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Orthopedic Surgery Practice’s Health Services Report

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Updated: Aug 25th, 2021

Statement of opportunity

Orthopedic surgery practice intends to start MRI services to cater to the increased population in the local community and offer high-quality services which are not available from other MRI service providers. The main aim of Orthopedic surgery practice is to provide a portable MRI service that reaches all populations at an affordable price and of high quality with intend of reducing the congestion among the service providers.

The administrator’s vision

The administrator is the advantage of the failures of existing MRI service providers to deliver quality services. This will give them a competitive advantage as compared to other service providers. As described current service provider in the local community is not portable and not of high quality. The administrator has visualized a portable MRI, which is good for the community as it will reach the remote areas where there will be people requiring medical services. The population has grown drastically due to the movement of people to the area; thus, they need an MRI service provider who will reduce congestion among the service providers and offer quality services. The increased target market that varies from young to old requiring the services.

The organizational structure will change drastically since a new product will be introduced. The portable MRI will require new employees to handle the portable services, which changes the organization’s structure. The organization may be at the moment being structured in a manner that they provide services only to orthopedic surgery. However, the MRI service will increase the number of departments within the organization. It will also require the acquisition of new equipment and increasing office space for the extra staff; the parking space will also be increased within the organization. If funds are available, there will be an increase in building and construction for the purposes of the project. The capital structure will be also be affected depending on the requirements and the mode of raising capital.

However, the most affected structure of the organization will be the human resource structure, where there will be an increase in human resources introducing a new department for handling the service. The other structure that will be affected is the capital structure; extra money will need to be injected to support the new equipment, new employees, and construction of other facilities.

Organization structure defines how tasks and jobs will be carried out formally among groups or employees and how it is coordinated. Therefore work specialization departmentation and formalization of activities within the organization will be affected drastically.

Environmental factors

Many environmental factors will affect the business before they start. The environmental factors that affect the business will include competition, political, legal, employment, economics, and many others.


Currently, there are companies operating and offering MRI services to the local community. The local communities are used to manage medical care services and the main aim at the moment is to provide reduced health care cost services, and each company is reducing the services. This company will face stiff competition from the existing service providers who will leave no chance without causing many problems.

Another established competitor of MRI service will be medical providers from outside the local population who provide low-cost medical care services with a more established customer base with a huge financial cash outlay. This could give the company a challenge and a run for their money. In addition to the medical care service provided by the local and foreign company, the government also provide medical services. However, if they do not offer a provider-based delivery portable MRI service, the will cause a challenge.

Most of these companies have already achieved their vision, and a new service provider to the market should be able to look at the future so that they will be inspired in satisfying the customer by working extra hard to convince their customer about their services. The main focus for the company should be to offer unique MRI services that are not found in the existing service providers to help them get, motivate and retain customers.


One of the most challenging environmental factors in this business is reimbursement. Being a portable facility, some of the customers may come in to reimburse their money, which is used somewhere else. However, the world is full of people with ulterior motives who may come to demand reimbursement for what actually is not theirs. This may cause many financial losses for the company, and this may not be good for the company. Before reimbursing, the company should try as much a possible to ensure that they have been implemented a system that identifies genuine reimbursement claims.


Once the company starts operating, it’s expected to hire the local population. The local population that has been hired is expected to work within the organization and deliver good services expected to society. Employment will be used to increase service delivery. However, at the same time, it will increase expenses to the company, which in turn will be expensive in the long run.


A company that will be operating in this environment should update itself with issues relating to the rules and regulations governing the MRI services. They should also be able to know the rules and regulations governing employment and competition among the players in the industry.


There is an increase in the cash flow within the local population since most companies have moved in, and therefore the company expects to have a stable cash flow that will sustain its activities.


The company should be able to deal with threats emerging from customers moving to oppose the idea of portable MRI services. There is a change in lifestyles and life patterns among the residents, which means people have changed their culture and will wish to have a service that takes care of their needs.


The company, by offering portable MRI services, will be staying up to date with technological factors, which are important in service delivery to the population of the world today. It is vital for any company operating in this industry to be up to date with technological changes.

Risk analysis

There are many risks and benefits associated with this opportunity. This includes the SWOT analysis.


It will be the best company to launch a portable MRI service in the area, thus increasing the customer’s confidence. The company will have high operational margins as compared to other companies operating in the market. There is also the uniqueness of the product that is being offered by the company. The company is situated in a good location that offers good services.


There are too many companies operating in the industry offering the same services. The company also will be faced with the problem of trying to sell unknown products in the market. There is also a lack of manpower at the moment since they will be required to increase manpower.


There is large increasing market due to the moving in of companies from other areas to the local population. There is also a demand for health services in the area, which is also increasing in the area.


The threat here is the increase in competition from other industry players.

Human resource planning

The new product that is being introduced in the market will need an extra human resource for successive service delivery. The company should strive to increase human resources by selecting, motivating, and retaining the best human resource in the market. We need to increase the human resource and a full department that will be handling the service. The human resource required, which will be a full department, will need extra funding to be successful. We will need a head of the department for MRI services, two deputies who will handle:

  • the portable MRI services, and the other
  • will handle the non – portable section of the MRI services.

The company will need extra technical staff who will handle different sections of patients’ or clients’ data. The human resources chart will change as follows;

Organizational Chart.
Organizational Chart.

Line budget

Line budget for personnel services.

Radiologist wages 500,000
Technical staff wages 240,000
Additional office space
Total 740,000

Functional budget.

Radiologist wages 500,000
Technical staff wages 240,000
Additional office space (20 x 5000) 100,000
Maintenance cost 30,000
Operating costs 50,000
Total 920,000

The projected number of MRI services is 10,000. Therefore, the cost per MRI service is :

920,000/10,000 = $ 92 per MRI SERVICE

Therefore, the cost per MRI will be the US $92.

A program budget

Radiologist wages 500,000
Technical staff wages 240,000
Additional office space (20 x 5000) 100,000
Maintenance cost 30,000
Operating costs 50,000
Total 920,000

If the clinic is projecting to have 3,000 visits, the MRI services will be charged at 920,000/3000

$307 per MRI service.

Note. This cost does not take into account the cost associated with the equipment purchased. However, the cost will be higher than this if depreciation is taken care of.


Armstrong G. & Kotler P. (2007). Consumer Markets: Influences on consumer behavior, Principles of Marketing.

Economist, (2007), Factsheet. Web.

Johnson, G., Scholes, K., Whittington, R., (2006) Exploring Corporate Strategy, 7th edition, Prentice Hall.

Kotler, P. (2005) Principles of Marketing. New York.Melbourne Press.

McTaggart D Finlay C & Parkin M (2003); Economics, Pearson education Australia.

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