1. Steps in Preparing a Business Plan

2. Preliminary Step Must have a decision making apparatus in place –Governing Board –Viable committee structure Operations Planning Personnel

3. Essential Parts of a Business Plan

4. Plan Objectives 36 months Primary & secondary objectives Present & future orientation Rationale for philosophical bonding

5. History & Development Perception, perception, perception –Stability –Trust Financing sources Funding sources

6. Primary & Secondary Market Basic rule (not) Factors to be considered: –Population growth –Cost of living –Per capita income –Primary market makers Industrial, manufacturing, & service organizations Agricultural vs. non-agricultural

7. Primary & Secondary Market Factors to be considered: (cont.) –Availability of human capital Colleges & universities Technical schools –Transportation resources Indicators of future growth

8. Medical Facilities Hospitals Skilled Nursing Facilities Retirement Centers Home Health Agencies Outpatient Surgical Centers Medical Specialties Dental Specialties Special Services Availability

9. Medical Personnel Associated with the Organization Professional background Board Certified or Board Eligible Specialty services provided by each

10. Payer Mix Three year lookback Stability & predictability

11. Patient Origin Zip code of residence Focused understanding Organizational reach

12. Current Competition Objectivity Changing dynamics of primary & secondary areas Sphere of control Cost advantages & disadvantages –The naivete of institutional planning

13. PositioningPositioning Economic relationship & advantages Availability of medical resources Definition of service strategy Retention of existing business Attracting new business Expanding reach Capacity to grow Continuous assessment

14. Assessing the Business Risk Present & future referral base Loss of referrals to competition Outreach efforts of competition Fickle posture of government –La don ay mobilé factor –Federal & state –Universal concern Emergence of specialty companies

15. Assessing the Business Risk Outlying area opportunities –Balances skepticism Control of internal operations –Procedures –Costs Ongoing assessment of staffing needs

16. Development of Action Plan Statement of objectives by year Actions required for each objective Parties or position responsible Cost factor(s)

17. Financial Projections Income & expense Surplus before capital distribution Capital expenses Cash flow Budgetary considerations Financial ratios

18. EpilogueEpilogue

19. Follow Certain Risk Assessment Principles Business plan must emphasize system integration Reduce & control loss producing situations Clearly articulate management’s expectations as measurable outcomes

20. Follow Certain Risk Assessment Principles Plan must have a loss control component Clear parameters measuring success or failure of each objective QA & QI are integral parts of the plan Make available objective information regarding benefits & savings from plan

21. Five Generally Accepted Steps in Assessing Risks Identify potential loss exposures Examine alternative risk aversion techniques Select most viable proactive planning measure –Describe how you arrived at this determination

22. Five Generally Accepted Steps in Assessing Risks Implement chosen procedure –Explain how you intend to measure its success or lack thereof Monitor & improve constantly each new program