[PROJEC T REPORT ON HOSPITA L] VADODARA, GUJARAT
[Prepared By RIAZ AHEMAD Manjalpur, Gujarat]
[email protected] om
HOSPITAL PLAN
HOSPITAL PLAN
TABLE OF CONTENT
Page No
1
Executive Summary
3
2 3
The Business The objective
3 3
4
Brief History
3
5
Form of Ownership
6
Name, Qualification of the Owner
7
Proposed Headquarters
8
Finding Requirement
9
Debt
10
Equity
4
11
The Market
4
12
Description of Product
5
13
Comparative Analysis
9
14
Licensing Agreement
15 16 17 18 19
Plan Marketing Operations Organizational Plan Financial Plan
12 19 22 24
20
The Critical Risk
30
21 22
Exit Strategy The Appendix
31 31
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Executive Summary A business plan is essentially a map that defines your business and outlines your strategy for success. It is also a crucial document to securing business loans. Banks and other investors want not only to understand your business, but to know you've thought out all the details, have a focused plan for success and a way to measure success. The demand for health care services has increased, making this one of the most booming industries in global economics. If you aim to establish a new hospital, one of the first things you must do is obtain financing. Writing a business plan for your hospital is the best way to propose, and then secure, the funding you will need. You must know how much money you will need to start, and then run, your hospital. Your research should encompass every aspect of the hospital from goals, to location and development, to construction, to marketing, to staffing and administration. Writing your plan will require a lot of research, but it will be a tremendous asset to you as you seek funding and make further decisions about your future hospital. Instructions 1. Emphasize areas of special services your hospital will offer, such as whether or not it will be a children's hospital, or a neurology facility. 2. Research the needs of the community. Evaluate what healthcare needs either aren't being met or aren't being met well. Research the services offered by competing healthcare facilities in the area and define how your hospital would be different. 3. Speak with officials at other hospitals offering the same services you would like to offer but who are not in your area and therefore not in competition with you. Your goal is to find out what types of materials and equipment you will need in your own hospital, as well as the type of facility you will need to operate well. Answers to these questions will help determine the start-up costs and the operational costs for building and running your business. 4. Consult with a commercial real estate agent to find possible tracts of land or existing facilities that could be converted to your hospital. Consult with an architect to determine construction or conversion costs for the facility. This stage of the process will help you determine the size and capacity of your hospital as well as your construction or renovation costs. 5. Determine the exact types and amounts of equipment and goods you will need to open your hospital, given its intended size and scope. This can be based on the information you obtained in step 3. Research the current prices for everything. This will give you the final numbers you will need for your start-up cost estimates.
Create a marketing plan and advertising budget for your hospital. Decide upon the types of advertisements you will use to spread the word about your new hospital, and how often they will run. You will need two different sections to your marketing plan, one section for your initial marketing before the hospital opens, and one section for your annual marketing efforts once the hospital is running. 3
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6. Determine your staffing and insurance needs based on the size and scope of the hospital you're planning. Determine salaries and estimate the costs of any benefits you would like to offer your employees. Also factor in your other operational expenses -- utilities, office supplies, furniture, replacement of equipment and the restocking of goods. These numbers, combined with your marketing numbers, will provide your estimate of operating costs. 7. Draft your business plan. In many ways, the hospital business plan is similar to a standard business plan. Within your plan, you will need to include information on the business and a description of your hospital's goals. It will also need to include your marketing plan, information on the competitors in your area, personnel and operating procedures, and information on operating expenses. Include lots of detailed financial information and an estimated balance sheet and income summaries. Once you have gathered all of the information from your research, writing the proposal will not be difficult.
Objective:Our each program emphasizes comprehensive, multidisciplinary care for children with all types of medical conditions. In addition, we provide moral support to patients and families to cope with the challenges of illness. These include our Child Life Services department, which caters to the emotional and developmental well being of hospitalized children and their families. Form of Ownership:- Partnership Firm Name, Qualifications of the owners:- Owner 1: Riaz Education Qualification:-B Pharm, MBA Owner 2:-Rahul Raj Education Qualification:-B Pharm, MBA Proposed HeadQuarters:-
Manjalpur, Vadodara
The Funding Requirements:Debt:-the debts would be borrowed from family members, on which no interest rates would be charged .A loan would be requested from banks and other funding agents. Equity:-No equity funds 4
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The Product & Services:Description The Children Hospital’s Child Life Department focuses on the emotional and developmental well being of hospitalized children and their families. Genetic Diagnosis and Counseling: The Section of Genetics at our Medical Center provides a full range of services for the diagnosis, counseling and treatment of patients who have or who are concerned about genetic and congenital disorders. Pediatric Cardiovascular Services: Children's Hospital provides complete clinical services for the diagnosis and treatment of Congenital and acquired heart diseases in children. Pediatric Critical Care: The pediatric critical care program at our hospital provides services for children with the entire range of severe illness. Pediatric Gastroenterology, Herpetology & Nutrition: The Section of Pediatric Gastroenterology, Herpetology and Nutrition at Children’s Hospital offer the broadest range of services available for treatment of problems of the stomach and intestines. Pediatric Psychology: At Children’s Hospital, our clinical psychologists are specially trained for the care of children. Size of the Business: Our hospital is basically belonging from medium size business. Capacity of our hospital will be `45 patients at once or 10 in emergency. BUILDING: We purchased land and construction on hospital is nearly to complete. Hospital main Gate. Size of building and Hospital layout will be like as follows:-
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Rooms: It has fifteen single rooms and ten double rooms. A visiting lounge, rooms for staff (doctors) and for paramedical staff are also included. Hall: On ground floor there opd and reception and waiting Hall etc as shown in layout, which is enough for a small children ward. Personnel: Personnel are the assets of any company especially in the service sector. In our Hospital more than 80% personnel will be skilled based. We rank our personnel into different departments.
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Doctors: Consultant physician Physician Medical officers (M.O) Anesthetic specialist Pharmacist Surgeon Pathologist Psychiatrists Paramedic staff: Nurses Dispenser Operation thither assistant Laboratory assistant Other personnel: Office boys Ward boys Gun men Ambulance driver Sweeper Gatekeeper Peons Hospital Equipment: When any business is going to be practically implement office equipment is essential for routine work established discipline and identifications of specific designations. 7
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Similarly, in our hospital three medical departments require some particular office equipments, which will be helpful in checking of the patients while check by the doctors.
Comparative Analysis:The most interesting thing is that our office equipment is quite different from other manufacturing organizations. These three departments have three offices and each office should contain following equipments. Stethoscope B.P apparatus Thermometer Laminator Otoskop Tongue depressor Torch Measuring tap Glucose monitor Pen stand Stationary Table lamp Office table Office chair Toys for children Weight scale All above listed materials should in every office for checking the patients because without equipment doctor is like the soldier without the weapon in war. Another thing, which we have in our mind that all the equipment should be, modernized enough in handily. After the description of doctors list now we explain some other offices, which will be compulsory for further hospital functioning.
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For this purpose, fist of all we describe finance office and the equipment needed for this is Computer Draw Safe Table furniture Operation Theater Equipment Operation lights Operation table Anesthetic machine B.P monitor Cardiac monitor Diathermy Suction machine Oxygen cylinder Nitrous cylinder Autoclave Equipment for Laboratory: Colorimeter Analyzer Microscope Centrifuge machine X-ray machine Chemicals Glucose meter
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Equipment for general ward and other rooms Incubator Sucker Machine Nebulizers ECG Machine Puls oxinator Oxygen Equipment Wheel chairs Weight Machine Stabilizers Stretcher Other equipment includes Stationary Air-conditioned Unit SUPPLIERS: Surgical Pharmaceutical Oxygen supplier Furniture supplier Licensing Agreement have been obtained from the Baroda development Authority.
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Market Summary:Here we describe market conditions and strategies related to services. How it will be priced and promoted. Being the entrepreneur our main focus is profitability but also target is how to serve our people in constructive manner. Therefore our marketing goals will be the blend of both factors.
Provide all possible facilities to our people in their own area. Create medicated environment in our city whereas people will not move towards other big cities for better treatment.
Situational Analysis:Our city environment is very much supportive for the hospital industry. Through environmental analysis we came to know there is no direct competitor here. Define Target Market Our target market is from surat to vadodara, because within this rang there is no standard hospital giving medication services under one roof.
Market Research:A market research on 100 respondents evenly distributed among the demography discussed reveled following results:The is no good quality pediatric hospital in the city. The is multispecialty hospital in the proximity of city baroda. More than 1000 children patients suffers.
SWOT Analysis of the Market:-
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Strengths New idea which will be highly acceptable in the market. We are the trend setters. Our relationships with suppliers are strong enough that offer credit arrangements, flexibility & response to special product requirements. Employee competency and professionalism, which are the asset of our company. Our commitment is quality to customers. We not only satisfy the customers but also build relationship with them in order to get their loyalty and better future of the company. Our unique strength is giving all medication services under one roof. Competitive advantage of “first to enter in the market”.
Weaknesses Access to capital. Cash flow continues to be unpredictable. Lack of awareness to people. They don’t have the exact concept of interior designing. People living in rural areas difficult to target All the weaknesses of a company are not the weaknesses; actually they are the opportunities for improvement in the company’s functions. So by properly arability the opportunities, they would become you strengths.
Opportunities Growing market with a significant percentage of our target market doesn’t know about nutrition and psychiatrist services. Increase in opportunities beyond the target area of R.Y.K. By providing ambulance services to rural areas we can capture that market also. We can expand business by targeting Ahmadabad.
Threats 12
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New Entrance of competitor High Import duty on machines can increase the cost and make direct effect on our services charging from people. Develop Goals and Objectives Mission Children hospital is guided by the belief that all children need to grow up in a protective and nurturing environment, where each and every child is given the opportunity to reach his or her potential. We believe this vision can provide a brighter future for all children. Goals To provide out class medical facilities to our patients. To provide them a favorable environment. To expand the business. Objectives: To earn maximum profit To introduce new technologies to make services better than ever before. To provide incremental value to our customers. To protect and maintain our resources. Maintain a positive and steady growth of 15% each year. Maintain a gross margin of 25%.
Marketing Strategies Increased awareness & image Our first strategy is about the awareness of our hospital to the patients Informing those not yet aware of what Smile Child Hospital offers. We will increase the awareness among the customers through proper advertising. Advertising through 1)Local news papers 2)Using cable network 3) www.slinkycity.tk Marketing Mix 1. Product 2. Place 3. Price 4. Promotion 5. People 13
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6. Process 7. Physical Avoidance Product Input Sick Patient Process Treatment of dieses Output Healthy Patient Place We believe that place is not just about distribution it is about convenience too. If the services are not available where and when people need, it will create a lot of problems for customers. The physical place which we have chosen of our Hospital is Hospital road RYK because it is a most famous and well known place for all the people. Another reason for that place so most of people, although, which are not our direct competitors, are operating in that area and awareness will be created frequently.
Price Mix Strategy:It shows leadership pricing to maintain its premium Quality and brand equity. Doctor’s Fee Consultant physician
500/-
Physician
500/-
Physiotherapist
800/-
Ward and room charges per day Ward charges
200/-
Single non AC room
300/-
Singe AC room
500/-
Double non AC
500/-
Double AC
900/-
ICU (intensive care unit) charges
600/-
ITR (intensive treatment room) charges
800/-
City Scan
800/14
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Promotion Mix Strategy:We will promote our Services through different types of promotions like Advertising Public relations We need one million (1,000,000) R.s for promotion. Advertising Medias: We have decided to use almost all types of advertising media because we are the new entrants in the market. So, we have to aware and educate people to come to our hospital with their children to get a better treatment with advanced technology. Circulate Hand outs Advertise through Newspapers Through Cable TV because it has made a major source of advertisement Billboards and banners People We are targeting the infants and child. Process We are providing better health care unit, with unique innovation like, before treatment of any critical diseases in child, first make a panel of doctors, when the sit together through brain storming it is zero chance to treat child wrongly that are very much common in other hospitals. Physical Evidence Our two doctors, Anesthetist and Neurosurgeon are foreign qualified has MD (American) degrees and one Pediatric Surgeon is FRCS (UK) Fellow of Royal College of Surgeon qualified and other are from FCPS (PAK) Fellow of college of physicians and Surgeons qualified. Implementing the Market Plan After all above procedure accepted we will implement this marketing plan. Evaluating the Market Plan After implementing if we feel any deficiency in the plan then we evaluate it and again Implement it till the desire outcome not satisfy us. But it’s very difficult to again make a market plan till startup.
SURGICAL SUPPLIERS: 15
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These are the suppliers who will provide us the equipment and instruments necessary for surgery. Pharmaceutical suppliers These suppliers will provide us all types of medicines. Glaxo Smith Kline and Abbott companies will provide us all types of medicines. Oxygen supplier These suppliers will provide us oxygen. This suppliers name and contact. Furniture supplier These suppliers will provide us all kind of furniture. It includes a lot of suppliers some provide office furniture, others provide ward furniture. Modern Furniture Shop Lucky Furniture Shop As we have a service type organization so there is no manufacturing process like in the goods manufacturing companies.
Intensive Cure Unit (ICU) Emergency Physiotherapy Neurology Laboratory Pharmacy Dispensary Electrical department
Emergency: Emergency department will be there in the hospital where patients that will be seriously ill will be admitted. They will remain in emergency for almost two to three hours and then will be shifted to rooms or intensive cure unit depending upon the situation. Intensive Cure Unit (ICU): In intensive cure unit, patients suffering from severe diseases like pneumonia, malaria etc. will be admitted. They will remain in that unit for two to three days depending upon their condition. Physiotherapy Department: 16
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We are going to introduce a different kind of hospital. We research in our area there in no standardized children hospital in which a separate physiotherapy department available. So due to this reason we are making a special physiotherapy department for those children which are hunted by polio and other these types of diseases. Neurology Department: The section of Pediatric Neurology at hospital is staffed by the experts in their field. We work closely with other specialists to provide the most advanced care for children with neurological illnesses. We coordinate pediatric nurse-supervised sedation for CT and MRI scanning with our neurologists, who provide a full range of radiological imaging of the nervous system for our young patients. In addition, because of the strong connection between the brain and behavior disorders, a team of child psychiatrists, psychologists and behavioral pediatricians is also available to work with patients and their families, as necessary. Laboratory: Laboratory will be well equipped with all the necessary equipment and instruments. Almost, all types of tests can be possible there. e.g. X-Rays, blood test, CITY SCAN etc. Pharmacy: This sort of pharmacy has life saving drugs and other routine drugs which are recommended by a consultant physician to a patient. We will be having fully equipped pharmacy. Dispensary: We have included dispensary for the patients that come just for time being. The dispensary’s charges will be included in the Doctor’s fees. Electrical Department: Hospital is the place where electricity is most important, not only for operations but also for patients in wards, laboratories or ICU. So, we have included it as a separate department. This department will handle the air conditioner plant and the generators for electricity problems.
Form of Ownership Form of Ownership in Child Hospital is Partnership so the business will be performed on partnership basis. Partners and their terms of Agreement 17
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As the legal status of Child Hospital is partnership so there are five partners. All the partners will have equal responsibility to operate the business and all will be responsible for any wrong decision. Profit/Loss Sharing Percentage All the partners have equal investment of 10,000,000 R.s in the business and the ratio of profit and loss distribution will be equal Authority or Control Authority regarding business matters will equal to all the partners. All partners will have joint account with the name of Smile child hospital so the check-signing authority will be equal for all the partners. In case of all other matters regarding dealing with employees, customers and suppliers but also placing orders and receiving orders, taking different kinds of wise decisions, all will have equal authority and control. Roles and Responsibilities of members The following is the description about the responsibilities of all the members of the organization including owners and the designers. Each and every member will be responsible to perform his or duty according to the specifications. Responsibility Owners Doctors Dealing Decision Managing Order Financial Managing employees Provide consultancy to patents Treating all patients in their timing very carefully Other Staff Computer Operator Good Behavior & Consultancy regarding finding any department and patients Recording all expenses
with
18
suppliers making Inventory placement decisions
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Making profile of Patients Recording all medicines and equipment, purchased and dispose off. I-e injections or vaccines We are going to start a standardized children hospital in Vadodara, Gujarat. Before this there is no hospital operating which provide all facilities, which are needed for a children hospital. According to our research there is a very much need for a standardize hospital, That provides all the facilities for the health to children. So in future our business is 100% successful and the chance of failure is Zero percent (0%). The involvement of risk in our business is zero percent; the reason behind is that there is no direct competitor in this region but some small clinics are operating here which are our indirect competitors. There is no fear from their side because they are operating with single doctor. Mostly Doctors are operating their own clinics own self. These clinics are operating with old type of equipments and there is no specialty in their clinics. So in these conditions our business is not facing any sort of risk.
We are operating our business at very much cost where as our indirect competitor are operating at low cost. Patients can easily offer their fees, so this is our one and only weakness. New & Imported Technologies: We are introducing new & imported technologies in our hospital, that difficult to operate 19
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and need special persons to operate it. There is no such typical financial plan. As, we are making the feasibility report therefore; we have decided to include the prices of different equipments and 1st time salary needed for a hospital. Initial finance needed 46,193,025 (calculated)
47,000,000 (Required)
Sources of Funds All of the partners will provide 30 million to start the new venture. We have requested for a loan of 20 million from the Gujarat Medical Association (PMA)to be paid in 20 years without interest (Approved). This debt will cover medical equipment costs, an ambulance and building’s leased cost. Department, equipments and their prices Building
40,000,000
First Month salaries
585,000
Operation theater equipment
2,305,000
Laboratory equipment
1,650,000
Office equipment
266,525
Promotion
1,000,000
City Scan Machine Equipment for rooms and wards
1,00,000
Total
46193025
Building
40,000,000
Nutrition Specialist
40,000
Physician & surgeon
60,000
121,000
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Psychiatrist
35,000
Anesthetic specialist
70,000
Neurologist
80,000
Other Peons, nurses, ward boys
200,000
Total
585,000
Operation Theater Equipment: Operation theater lights
150,000/-
Operation table
300,000/-
Anesthetic machine
80,000/-
B.P monitor
120,000/-
Cardiac monitor
500,000/-
Diathermy
300,000/-
Suction machine
150,000/-
Oxygen cylinder
25,000/-
Nitrous cylinder
30,000/-
Set of surgery instruments
500,000/2,305,000/-
Equipment for Laboratory: Colorimeter
200,000/-
Analyzer
500,000/-
Microscope
45,000/-
Centrifuge machine
15,000/-
X-ray machine
800,000/21
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Chemicals
50,000/-
Glucose meter
50,000/-
Total
1,650,000
Office Equipment: stethoscope (10)
15,000/-
B.P apparatus (5)
5,000/-
Thermometer (10)
500/-
Laminator
500/-
Otoskop
3,000/-
Tongue depressor (10)
500/-
Torch (5)
1,000/-
Measuring tap
25/-
Glucose monitor
45,00/-
Stationary
1,000/-
Table lamp (5)
2,500/-
Office table (5)
80,000/-
Office chair (5)+(50)+ (30)
103,000/-
Toys for children
5,000/-
Weight scale (2)
45,00/-
Total
266,525/-
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After the description of doctors list now we explain some other offices which will be compulsory for further hospital functioning. For this purpose, fist of all we describe finance office Equipment Cost Computer
70,000/-
Draw
8,000/-
Safe
35,000/-
table
8,000/-
Total
121,000/-
Equipment for general ward and other rooms: Incubator
500,000/-
Nebulizers
10,000/-
Break Even Analysis, financial statements and Balance Sheet for the two years has to be attached in the annexure. The business is expected to breakeven in the second year and expected to register profits from January in second year.
Critical Risk:The following types of risks are involved Excessive political interference Non- acceptability of the product and services.
Exit Strategy:if the proposed project does not run successfully we would wind it up and payback the loan by selling the machineries, equipments and tools. Moreover, we have enough financial backing from our ancestral property, in case we are not able to run the business profitably, we would still be able to pay back the loan by selling our ancestral property.
Appendix 23
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Curriculum Vitae of the owners Ownership Agreements Certificate from pollution board Memorandum of Understanding.
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