Sample Nursing Research Paper on Business Management Plan for a Primary Care Setting for an APN

Business Management Plan for a Primary Care Setting for an APN

Executive Summary

St John’s Healthcare Center and Clinic is a corporation based in Boston. Its purpose after completion is to ensure the provision of medical care to a broad range of customers in the targeted market. The founder of the corporation is Florence Suzanne, who is a nurse practitioner.

Products and Services

Once complete, the company’s founder, Florence Suzanne together with other stakeholders, will provide medical services to children, adolescents, as well as adults living in the targeted community. Myriads of medical services will be provided including blood work, general advice and counseling on health-related issues, examination, referring patients to physicians, as well as other family medical services (Hamric et al 181). Besides, the corporation intends to set aside a week for community health campaigns that will ensure individuals are aware of the ways of preventing various illnesses. During the week set aside, the Corporation will collaborate with community members to clean the environment. Moreover, St John’s Healthcare Center and Clinic will also have the responsibility of recognizing revenues generated from the sale of drugs and other medical appliances that will be prescribed by Florence Suzanne and this will be supervised by an on-call physician. Further description of the services and products of the Nurse Practitioner in the clinic is found in this business plan’s third section.

Financing

To see the completion of the clinic, Florence Suzanne seeks to raise $210,000 from a bank, and this will be a loan to be repaid in a given duration. The agreement for the loan as well as the interest rate on the same will be points of discussion during negotiation. The assumption of this business plan is that the repayment period for the loan will be ten years, and the interest rate will be fixed at 9%. Once received, the funds will play a critical role in the development of the location of the clinic, finance the clinic’s operations for the first six months, and enable the purchase of vital medical equipment and appliances that will be used in service delivery. In addition to the expected $210,000, as the founder, Florence Suzanne will make a contribution of $30,000 to the venture, and this will be her own together with that of well-wishers and friends.

Mission Statement

St John’s Healthcare Center and Clinic’s mission is to become a recognized leading corporation in the targeted market in the provision of medical services that are rendered by a nurse practitioner.

Management team

The chief executive of the cooperation will be Florence Suzanne, a nurse practitioner with over 12 years of experience in the field. She will be the overall leader responsible for the supervision and control of the senior management team. The latter will be responsible for coming up with key management and financial decisions to enable the smooth running of the business. With the expertise and knowledge in nursing and medical services, Florence has the anticipation of guiding the company to significant profitability within the first two years of operation. This is in line with the objectives put in place by every other startup business or organization.

Sales Forecasts

It is anticipated that the corporation will record a high growth rate particularly at the commencement of operations. This will be attributed to the increase in the general population of the US, which will result in a significant rise in the demand for medical services and other nurse practices over the years of operation of the business. The expected financial information over the next three years after the commencement of the company is as follows.

Year123
Total Sales$650,000$720,000$780,000
Costs of operation$356,200$397,400$412,000
Depreciation, Interest, taxes$67,400$78,456$89,350
Net Profits$226,400$244,144$278,650

Plan of expansion

Florence Suzanne and other stakeholders expect that a great expansion of the business will be witnessed over the first three years of operation. The expansion of the business will be attributed to the continuous increase in revenue generation and recorded profits. It is anticipated that the marketing strategies in place will have a role to play in the expansion of the business. To achieve its set expansion plan, the corporation will put in place and implement marketing campaigns, and these will ensure that the targeted customers are aware of the company’s services and products (Hamric et al 183).

Company and Financing Summary

Registered name and corporate structure

The name of the business is St John’s Healthcare Center and Clinic and it will be registered as a corporation in the city of Boston.

The start-up of the nurse practitioner business requires $210,000 of debt funds, and how the funds will be used is broken down as follows:

Startup cost projections 
Working capital$50,000
Security enhancement$10,000
Opening supplies$10,000
Payments and deposits of initial lease$60,000
Improvement of leaseholds$20,000
FF&E$10,000
Purchase of company vehicle$50,000
Marketing plans$20,000
Miscellaneous and supplementary budget$10,000
Start up costs total$240,000

Investor Equity

As the founder of the corporation, Florence Suzanne has no intention of seeking investments from other parties.

Management equity

Florence Suzanne is the founder and owns 100% of St John’s Healthcare Centre and Clinic.

Exit Strategy

It is anticipated that the business will be successful and once this is achieved, Mrs. Suzanne will sell part of it to a third party, a move that will generate significant revenue. A qualified business broker will play an integral role in the sale of part of the business and this will be on behalf of Suzanne and other stakeholders. It is expected that the sale of part of the business will generate up to 3 times earnings.

Products and Services

Medical Services

It is expected that the medical services that will be provided by Florence Suzanne together will other nursing practitioners will be the primary source of revenue for the corporation. After completion, the business seeks to provide a broad range of medical services such as the treatment of medical or health-related issues such as cholesterol levels, high blood pressure in children and adults, as well as health conditions that are considered mild including headaches, stomach upsets, and slight injuries (Woolsey 44). It is also anticipated that the corporation will be the leading provider of work physicals, screening of heart diseases, screening for cancer problems, and other services rendered by nurse practitioners. Once success is achieved in the first three years of operation, Florence Suzanne will hire extra nurse practitioners who will be integral in the expansion of the business as they will increase the inflow of patients. The additional nurse practitioners may benefit from the experience and knowledge of Florence Suzanne in the field of nursing and may acquire the business upon her retirement or otherwise relocation. The smooth running of operations for the business will depend on co-payments as well as insurance companies’ reimbursements.

Medical equipment and appliances

The corporation will also provide medical appliances such as drugs to targeted customers, and through this, the generation of revenues will be enabled. It is expected that the sale of medical appliances to patients will be under the supervision of an accredited and qualified physician. Through the sale of medical equipment and appliances, the corporation aims at generating substantial revenue and recording significant profitability.

Strategic and Market Analysis

Outlook of the economy

Today, the economy of the US and the rest of the world is in recession, although recovery is expected in the coming few years. The economic crisis in the US has had adverse impacts on other businesses such as real estates and banking. The current economic crisis will have little or no effect on the nurse practitioner business as individuals will continuously seek medical services from the same in spite of severe economic conditions. Through this, St John’s Healthcare Center and Clinic will achieve high economic stability throughout its operation.

Analysis of the industry

It cannot be doubted that there are myriads of health care providing and medical practicing centers in the US, as well as nurse practitioner centers in the US. Research shows that there are over 210,000 medical and nurse practitioner practices in the US and out of these, several operate in private practice capacities. It is argued that the medical and nurse practitioner practices in the US make significant contributions to the American economy, and this is highlighted by the fact that over 2 million people are employed in the sector, and this include physicians and nurse practitioners. Moreover, the sector has been seen to generate approximately $200 billion annually, and this has increased in recent years with an increase in the population. Research indicates that out of the physicians employed in the sector, 5% retire annually and this paves way for other physicians with knowledge and expertise in the field (Woolsey 35). Furthermore, it is argued that an estimated 21,000 nurse practitioners establish private nurse practice centers annually. With these perspectives in mind, the significant growth or expansion in the industry is underscored. With the inception of laws and policies in several states allowing the operation of nursing practices, it is expected that the growth of the industry will be faster than that of America’s general economy. The trend of rapid expansion and growth of the industry will be seen in the coming years as more people in the enormous and ever-increasing American population seek for medical care and attention.

Profile of customers

On an average, the clients of St John’s Healthcare Center and Clinic will be women and men of middle class living in the expected target market. It is anticipated that the nursing practice’s clients will be those with an annual income of approximately $40,000. Also, the nursing practice’s clients will be those who live or work almost 10 miles from where the corporation is located. Furthermore, the beneficiaries of the company’s medical services will be those with medical insurance.

Competition

Given a large number of nursing practices in the US, it is expected that St John’s Healthcare Center and Clinic will face stiff competition in the provision of its services to clients. As mentioned earlier, there are over 210,000 medical and nurse practices in the US, and this means that the corporation is likely to face stiff competition. Moreover, more nurse practitioners graduate annually and this implies that a significant percentage of them are likely to venture into private nursing practice, and thus, provide stiff competition to St John’s Healthcare Center and Clinic. To overcome the stiff competition, Florence Suzanne and Co. will stress the provision of high-quality medical services (Geri and Israel 125). Besides, the corporation will provide medical services to clients at affordable prices, and this is coupled with giving consideration to clients with health insurance benefits.

Marketing Plan

St John’s Healthcare Center and Clinic has the intention of establishing and maintaining an expansive campaign of marketing. Through this, the targeted customers will be made aware of the medical services and products offered by the business. The marketing objectives and strategies of the corporation are as follows:

Marketing objectives

  • To develop a presence on online platforms and this will be through the development of the corporation’s website and placement of the name of the corporation as well as contact details on the mentioned platforms.
  • To come up with flyers, posters, as well as the advertisement in print and mass media to enable the implementation of its local campaign in the targeted market.
  • To collaborate with physicians in the targeted market

Strategies for marketing

As the founder, Florence Suzanne has the intention of using a plethora of marketing strategies to ensure that the nursing practice successfully reaches children, women and men within the targeted market. One of the strategies that will be used by the corporation is the placement of an advertisement in print and mass media as well as online platforms such as Face book, Twitter, and LinkedIn. The use of an internet based marketing strategy is important as more people, such as those seeking for medical assistance, have resorted to the Internet (Doyle 13). With vast experience and knowledge in technology and nursing, Florence Suzanne will ensure that all nurse practitioners in the corporation have online portals to enhance the potential customers’ access to the business. Moreover, the development of the corporation’s website will aid in the use of an internet-based marketing strategy. Another strategy that will help the corporation sell its nurse practitioner rendered services is the maintenance of a sizable print advertising method within its target market (Doyle 13).

Pricing

Being one of the ways of overcoming stiff competition in the industry, Florence Suzanne intends to tag affordable prices on the products and services offered by the business. It is expected that the minimum price for services and products will be $5 whereas the maximum price of the same will be $50. This will help attract a large number of clients to the corporation, and thus, contributing significantly towards revenue generation and profitability.

Summary of organizational plan and personnel

Corporate organization

St John’s Healthcare Center and Clinic will be headed by a senior management team, which will be under the control and supervision of Florence Suzanne. The senior management team will be assisted by operations staff and administrative staff. It is expected that the operations team will comprise of customer service providers and a facilities management team. On the other hand, the administrative staff will comprise of accounting, sales marketing, and administrative experts. With the collaboration of the various teams of the corporation, success and achievement of the set organizational goals and objectives is guaranteed.

Budget of the organization

The organizational budget will consider the personnel plan and the numbers of staff in the corporation. The personnel plan and numbers for the corporation, are as follows:

Year123
 PlanNumberPlanNumberPlanNumber
Owner (Florence Suzanne)$64,0001$65,0001$65,9001
Associate nurse practitioners$70,0003$72,0003$73,0004
Seasonal staff$45,0003$46,0003$47,9003
Administrative staff$25,0001$25,7001$26,0001
Total$204,0008$208,7008$212,8009

Financial Plan

Underlying assumptions and expectations

  • It is assumed and expected that St John’s Healthcare Center and Clinic will show a 16% growth in revenue annually.
  • It is also assumed that Florence Suzanne will receive the $210,000 from financial institutions as a loan to be repaid over duration of 10 years, and this will help in the development of the business.
  • It is also assumed and expected that the borrowed loan will attract an interest rate of 9% annually over the repayment period of 10 years.

Analysis of sensitivity

As earlier mentioned, the economic conditions in the US are unstable, and thus, in the case of a downturn in the economy, the decline in revenue generation by the business will be insignificant. This is because the demand for medical services rendered by the corporation will still be higher.

Financial sources

During its operations, the corporation intends to get funds from management investments, total equity financing, as well as banks and other lenders. The commitment from the mentioned sources will determine the success or failure of the corporation in the achievement of its set goals and objectives.

Employment contract proposal

The accomplishment of the business’s objectives and goals depends on the agreement between Florence Suzanne and other employees (Buppert 3). Thus, the following are proposed for the employment contract.

First, it should indicate the commencement of the employment to prevent disagreements on the same in future (Buppert 4). Second, there is a need for the employer to indicate the probation period, in case there is, for the employees. Third, it is important that the contract indicates the position and section to which an employee has been recruited. Fourth, Florence Suzanne should ensure that the employees’ places of work are agreed on before recruitment. Moreover, the indication of an employee’s working hours is vital as it will prevent disagreements over the same once the business is operational. One of the key elements that should be addressed is the wage or salary rate. Several contracts are terminated or breached following disagreements on the same, and thus, the employees must be made aware of the rates. Furthermore, as the chief executive of the business, Florence Suzanne should ensure that the employees are aware of the wage or salary payment period. For instance, St John’s Healthcare Center and Clinic should come up with a plan that would see the employees paid on a monthly basis. Also, it is important that the nursing practice’s employment contract indicate employee benefits such as maternity, paternity, sickness among others. Most importantly, Florence Suzanne should give precise stipulations or guidelines regarding the termination of an employee’s employment contract (Helewitz 32).

Works Cited

Buppert, Carolyn. Nurse Practitioner’s Business Practice and Legal Guide. Sudbury, Mass: Jones and Bartlett, 2008. Print.

Doyle, Peter. Value-based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. Chichester, England: John Wiley & Sons, 2008. Internet resource.

Geri, Nitza, and Israel Raanana. “Overcoming the challenge of cooperating with competitors: Critical success factors of interorganizational systems implementation.” Informing Science: the International Journal of an Emerging Transdiscipline 12 (2009): 123-147.

Hamric, Ann B, Charlene M. Hanson, Mary F. Tracy, and Eileen T. O’Grady. Advanced Practice Nursing: An Integrative Approach. , 2014. Print.

Helewitz, Jeffrey A. Basic Contract Law for Paralegals. Austin [Tex.: Wolters Kluwer Law & Business, 2010. Print.

Woolsey, Mary Helen. Nurse Practitioner Preparedness for Entry Into Practice. ProQuest, 2006.