully informed decision for purchasing orders, purchasing department will have individuals that are responsible for researching technologies in the market. This subject will be discussed in detail at HR section of this business plan.

For the purpose of improving and growing as an health care organization, there are several ways planned for the future to go. After full potential of build facility is operationally fulfilled, McAllen Health Center will focus on managing the supply chain structure in a most efficient and effective way to be able to reach optimal cash flow structure. The best approach to reach its goal is developing a cost effective purchase ordering structure that is closely related to restocking supply process. It is commonly advised to go with smaller but frequent supply purchases to utilize maximum capacity of the organization. By this approach, it would be possible to prevent over supplying and also it would be possible to keep expiration dates under control since most medical supplies have a certain amount of time for the best use. For the same reasons, McAllen Health Center is designed to have a storage location at each level to be used to store equipment and department specific supplies. This designed would help employees to track daily usage and also prevent dislocating supplies and equipments during transportation between each floor. In addition to storage area at each floor, there will also be a designated area for medical equipment cleaning which would help to keep contamination and spread of infection under control.

Not only supply chain management but also managing and minimizing unnecessary testing orders is very important to keep costs of medical care as low as possible. By minimizing diagnostic testing orders, advanced level diagnostic equipments can be available and used for truly necessary conditions. This approach would have direct impact on depreciation costs and increase the shelf life of the expensive medical equipments.

To be able to grow as an organization, number of healthcare professionals working for the organization should increase accordingly since the purpose of the growth is serving as many patients as possible without any reduction in quality and/or cost effectiveness. To be able to fulfill such a healthcare professional stuff need, McAllen Health Center should seek a good relationship with with medical schools, nursing schools, and institutions that provides proper healthcare administration training. Developing a proper and supportive relationship with especially nursing schools is very critical since there is a shortage for qualified nurses in nation wide. On the other hand, having good relationship with health care training institutions is not an enough effort to be able to attract qualified individuals. The organization is responsible from keeping existing employees satisfied as well as attracting new skilled and educated individuals. One way to reach that goal is offering fair compensation structure and providing an organisation wide culture that people would like to work at. Keeping turnover rate as low as possible is the key to success at this matter. Employees, no matter what their expertise is, should be engaged in the organization vision and mission and supported for personal growth and necessary personal and technical skill development in their field.

Another approach to be able to save money and space would be running innovative projects to prevent HAIs which commonly leads costly readmissions and penalties to CMS. This kind of actions could prevent unnecessary financial and quality of life loses which is closely related to the priority of the organization, offering high quality care. Additionally, successful projects related to preventing HAIs could possibly lead competitive advantage against McAllen Health Center’s competitors.

At this stage, McAllen Health Center will not have any sister locations that will serve as a healthcare facility but when the organisations reaches its financial and operational goals and presents successful status in the healthcare delivery market, then a new building can be build or an existing building can be leased for a certain amount of time. However, such an action requires long-term planning in the future if it becomes a purpose for the organization.

Human Resources and Management

From Human Resources perspective, the organization's goal is to hire right people, no matter what their position and responsibility will be, that fits in the culture that is aimed and promote the vision of the company throughout the organization. There are five very important requirements for new hires based on their field of expertise; 1. Education in their field, 2. Legal and Technological knowledge in their field, 3. Management and social skills, 4. Problem Solving skills.

Developing and maintaining the right and most beneficial culture within the organization is as important as hiring right people since culture will define the level of motivation of employees and determine the communication structure. Also, although if McAllen Health Center hires right people at the first place, it won’t work at its full potential unless the organization fails to provide right tools to its employees to do their job and fulfill their responsibilities. Not only that, providing high quality and cost effective and efficient care depends on the tools that are provided to the employees. For example, if McAllen Health Center fails to utilize proper and user friendly medical data collection and storage structure, it would be a matter of time to fail in a healthcare environment. Providing such important tools fall onto the organisations management team.

McAllen Health Center will be using EPIC for EMR system for administrative purposes since it helps healthcare organizations to reach to their goals and provides quick and easy access to data. Based on the nature of existing structure of EPIC, employees can fulfil their duties such as scheduling appointments, entering medical data, keeping patient specific charts, transferring data safely, registering patients and billing accordingly, input and/or upload pharmacy information, and so on.

Since McAllen Health Center is a start-up organization, it is important to plan how and how many employees will be hired from the beginning because there is no historical data established about need. In this case, the organization aims to hire 6 people per licensed bed including medical care giver staff, pharmacists, technicians, housekeeping staff, administration staff, and other professionals from different fields as needed. There will be full-time and half-time employees based on the planned schedule by administrative staff. In addition to hired employees, the organization will provide volunteering opportunities for people who are passionate about health care delivery and willing to help to make a difference.

McAllen Health Center’s one of the priorities when it comes to HR purposes, will be providing proper and efficient training to its employees based on their field of expertise. Health care industry relies on high quality advanced technology and procedures that have a dynamic structure and updates itself frequently. Keeping employees up to speed is one of the factor that leads to success.

McAllen Health Center aims to hire qualified and well-rounded professionals who are aware of the regulations and rules that will govern the organization due its healthcare related nature. Health care industry is the most regulated industry and for that reason from low level employee to high level management should be really careful and engaged in processes and required procedures. McAllen Health Center’s The Board of Directors will represent administration as well as the medical staff. For that purpose it be consisted of four partners;

CEO/President

A physician who will also serve as Chief Medical Officer and aims to represent medical staff and align the interest of administration. It is very beneficial to have a physician in The Board of Directors to gain respect in front of other physicians eyes.

CFO

Vice President

Each determined positions will be filled based on voting system prior to hospital opening. In addition to these four positions, there will be a legal counsel in-house to help through and guide about legal subjects to make sure all process and procedures are following the law properly.

The CEO will be at the top of the organisational chart and The Board of Directors will be reporting to him/her directly as well as management directors and VPs. Rest of the employees including the front-line staff will be reporting to middle management which includes management directors and VPs.

Figure # Organizational Chart of McAllen Health Center

As it is also mention at the vision section of this business plan, the facility aims to incorporate an exceptional and unbarred working culture that will promote the best atmosphere for its employees in the entire region. McAllen Health center will not only provide superior care to the community but will also place a heavy and equal amount of dedication and passion towards taking care of its own medical staff and administration. The culture that is aimed to be developed should make each and every employee to feel important and included. Innovative ideas will be very welcomed at anytime and also be encouraged for greater good.

New established policies and procedures will be presented to department heads for review and approval process and after this step is completed they will be passed on to Board for final approval based on voting structure.