Regulatory Requirements in the HealthCare Industry - Essay Example

Business Plan No businessman plunges into any industry without a strategy. That would be as preposterous as in going to war without a weapon -- utter suicide, for that matter. So to concretize that hazy business idea, the businessman or entrepreneur should devise a business plan. Business plans are a way of selling sensible ideas and opportunities especially to prospective shareowners or investors (Schwetje & Vaseghi, 2007, p. 1). It is a presentation of where the business adds value to a certain market. The business plan also shows the way to arrive at the core of successful undertaking while taking particular considerations to the current economic conditions and so as to develop contingency plans in that respect. In essence, it is a plan of thriving in the market. While there are different types of business plans, they all can serve either of the two purposes: internal and external (Schwetje & Vaseghi, 2007, p. 1). When a business plan has an internal function, it presents strategies and tactics which can be utilized to effectively manage the internal operations and other domestic affairs of the company. A business plan could also be structured for an external purpose when it presents feasible means of financing (e.g. bank loans, venture capital, strategic alliances) for the continuous operation of the business. The two most important aspects in a business plan would have to be the marketing plan and the financial overview (information and projections/profitability). The marketing plan is probably the meatiest feature that a business plan could have since it presents how the company’s products should be sold to the target market (even if the market is oligopolistic or in a form of perfect competition though except in a monopolistic structure) or in brief the influx of a real good cash that could support the business operations for a long term (Jaret, et al., 2010, p. 153). The marketing plan typically includes the current market situation, product positioning and/or promotional tactics (Jaret, et al., 2010, p. 154). Apparently it can be said that a product is not doing any good in the market at all either because of a poor marketing strategy or simply because it lacks value and features. However, sometimes a bad product can guise a good image through strategic marketing. A good marketing strategy permits the aspiring businessman to roughly know how to compete in market through a thorough market research. Without a marketing strategy, the business idea is a fail no matter how well established the company’s reputation is. For someone new in the market, everything will be much worse. The financial overview is also an important aspect in a business plan. Defining the financial situation of the business resurfaces the weak and strong points of the business (Schwetje & Vaseghi, 2007, p. 107). The financial overview includes the source of financing whether through the present cash flow, bank loans, or the like. Nevertheless, the most important matter that it should bring up is the profitability of the business idea which will be possible through financial projections (e.g. profit and loss forecast, cash flow projection and capital spending plan). Obviously, the business idea is attractive to investors when it is profitable and promises liquidity. Without anything to finance the business with, the business cannot shore up. Regulatory Requirements in the Health Care Industry A health care business has always been one of the most profitable business ventures. So it wouldn’t be surprising if a lot of business-minded people penetrate this market. However just like permeating any other industry, a businessman planning to run a health care facility should conform to state and federal laws corresponding with that field of enterprise. These laws contain regulatory requirements to ensure ethical operation, correct professional practice, customer assurance and proper service (Raffa, n.d.). Examples of such regulations are the anti-kickback, Stark, fee-splitting, and corporate medical practice laws. These laws are stringent impositions but the penalty clauses are even more serious matters that should concern the businessman. Unlawful practices could nullify a professional license and retrieving it would be another financial and formidable concern. Nonetheless, it is exactly through the responsible compliance to the regulatory requirements that the health care industry is still in full bloom. In other words, while these regulatory laws benefit the greater society, they in turn benefit the business itself for a long period -- economically. Regulatory rules also prevent unhealthy competition in the marketplace since unlawful practices (i.e. referrals) are to be omitted. Yet still, the opposite (losses in profit and intangible assets, overhauling business plans that could probably be costly as well) ensues in the absence of legal compliance. Hence, it is just wise to consider these requirements no matter how restraining they appear in designing the operational plan for a health care facility; and which would be a huge entrepreneurial challenge. Sometimes regulatory requirements stipulated in laws come off as contradictory with the objectives and vision of the firm (Gould & Younkins, 1989). The greater concern is the fact that they are vulnerable to misconceptions. Therefore, to establish a concrete ethical and lawful foundation in the market, the venturer could always make use of an experienced health care legal counsel during the business planning (Raffa, n.d.). While the operators themselves maybe experts in the medical field, the health care attorney could transcend the medical-legal scope during the formation of the business. Raffa (n.d.) defines an “experienced health care attorney” to be someone who had gained substantial education in the same field of health care and in government regulatory agencies. He/She should be able to at least guide the client through present concerns like in the health information technology investments, healthcare payment processes, promotions or protection of the patient’s private information. Formulating a business plan that adheres to the ethical and legal conduct sure is not enough. Plans must come with practice. In fact, all they have to do is to follow the rules through proper practice because even a single incident could demote a business to its bust; so one way to achieve this end is through constant promotion of the corporate goals alike. Consistent communication of such corporate social responsibility attracts consumer confidence. References Gould, G., & Younkins, E. (1989, July). Guidelines help managers deal with ethical issues. Retrieved from http://findarticles.com/p/articles/mi_m3257/is_n7_v43/ai_7752389/ pg_3/?tag=content;col1 Jaret, P., Peterson, S., & Schenck, B. (2010). Business plans kit for dummies. Retrieved from http://books.google.com.ph/books?id=MN_A_eWhO28C&printsec=frontcover &hl=en&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Raffa, C. (n.d.). Legal issues to consider when creating a health care business model. Retrieved from http://www.nhpco.org/files/public/palliativecare/legal-issues-to-consider.pdf Schwetje, G., & Vaseghi, S. (2007). The business plan: How to win your investors confidence. Retrieved from http://books.google.com.ph/books?id=RdAl_1YYXcoC& printsec=frontcover&dq=business+plan&hl=en&ei=tyaQTOHvN4PUvQOn6cjjCw&sa=X&oi=book_result&ct=result&resnum=6&ved=0CEsQ6AEwBQ#v=onepage&q&f=false Read More