Nursing Home Business - Case Study Example

Nursing Home Business Case (Author’s name) (Institutional Affiliation) Table of contents: Introduction……………………………………………………………………………………1 Executive summary……………………………………………………………………………2 Keys to success……………………………………………………………………………….3 Organizational summary……………………………………………………………………….4 Funding………………………………………………………………………………………..9 Description of services……………………………………………………………………….10 Market analysis..................................................................................................................…...11 Management…………………………………………………………………………………12 Financial projection…………………………………………………………………………14 Owen Nursing Home business case: Introduction: Within the transforming landscape of social and health care, quality and outcome of patients are fundamental to guaranteeing sustainable structures of health care (Cassar and Scott, 2010) pointed out. This business case model is resources aimed to assist the stakeholders of nursing depict how cost effective the supervisory practice change can be realized. The plan strives to provide practical and helpful strides for the senior nurses, helping them to establish an effective case to making sure that team leader and ward sisters are supervisory to the process and offering committed time for developing the quality of care that the patients and service users experience. Executive Summary: In which place would you love to live when you needed medical help on daily basis? Of course it would be at your home. Owen nursing home intends to be that home for 10 full time assisted residents, providing medically proficient care in a reverential, self sustaining society and providing proficient nursing care to the residents. Within our gorgeous, newly redesigned 5 acre property (previously Homepark Bed and breakfast) in the NSW middle town, Owen nursing home brings together years of experience and innovation. Within the first three years, we shall develop new style of Elderly care approach based on the principle that the sick are individuals who are fully realized, with thoughts, experiences and thoughts which matter. At Owens home, we uphold the self worth and the dignity of each of our residents and aim to offer them admirable quality of life, as outlined by the residents as a group or individually. To this end, we promote all inclusive decision making through the house representatives, free access to all corners of their homes and also self determination in socialization, activities and preference to food. Owens home is not just about care-giving; it designed to be their home and community. At Owens home, we value skills, time and expert opinion of our workforce. We are dedicated to delivering a fair wage, structured and reasonable work schedules and precise responsibilities and spheres of rights and duties for every member of the team. Objectives: Within the first one year, there are four financial objectives: 1. To acquire sufficient finances for the start up. . To fully furnish all the compartment rooms within the main house in a period of 6 months. . To launch the proficient nursing facility, and ensure that it is maintained at 8 to 10 occupied rooms for 26 days every month henceforth. Start development realization for the continuing financial requirements from the second to third year. There are also other objectives which are non-financial: To offer a safe, comfortable, warm and appealing home for up to 10 residents who are permanent. The continuing feedbacks by way of Home councils will provide a weekly report on the development. To deliver skilled medical health care to all the residents To offer adequate mentoring, training and recompense the care-givers to enhance job satisfaction. Keys to success: Four keys to the success of Owens Home have been identified. To provide small-scale, resident oriented and house model health care better than the competitors The use of elderly assistants who are innovative reduces the cost of delivering this service significantly. The fair compensation and team framework reduce dissatisfaction and hence turnover rates among the employees. The on-site proficient nursing home guarantees continuity of care-giving if the residents require more rigorous assistance. Organizational Summary: Owens Nursing Home is charted as a non profit, with the objective of offering respectful and holistic aided living and proficient nursing home for a small fraction of the elderly. The principle location is Homepark Bed and breakfast in the NSW middle town along the Chester road. We have taken significant time redesigning the place into 2 house facility. The Nursing director of the organization is Dr. Nelson Johnson he is a renowned gerontologist in NSW Australia. He will be assisted by three professional licensed nurses and five elderly assistants, who shall carry out duties which are non clinical, for instance, laundry, day to day assistance, cleaning and cooking. On a monthly basis, a contracted nutritionist will pay a visit to the home to provide lessons on cooking and also to review the dietary needs of each resident. The Board of Directors will meet all the staff members thrice annually to evaluate the staffing and other requirements of the facility. The monetary operations shall be overseen by Mrs. Ruth Morgan, who has managed payroll sections and for over 8 years. She will be assisted by a billing specialist. What makes Owens Nursing Home Unique? According to (Kumar and McLeod, 2011), while the health care structures in hospital practiced in a number of homes offer good outcomes for Medicare and Medicaid billing functions- which is simple to quantify the list of drugs administered, procedures taken, they fail in delivering quality of life to the patients or residents (as we refer to them in our case). At Owens Nursing, we spot a different style of aiding our elderly fathers and mothers through a novel phase of their lives. Appreciating that where they live should be their home and they should own it or it should belong to them, as oppose to the medical personnel, we have developed a facility that not only caters for their physical and medical needs, but also fosters their social connections, personal preference and individual dignity (Armstrong and Murlis, 2007). Every resident is provided with his or her own private room, and bath. There is an opening that leads to the main common shared area, which has a dining room, a kitchen and living room; here they are able to share the meal communally. Studies have shown that lack of purpose is greatly devastating the elderly as suggested by (Kumar and McLeod, 2011). They established that over and again, the elderly who are involved in activities which are meaningful to them are by larger a percentage maintain their emotional well being, mental acuity and physical health. Although the model of the hospital strives to offer such stimulations, their ‘activities’ are normally arranged by the workers, with very minimal or no contribution from the patients. At Owens, we have already started pilot projects with the prospective seniors to discover areas of interest and systems of community engagements that will apply to them. Start Up Summary: (Start up Assets) Short tem (current assets) comprise $6,000 of the inventory start up (cleaning, bedding and other disposable medical materials) and small medical equipment which are projected to depreciate rapidly and therefore will need constant replacement. The long term assets comprise the current location, presently valued at $400,000 together with the renovations. The premise was willed to the organization by the Jack and Evelyn Bright last June, on the condition that we integrate a petite Medicare facility as component of the strategic plan. Start Up Expenses: One of the major elements falling within the start up budget is obtaining an automated system of medical records. The preliminary works of the system have been developed by InfoTech Plc. In addition to the apparent advantage of permitting numerous team members to readily exchange information and they change their working schedules, this platform can allow staff and patients to keep the trail of chronic situations, check gradual though vital changes in situations with could be unnoticed by the daily engagements and support quantifiable medical information for the organizations Medicare patients within the provident nursing facility. Medical equipment: Call button system Standard monitoring equipment (sugar, blood pressure, etc) Fully loaded crash cart. Funding: To finance the start-up cost, the organization has obtained a low interest loan of $210,000 and has also gathered pledges and donations to a tune of $291,500. The value of Owens home property (at $400,000) is among the donations gotten, therefore, it ahs been included to precisely reflect the assets. $7,650 in addition is needed by March 1 to start the operations. Services: We provide 2 services. Skilled nursing care and assisted. The provision of these services will start March next year. Description of the services: Within the main building, our residents can anticipate respectful and care assistance. The staff that will be assisting the elderly, besides giving the personal c care; they are expected to cook, do laundry and clean. The elders can anticipate that their new home shall just be like there home, the facility will be shared with other residents who have come together to air their grievances, socialize, share wisdom and knowledge, plan activities (Armstrong and Murlis, 2007). The residents will be free to arrange for their outings and their visitors can come anytime between 7 am and 9 pm. The organizations expects that the residents keep us informed regarding their whereabouts, their enthusiasms, health and other concerns, so as to assist them better. For temporary or permanent residents who have a lot of concerns regarding their care or health conditions, will be provided a more closely assisted and monitored lifestyle. All the residents will be entitled appropriate medication within the plans determined at the time they were admitted in the facility. This process will be supervised by the medical director. The residents will be encouraged to participate in Owens Home social life, comprising less physical activities with the Owens Home garden, so as to facilitate their recover and enhance their connection sense. Market Analysis According to Barlett and Ghoshal, (2009)the population of the target market according to the 2005 Australian census is 156,071 in NSW and 867,183 living in the adjacent regions. The estimates of our projections reduced this number by 60% in order to account for the elderly who are able to take care of themselves. According to the recently published report by the (Health Affair journal 2011), the ratio of Medicare patients moved to the post hospital care has increased two folds since the introduction of PPS (prospective payment system). As oppose to remaining in the hospital up to recuperation, the system that is currently is place preferentially allots the care for recovery to non hospital private facilities, rendering the hospitals for crisis or urgent care. Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Privately-paying Full-time Residents 1% 12,906 13,035 13,165 13,297 13,430 1.00% Medicare Patients 1% 60,735 61,342 61,955 62,575 63,201 1.00% Other 0% 0 0 0 0 0 0.00% Total 1.00% 73,641 74,377 75,120 75,872 76,631 1.00% Target market segment strategy: The general population that we intend to serve is senior individuals of 65 years and above. They are people who are in need of constant assistance, who have value for the community and their peer contribution. Since Owens Home will definitely be their home, we are particularly seeking patients desiring to make this place their home, teach and learn from one another (Armstrong, and Murli, 2007). The organization recognizes the need to meet the diverse needs of the families of the residents who will assist them to deliberate on issues concerning staying with us and who will be almost defiantly be making the monthly charges needed for their care. Market needs Patients/residents needs From studies and experience of the management team, based of several years of their care for the elderly patients have indicated that individuals seeking nursing care and aided living care have several similar needs. They need to be actively engaged in the society of certain kind To be accorded dignity and respect To be part of his or her own living plan and treatment To be attended to by medically knowledgeable skilled caregivers and clinicians. Management Owens home provides a different management platform from the typical hospital structure nursing home. Our principal caregivers, (the six resident’s assistants) operate as self managed team. They will be meeting with the nurse on duty and the medial director each morning so as to coordinate for the service deliver. Though the medical director posses the ultimate role for the well being and health of the residents as well as the visitors, they are expected to discuss, note and recommend action measures for each resident. Financial management: Mr. Morgan has for 8 years been overseeing financial management for line corporations. She will be in charge of our financial management. Marketing and advertisement: The organization has a professional public relations officer. She will be responsible for designing brochures and advertisement. She will also be taking charge in organizing events such as Open house in festive seasons perhaps in Decembers and Aprils to allow the general public witness the outcomes of efforts. Management Chart Strategy and Implementation: The organization has outlined goals which are ambitious. The factor to holding the staff accountable is to establish measurable, concrete milestones, with precise roles and budgets, where appropriate. The graph below shows a concrete implementation, marketing and financial goals. Risk factor The organization has limited history of opertaion: Owens Home depicts a greater than usual risk to the investors because it has a very limited hisoty of operation and has been in operation for quite short duration of time. Nonetheless, the directors and participants have massive experience in clinical devise field and are highly confindent in managing Owens Home to make sure that progress as a vaible, on-going and self suffiecient operating and legal entity. Financial plan: The projection is that a full-house facility is normally (90-95%) full. According to (Agrawal & Nagarajan, 2010), the non standard model of the organization enables us to project total occupancy within the main building, because the turn over rates for the aided living residents are anticipated to relatively low with the first and the second year. On the other hand, the skilled nursing section needs a certain percentage of empty beds to provide for the flexibility required to handle shorter stays. As a result, we are projecting attaining our ten bed capacity (full capacity) at nine full beds. The monthly fees for the residents are based on per hour Medicare nursing. They will be charged $135 per day. The residents in the private facility will be charged higher $250 per day. Financial indicators The Medicare payment billing collection and rates Capacity of the private residents Projected monthly revenue References: Armstrong, M. and Murlis, H. (2007) Reward Management (5th edition). London: Kogan Agrawal, A. and Nagarajan, N. (2010). Corporate capital structure, agency costs and ownership control: The case of all-equity firms. Journal of Finance, 45(4), p1325-31. Barclay, J., Marx, M. and Smith Jr., W. (2009). The Joint Determination of Leverage and Maturity. Journal of Corporate Finance, 9(1), p149-167 Barlett, A. and Ghoshal, S. (2009). Managing across borders: The transnationals solution, Cambridge, MA, Harvard Business School Press. Cassar, G. and Scott, B. (2010). Capital structure and financing of SMEs: Australian evidence. Accounting and Finance Journal, 43(2), p123–147. Cheng, S. and Shiu, C. (2010). Investor protection and capital structure: International evidence. Journal of Multinational Financial Management, 17(1), p30-44. Kumar, K. and McLeod, G. (2011). Multinationals from Developing Countries. Lexington, Mass.: Lexington Books/DC Heath and Company. Read More