business planning for health organizations id 536 spring term, 2009 paul campbell, mpa, scd harvard...
TRANSCRIPT
Business Planningfor Health Organizations
ID 536
Spring Term, 2009
Paul Campbell, MPA, ScD
Harvard School of Public Health
2
Agenda for First Session
• Course goals and organizational issues;
• Entrepreneurial Management;
• Business Plan Outline; and,
• “Quali-Care” Case.
3
Course Learning Objectives
Students will be able to draft a business plan that will:• Provide evidence of the need for and economic
feasibility of the project, including plans to address potential risks;
• Identify the financial and other resource needs and the potential sources to meet those needs;
and,
• Effectively communicate benefits as well as economic feasibility to potential financial supporters, partners, employees and ultimately customers.
4
Student Responsibilities
• Reading and homework assignments;
• Preparation of draft written business plans, which are due at class, Friday, May 22
(2 hard copies).
• Plan presentations (for those selected) May 15 and 22.
• Written and oral feedback on presentations.
5
Grading
20% Class Participation
20% Homework Assignments
10% Business Plan Feedback
50% Written Business Plan
100%Total
6
Student Business Plans
• Not expected to be “Fortune 500” in form or content;
• Expected to be easily readable draft;
• Content more important than polish;
• Expected to contain information related to all elements of the Business Plan Outline.
7
Contact Information
Paul Campbell Phone: 617-429-6614 *Email: [email protected]
John Quattrochi *Email: [email protected]
Discussions about case development:• By email appointment
8
9
PolandTraditional Health System
MOH MOF
Med.
Schools
Voivodships (49)
ZOZs Hospitals Specialists
Hospitals PHC Clinics
10
Decentralization
Central Government
Legislated Transfer of Authority
Regional & Local Governments
11
Separation of Payer and Provider
Government Payers
Contracts with Providers
“Independent Units”
12
Transformation of Polish Health System
System
Bureaucracy Quasi-Market
Institutions
Bureaucratic Competing
Units Organizations
Managers
Administrators Entrepreneurial
Managers
Performance
Quality
Efficiency
13
The Transition
Entrepreneurial
Administrator Manager
Low Autonomy High
Little Accountability Great
Little Mgr. Competence Substantial
14
Advantages of Shift to Markets and Entrepreneurial Management
15
Disadvantages of Shift to Markets and Entrepreneurial Management
16
International Evidenceon Contracting for PHC
“Contracting for the delivery of primary care can be very effective and that improvements can be rapid.”
Loevinsohn, Harding
Lancet, August 20, 2005
Study of 10 Contracting Programs
17
Entrepreneur
Webster’s Dictionary Definition:
1. An organizer or promoter of an activity.
2. One that manages and assumes the risk of a business.
18
Social Entrepreneurs
Skills include:
• Leadership
• Strategy
• Marketing
• Financial
19
A Delicate Balance
Mission Economics
20
Business Planning
21
Business Plan
Defined:
“A detailed plan for a proposed program, project or service including information to be used to assess financial feasibility.“
Steven Finkler, PhD, CPA
2002
22
Purposes of Business Plans
• External – Equity investment– Loan
• Internal– Organizational assessment– Individual (Personal) assessment
Joseph Mancuso, 1985
23
Reasons for Developing Business Plans
1. Process forces objective critical assessment of project;
2. Completed plan helps you manage; and,
3. Completed plan provides a means of communicating with others.
Joseph Mancuso, 1992
24
Business Plan Outline
1. Table of Contents
2. Executive Summary
3. The Business
4. Finance
5. Marketing
6. Supporting Documents
QUALI-CARE
A Business Plan
Damascus, Syria
26
Positive Attributes of the Plan
• Being first can be an advantage
• There appears to be an unfulfilled demand for quality/coordinated and comprehensive care in Syria
27
Positive Attributes of the Plan
• The key initiator appears to have the personal/family financial
resources to launch the new venture
• The high cost of facility, equipment and working capital pose barriers to potential competitors
28
Negative Attributes of the Plan
• Three important skills are required: Yet the individuals to manage facilities,
actuarial projections, and financial issues are not identified
• Plan design provides for very limited control over quality of in-patient care
29
Negative Attributes of the Plan
• Plan design requires partnership with physicians who may be threatened by Quali-Care.
• Plan targets small wealthy segment of the population that can already afford all services they need (without Quali-
Care). Why should they opt for HMO-limited services?
30
Additional Info Needed and Recommendations
• Management structure – who will be accountable? Who are the key individuals implementing the plan and what are their relevant skills?
• Budget assumptions and justifications
• Information regarding financing structure and ownership
31
Important External Factors
• Strength of the economy: Will the potential market expand for Quali-Care or contract?
• Cooperation by medical association and individual physicians: Will
the necessary providers partner with Quali-Care?
Will You Make the Investment?
33
Remember
• There is no one “right” way to organize and write a business plan.
• The first business plan you write is perhaps the hardest.