business planning for health organizations id 536 spring term, 2009 april 17, 2009 paul campbell...
Post on 20-Dec-2015
214 Views
Preview:
TRANSCRIPT
Business Planningfor Health Organizations
ID 536Spring Term, 2009
April 17, 2009
Paul Campbell
Harvard School of Public Health
2
Agenda for this Session
• Homework;
• Organizational Strategy and Business Planning, Marketing;
• Financial Issues; and,
• Business Plan Evaluation.
4
Marketing Strategy (Mix)
• Product/Service
• Pricing
• Place/Distribution
• Promotion/Communication
5
Product/Service
Important Considerations Relative to Target Groups:• Perceived benefit• Expected level of quality• Image in the community• Comparison with competition
• Differentiation• Distinctive competence
6
Pricing
• Perceived (monetary) value of service
• Absolute price and its relationship to the full and marginal costs incurred providing service
• Price relative to competition
• Discounts and free care
7
Place/Access
• Location
• Hours
• Transportation
• Proximity to other services
• Physical and other barriers
8
Promotions/Communications
• Message
• Appropriate mode of communications
• Mass media
• Personal contacts
• Form, timing and budget for promotions
• Level of credibility
• Influencers
9
Potential Segmentation Factors Include
• Geographic• Demographic
– Age– Gender– Income– Occupation– Education– Number of Children– Race/Ethnicity– Language– Literacy
10
Potential Segmentation Factors Include
• Physical/medical– Medical/Family history– Health status– Risk factors
• Psychographic– Lifestyle– Personality characteristics– Values
• Attitudinal• Behavioral
11
Marketing Research
• Focus Groups
• Interviews
• Written Surveys
• Behavior Observations
• Analysis of Existing Data
12
Payback
Definition:
The time (years) necessary to recover the initial investment
Formula:
Investment
Annual Cash Inflows
13
Payback Example
Information:
Cost of New Diagnostic Unit $5,200,000
Sale of Old Equipment $ 100,000
Annual Net Income $1,200000
Q: What is the payback period?
14
Payback Example
New Diagnostic Unit $5,200,000
Old Equip Salvage Value - 100,000
Net Investment ……………$5,100,000
$5,100,000
$1,200,000 = 4.25 YEARS
15
Net Present Value
Defined:
Determining the net result of subtracting the initial investment from the present value of expected returns.
16
Steps in Net Present Value
1. Determine Cash Flows
2. Determine Economic Life
3. Determine Net Initial Investment
4. Determine Appropriate Rate (%)
5. Compute
17
NPV Example
• Investment expected to net $120,000 annually for 8 years
• Net cost of investment = $700,000
• Comparable return = 4% (T-Note)
• Is it a good investment?
top related