Business Plan Relocation of the Romeo Plank and Clinton Township Rehabilitation Sites Presented by: Carolyn Sucaet October 29, 2013
Presentation Outline Overview Project Description Benefits of the Project: Support of Mission and SJP Strategic Plan Description of Operations Market Assessment Analysis of Alternatives Financial Analysis Management Recommendation
Overview Combining and relocating the SJ Outpatient Rehabilitation Sites currently at Romeo Plank and Clinton Twp to Schoenherr and Hall Road Benefits: –Decrease current site overlap –Increase North western Macomb County outpatient rehab presence –Capture anticipated referrals –Growth of the Ambulatory Rehab program
Project Description Outpatient Physical and Occupational Therapy Services for Orthopedic and Neurological referrals Specialty Services including: –Lymphedema and Oncology Rehabilitation –Hand Rehabilitation –Vestibular Therapy –Women’s Health Services –Sports Medicine Rehabilitation –Possible development of new partnerships with High School Athletic Training Services
Market Assessment SWOT Analysis of SJP Outpatient Rehabilitation Services SWOT Analysis of Competitors Beaumont and Henry Ford Projected population growth Projected payor mixes SJ Physicians and other referral sources
Growth by Zip Code – East Region
Physical and Occupational Therapy 5 Year Growth
East Region Demographics
5 Year Procedure Growth – East Region
Analysis of Alternatives 18 Mile Road and Mound Road Location – West Macomb Partnership with Macomb Twp Parks and Recreation Remain in current locations Partnership with Warren Parks and Recreation
Financial Analysis Volume Projections anticipated with combined staffing Payor Mix evaluation and predictions Proforma demonstrates positive operating margin
Insurance Coverage Estimates – 5 Year Projection Projected 2018 Insurance Coverage Estimates Area: 5 mile radius around Hall Rd and Schoehnerr Ranked by ZIP Code(Asc) 2018 Adjusted Population ZIP CodeZIP CityTotalMedicaidMedicare Medicare Dual Eligible Private - DirectPrivate - ESI Private - ExchangeUninsured 48038Clinton Township41,2666,9027, ,79320,5432, Macomb31,1312,1483, ,80920,8681, Macomb56,6874,2176, ,32138,3523, Sterling Heights33,4345,0605, ,56817,9992, Sterling Heights21,9302,5893, ,08612,4181, Utica27,3203,8915, ,23013,8751, Utica27,3933,4093, ,42816,5721, Total239,16128,21736,7713,76412,236140,62613,5344,013 % Total100.0%11.8%15.4%1.6%5.1%58.8%5.7%1.7% Insurance Coverage Estimates 1.1 ICE0002.SQP © 2013 The Nielsen Company, © 2013 Truven Health Analytics Inc.
Management Recommendation Favorable location Transfer of physician referrals to location Favorable demographics Commitment to eliminate service duplication Favorable financials Favorable Market penetration Recommend pursuing relocation
References Anderson, R. C. (2012). Rehabilitation services mission, vision, and values. Policy and Procedure Manual. Detroit: NP. CMS Manual System, Transmittal 119 Medicare Benefit Policy § (January 15th, 2010). East Region Demographic Data compiled from © 2012 The Nielsen Company, © 2012 Thomson Reuters. U. S. Department of Health and Human Services, Centers for Medicare & Medicaid Services. (2012). CMS Manual System (Pub Medicare Benefit Policy, Transmittal 165). Retrieved from Guidance/Guidance/Transmittals/Downloads/R165BP.pdf
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