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).
Table 2: Pro Forma Income Statement Forecasts (For the First Five Years).
Table 3: Pro Forma Balance Sheet Forecasts (For the First Five Years).
Table 4: Personnel Plan.
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.