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Occupational Health Business Plan Leave a comment
Centroplex Health System (CHS), Workwell offers a top Occupational Medical Program. It helps to reduce healthcare costs, increase productivity, decrease absenteism as well as improve employee morale. Workwell also attracts and retains high-quality workers and provides a positive return. Workwell will be Killeen’s pioneer Industrial Occupational Medicine Program and will serve area businesses, helping them to become more productive, while lowering their overall costs.
Employers seek occupational medicine clinics in order to cut down on health care costs. Workwell’s mission is to promote total health for body, mind and spirit while forming and nurturing relationships with local businesses.
Workwell’s existence is based on two simple facts:
- People who are healthy and productive work better than those who have been chronically ill.
- It costs less to prevent injuries than to treat them after they occur.
Workwell can help employees adopt healthier lifestyles and lower company health care costs. You will see a decrease in health care expenses due to lower medical insurance premiums.
Centroplex Health System is a major advantage Workwell has, and should capitalize on. CHS is the most preferred provider for health care services in the service area. This means that CHS supports all the structures needed to build a successful Occupational Medicine Program such as Workwell. The structures include an Emergency Department and a free-standing walk-in facility (i.e. COMC, a network of primary- and specialty doctors and an MCO (currently being built). These four structures should create a loop to allow business to be brought into Workwell. Workwell should then refer back to these four structures which completes the loop. The proposed model combines Occupational Medicine services –: Workwell with primary care services under a single setting, COMC. This mix of services will offer an alternative comprehensive system of Occupational Health and Primary Care services to our client employers. This will create a synergy which expands the market and establishes new relationships. It also reduces operating costs and generates new revenues.
The key to success and crucial factors for the next 3 years of Workwell’s life are:
- Successful marketing strategies/plans for employers are developed and implemented.
- We are looking for experienced administrative and medical talent.
- Enter the Occupational medicine market and create a brand#8221 before the competition.
- Continuous improvement of the service quality is our commitment.
- Demonstrate a financial profit on your investment.
- Senior Management must show commitment
The business plan justifies the development and implementation of an occupational medicine program by CHS. According to market research, there were 7,720 worker injury claims last year. CHS handled 2,532. In addition, worker compensation injuries are projected to increase to a total of 9,446 in the next four years. The goal of the business plan is for CHS to be able to treat 5,064 injuries to worker compensation and to reach 53 percent of that market within five years.
The following chart shows the key highlights of COMC’s business plan for the next five years. According to the COMC, total COMC visits will rise to 11,085 and 15,918 by year 5. This will in-turn generate increasing total revenues and net surplus.
1.1 Objectives
- Workwell’s principal objective will be to help ESTABLISH Centroplex Health System (the ONE STOP SMOOKING” MEDICAL CENTER FOR HEALTH CARE WITHIN ITS SERVICE AREA) as the #8220 ONE STOP HEALTH SYSTEM.
- A full-service continuum of Industrial Occupational Medicine that provides prompt, quality medical care for all injured employees.
- Provide Occupational Medicine services to 10 major Killeen employers (50 < employees) and 20 small employers (50 > employees) by the end of Year 1.
- To expand the market and offer Occupational Medicine services, employers will need to be able to access these zip codes by Year 2.
1.1.1 Observation & Recommendations
OBSERVATIONOccupational health programs have been stepchildren in hospitals because they’ve historically not brought in much revenue. But they could become more lucrative if health systems develop the necessary competencies and sell them directly to employers. Due to the limitations of discount managed care, the healthcare dollar will shrink. Providers need to be proactive in pursuing new revenue streams. Occupational services offer the opportunity to develop positive relationships with local employers. These relationships can then lead to entirely new revenue streams.
RECOMMENDATIONS
The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.
Below are some suggestions (options).
Use the services a consultant to get started with the program
Two main reasons for this recommendation: First, expertise is required in developing an occupational medicine program. Second, there is no need to reinvent the engine when you can learn from tried and true methods. The programs that were evaluated either employed an experienced occupational medicine director, or hired outside consultants to help them realize their goals. CHS does not have the expertise to support this effort and is considering hiring a consulting company.
You can also use these reasons:
CHS will now be able offer an occupational medicine program to local employers within just 30 and 45 days. To pay for experts to use their proven techniques, the personnel burden ($$$) incurred in creating this program could be used. Senior leadership will see a renewed commitment for the program’s future success by investing in consultants.
Although CHS runs the risk of having a “canned” program, it is understood that the positives outweigh the negatives. Three consulting firms submitted bids for this project. These are Concentra Health Services, Florida Hospital and Occupational Health Research. I have included a copy of this information in your presentation.
Design the occupational medicine curriculum in-house
Positives:
Save money.
Programming customized.Negatives:
Time frame
Manufacture of incompetent.
Senior leadership is not committed.
Decision to remain status quo:
If you choose this option, the program will continue to operate as usual.
Positives:
None.Negatives:
Continue to lose revenue.
Potential to lose market shares
Don’t miss your chance to network and meet local employers
Do not miss this opportunity to become a ‘#8220one-stop-shop” for health services.
CHS employee injuries costs will continue escalating.
Division of COMC
This option allows COMC to go on the marketplace and be sold.
Positives:
A lot of money.
You can invest the $$$ to develop or expand new programs.
Leadership can focus on issues closer at home.
In the short term, improve CHS’ bottom lineNegatives:
Lose new revenue stream.
Lose market share.
Loss or relocation of prime real estate.
Establish a rival in that setting.
It is easy to lose your identity on the market.
1.2 Mission
Workwell, a premier program in industrial occupational medicine, is customer-focused. The team approach aims to deliver quality occupational health, safety, and rehabilitation services. This includes addressing a person’s overall health (body, mind, and spirit) while building and maintaining partnerships with local businesses.
1.3 Keys to Success
These are the keys to Workwell’8217’s success:
- The development and implementation of a plan or marketing strategy that is successful for employers.
- Experienced medical and administrative talent are sought after.
- Entering the Occupational Medicine market and building a “
“Brand” before the competition.
