Business Case For A New Economic Opportunity Whilborne Medi ✓ Solved

Business Case for a New Economic Opportunity

Whilborne Medi

Business Case for a New Economic Opportunity

Whilborne Medical Center (WMC) is a multispecialty health care facility situated near Maxima Industrial Park. Its management plans to start a new economic initiative in the form of an urgent care center (UCC) within WMC’s premises. The objective of this business case is to present a detailed report on the feasibility and cost–benefit considerations of implementing the proposed economic initiative over the next five years.

The business case includes an evaluation of various risks and opportunities associated with the new initiative. It recommends ways to lessen the risks associated with setting up the UCC and strategies for controlling costs and maximizing benefits.

Opportunities Associated With the Proposed Economic Initiative

An economic and environmental analysis was performed to determine the opportunities and risks associated with the UCC. WMC is situated near Maxima Industrial Park. Most of the patients served are the 30,000 workers from companies in the park, plus about 3,000 locals. The UCC may cater to non-emergent needs of both workers and locals. UCCs can reduce ED overcrowding by diverting non-emergent cases, while EDs can focus on more emergent cases. The UCC can generate an additional revenue stream and serve after-hours needs at lower costs than primary clinics. Location near the target population is crucial. The UCC could rely on relationships with park workers through annual health checkups (Chang et al., 2015).

Competitive landscape shows two primary clinics nearby, with no UCCs in the area. Many patients prefer primary clinics, but after-hours accessibility and lack of appointment requirements at UCCs give advantages. The UCC should emphasize convenience, broadened services, and tests available through WMC (Qin et al., 2015).

Risks Associated With the Economic Initiative and Ways to Address Them

A potential threat is a retail health clinic inside a Walmart nearby, which could attract patients with lower costs and convenient hours. The UCC, affiliated with WMC, can offer more services and tests and higher quality care. High-volume, fast service increases risk of misdiagnosis; thus meticulous documentation and clear communication are essential. Staff should be trained to minimize errors, with robust records and patient communication to mitigate legal risk (Why good documentation matters, 2016; Helping patients make informed decisions, 2014).

Cost–Benefit Analysis of the Proposed Economic Initiative

The present value of costs and benefits over five years is calculated using a discount rate of 11%. Capital costs are estimated at $350,000 in the current year. Operating costs include salaries for two physicians, two nurse practitioners, three medical assistants, and a receptionist; utilities; insurance; and other operating expenses. Salaries in Year 1: physician $232,000; nurse practitioner $112,000; medical assistant $35,000; receptionist $32,000; salaries rise ~3% annually. Additional staffing in Year 4 (nurse practitioner) and Year 5 (physician) to meet patient demand. Utilities grow ~5% annually; insurance grows in years 4–5 due to added staff; other operating costs ~12% of annual revenue. Total present value of costs over five years: about $5,489,746. Present value of benefits: Year 1 revenue $2,730,000, increasing 5.3% annually. PV of benefits over five years: about $11,037,800. Net benefit: about $5,548,054 over five years. Nonmonetary costs such as marketing time and patient experience not quantified (Golinkin & Danielle, 2013; Yee et al., 2013).

Ways to Control Costs and Maximize Benefits

Regular cost control and financial monitoring are essential. Overhead costs include maintenance, insurance, utilities, and supplies. Regular maintenance checks and careful equipment handling, annual reviews of utilities usage, and cost-effective communication plans help control expenses. Ethical, culturally equitable considerations should guide cost-control measures. To maximize benefits, automated health reminders to regular clients can increase patient inflow. Providing consistently high-quality service will build trust and loyalty, potentially increasing utilization. Understanding patient motivation and preferences can help tailor care approaches and improve satisfaction (Qin et al., 2017).

Conclusion

The UCC can meet urgent care needs by offering quick, affordable, and convenient care near the industrial park, enabling workers and locals to access after-hours care. It can provide an additional revenue stream and contribute to WMC’s financial stability. The cost–benefit analysis suggests economic viability, with appropriate risk mitigation through strong documentation, effective communication of the care plan, and patient-focused service delivery. If implemented with disciplined cost controls and continuous quality improvement, the UCC can enhance access, reduce ED overcrowding, and support WMC’s overall mission (Qin et al., 2015; Chang et al., 2015).

Paper For Above Instructions

Introduction

Opportunity Analysis

The proximity to Maxima Industrial Park positions the UCC to serve a large, predictable population of 30,000 workers plus approximately 3,000 locals. By diverting non-emergent cases from the ED, WMC can allocate ED resources to true emergencies while providing convenient care for minor illnesses and preventive services (Chang et al., 2015; Qin et al., 2015). The UCC’s accessibility without appointments and after-hours availability enhances patient convenience, potentially increasing utilization relative to primary clinics (Yakobi, 2017). The UCC can leverage existing relationships from WMC’s annual worker health programs to cultivate a core patient base, supporting sustainable volume and revenue (Gurganious & Greenfield, 2015).

Competitive Positioning

Two primary health clinics operate in the vicinity; however, no local UCCs currently exist. This gap provides a favorable window for WMC to differentiate on speed, breadth of services, and integration with hospital facilities for tests and imaging (Chang et al., 2015). The UCC must emphasize its ability to handle a broader range of conditions than retail clinics, supported by access to advanced diagnostics and hospital-based services (Golinkin & Danielle, 2013).

Risk Assessment and Mitigation

Retail clinics in nearby retailers can threaten patient volume by offering lower costs and convenience. The UCC’s competitive advantage lies in its association with WMC, enabling broader services and superior quality of care (Chang et al., 2015). High-volume care may raise misdiagnosis risk; thus rigorous documentation, standardized care pathways, and clear patient communications are essential (Why good documentation matters, 2016; Helping patients make informed decisions, 2014). Legal risk can be mitigated with robust medical records, defined consent processes, and continuous clinician training (Weinick et al., 2009).

Cost–Benefit Framework

Assuming an 11% discount rate, the capital cost is $350,000 in Year 0. Planned staffing includes two physicians, two nurse practitioners, three medical assistants, and a receptionist in Year 1, with annual salary escalations of ~3%. Additional staffing in Year 4 (nurse practitioner) and Year 5 (physician) addresses growth in patient volume. Utilities and insurance costs rise as operations scale, while other operating costs align with revenue. The five-year cumulative PV cost is approximately $5.49 million, and the PV benefits are about $11.04 million, yielding a net PV benefit of roughly $5.55 million. These estimates rely on published benchmarks for urgent care throughput and pricing and are sensitive to patient volume and payer mix (Qin et al., 2015; AMN Healthcare, 2015).

Cost Control and Benefit Maximization Strategies

To preserve the project’s margin, the UCC should implement strict overhead management, including regular maintenance, prudent utility usage, and negotiated contracts for insurance and IT. A gradual staffing ramp, efficiency-focused scheduling, and energy-efficient facilities can limit cost creep. On the revenue side, automated reminders and targeted follow-up can improve patient recurrence and preventive care uptake, increasing utilization while maintaining high patient satisfaction. Clear communication about services, expectations, and timelines reduces dissatisfaction and potential malpractice risk (Qin et al., 2017).

Conclusion and Recommendations

The proposed UCC aligns with market demand for accessible after-hours urgent care and complements WMC’s existing services. The five-year PV analysis suggests a positive net benefit under conservative assumptions, supporting a go/no-go decision with explicit risk mitigation. We recommend proceeding with a phased implementation, starting with a limited scope of urgent care services and imaging capabilities, coupled with a robust governance framework to monitor cost, quality, and patient outcomes. Ongoing market assessment and stakeholder engagement will be critical to maintaining volume and profitability (Yee et al., 2013; Weinick et al., 2009).

References

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8. Why good documentation matters. (2016, October). Retrieved from ACPM.
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