Rainbow International Childrens Hospitals Plan

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Table of Contents

Introduction: Rationale
Description of the Organisation
Products and Services
Market Analysis
Sales and Revenue
Financials: Performance and Delivery of Services
Organisation
Exit Plan
Appendices
References

Introduction: Rationale

This composition embodies a blueprint detailing the ground plan and draft for the proposed establishment of a childrens hospital in Dubai, United Arab Emirates. Rainbow International Childrens Hospital (the new setup) entails a corporation that will bestow laudable treatment and rehabilitation amenities to the children and young population of the jurisdiction. This business plan divulges the forecasted financial metrics and long-term performance of the hospital project over the next five years (Buss 2015, p. 11). It also brings to light the expected products & services, market analysis, sales & revenue, financials integers, organisation, and the exit plan.

Description of the Organisation

Rainbow International Childrens Hospital (RICH) encompasses a premeditated, child-centric nursing home. The medical facility will dedicate its exceptional healthcare regimens and personalized care to the young children within the UAE jurisdiction and adjacent GCC environs. The projected location of this imminent facility will be in Dubai, an affluent business hub in the Middle East, portrays Acharya (2015).

The initiative for this scheme stems from the regions passion of escalating the childrens medical service standards. The hospital will integrate a paediatric department that will proffer therapeutic care and an incessant commitment to treat and chaperone children along their maturation progress (Grossman 2012, p. 13). Round-the-clock childcare services will be available and will entail palliative regimens, paediatric surgeries, rheumatology, neurology, radiology, and ENT by certified nurses.

Additionally, the corporation will enlist liberal roles and missions to help integrate constructive guidance, ethical nurturing, parental satisfaction, and child counseling (Acharya 2015). The contracted nurses and physicians will implement the alleviation of lifestyle diseases diagnosed in children namely diabetes, obesity, and cancer among others agents.

Products and Services

The sketched products and services convoke a steadfast medical assistance modelled for children and infants of all ages (Karnopp 2011, p. 22). The hospice will consist of perpetual pharmaceutical amenities and paediatric therapies, attending to the voluminous young inhabitants of this locality. The entitys physicians will administer medical relief, restorative treatments, pharmaceutical consultations, and chronic pulmonary nursing (Dunn, Kathuria & Klotman 2013, p. 23).

These medical remedies will entail pulse oximetry, chest physiotherapy, enteral feeding, apnea monitoring, seizure management, stoma therapies, full ventilator support, and oxygen administration. Supplementary services will include nebulizer treatments, suctioning, tracheotomies, orthopedic interventions, and catheterizations, analyzes Allen (2008). As Acharya (2015) expounds, RICH will be the premier referral childrens hospital in the GCC region to capitalize on a paperless conveyance of technology.

The entitys inauguration will rescue the worsening situation of bed shortages and high occupancy rates. It will also enforce the issuance of the medical insurance policy (Dunn, Kathuria & Klotman 2013, p. 23). The management will also execute safety policies that guarantee a safe ambiance for all its residents as well as reinforce a socially conscious reputation/ brand recognition (Cleary & Rice 2013, p. 21).

Market Analysis

The stockholders and project proponents have conducted a market analysis that comprises of the customer profile (target market) as well as the industry analysis (competitors). This evaluation serves to depict and advice on the economic climate and feasibility of the hospice proposal (Walsh 2012, p. 19).

Industry evaluation

As Allen (2008, p. 27) illustrates, an industry evaluation embodies the examination of the prevailing competition among business rivals and similar firms. RICH may experience competition from general hospitals and, therefore, has opted to assimilate comprehensive childcare services as its unique product differentiation. The paediatric institution will link up with the nursing homes and general hospitals, reorganizing them to promoters of its exceptional pinnacle brand (Acharya 2015).

The executive board is currently working to augment the projects benefits, accessories, and the enlisted value for money as regards the services and products. Buss (2015, p. 33) adds that the projects proponent will conduct prospective marketing of the establishment by way of direct promotions and referrals by its esteemed associations. These advertisement efforts will help create a larger client base and dilute the imminent competition and position-jockeying tendencies among rivals (Dunn, Kathuria & Klotman 2013, p. 28).

Customer profile

The targeted patronage encompasses the children and young community of the indigenous and expatriate families, residing in Dubai, Ajman, and Sharjah among other UAE cities (Acharya 2015). The prevalent population of UAE and the adjoining GCC territories equals four and ten million inhabitants respectively. Lukenbill and Immroth (2007, p. 58) maintain that the local authorities speculate that the Dubai Marina, Palm Islands, and Dubai Land projects will lure more people to relocate here. The erection of these freehold properties will elevate business prospects and customer employment for the hospital.

Sales and Revenue

A sales and revenue extrapolation entails a firms weighted scenario for its future sales (Hunt & Laughon 2011, p. 47). It is an extensively crucial aspect of a business plan proposal as it stipulates the possible profits & returns, recruitment levels, growth, and management overheads among other elements. Rainbow Internationals sales forecast entails an educated guess about the industry analysis, buyer bargaining power, supplier power, economic outlook, and rivalry analysis. Table 1 (sales forecast) below tallies the patient service revenues- equivalent to the service volume * the cost per service capita (Lukenbill & Immroth 2007, p. 60).

The bottom line ratio accelerates by 10%. The projection also portrays the supplementary operating and non-operating revenues such as dietary sales and investment interests respectively (Cleary & Rice 2005, p. 34).

Financials: Performance and Delivery of Services

The guesstimated financial growth stresses the exploitation of the ventures cash flow (Hunt & Laughon 2011, p. 51). The statement of cash flows will mobilise the amassment of the accounts receivables from Medicare, Medicaid, and private medical insurances for the first two years. As time advances, however, the magnitude of the amenitys packages and provisions will stretch to accommodate a broader financier base (Acharya 2015).

The objective of this augmentation is to buttress the sources of revenue and income in conjunction with diluting the frequent intermissions that devalue the cash flow. The conjectured financial plot consists of annual tax and interest rate postulations among other quotations (see Table 2). The board assumes a stable economy exclusive of fiscal recessions and stringent federal policies that impair Medicare reimbursement and paediatric services.

As regards the discharge of services, RICH looks to incorporate a full occupancy capacity of twenty beds for the short stays (Acharya 2015). The monthly health insurance and nursing care billings will range between AED150- AED165 per day, exclusive of pertinent medication costs. The fees apportioned to the private clients, however, will be slightly more to recompense for the extra benefits expended while residing at the hospice.

Further, the proposed rates will be about 2/3 of the general hospital tariffs (Hunt & Laughon 2011, p. 54). The anomalies will hail from the personnel retention funds and public donations as well as the credits earned from recruiting senior physicians. As regards performance, the speculated break-even analysis implies that the hospital should register more than fifty patients per month to recoup costs, depending on the prevalent market rates.

Acharya (2015) alleges that the conglomerate envisages ameliorating the bed capacity to an absolute measure of 500 beds over the next ten years. The gross capital fees imperative for the planning, construction, stocking, stocking, and furnishing of the premises total to Euro 125 Million.

Projected income statements

The income statements depict accelerating sales and proceeds for the subsequent five-year duration as well as the revenues accumulated in the introductory year (see Table 2). The Directorate predicts a steady annual sales progression against the calculated expenditures (Acharya 2015).

Projected balance sheets

Table 3 beneath enumerates the speculated net worth and appraisal of the development. The yearly quotations reflect an ideal financial position (Walsh 2012, p. 38).

Organisation

The management structure will subsume two principal administrators: one clinical director and one administrative supervisor (see Table 4). The subordinate personnel will include two social workers, one administrative assistant, and two contracted speech & physical specialists, experienced in manual therapy (Acharya 2015). The two administrators will assume chief managerial positions and delegate direct services to the junior doctors as the demand for nursing escalates.

Personnel Plan

Administrative Director

The project proponent will undertake the administrative director role, accomplishing the responsibilities of a social worker during the pilot phases. Later, as the service hours ascend, the board will contract a designated employee, whose compensation will constitute of a flat fee.

Clinical Director

The clinical director role necessitates the recruitment of a qualified health care veteran- a position whose salary settlement entails AED 2,000 per week and annual TBA credits. The clinical administrator will initially operate as a skilled nurse before the appointment of a licensed nurse worker.

Administrative Assistant

The administrative assistants working duration will encompass a total of 40 hours per week at AED 45 per hour. The preliminary incentives and benefits will consist of four weeks, and eleven indemnified leave days.

Skilled nurse

The skilled nurse position will be a part-time role, accruing payments at AED 35 per hour and AED 1,500 per month for direct service and on-call hours respectively. The assigned benefits will include two weeks and six indemnified leave days.

Social worker

The contracted social worker shall amass a wage of AED 30 per hour for the direct service hours, computed at 500 hours per annum. The position benefits will accrue when the work volume ascends.

Manual therapists

The hired physicians and chiropractors will dispense manipulative remedies, fascial counter strains, and joints mobilization at AED 47 per hour recompensed at 650 hours per annum. However, no incentives shall accompany these positions, as they will be on a contractual basis.

Exit Plan

In the event that the paediatric facility is remunerative, the board may decide to relinquish the complex to a third party in pursuance of voluminous profits and investment bonds. The executive panel will engage adroit investment bankers and business brokers to trade the residency in exchange for affluent gains (Acharya 2015). If handled shrewdly, the proprietors could annex sales premiums and yields worth five times the initial capital fees (Hunt & Laughon 2011, p. 63).

Appendices

Table 1: Sales and Revenue Projections (Consolidated Statements for the First Five Years).

Description	Y1	Y2	Y3	Y3	Y5
Sales:
Service Volume	2,300	3,100	3,670	4,250	4,730
Cost Per Capita	46	54	62	71	77
Total	105,800	167,400	227,540	301,750	364,210
Operating Revenues:
Room Services Dietary	156,700	158,350	159,960	160,500	162,340
Inpatient Services	146,739	149,430	150,020	152,410	154,120
Outpatient Services	120,000	122,000	123,500	124,800	125,480
Clinical Services	67,900	69,200	71,000	72,500	74,300
Operating Revenues (Total)	491,339	498,980	504,480	510,210	516,240
Other Revenues:
Contributions	97,600	98,220	99,350	101,100	101,770
Investment Interests	45,700	46,000	46,900	47,420	48,000
Depreciation Expenses	13,200	13,970	14,100	14,750	15,250
Total Other Revenues	130,100	130,250	132,150	133,770	134,520
Gross Revenue/Sales	727,239	796,630	864,170	945,730	1,014,970

Table 2: Pro Forma Income Statement Forecasts (For the First Five Years).

Item	Y1	Y2	Y3	Y4	Y5
Sales	727,329	796,630	864,170	945.730	1,014,970
Cost of Goods Sold	44,500	45,700	46,200	47,739	48,500
Operating Income	682,739	750,930	817,970	897,991	966,470
Expenses:
Payroll	238,000	240,000	242,000	244,000	246,000
Administrative & General	12,300	12,680	12,900	13,250	13,590
Marketing Costs	7,600	7,970	8,350	8,800	9,400
Professional Licensure	18,500	19,300	19,735	20,500	21,110
Rent and Utilities	14,330	14,750	15,200	15,852	16,300
Insurance Fees	5,250	5,760	6,100	6,725	7,120
Payroll Taxes	17,492	18,120	18,570	19,280	20,430
Miscellaneous Costs	2,364	2,762	3,122	3,720	4,260
Travel Charges	11,400	11,920	12,300	12,850	13,020
Total Expenses	327,236	333,262	338,277	344,977	351,230
EBITDA	355,503	417,668	479,693	553,014	615,240
State Income Tax	10,500	11,350	11,655	12,200	12,725
Federal Income Tax	50,300	51,400	52,128	53,477	54,400
Interest Expense	12,470	11,568	10,250	9,355	8,700
Depreciation Expenses	4,500	4,500	4,500	4,500	4,500
Total	77,770	78,818	78,533	79,532	80,325
Net Profit	277,733	338,850	401,160	473,482	534,915

Table 3: Pro Forma Balance Sheet Forecasts (For the First Five Years).

Item	Y1	Y2	Y3	Y4	Y5
Current Assets:
Cash	123,540	125,120	127,400	128,000	129,322
Accounts Receivable	42,980	43,500	44,290	45,280	45,980
Inventory	32,758	33,000	33,760	34,500	35,500
Amortized Development	42,000	42,585	43,670	44,000	45,100
FF&E	24,000	24,500	25,000	25,500	26,000
Other current assets	30,900	31,200	31,850	32,700	33,349
Total Current Assets	296,178	299,905	305,970	309,980	315,251
Fixed Assets:
Fixed Assets	820,000	825,000	830,000	833,000	837,000
Amassed Depreciation	(8,370)	(9,500)	(10,300)	(11,690)	(12,420)
Total Fixed Assets	811,630	815,500	819,700	821,310	824,580
Total Assets	1,107,808	1,115,405	1,125,670	1,131,290	1,139,831
Current Liabilities:
Accounts Payable	21,070	21,930	22,432	22,825	23,735
Current Borrowings	6,500	6,500	6,500	6,500	6,500
Total Current Liabilities	27,570	28,430	28,932	29,325	30,235
Fixed Liabilities	86,759	85,355	84,830	84,100	83,128
Total Liabilities	114,329	113,785	113,762	113,425	113,363
Paid-in Capital	486,000	530,500	590,752	653,753	722,100
Amassed Surplus/ Deficit	(13,700)	3,287	7,370	10,280	11,832
Surplus/ Deficit	24,500	22,765	21,300	20,209	19,600
Total Capital	496,800	556,552	619,422	684,242	753,532
Liabilities & Capital (Total)	611,129	670,337	733,184	797,667	866,895
Net Worth	496,679	445,068	392,486	333,623	272,936

Table 4: Personnel Plan.

Staff	Y1	Y2	Y3	Y4	Y5
Administrative Directors	1	1	2	3	5
Clinical Directors	1	2	3	5	6
Social Workers	2	4	6	8	10
Contracted Therapists	2	5	7	9	10
Skilled Nurses	2	3	4	6	8
Administrative Assistants	1	2	3	4	5
Total	9	17	25	35	44

References

Acharya, D 2015, Rainbow International Childrens Hospital. Web.

Allen, J 2008, Nursing home administration, Springer Pub., New York.

Buss, W 2015, How to start a medical hospital business, SamEnrico, London.

Cleary, B & Rice, R 2005, Nursing workforce development strategic state initiatives, Springer Pub. Co., New York.

Dunn, A, Kathuria, N & Klotman, P 2013, Essentials of hospital medicine: a practical guide for clinicians, World Scientific Pub. Co., Singapore.

Grossman, L 2012, Infection control in the child care center and preschool, Demos Health, New York.

Hunt, P & Laughon, D 2011, The nurse leaders guide to business skills strategies for optimizing financial performance, HCPro Inc., Danvers.

Karnopp, J 2011, Family childcare basics advice, activities, and information to create a professional program, Gryphon House, Silver Spring.

Lukenbill, W & Immroth, B 2007, Health information for youth: the public library and school library media center role, Libraries Unlimited, Westport.

Walsh, R 2012, Start a business for less than 2,000: from airbrush artist to wellness instructor, 75+ profitable business startups for under 2,000, Adams Business, Avon.

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