Business Plan
Instructions:
Elizabeth Jones, FNP-BC, has been an NP for 8 years. She has worked in the primary care setting, as well as the urgent care setting. She is considering relocating to a state that allows for unrestricted independent practice and opening her own primary care clinic. There are multiple benefits to owning an independent practice. However, owning a practice requires extensive knowledge and support. For an NP to establish independent practice, an appropriate plan must be developed. For this Assignment, you will create a Business Plan for your potential future busines
Write a 2-3 page paper Business Plan that addresses the following:
•Identify and explain your chosen business structure
•Estimate monthly cost for establishing your own independent practice in your home state, including:
•Clinical site expenses
•Employee structure and expenses
•Supplies
•Utilities and other overhead expenses
•Malpractice insurance
•Continuing education expenses
•Accounting fees
•Services identified that you will provide (e.g., primary care services, drug screens, DOT exams)
•Projected monthly income necessary to support your independent practice
Solution
Business Plan
Executive Summary
This business plan was developed for the collection of $1.5 million for developing an independent nurse practice facility, and to communicate the expected operations and financials for the next one year. HomeCare Family Nurse Practitioner (HFNP) will be located in San Jose, California. It will specialize especially in the provision of general medical care and will target low income customers in the region. Elizabeth Jones, FNP-BC is the founder of HFNP. The mission of the business is to provide expert and quality care to families in San Jose and beyond. The clinic aspires to become a world class health care centre that ensures patient safety and environmental sustainability. The business has been formed with the goals of serving at least 24 patients in a day by the end of the first year of operation; attain 85% collection rate within the first six months; and to ensure that at least 90% of all patients who visit the centre are satisfied with the care given.
Business Structure
HomeCare will be a partnership registered under the State of California. The business will partner with a local public hospital. The partnership will help in securing referrals so that the clinic can be assured of a relatively constant flow of patients. This will ensure that sustainability is attained. The clinic will also receive partial funding from the hospital so that Elizabeth will not have to personally raise the capital. Through income splitting, it will be easy for the business to plan tax and ensure more profits. The plan will also ensure that Elizabeth can dissolve or exit the business easily. There are also no complex reporting requirements.
Cost of Establishment
| Item | Cost |
| Lease Payments and Deposits for Start-up | $20,000 |
| Working capital | $50,000 |
| Furniture, Fixtures & Equipment | $30,000 |
| Opening Supplies | $15,000 |
| Vehicle Lease and Deposits | $25000 |
| Security Deposits | $2,000 |
| Clinical Site Expenses | $15,600 |
| Marketing | $8,000 |
| Employee Expenses | $37,500 |
| Accounting fees | $5,000 |
| Malpractice Insurance | $23,000 |
| Continuing Education Expenses | $15,000 |
| Improvements to the Leasehold | $15,000 |
| Utilities and other overhead expenses | $20,000 |
| Miscellaneous and Unpredicted Costs | $10,000 |
| Total Cost at Start-up | $291,100 |
Employee Structure and Expenses
| Staff | Annual Salary |
| Partners | $160,000 |
| Senior Manager & Nurse Practitioner | $170,000 |
| Operations Staff | $50,000 |
| Administrative Staff | $70,000 |
| Total | $450,000 |
Services Identified
Home Care, Inc. will specialize in the provision of primary care services including check-ups and health screening, treatment for minor sicknesses, caring for chronically ill patients, medical examinations, and vaccination injections. The clinic will also act as an outlet for referrals from the partnering local hospital during peak hours and during patient overflows. This will help in easing the pressure at the hospital and ensuring efficiency in healthcare (Buppert, 2015a).
Management Biographies
Elizabeth Jones has a degree in nursing and has worked as a nurse practitioner in the primary care setting for eight years. She has also worked in the urgent care setting. Through practice, she has gained a vast experience in working with patients who need treatment for the common illnesses and also providing care for chronic illnesses. She has a track record of seeing 35 patients in a day without feeling exhausted and could get an average collection rate of up to 95% (Buppert, 2015b).
Projected Monthly Income
To be able to take care of the monthly expenses and still be able to report profits that can be shared with the partner hospital, the business has to generate more than $400,000. According to the formula by Buppert, this can only be attained through making sure that the nurse sees more than 25 patients in any given day, set the reimbursement rate at an average of $80 per patient, have collection rate that is close to 90% (Buppert, 2015a).
The
nurse will see an average of 25 patients per day each paying $80. The total
expected income will therefore be $2,000 per day. However, assuming that the
collection rate will average at 85%, a total of $1.700 will be collected from
patients in each day. In a month of 26 working days, the nurse expects to get
$44,200. Medications, prescriptions and other healthcare services are expected
to generate an average of $70,000 per month. This amount shows that the clinic
will be able to pay its patients and still be able to meet its monthly needs.
The amount is sufficient to support the daily operations and still be
profitable.
References
Buppert, C. (2015a). Practice Ownership: Legal and Business Considerations for the Nurse Practitioner Owner. In Nurse Practitioner’s Business Practice and Legal Guide (5th ed.). (315-383). Burlington, MA: Jones & Bartlett.
Buppert, C. (2015b). Appendix 11-A: A Checklist for Setting Up a Practice. In Nurse Practitioner’s Business Practice and Legal Guide (5th ed.). (384-397).
Burlington, MA: Jones & Bartlett.Buppert, C. (2015). Appendix 11-A: A Checklist for Setting Up a Practice. In Nurse Practitioner’s Business Practice and Legal Guide (5th ed.). (384-397). Burlington, MA: Jones & Bartlett.