Executive Summary
This business plan concerns the expansion of Lamina Lifecare Hospital (a hypothetical institution) located in Los Angeles, California. Lamina Lifecare Hospital is a privately owned institution in Los Angeles that was established a decade ago when its owners realized the need to supplement the existing healthcare services provided by the public sector. The hospital has gained widespread fame because of its commitment to the delivery of high-quality services in the industry, effective management, and proper staff handling practices. For such a reasons, the organization has realized a surge in the number of patients visiting for treatment and those who are hospitalized. The expansion plan is add an extra 250 beds to the institution that has been concerned with the provision of cancer treatment and other medical care services to residents in the state as well as visitors both local and global. The new beds are supposed to be added to the palliative care, the maternity wing, the cancer care unit, and the children ward units of the hospital.
This business plan first describes the venture, which includes the benefits of the expansion, its mission, and vision statements. The plan also defines an industry analysis that addresses the general market area, the outlook, an analysis of competition, and other related issues. The third element of the project is the presentation of a marketing plan, which addresses the primary competitive issues in the healthcare industry as well as supporting the market segmentation. The business plan then proceeds to the operation plan for the hospital and the manner in which such operations will create a competitive advantage for the management. There is also a description of the organizational plan of the institution, an assessment of the risks concerned with the expansion, and the financial plan.
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Description of the Venture
Lamina Lifecare Hospital is located in Los Angeles, CA and is concerned with the provision of medical services to both the residents of the state and to the visitors both locally and from abroad. The hospital is looking to expand its hospitalization capacity through increasing the number of beds by 250. The expansion process is beneficial to both the hospital and the community that it serves. For example, the hospital would be able to earn an added competitive advantage through communicating to the clients and potential ones concerning its commitment to efficient service delivery. The patients and clients of the hospital would also benefit from excellent services offered to them during their stay periods at the institution. The rationale for this argument is the fact that hospital congestion has been one of the causes of reduced efficiency in service delivery, the spread of diseases, and other adverse outcomes associated with healthcare (Berry Jaeker & Tucker, 2012).
The expansion will improve the capacity of the hospital to deal with the rising need for the services delivered by its dedicated team. It should also be noted that the improved capacity desired by Lamina Lifecare Hospital would create a competitive advantage for the institution through communicating a sense of customer-oriented service delivery. Therefore, the mission statement of the institution is to continue the innovation of technologies and commit the discoveries to service delivery for the improvement of health. In addition, the vision of the company is to be a global leader in healthcare delivery.
Industry Analysis
The hospital targets clients from the world over even while its location has been limited to Los Angeles. The growing rise in the demand of healthcare services indicates that the move would be a viable one for the institution. However, it is noteworthy that the rise in demand has also attracted many entrants into the market, which has stiffened the levels of competition. Presently, even while the government maintains a tight grip on the healthcare industry, it only does so concerning special regulations that define the standards of service delivery, patient information, and health insurance (Smith, Brugha, & Zwi, 2001). A gap remains for the private sector has ventured to bridge, which is the need to match demand with service delivery. The emergence of private investors into the industry makes competition quite stiff with prominent private hospitals dotting Los Angeles, the state, the nation and the globe. However, the global healthcare outlook indicates that with value, outcomes, and quality being the health care watchdogs of the century, stakeholders in the sector are seeking to be more innovative and cost-efficient in their delivery of technology-enabled, patient-centered to patients (Deloitte, 2018). Therefore, the prospects for profitability are high owing to the growing demand for the services delivered by the sector.
Marketing Plan
The marketing plan of the hospital seeks to address the primary competitive issues. For this reason, the plan draws reference from the global drivers of the industry, which are quality, outcomes, and value. The costs of healthcare have been rising amid the rising demand for the same services owing to the ageing populations of the world, changing climatic patterns, and increased risks for disease contraction and transmission (Bodenheimer, 2005). The healthcare sector, therefore, is in a dire need for expansion to improve the capacity of dealing with the realized challenges. Therefore, the marketing mix should address the 4ps as described subsequently. For instance, the Price element of the 4ps requires that the company communicate its pricing strategy and relative cost of its products to the target population. In this case, the organization will strive to offer affordable services to clients, which would be an advantage considering the rising costs of healthcare (Bodenheimer, 2005). The Place element of the same mix concerns where the consumers would get the advertised product. Now, the hospital remains headquartered in Los Angeles and available to people from around the globe. The People element of the mix defines the market segment that the services should address. It is notable that different companies have different market segments according to their industry. However, Lamina Lifecare Hospital provides services to people from all age groups, gender, race, social economic statuses, and other elements of categorization. The strategy indicated in this section indicates the commitment of the organization to be a cost leader through offering the best services in the industry at the most affordable prices to as many people as possible.
Operation Plan of Lamina Lifecare Hospital
The expansion of the hospital’s capacity means that it would be in a position to attract and admit more patients. The experience that the institution has had while addressing the growth in demand of its services has acted as a lesson for the need to improve its operational plan. For instance, the plan involves creating new rooms to the specific units of the hospital that need the expansion and the hiring of additional staff who will streamline patient flow at the facility. To attain this goal, the institution will improve the check-in and checkout procedures that are currently used to incorporate more technology in the recording and storing of patient information (Manachemi et al., 2007). This way, the capacity of staff to deal with the steady patient flow would be enhanced. The fact that the healthcare sector is driven by patient-centered service delivery means that the hospital should also enhance staff motivation to work through efficient training on the policies of handling the patients as well as the provision of efficient technologies for patient handling. It indicates that the institution would like to use the new-look facility, technologies, and human resources as its sources of competitive advantage. The fact that the institution does not have the capacity to produce its own supplies suggests that it should be in constant contact with the appropriate suppliers of the required products of patient handling. For instance, the hospital should maintain links with the suppliers of software, hardware, internal resources, external resources, and other equipment required for the process of upgrading.
Organizational Plan
A board of directors that would be under one chairperson will head the hospital’s organizational structure. The top to bottom system would then be succeed by the hospital management team that will have different departments, such as administration units, training, medical units, and supportive departments under it. Figure 1 below indicates the summary of the legal organizational structure of the company. The management strategy of the institution would be transformational and charismatic leadership. According to support literature, this approach to management has been associated with high levels of staff motivation to their work, increased employee and client satisfaction, reduced rates of employee turnover, reduced hospital stays, and other positive outcomes envisioned by the operational and managerial plans at the facility (McDaniel & Wolf, 2012). It is imperative that the management of the hospital attract and retain the most skilled employees, which is one of the element of developing a competitive advantage using human resources that modern managers have adopted (Berger & Berger, 2010). The scarcity of talented pools of workers means that attracting one and retaining it would be a useful thing for the institution to undertake. The relationship between the strategies of management and the outcomes in employee attraction and maintenance makes the chosen styles of leadership critical for this project.
Figure 1: the legal organization structure of the Lamina Lifecare Hospital seeking the expansion of its bed capacity to deal with a rise in demand for health care services. It should be noted that the management would adopt transformational and charismatic leadership strategies to handle the patients and staff for the attainment of the desired standards.
Risk Assessment
The project’s likely risk is that of failing to be completed by the desired deadline. There is a need to note that delays in the completion of projects is one of the most common challenges facing project managers around the world. The delays in the completion of the projects results from different reasons, most of which include issues with funding, delays in the delivery of material, and management wrangles among the project team (Kerzner & Kerzner, 2017). For this reason, the company should be aware of the need to adopt effective communication between the project management team and the management of the hospital for the reduction of time spent on tasks, and a regular update of the milestones achieved by the team. The fact that the project has only been done up to two percent suggests the need for a regular check on its progress to avoid the prospects of running late on the desired deliverables. The project also risks going beyond the budgeted expense, which is also one of the major issues faced by project managers. The causes of the project over costs are the fact that it is not possible to estimate the costs of the factor inputs required in the completion of the desired project (Kerzner & Kerzner, 2017). For instance, issues of inflation of the economy affect the costs of materials a great deal, which challenges the processes of trying to predict the real costs of a project.
The Financial Plan for the Project
Table 1 below summarizes the financial projections of the cost of the project. It should be noted that the management of the hospital estimates the costs of the expansion to be one and a half million USD that would be divided per month that the project will run as indicated.
Table 1 : the estimated costs of expansion of Lamina Hospital to a capacity of 250 more beds and the state-of-the art facilities for handling the growing number of patients who visit the facilit y
Conclusion
The growing demand and widespread reputation of Lamina Lifecare Hospital in Los Angeles, CA has called for the need to expand its bed occupancy capacity by 250 beds and an inclusion of the newest technologies for patient handling. This business plan has described the venture, which included the benefits of the expansion of Lamina Lifecare Hospital, its mission, and vision statements. The plan also defined an industry analysis that addressed the general market area, the outlook, an analysis of competition, and other related issues. The third element of the project was the presentation of a marketing plan, which addressed the primary competitive issues in the healthcare industry as well as suported the market segmentation. The business plan then proceeded to the operation plan for the hospital and the manner in which such operations would create a competitive advantage for the management. There was also a description of the organizational plan of the institution, an assessment of the risks concerned with the expansion, and the financial plan.
References
Berger, L. A., & Berger, D. R. (2010). The talent management handbook: Creating a sustainable competitive advantage by selecting, developing, and promoting the best people . McGraw Hill Professional.
Berry Jaeker, J. A., & Tucker, A. L. (2012). Hurry up and wait: Differential impacts of congestion, bottleneck pressure, and predictability on patient length of stay.
Bodenheimer, T. (2005). High and rising health care costs. Part 1: seeking an explanation. Annals of internal medicine , 142 (10), 847-854.
Deloitte (2018). 2018 Global health care sector outlook . Retrieved 28 January 2018, from https://www2.deloitte.com/global/en/pages/life-sciences-and-healthcare/articles/global-health-care-sector-outlook.html
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling . John Wiley & Sons.
McDaniel, C., & Wolf, G. A. (2012). Transformational leadership in nursing service. A test of theory. The Journal of nursing administration , 22 (2), 60-65.
Menachemi, N., Saunders, C., Chukmaitov, A., Matthews, M. C., & Brooks, R. G. (2007). Hospital adoption of information technologies and improved patient safety: A study of 98 hospitals in Florida. Journal of Healthcare Management , 52 (6).
Smith, E., Brugha, R., & Zwi, A. (2001). Working with private sector providers for better health care: an introductory guide . London School of Tropical Medicine.
