business plan of hospital

8/14/2019 Business Plan of Hospital

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SMILE CHILD HOSPITAL

Contents

Introduction

Executive Summary

Industry & Environmental Analysis Description of Business

Production Plan

Operational Plan

Marketing Plan

Organizational Plan

Risk Assessment

Financial Plan Annexure

The Islamia University of Bahawalpur1


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Smile Child Hospital

Hospital Road Rahim Yar Khan(068) 5888888

[email protected]

Nature of Company

Its a Partnershiphaving five partners; the names of the partners are as follows:

Mr. Arslan Mazhar

Mr. Jamil Ahmed

Mr. Faizan Shahid

Miss. Huma IrshadMiss. Sarwat Afzal

Nature of business

Its a service type organization.

Amount of finance needed to start

According to our assumptions and the rates of different things required like machinery,equipment and building for the hospital we need 50 million approximately.

Amount of investments

All of the partners will provide 30 million to start the new venture.

http://www.childhealth.com/mailto:[email protected]://www.childhealth.com/mailto:[email protected]


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We have requested for a loan of 20 million from the Punjab Medical Association

(PMA) to be paid in 20 years without interest. This debt will cover medical equipmentcosts, an ambulance and buildings leased cost.

Statement of confidentiality of report

This report is confidential and is the property of all the three partners. It is intended onlyfor use by the persons to whom it is transmitted with the consent of all the partners. Any

reproduction or divulgence of any of its contents without the prior written consent of the

company is prohibited. Violation of which may lead to certain legal action.



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Dr. Arslan

(Retired)

Physician & surgeon Nutrition

Specialist

Psychiatrist Neurologist

Medical

Officers

Medical

OfficersPsychiatrist

Assistant

Anestheticspecialist

AnestheticAssistant

Other De

Medical

Officers

Paramedical staffNursesWard Boys


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Smile Child HospitalHospital Road Rahim Yar Khan

(068) 5888888www.childhealth.com

[email protected]

Nature of Company

Its a Partnershiphaving three partners; the names of the partners are as follows:Mr. Arslan Mazhar,Mr. Jamil Ahmed

Mr. Faizan Shahid

Miss. Huma IrshadMiss. Sarwat Afzal

Its a service type organization.

According to our assumptions and the rates of different things required like machinery,

equipment and building for the hospital we need 50 million approximately.



(PMA) to be paid in 20 years without interest. This debt will cover medical equipmentcosts, an ambulance and buildings leased cost.

Industry Forecast

In Pakistan every ninth child died before his/ her 5th birth day due to Malnutrition(Imbalanced diet), (WHO survey 2005). During past three years growth rate ofdiseases in children is approximately 60% percent due to lack of hygienic factors &

polluted atmosphere. But growth rate in hospital industry is just 15%, the reason is thatthere is no technological advancement in hospital industry.

Analysis of competitor:In private or public sector there is no single hospital is situated in Rahim Yar Khan, matchwith our standard & caliber. So, no direct competitor is there but some indirect

competitor have established their clinics and doing practices.

We segment our market on Income bases:

http://www.childhealth.com/mailto:[email protected]://www.childhealth.com/mailto:[email protected]


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1. Upper Class

2. Middle Class3. Lower Class

By giving high quality of medication with latest equipments and doctors we can satisfythe high income group.

Because ourrates are reasonable for middle income group we can also satisfy them.

By giving compensation packages to poor we can also satisfy the poor income group.

ServicesChildren's Hospital provides complete clinical services for the diagnosis and treatment ofcongenital and acquired heart diseases in children.

Pediatric Gastroenterology, Herpetology & Nutrition

Pediatric Critical CareGenetic Diagnosis and Counseling

Pediatric Psychology

Size of the Business:

Our hospital is basically belonging frommedium size business. Other clinics situatedin Rahim Yar khan are small in size and have not developed laboratories. Capacity of ourhospital will be `45 patients at once or 10 in emergency.

We purchased land and construction on hospital is nearly to complete. This building issituated on hospital road and 10 feet away Shiekh Zayed Medical Hospital main Gate.

Area of building is twenty (20) Marla and building having 5 floors. It has fifteen single

rooms and ten double rooms. A visiting lounge, rooms for staff (doctors) and for paramedical staff are also included. On ground floor there is 3040 square feet hall,

which is enough for a small children ward.

Doctors

Physician

Medical officers (M.O)

Anesthetic specialist Pharmacist

Neurosurgeon

Pathologist

Psychiatrists



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Paramedic staff:Nurses, Dispenser, Operation thither assistant & Laboratory assistant

OPERAIONAL PLAN

Intensive Cure Unit (ICU)

Emergency

Physiotherapy

Neurology

Laboratory

Pharmacy

Dispensary

Electrical department

Marketing planHere we describe market conditions and strategies related to services. How it will be

priced and promoted.

Our target market is from Liaqat Pur to Sukhar, because within this rang there is nostandard hospital giving medication services under one roof.

Mission

Children hospital is guided by the belief that all children need to grow up in a protective

and nurturing environment, where each and every child is given the opportunity to reach

his or her potential. We believe this vision can provide a brighter future for all children.

Goals

To provide out class medical facilities to our patients.

To provide them a favorable environment.

To expand the business.

Objectives:To earn maximum profit

To introduce new technologies to make services better than ever before.

To provide incremental value to our customers.To protect and maintain our resources.

To respond approximately whenever possible to societal expectations and environmental

needs.Maintain a positive and steady growth of 15% each year.

Maintain a gross margin of 25%.



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Marketing Strategies

Increased awareness & image

Our first strategy is about the awareness of our hospital to the patients

Informing those not yet aware of what Smile Child Hospital offers.

We will increase the awareness among the customers through proper advertising.

Marketing Mix

1. Product Service type organization2. Place Hospital road RYK3. Price Varies from dieses to dieses4. Promotion E-media & newspaper (1,000,000)

5. People We are targeting the infants and child.6. Process Through brain storming of doctors7. Physical Avoidance

After this implement the market plan.

ORGANIZATIONAL PLAN

Form of OwnershipForm of Ownership in Smile Child Hospital is Partnership so the business will be

performed on partnership basis.

Partners and their terms of AgreementAs the legal status of Smile Child Hospital is partnership so there are five partners,

All the partners will have equal responsibility to operate the business and all will be

responsible for any wrong decision.All the partners have equal investment of 6,000,000 R.s in the business and the ratio of

profit and loss distribution will be equal

Initial finance needed 46,193,025 (calculated)47,000,000 (Required)



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Department, equipments and their prices

Building 40,000,000

First Month salaries 585,000 Operation theater equipment 2,305,000

Laboratory equipment 1,650,000

Office equipment 266,525

Promotion 1,000,000

City Scan Machine Credit

Equipment for rooms and wards 121,000

Total 46,193,025

Industry Forecast

In Pakistan every ninth (9th) child died before his/ her 5th birth day due to Malnutrition

(Imbalanced diet), (WHO survey 2005).During past three years growth rate of diseases in children is approximately 60% percent

due to lack of hygienic factors & polluted atmosphere. But growth rate in hospitalindustry is just 15%, the reason is that there is no technological advancement in hospital

industry. People of Rahim Yar Khan intend to go other big cities like Lahore, Karachi and

Islamabad etc, for better treatment of there children. Keeping this point of view we

decide to create a stand that gives all types of child related problem solution in Rahim YarKhan under one roof.

Analysis of competitor:

In private or public sector there is no single hospital is situated in Rahim Yar Khan, matchwith our standard & caliber. So, no direct competitor is there but some indirect



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Services Provided:

Our each program emphasizes comprehensive, multidisciplinary care for children with alltypes of medical conditions. In addition, we provide moral support to patients and

families to cope with the challenges of illness. These include our Child Life Services

department, which caters to the emotional and developmental well being of hospitalizedchildren and their families.

Child Life Services:

The Children Hospitals Child Life Department focuses on the emotional and

developmental well being of hospitalized children and their families.

Genetic Diagnosis and Counseling:

The Section of Genetics at our Medical Center provides a full range of services for the

diagnosis, counseling and treatment of patients who have or who are concerned aboutgenetic and congenital disorders.

Pediatric Cardiovascular Services:

Children's Hospital provides complete clinical services for the diagnosis and treatment ofcongenital and acquired heart diseases in children.

Pediatric Critical Care:

The pediatric critical care program at our hospital provides services for children with the

entire range of severe illness.



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Pediatric Gastroenterology, Herpetology & Nutrition:

The Section of Pediatric Gastroenterology, Herpetology and Nutrition at ChildrensHospital offer the broadest range of services available for treatment of problems of the

stomach and intestines.

Pediatric Psychology:

At Childrens Hospital, our clinical psychologists are specially trained for the care ofchildren.

Size of the Business:

Our hospital is basically belonging frommedium size business. Other clinics situatedin Rahim Yar khan are small in size and have not developed laboratories. Capacity of our

hospital will be `45 patients at once or 10 in emergency.

BUILDING:

We purchased land and construction on hospital is nearly to complete.

Location of building:

This building is situated on hospital road and 10 feet away Shiekh Zayed Medical

Hospital main Gate.

Size of building:

Area of building is fourty (40) Marla and building having 6 floors.

Rooms:

It has fifteen single rooms and ten double rooms. A visiting lounge, rooms for staff

(doctors) and for paramedical staff are also included.

Hall:

On ground floor there is 3040 square feet hall, which is enough for a small children

ward.



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Personnel:

Personnel are the assets of any company especially in the service sector. In our Hospital

more than 80% personnel will be skilled based. We rank our personnel into differentdepartments.

Doctors:

Consultant physician

Physician

Medical officers (M.O)

Anesthetic specialist

Pharmacist

Surgeon Pathologist

Psychiatrists

Paramedic staff:

Nurses

Dispenser

Operation thither assistant

Laboratory assistant

Other personnel:

Office boys

Ward boys

Gun men

Ambulance driver

Sweeper

Gatekeeper

Peons

Hospital Equipment:

When any business is going to be practically implement office equipment is essential for

routine work established discipline and identifications of specific designations.

Similarly, in our hospital three medical departments require some particular officeequipments, which will be helpful in checking of the patients while check by the doctors.



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The most interesting thing is that our office equipment is quite different from other

manufacturing organizations. These three departments have three offices and each office

should contain following equipments.

Stethoscope

B.P apparatus

Thermometer

Laminator

Otoskop

Tongue depressor

Torch

Measuring tap

Glucose monitor

Pen stand

Stationary

Table lamp

Office table

Office chair

Toys for children

Weight scale

All above listed materials should in every office for checking the patients becausewithout equipment doctor is like the soldier without the weapon in war. Another thing,

which we have in our mind that all the equipment should be, modernized enough in

handily.

After the description of doctors list now we explain some other offices, which will becompulsory for further hospital functioning.

For this purpose, fist of all we describe finance office and the equipment needed for this

is

Computer

Draw

Safe

Table furniture

Operation Theater Equipment

Operation lights

Operation table

Anesthetic machine

B.P monitor

Cardiac monitor



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Diathermy

Suction machine

Oxygen cylinder

Nitrous cylinder

Autoclave

Equipment for Laboratory:

Colorimeter

Analyzer

Microscope

Centrifuge machine

X-ray machine

Chemicals

Glucose meter

Equipment for general ward and other rooms

Incubator

Sucker Machine

Nebulizers

ECG Machine

Puls oxinator

Oxygen Equipment

Wheel chairs

Weight Machine Stabilizers

Stretcher

Other equipment includes

Stationary

Air-conditioned Unit

SUPPLIERS:

Surgical

Pharmaceutical

Oxygen supplier

Furniture supplier



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SURGICAL SUPPLIERS:

These are the suppliers who will provide us the equipment and instruments necessary forsurgery.

Mr. John Singh provide us these equipments living in japan. His Content no. is+8859874563

Pharmaceutical suppliers

These suppliers will provide us all types of medicines.

Glaxo Smith Kline and Abbott companies will provide us all types of medicines.

Oxygen supplier

These suppliers will provide us oxygen. This suppliers belong to Multan, name as Arif.His Content no. is 03345698707

Furniture supplier

These suppliers will provide us all kind of furniture. It includes a lot of suppliers some

provide office furniture, others provide ward furniture.

Modern Furniture Shop

Lucky Furniture Shop

As we have a service type organization so there is no manufacturing process like in thegoods manufacturing companies.



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We require five million (5,000,000) for a fully equipped physiotherapy department.

Neurology Department:

The section of Pediatric Neurology at hospital is staffed by the experts in their field. We

work closely with other specialists to provide the most advanced care for children withneurological illnesses. We coordinate pediatric nurse-supervised sedation for CT and

MRI scanning with our neurologists, who provide a full range of radiological imaging ofthe nervous system for our young patients. In addition, because of the strong connection

between the brain and behavior disorders, a team of child psychiatrists, psychologists and

behavioral pediatricians is also available to work with patients and their families, asnecessary.

Laboratory:

Laboratory will be well equipped with all the necessary equipment and instruments.

Almost, all types of tests can be possible there. e.g. X-Rays, blood test, CITY SCAN etc.

Pharmacy:

This sort of pharmacy has life saving drugs and other routine drugs which arerecommended by a consultant physician to a patient. We will be having fully equipped

pharmacy.

Dispensary:

We have included dispensary for the patients that come just for time being. Thedispensarys charges will be included in the Doctors fees.

Electrical Department:

Hospital is the place where electricity is most important, not only for operations but alsofor patients in wards, laboratories or ICU. So, we have included it as a separate

department. This department will handle the air conditioner plant and the generators for

electricity problems.



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Here we describe market conditions and strategies related to services. How it will be

priced and promoted.Being the entrepreneur our main focus is profitability but also target is how to serve our

people in constructive manner. Therefore our marketing goals will be the blend of both

factors.Provide all possible facilities to our people in their own area.

Create medicated environment in our city whereas people will not move towards other

big cities for better treatment.

Situational Analysis

Our city environment is very much supportive for the hospital industry.

Through environmental analysis we came to know there is no direct competitor here.

Define Target Market

Our target market is from Liaqat Pur to Sukhar, because within this rang there is no

standard hospital giving medication services under one roof.



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Strengths

New idea which will be highly acceptable in the market.

We are the trend setters.

Our relationships with suppliers are strong enough that offer credit arrangements,

flexibility & response to special product requirements.

Employee competency and professionalism, which are the asset of our company.

Our commitment is quality to customers.

We not only satisfy the customers but also build relationship with them inorderto get their loyalty and better future of the company.

Our unique strength is giving all medication services under one roof.

Competitive advantage of first to enter in the market.

Weaknesses

Access to capital.

Cash flow continues to be unpredictable.

Lack of awareness to people. They dont have the exact concept of interior

designing.

People living in rural areas difficult to target

All the weaknesses of a company are not the weaknesses; actually they are the

opportunities for improvement in the companys functions. So by properlyarability the opportunities, they would become you strengths.



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Opportunities

Growing market with a significant percentage of our target market doesnt

know about nutrition and psychiatrist services.

Increase in opportunities beyond the target area of R.Y.K.

By providing ambulance services to rural areas we can capture that market also.

We can expand business by targeting Sukhar to Hyderabab city.

Threats

New Entrance of competitor

High Import duty on machines can increase the cost and make direct effect on our

services charging from people.

Develop Goals and Objectives

Mission

Children hospital is guided by the belief that all children need to grow up in a protective

and nurturing environment, where each and every child is given the opportunity to reachhis or her potential. We believe this vision can provide a brighter future for all children.

Goals

To provide out class medical facilities to our patients.To provide them a favorable environment.

To expand the business.

Objectives:

To earn maximum profit

To introduce new technologies to make services better than ever before.

To provide incremental value to our customers.To protect and maintain our resources.

Maintain a positive and steady growth of 15% each year. Maintain a gross margin of

25%.



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Marketing Strategies

Increased awareness & image

Our first strategy is about the awareness of our hospital to the patientsInforming those not yet aware of what Smile Child Hospital offers.

We will increase the awareness among the customers through proper advertising.

Advertisingthrough1)Local news papers2)Using cable network3)www.slinkycity.tk

Marketing Mix

1. Product2. Place3. Price4. Promotion5. People6. Process7. Physical Avoidance

Product

Input Sick Patient

Process Treatment of dieses

Output Healthy Patient

Place

We believe that place is not just about distribution it is about convenience too. If theservices are not available where and when people need, it will create a lot of problems forcustomers.

The physical place which we have chosen of our Hospital is Hospital road RYK because

it is a most famous and well known place for all the people. Another reason for that placeso most of people, although, which are not our direct competitors, are operating in that

area and awareness will be created frequently.



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Price

Doctors Fee

Consultant physician 500/-Physician 500/-

Physiotherapist 800/-

Ward and room charges per day

Ward charges 200/-

Single non AC room 300/-

Singe AC room 500/-

Double non AC 500/-

Double AC 900/-

ICU (intensive care unit) charges 600/-ITR (intensive treatment room) charges 800/-

City Scan

Promotion

We will promote our Services through different types of promotions like

Advertising

Public relations

We need one million (1,000,000) R.s for promotion.

Advertising Medias:

We have decided to use almost all types of advertising media because we are the new

entrants in the market. So, we have to aware and educate people to come to our hospital

with their children to get a better treatment with advanced technology.

Circulate Hand outs

Advertise through Newspapers

Through Cable TV because it has made a major source of advertisement

Billboards and banners



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People

We are targeting the infants and child.

Process

We are providing better health care unit, with unique innovation like, before treatment of

any critical diseases in child, first make a panel of doctors, when the sit together through

brain storming it is zero chance to treat child wrongly that are very much common inother hospitals.

Physical Aviedance

Our two doctors, Anesthetist and Neurosurgeon are foreign qualified has MD(American) degrees and one Pediatric Surgeon is FRCS (UK) Fellow of Royal Collegeof Surgeon qualified and other are from FCPS (PAK) Fellow of college of physicians

and Surgeons qualified.

Implementing the Market Plan

After all above procedure accepted we will implement this marketing plan.

Evaluating the Market Plan

After implementing if we feel any deficiency in the plan then we evaluate it and again

implement it till the desire outcome not satisfy us.

But its very difficult to again make a market plan till startup.



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Form of Ownership

Form of Ownership in Smile Child Hospital is Partnership so the business will be

performed on partnership basis.

Partners and their terms of Agreement

As the legal status of Smile Child Hospital is partnership so there are five patners.

Partners & Addresses1.

Mr. Arslan Mazhar

Gulshan-e-Usman

0333-76666662.

Mr. Jamil Ahmed

Gulshan-e-Jamil

0300-9670967

3.

Mr. Faizan Shahid

Gulshan-e-Iqbal

0321-32103214.

Miss. Huma Irshad

Khan Pur, R.Y.K

0333-65498775.

Miss. Sarwat Afzal

Gulshan-e-Iqbal0333-654986



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All the partners will have equal responsibility to operate the business and all will be

responsible for any wrong decision.

Profit/Loss Sharing Percentage

All the partners have equal investment of 10,000,000 R.s in the business and the ratio ofprofit and loss distribution will be equal

Authority or Control

Authority regarding business matters will equal to all the partners. All partners will have

joint account with the name of Smile child hospital so the check-signing authority will be

equal for all the partners. In case of all other matters regarding dealing with employees,customers and suppliers but also placing orders and receiving orders, taking differentkinds of wise decisions, all will have equal authority and control.

Roles and Responsibilities of members

The following is the description about the responsibilities of all the members of the

organization including owners and the designers. Each and every member will be

responsible to perform his or duty according to the specifications.

2No.

Designation

Responsibility

1

2

Owners

Doctors

Dealing with suppliersDecision makingManaging InventoryOrder placementFinancial decisions

Managing employees

Provide consultancy to patentsTreating all patients in theirtiming very carefully



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3

4

Other Staff

ComputerOperator

Good Behavior & Consultancyregarding finding anydepartment and patients

Recording all expensesMaking profile of PatientsRecording all medicines andequipment, purchased and disposeoff. I-e injections or vaccines

We are going to start a standardized children hospital in Rahim Yar Khan. Before this

there is no hospital operating which provide all facilities, which are needed for a children

hospital. According to our research there is a very much need for a standardize hospital,

That provides all the facilities for the health to children. So in future our business is100% successful and the chance of failure is Zero percent (0%). The involvement of

risk in our business is zero percent; the reason behind is that there is no direct competitorin this region but some small clinics are operating here which are our indirect

competitors. There is no fear from their side because they are operating with single

doctor. Mostly Doctors are operating their own clinics own self. These clinics areoperating with old type of equipments and there is no specialty in their clinics. So in

these conditions our business is not facing any sort of risk.



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High cost:

We are operating our business at very much cost where as our indirect competitor are

operating at low cost. Patients can easily offer their fees, so this is our one and only

weakness.

New & Imported Technologies:

We are introducing new & imported technologies in our hospital, that difficult to operate

and need special persons to operate it.

There is no such typical financial plan. As, we are making the feasibility report therefore;we have decided to include the prices of different equipments and 1st time salary needed

for a hospital.

Initial finance needed 46,193,025 (calculated)47,000,000 (Required)

Sources of Funds




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(PMA) to be paid in 20 years without interest (Approved). This debt will cover medicalequipment costs, an ambulance and buildings leased cost.

Department, equipments and their prices

Building 40,000,000

First Month salaries 585,000

Operation theater equipment 2,305,000

Laboratory equipment 1,650,000

Office equipment 266,525

Promotion 1,000,000

City Scan Machine Credit

Equipment for rooms and wards 121,000

Total 46193025

Building 40,000,000

Salaries

Dr. Ahsan (Retired) 100,000Nutrition Specialist 40,000

Physician& surgeon 60,000Psychiatrist 35,000Anesthetic specialist 70,000Neurologist 80,000Other Peons, nurses, ward boys 200,000

Total 585,000

Operation Theater Equipment:

Operation theater lights 150,000/-



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Operation table 300,000/-

Anesthetic machine 80,000/-

B.P monitor 120,000/-

Cardiac monitor 500,000/-

Diathermy 300,000/-

Suction machine 150,000/-

Oxygen cylinder 25,000/-

Nitrous cylinder 30,000/-

Autoclave 150,000/-

Set of surgery instruments 500,000/-

Total

2,305,000/-

Equipment for Laboratory:

Colorimeter 200,000/-

Analyzer 500,000/-

Microscope 45,000/-

Centrifuge machine 15,000/-

X-ray machine 800,000/-



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Chemicals 50,000/-

Glucose meter 50,000/-

Total 1,650,000

Office Equipment:

stethoscope (10) 15,000/-

B.P apparatus (5) 5,000/-

Thermometer (10) 500/-

Laminator 500/-

Otoskop 3,000/-

Tongue depressor (10) 500/-

Torch (5) 1,000/-

Measuring tap 25/-

Glucose monitor 45,00/-

Stationary 1,000/-

Table lamp (5) 2,500/-



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Office table (5) 80,000/-

Office chair (5)+(50)+ (30) 103,000/-

Toys for children 5,000/-

Weight scale (2) 45,00/-

Total 266,525/-

After the description of doctors list now we explain some other offices which will

be compulsory for further hospital functioning.

For this purpose, fist of all we describe finance office

Equipment Cost

Computer 70,000/-

Draw 8,000/-

Safe 35,000/-

table 8,000/-

Total 121,000/-

Equipment for general ward and other rooms:

Incubator 500,000/-

Nebulizers 10,000/-



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Weight machine 5,000/-

ECG machine 200,000/-

Stabilizer 4,000/-

Sucker machine 50,000/-

Oxygen equipment 15,000/-

Pulse oxinator 30,000/-

Wheelchairs(3) 24,000/-

Stature(3) 12,500/-

Total 850,500/-

Al- Rehmat Children Hospital

Assistant Laboratory Shiekh Zayed Medical Hospital,Mr. SanuAllah.

Mr. Sohail Aslam Medical Rap.



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Mr. ILYAS Owner of Ithehad Property Dealer

ILYAS Waraich Cabel Operator Owner

Mr. Zahid employee of Express News

Mr. Rizwan Saleem, Current completed MBA from IUB.

Internet Surfing, Prices of Different medical equipments.

Dr. Saima Prof in Shiekh Zayed Medical College.

business plan of hospital

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