Persuasive Proposal: Healthcare Facility
In the recent past, there has been a high prevalence of disease infections at the UM and its environs, the demand for medical services has been on the rise. The recent research in the pharmaceutical industry shows an enormous disparity regarding the supply of the medical services and the high demand for these services. In the context of the most prevalent diseases, malaria, tuberculosis and other minor diseases have been spotted to bring high death rates in the area. The government has since tried to make the plans on how they could curb this menace, but it seems this is not working. There has not been a source of the plan which would ensure that the health and safety standards of everyone that is in the UM and its environs get to have a proper medical treatment.
In the contemporary society, the medical need is a basic need. Every individual need to a have a regular check up on their health status, and the recommendation should be drawn to bring on board the advent of good healthy. The role of the federal is to ensure that this basic need is provided to the every citizen. However, the government has structure and expects to work on the relevant information drawn from the exhaustive research on the various actions to take. As it stands, no particular structure has been put in place to cater for the inception of these medical facilities in the area. The few medical facilities that are in the area are being thronged by the patients who are in dire need of these services. The role of the government now is to give much attention to the increasing problem that these people are facing. There is now the need to bring a powerful strategy that would ensure that this high demand for the medical services in this area is brought down. The health of any individual in the country is very vital for the government. The citizens of the state provide the workforce for which various economic drivers are established. The high level of expertise and the commitment to the job and the growing of the whole economy are dependent upon the state of the workforce in place. The various stakeholders here how must come in quickly to bring more sanity regarding the healthcare provision to ensure a healthy nation. This proposal seeks for funds to build a medical facility in this area.
Persuasive Proposal: Healthcare Facility
This is a persuasive proposal that addresses the issue of small supply of medical services in this area, bringing on board the various instances on how the problem could be tackled. In the project, we give an incisive look at the current problem. This scrutiny is done through the thorough analysis of the main issues at hand and giving a profound report on the same. The pros and cons of these problems are discussed with keen attention to the varied levels of effect that these challenges have on the workforce of the country. The pertinent issues that need to e addressed are also discussed here. After the identification of the problem, we provide the intelligent solution to the menace that has been brought in this stance. This notion will range from the inception of a medical facility to the setting up of mobile clinics to reduce the chances of sickness in the area. Consequently, we would give instinctive steps that would be used in making sure that these pertinent issues are addressed with extreme concern on the impact that they are going to create at the long end. The steps by in such a way that they are geared toward making sure that they provide grounds for a lasting solution to this menace.
The benefits that the inception of the programs outlined as the solutions are essential at this point. This notion is because it accentuates the very reason as to why the proposal should be adopted. The benefits sought is clearly explained as well to give an incisive report on the change in the demand for the medical facilities in every stance of medication given and the type of service brought forward. We also dwell on the cost implication of the inception of this health care system. Here a cost-benefits analysis is done to derive surety that indeed this facilities being instituted will have a direct influence on the decrease of the medical services in the area. Additionally, the primary aim of the cost-benefits analysis is to get to know whether this action taken is the most optimally healthy stance in making sure that the company has a higher position of long term gain. Lastly, we would discuss the various obstacles that are very critical in this case to deliver on the various means and ways to eliminate these barriers. We would also look at the severity of these impediments to coming up with recommendations on how to curb them up to avoid the high level of constraints.
In the recent past, there has been the rise in prevalence of the various disease around the UM and its environs. The current medical structure does not sustain the medical demand for the people that around this area. The mortality rates have been seen to be escalating to high levels. The high rates are because the medical facilities are few, and this does not measure up to the demand for the care. As we all know, the care is an essential need for an economically viable country. The country will now move on if its workforce is unable to deliver due to medical reasons. It is now the duty of the government to institute the various advents of medical facilities to bring on board the reduction in demand for the medical services. The graph below shows the statistics for some patients rise for the various diseases that have been brought forward in this stance.
Source: Bureau of Statistics ©2016
From the graph below, it is a fact that cardiovascular diseases have a high level of prevalence which is seen to the on the rise since the year 2010. This notion only means that the stringent steps and measures have not been put into place to inculcate the advent of making sure that the diseases are controlled and prevented for that matter. Another concern is drawn on the real statistical flow of the conditions as shown in the chart; it is evident from the graph that every disease mentioned here in this area has a positive slope of a curve at any given point. It only means that each year, every disease is on the rise. This notion is brought about by the fact that there is an inadequacy regarding the provision of various medical facilities in the area. It calls for an immediate response from the government to bring in some of the vital equipment and facilities that are very fundamental to reducing the prevalence of these diseases at hand. As it stands now, the medical services that are present do not meet the criterion for which the demand of the care needs. One of the very reasons why there is an acute rise in the inception of the disease rates of for the prevalence of the infectious and parasitic diseases is because the medical facilities for these diseases are still lacking. The inadequacy is brought about by the poor planning for the very existence for these establishments. Additionally, the government has not set aside the funds that would be used in meeting the needs and the wants of the patients who wants immediate medical attention. The inception of these tools and equipment will help in the reduction of these diseases.
Another very vital situation at hand is that the existing medical facilities are not well equipped. For example, their inadequacy in cancer centers in the area while the increase in the cancer patients is wanting. Again there is lees amount of money in the form of grand that has been put into place to get the facilities at their places of need. This call for an action of making sure that these establishments are brought in, and the cancer patients are treated in the most appropriate manner. The pie chart below shows the categories of hospitals that are found in this area. It is imperative to note that the total number of health facilities in this area is not more than 20.
Source: Bureau of Statistics ©2016.
To control this situation of high demand for the medical services in this area, there is the need for the building an all inclusive referral hospital that would cater for every need of the patient that is in this area. The roles of this hospital are bringing equality in the inception of the various medical facilities in the area. Additionally, it will help in the reduction of the different diseases prevalence with keen attention to the modern equipment that would be placed in the hospital. The up to date equipment will reduce the queuing of several patients in the areas to the same facility. The proposed hospital will also be equipped with professionally trained doctors who will be in a position to make informed decisions about the patient that would help in the treatment of the various patients. Furthermore, the fact that the facility will be near the college will ensure that the students learning medical courses in the university will have a chance to get the practical aspect of care and practice as they carry out their studies. The project is designed to give every patient a relief regarding the efficient provision of services and proper diagnosis of the various diseases. Again the facility will be equipped with the maternity unit that will help reduce the chances of the mothers losing their babies. For the service to function correctly, we have proposed that a high enterprise resource planning system to inculcated in the hospital. This ERP will be used in the coordination and proper management if the information in the hospital. For example in the maternity wing, the doctors scheduling regarding seeing their patients will be instituted through the use of the ERP to ensure that each and every patient is attended to. The real reason for this is to bring on board the advent of conformity in the delivery of services. This facility will also have well-equipped cancer equipment with specialized doctors to handle it. The handling of this material by the professional physician brings on board the advent of effectiveness and the proper maintenance of the same.
The first phase in the construction of this health facility is getting the location. Here we would get the feasibility report of every site proposed and do the evaluation and get the best out of the alternatives. Second, we would plan for the construction where would outline all the requirements for planning and give the best out of the whole scenarios. This notion would be strengthened by the fact that facility would be a public one which would bring about the advent of serving the community. This step will be followed by the actual construction of the installation after which the facility would be equipped. The human resource would be organized and instituted in the facility after which it will be open and declared operational.
Some of the benefits that this facility would create in the area are as discussed below.
Improved health treatment services
It is projected that the facility will ensure that the health treatment services are improved in the area. With the inception of the hospital, the professional doctors will be able to attend to a variety of patients at their point of need. The new equipment installed in the hospital will give the doctors easier time to treat their patients. The role of the ERP system will be revealed at the point where the coordination of activities will be quite swift and efficient that would enable the proper flow of information from one point to another. The stable stance of the equipment in place is expected to bring the varying diseases into a situation where they can be easily identified and treated at the earliest time possible. For example, the installation of the cancer equipment is deemed to identify the cancer disease in patients at its early stages where the cells could be removed before they spread to the rest of the body. The spreading could be stopped if the cancer cell is detected earlier enough. For this matter, the prevalence of various diseases is expected to reduce in accordance with the following graph shown below.
From the chart above, it is evident that the projection will give the area better reduction rates in the prevalence of various diseases in the area. This improvement in the health status of the people in this area will ensure that the workforce from the area is healthy and ready to build the economy. Additionally, the projected reduction in the disease’s prevalence is deemed to have long term effect of reducing the medical costs that the country has to incur every year as the cost of treatment is always higher than that cost of prevention of the disease.
The institution of the medical facility will create lots of work for various practitioners. After the building of the establishment, it would need doctors who are to treat these patients. Again the nurses who are responsible for the care and administration of drugs to these individuals are imperative. The subordinate staff such as the sweepers, the grounds-men, and other cleaning maintenance units creates the avenue where every citizen can be employed and eventually earn a living from the hospital. The graph below shows how the employment rates will behave if the hospital established.
As shown in the chart above, the fully employed persons would be on the rise. For example, the employment rate for those employed by the organization will increase from the 32% to a high of 56% by the year 2020. This shows that the living standards of those employed will improve considerably. The logic behind this is that the institution will bring in more income to these individuals and this will help them improve the economic status in the long end.
It is estimated that the tax collected in this area is deemed to increase by 12% each year in the event this hospital is instituted. This increase is because the salaries of these customers will be increasing each year by the same percentage. At this point, the government shall have also benefited from this through that tax revenue that it gets from these employees.
From the economic analysis done on the project, it is evident that the project is deemed viable. Starting from the projected income statement in Appendix A, the expected contribution is positive throughout the ten years which the project is considered to exist. It is also evident that the project has a payback period of 3.72 years. This indicates that the project can become a going concern in even in the long term. The expenses are also seen to have increased in a diminishing way over the years giving way to more returns since the revenues are increasing exponentially.
A closer look at the statement of cash flow in Appendix B, the money inflows are seen to increase as the years go by. This is attributed to the high demand for the hospital services as the population also increases. The statement of cash flows also reveals that the shareholders wealth is going to be maximized. The loan borrowed to effect the construction is also deemed to service in the most successful way since the liquidity of the project is considered to be high.
The planned statement of financial position in Appendix C shows that the net of the project increases over the years. Given the increment in retained earnings, the investors will be in a position to gain much on their investment. The dividend policy has also been very advantageous in making sure that the wealth maximization of the shareholder is upheld. Therefore, the project is deemed viable.
Appendix D shows the break-even analysis. From the investigations, it is evident that the contribution margin for the project over the years is above 50% which is deemed profitable and above average. Given this analysis, the project has lower Break-Even sales than actual revenue got from the project each year. This shows that the project is deemed quite viable.
From the analysis, we require a source of financing for the government to make this project come true. The support needed is to help us construct the health facility and equip it with necessary equipment that is deemed to be quite sufficient for the operations of the company. The fact and figures of the financing are shown in the appendices of the projected financial statements below.
|APPENDICES 10 : FINANCIAL ANALYSIS|
|10: FINANCIAL ANALYSIS APPENDIX A: 10.1 Projected Income Statement|
|Indoor : surgery||142,800||166,808||194,853||227,613||265,880||310,581||362,797||423,793||495,043||578,272|
|Outdoor: consultation fee||535,500||631,890||745,630||879,844||1,038,215||1,225,094||1,445,611||1,705,821||2,012,869||2,375,186|
|Surgeon’s and anesthesia’s share||95,200||111,098||129,652||151,304||176,571||206,059||240,471||280,629||327,494||382,186|
|direct diagnostic costs||9,895||11,280||13,164||15,362||17,928||20,922||24,416||28,493||33,251||38,804|
|Total variable cost of service||391,190||456,623||533,324||622,924||727,594||849,871||992,723||1,159,616||1,354,602||1,582,416|
|Total service costs(Fixed +Variable)||534,061||609,852||697,948||800,082||918,539||1,055,983||1,215,518||1,400,762||1,615,934||1,865,953|
|Other operating costs||1,785||1,964||2,160||2,376||2,613||2,875||3,162||3,478||3,826||4,209|
|Legal & professional charges||1,116||1,228||1,350||1,485||1,634||1,797||1,977||2,175||2,392||2,631|
|Amortization of pre operating expenses||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000|
|longterm loan @ 14%||101,960||88,093||76,113||65,762||56,818||–||–||–||–||–|
|Net profit before tax||464,471||579,935||702,781||841,508||999,251||1,228,708||1,429,196||1,662,237||1,933,355||2,249,039|
|Net profit after tax||301,906||376,958||456,808||546,980||649,513||798,660||928,978||1,080,454||1,256,681||1,461,875|
|Retained earnings at the beginning available||–||301,906||678,864||1,135,672||1,682,652||2,332,165||3,130,825||4,059,802||5,140,257||6,396,938|
|available for distribution||301,906||678,864||1,135,672||1,682,652||2,332,165||3,130,825||4,059,802||5,140,257||6,396,938||7,858,813|
|retained earnings at the end||301,906||678,864||1,135,672||1,682,652||2,332,165||3,130,825||4,059,802||5,140,257||6,396,938||7,858,813|
|APPENDIX B :10.2 Projected Cash Flow Statement|
|YEAR||0 ($)||1 ($)||2($)||3($)||4($)||5($)||6($)||7($)||8($)||9($)||10($)|
|Profit after tax||–||301,906||376,958||456,808||546,980||649,513||798,660||928,978||1,080,454||1,256,681||1,461,875|
|adjustment for non cash changes|
|amortization of pre-operating expenses||–||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000||35,000|
|Working capital changes|
|(increase) in stock||(801)||(124)||(136)||(150)||(165)||(182)||(200)||(220)||(242)||(266)||(292)|
|change in financial charge||–||112,156||101,960||88,093||76,113||65,762||56,818||–||–||–||–|
|change in payables||–||41,319||35,779||13,083||14,391||15,830||17,413||19,155||21,070||23,177||25,495|
|Net cash from operating activities||(801)||539,102||598,405||641,679||721,164||814,769||956,537||1,031,758||1,185,128||1,363,438||1,487,078|
|fixed capital expenditure||(995,665)||–||–||–||–||–||–||–||–||–||–|
|Net cash from investing activities||(1,345,665)||–||–||–||–||–||–||–||–||–||–|
|Long term loan||749,710.20||(149,942)||(149,942)||(149,942)||(149,942)||(149,942)||–||–||–||–||–|
|Cash flow from financing activities||1,499,420||(149,942)||(149,942)||(149,942)||(149,942)||(149,942)||–||–||–||–||–|
|Change of cash during the year||152,954||389,160||448,463||491,737||571,222||664,827||956,537||1,031,758||1,185,128||1,363,438||1,487,078|
|Closing Balance of cash and cash equivalents||152,954||542,115||990,578||1,482,315||2,053,537||2,718,364||3,674,901||4,706,658||5,891,786||7,255,224||8,742,302|
|APPENDIX C 10.3 Projected Balance Sheet|
|YEAR||0 ($)||1 ($)||2($)||3($)||4($)||5($)||6($)||7($)||8($)||9($)||10($)|
|CAPITAL AND RESERVE|
|Issued, subscribed, and paid up capital||499,807||499,807||499,807||499,807||499,807||499,807||499,807||499,807||499,807||499,807||499,807|
|LONG TERM LOAN|
|Unsecured loan @13.6%||749,710||511,675||285,620||139,832||69,916||–||–||–||–||–||–|
|Creditors accrued and other liabilities||–||41,319||49,170||58,512||69,629||82,859||98,602||117,336||139,630||166,160||197,730|
|financial charges payable||–||101,960||88,093||76,113||65,762||–||–||–||–||–||–|
|FIXED CAPITAL EXPENDITURE|
|Medical equipment and furniture||403,829||403,829||403,829||403,829||403,829||403,829||403,829||403,829||403,829||403,829||403,829|
|Raw material inventory||801||925||1,069||1,234||1,425||1,646||1,902||2,196||2,537||2,930||–|
|cash and bank balances||152,954||542,115||990,578||1,482,315||2,053,537||2,718,364||3,674,901||4,706,658||5,891,786||7,255,224||8,742,302|
|APPENDIX D 10. 4 BREAK-EVEN ANALYSIS|
|Annual fixed costs||142,871||153,229||164,624||177,158||190,945||206,112||222,795||241,146||261,332||283,537|
|Annual Contribution margin ratio||51.9%||52.4%||52.4%||52.5%||52.6%||52.7%||52.8%||52.9%||53.0%||53.2%|
|Annual Break-Even sales||275,042||292,688||314,051||337,461||363,113||391,222||422,022||455,771||492,749||533,266|