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Rainbow International Children’s Hospital’s Plan Report (Assessment)


Introduction: Rationale

This composition embodies a blueprint detailing the ground plan and draft for the proposed establishment of a children’s hospital in Dubai, United Arab Emirates. Rainbow International Children’s Hospital (the new setup) entails a corporation that will bestow laudable treatment and rehabilitation amenities to the children and young population of the jurisdiction. This business plan divulges the forecasted financial metrics and long-term performance of the hospital project over the next five years (Buss 2015, p. 11). It also brings to light the expected products & services, market analysis, sales & revenue, financials integers, organisation, and the exit plan.

Description of the Organisation

Rainbow International Children’s Hospital (RICH) encompasses a premeditated, child-centric nursing home. The medical facility will dedicate its exceptional healthcare regimens and personalized care to the young children within the UAE jurisdiction and adjacent GCC environs. The projected location of this imminent facility will be in Dubai, an affluent business hub in the Middle East, portrays Acharya (2015).

The initiative for this scheme stems from the region’s passion of escalating the children’s medical service standards. The hospital will integrate a paediatric department that will proffer therapeutic care and an incessant commitment to treat and chaperone children along their maturation progress (Grossman 2012, p. 13). Round-the-clock childcare services will be available and will entail palliative regimens, paediatric surgeries, rheumatology, neurology, radiology, and ENT by certified nurses.

Additionally, the corporation will enlist liberal roles and missions to help integrate constructive guidance, ethical nurturing, parental satisfaction, and child counseling (Acharya 2015). The contracted nurses and physicians will implement the alleviation of lifestyle diseases diagnosed in children namely diabetes, obesity, and cancer among others agents.

Products and Services

The sketched products and services convoke a steadfast medical assistance modelled for children and infants of all ages (Karnopp 2011, p. 22). The hospice will consist of perpetual pharmaceutical amenities and paediatric therapies, attending to the voluminous young inhabitants of this locality. The entity’s physicians will administer medical relief, restorative treatments, pharmaceutical consultations, and chronic pulmonary nursing (Dunn, Kathuria & Klotman 2013, p. 23).

These medical remedies will entail pulse oximetry, chest physiotherapy, enteral feeding, apnea monitoring, seizure management, stoma therapies, full ventilator support, and oxygen administration. Supplementary services will include nebulizer treatments, suctioning, tracheotomies, orthopedic interventions, and catheterizations, analyzes Allen (2008). As Acharya (2015) expounds, RICH will be the premier referral children’s hospital in the GCC region to capitalize on a paperless conveyance of technology.

The entity’s inauguration will rescue the worsening situation of bed shortages and high occupancy rates. It will also enforce the issuance of the medical insurance policy (Dunn, Kathuria & Klotman 2013, p. 23). The management will also execute safety policies that guarantee a safe ambiance for all its residents as well as reinforce a socially conscious reputation/ brand recognition (Cleary & Rice 2013, p. 21).

Market Analysis

The stockholders and project proponents have conducted a market analysis that comprises of the customer profile (target market) as well as the industry analysis (competitors). This evaluation serves to depict and advice on the economic climate and feasibility of the hospice proposal (Walsh 2012, p. 19).

Industry evaluation

As Allen (2008, p. 27) illustrates, an industry evaluation embodies the examination of the prevailing competition among business rivals and similar firms. RICH may experience competition from general hospitals and, therefore, has opted to assimilate comprehensive childcare services as its unique product differentiation. The paediatric institution will link up with the nursing homes and general hospitals, reorganizing them to promoters of its exceptional pinnacle brand (Acharya 2015).

The executive board is currently working to augment the project’s benefits, accessories, and the enlisted value for money as regards the services and products. Buss (2015, p. 33) adds that the project’s proponent will conduct prospective marketing of the establishment by way of direct promotions and referrals by its esteemed associations. These advertisement efforts will help create a larger client base and dilute the imminent competition and position-jockeying tendencies among rivals (Dunn, Kathuria & Klotman 2013, p. 28).

Customer profile

The targeted patronage encompasses the children and young community of the indigenous and expatriate families, residing in Dubai, Ajman, and Sharjah among other UAE cities (Acharya 2015). The prevalent population of UAE and the adjoining GCC territories equals four and ten million inhabitants respectively. Lukenbill and Immroth (2007, p. 58) maintain that the local authorities speculate that the Dubai Marina, Palm Islands, and Dubai Land projects will lure more people to relocate here. The erection of these freehold properties will elevate business prospects and customer employment for the hospital.

Sales and Revenue

A sales and revenue extrapolation entails a firm’s weighted scenario for its future sales (Hunt & Laughon 2011, p. 47). It is an extensively crucial aspect of a business plan proposal as it stipulates the possible profits & returns, recruitment levels, growth, and management overheads among other elements. Rainbow International’s sales forecast entails an educated guess about the industry analysis, buyer bargaining power, supplier power, economic outlook, and rivalry analysis. Table 1 (sales forecast) below tallies the patient service revenues- equivalent to the service volume * the cost per service capita (Lukenbill & Immroth 2007, p. 60).

The bottom line ratio accelerates by 10%. The projection also portrays the supplementary operating and non-operating revenues such as dietary sales and investment interests respectively (Cleary & Rice 2005, p. 34).

Financials: Performance and Delivery of Services

The guesstimated financial growth stresses the exploitation of the venture’s cash flow (Hunt & Laughon 2011, p. 51). The statement of cash flows will mobilise the amassment of the accounts receivables from Medicare, Medicaid, and private medical insurances for the first two years. As time advances, however, the magnitude of the amenity’s packages and provisions will stretch to accommodate a broader financier base (Acharya 2015).

The objective of this augmentation is to buttress the sources of revenue and income in conjunction with diluting the frequent intermissions that devalue the cash flow. The conjectured financial plot consists of annual tax and interest rate postulations among other quotations (see Table 2). The board assumes a stable economy exclusive of fiscal recessions and stringent federal policies that impair Medicare reimbursement and paediatric services.

As regards the discharge of services, RICH looks to incorporate a full occupancy capacity of twenty beds for the short stays (Acharya 2015). The monthly health insurance and nursing care billings will range between AED150- AED165 per day, exclusive of pertinent medication costs. The fees apportioned to the private clients, however, will be slightly more to recompense for the extra benefits expended while residing at the hospice.

Further, the proposed rates will be about 2/3 of the general hospital tariffs (Hunt & Laughon 2011, p. 54). The anomalies will hail from the personnel retention funds and public donations as well as the credits earned from recruiting senior physicians. As regards performance, the speculated break-even analysis implies that the hospital should register more than fifty patients per month to recoup costs, depending on the prevalent market rates.

Acharya (2015) alleges that the conglomerate envisages ameliorating the bed capacity to an absolute measure of 500 beds over the next ten years. The gross capital fees imperative for the planning, construction, stocking, stocking, and furnishing of the premises total to Euro 125 Million.

Projected income statements

The income statements depict accelerating sales and proceeds for the subsequent five-year duration as well as the revenues accumulated in the introductory year (see Table 2). The Directorate predicts a steady annual sales progression against the calculated expenditures (Acharya 2015).

Projected balance sheets

Table 3 beneath enumerates the speculated net worth and appraisal of the development. The yearly quotations reflect an ideal financial position (Walsh 2012, p. 38).

Organisation

The management structure will subsume two principal administrators: one clinical director and one administrative supervisor (see Table 4). The subordinate personnel will include two social workers, one administrative assistant, and two contracted speech & physical specialists, experienced in manual therapy (Acharya 2015). The two administrators will assume chief managerial positions and delegate direct services to the junior doctors as the demand for nursing escalates.

Personnel Plan

Administrative Director

The project proponent will undertake the administrative director role, accomplishing the responsibilities of a social worker during the pilot phases. Later, as the service hours ascend, the board will contract a designated employee, whose compensation will constitute of a flat fee.

Clinical Director

The clinical director role necessitates the recruitment of a qualified health care veteran- a position whose salary settlement entails AED 2,000 per week and annual TBA credits. The clinical administrator will initially operate as a skilled nurse before the appointment of a licensed nurse worker.

Administrative Assistant

The administrative assistant’s working duration will encompass a total of 40 hours per week at AED 45 per hour. The preliminary incentives and benefits will consist of four weeks, and eleven indemnified leave days.

Skilled nurse

The skilled nurse position will be a part-time role, accruing payments at AED 35 per hour and AED 1,500 per month for direct service and on-call hours respectively. The assigned benefits will include two weeks and six indemnified leave days.

Social worker

The contracted social worker shall amass a wage of AED 30 per hour for the direct service hours, computed at 500 hours per annum. The position benefits will accrue when the work volume ascends.

Manual therapists

The hired physicians and chiropractors will dispense manipulative remedies, fascial counter strains, and joints mobilization at AED 47 per hour recompensed at 650 hours per annum. However, no incentives shall accompany these positions, as they will be on a contractual basis.

Exit Plan

In the event that the paediatric facility is remunerative, the board may decide to relinquish the complex to a third party in pursuance of voluminous profits and investment bonds. The executive panel will engage adroit investment bankers and business brokers to trade the residency in exchange for affluent gains (Acharya 2015). If handled shrewdly, the proprietors could annex sales premiums and yields worth five times the initial capital fees (Hunt & Laughon 2011, p. 63).

Appendices

Table 1: Sales and Revenue Projections (Consolidated Statements for the First Five Years).

Description Y1 Y2 Y3 Y3 Y5
Sales:
Service Volume 2,300 3,100 3,670 4,250 4,730
Cost Per Capita 46 54 62 71 77
Total 105,800 167,400 227,540 301,750 364,210
Operating Revenues:
Room Services Dietary 156,700 158,350 159,960 160,500 162,340
Inpatient Services 146,739 149,430 150,020 152,410 154,120
Outpatient Services 120,000 122,000 123,500 124,800 125,480
Clinical Services 67,900 69,200 71,000 72,500 74,300
Operating Revenues (Total) 491,339 498,980 504,480 510,210 516,240
Other Revenues:
Contributions 97,600 98,220 99,350 101,100 101,770
Investment Interests 45,700 46,000 46,900 47,420 48,000
Depreciation Expenses 13,200 13,970 14,100 14,750 15,250
Total Other Revenues 130,100 130,250 132,150 133,770 134,520
Gross Revenue/Sales 727,239 796,630 864,170 945,730 1,014,970

Table 2: Pro Forma Income Statement Forecasts (For the First Five Years).

Item Y1 Y2 Y3 Y4 Y5
Sales 727,329 796,630 864,170 945.730 1,014,970
Cost of Goods Sold 44,500 45,700 46,200 47,739 48,500
Operating Income 682,739 750,930 817,970 897,991 966,470
Expenses:
Payroll 238,000 240,000 242,000 244,000 246,000
Administrative & General 12,300 12,680 12,900 13,250 13,590
Marketing Costs 7,600 7,970 8,350 8,800 9,400
Professional Licensure 18,500 19,300 19,735 20,500 21,110
Rent and Utilities 14,330 14,750 15,200 15,852 16,300
Insurance Fees 5,250 5,760 6,100 6,725 7,120
Payroll Taxes 17,492 18,120 18,570 19,280 20,430
Miscellaneous Costs 2,364 2,762 3,122 3,720 4,260
Travel Charges 11,400 11,920 12,300 12,850 13,020
Total Expenses 327,236 333,262 338,277 344,977 351,230
EBITDA 355,503 417,668 479,693 553,014 615,240
State Income Tax 10,500 11,350 11,655 12,200 12,725
Federal Income Tax 50,300 51,400 52,128 53,477 54,400
Interest Expense 12,470 11,568 10,250 9,355 8,700
Depreciation Expenses 4,500 4,500 4,500 4,500 4,500
Total 77,770 78,818 78,533 79,532 80,325
Net Profit 277,733 338,850 401,160 473,482 534,915

Table 3: Pro Forma Balance Sheet Forecasts (For the First Five Years).

Item Y1 Y2 Y3 Y4 Y5
Current Assets:
Cash 123,540 125,120 127,400 128,000 129,322
Accounts Receivable 42,980 43,500 44,290 45,280 45,980
Inventory 32,758 33,000 33,760 34,500 35,500
Amortized Development 42,000 42,585 43,670 44,000 45,100
FF&E 24,000 24,500 25,000 25,500 26,000
Other current assets 30,900 31,200 31,850 32,700 33,349
Total Current Assets 296,178 299,905 305,970 309,980 315,251
Fixed Assets:
Fixed Assets 820,000 825,000 830,000 833,000 837,000
Amassed Depreciation (8,370) (9,500) (10,300) (11,690) (12,420)
Total Fixed Assets 811,630 815,500 819,700 821,310 824,580
Total Assets 1,107,808 1,115,405 1,125,670 1,131,290 1,139,831
Current Liabilities:
Accounts Payable 21,070 21,930 22,432 22,825 23,735
Current Borrowings 6,500 6,500 6,500 6,500 6,500
Total Current Liabilities 27,570 28,430 28,932 29,325 30,235
Fixed Liabilities 86,759 85,355 84,830 84,100 83,128
Total Liabilities 114,329 113,785 113,762 113,425 113,363
Paid-in Capital 486,000 530,500 590,752 653,753 722,100
Amassed Surplus/ Deficit (13,700) 3,287 7,370 10,280 11,832
Surplus/ Deficit 24,500 22,765 21,300 20,209 19,600
Total Capital 496,800 556,552 619,422 684,242 753,532
Liabilities & Capital (Total) 611,129 670,337 733,184 797,667 866,895
Net Worth 496,679 445,068 392,486 333,623 272,936

Table 4: Personnel Plan.

Staff Y1 Y2 Y3 Y4 Y5
Administrative Directors 1 1 2 3 5
Clinical Directors 1 2 3 5 6
Social Workers 2 4 6 8 10
Contracted Therapists 2 5 7 9 10
Skilled Nurses 2 3 4 6 8
Administrative Assistants 1 2 3 4 5
Total 9 17 25 35 44

References

Acharya, D 2015, Rainbow International Children’s Hospital. Web.

Allen, J 2008, Nursing home administration, Springer Pub., New York.

Buss, W 2015, How to start a medical hospital business, SamEnrico, London.

Cleary, B & Rice, R 2005, Nursing workforce development strategic state initiatives, Springer Pub. Co., New York.

Dunn, A, Kathuria, N & Klotman, P 2013, Essentials of hospital medicine: a practical guide for clinicians, World Scientific Pub. Co., Singapore.

Grossman, L 2012, Infection control in the child care center and preschool, Demos Health, New York.

Hunt, P & Laughon, D 2011, The nurse leader’s guide to business skills strategies for optimizing financial performance, HCPro Inc., Danvers.

Karnopp, J 2011, Family childcare basics advice, activities, and information to create a professional program, Gryphon House, Silver Spring.

Lukenbill, W & Immroth, B 2007, Health information for youth: the public library and school library media center role, Libraries Unlimited, Westport.

Walsh, R 2012, Start a business for less than 2,000: from airbrush artist to wellness instructor, 75+ profitable business startups for under 2,000, Adams Business, Avon.

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IvyPanda. 2020. "Rainbow International Children’s Hospital’s Plan." September 12, 2020. https://ivypanda.com/essays/rainbow-international-childrens-hospitals-plan/.

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