Strategic and Operating Health Management Report 2 Sample
About this Assignment
The financial management component of this unit explores specific financial concepts and tools as applied to the health sector to facilitate development of an understanding of the financial realities facing health services organisations.
The topic for this assignment is to apply the knowledge gained to prepare a business case to support opening a small primary care practice/clinic in a region/country of your choice. The primary care practice can be for general practice, allied health services, dental practice, or any other type of primary care practice. Specify the proposed location of the practice and whether it is in the public or private sector, if the latter, for-profit or not-for-profit.
You are required to prepare (i) a narrative summary of at least 1,500 words (and not more than 2,000 words) providing a rationale for opening the primary care practice, explaining any assumptions and discussing the financial analysis (see iii below) (ii) a statistical analysis that provides the numbers on which the budgets are based and (iii) a financial analysis comprising an operating budget and capital budget for the first year. The words and numbers in your operating and capital budgets are not included in the word count.
As many sources as possible should be provided for all information presented.
The business case should address the following questions/issues:
• On what basis are you advocating for the primary care practice to be opened? What is its proposed location and why? Is it in the public or private sector, if the latter, for profit or not for profit? What activities or programs will the practice provide? Who is the target population for the practice?
• How many staff positions will be required to run these activities or programs (please justify)? How much, how (hourly wages, salary, consultant fees, benefits), and from what sources will those staff members be compensated?
• What else will be needed to run the organization and its activities -- space, supplies, equipment, phone and utilities, insurance, transportation, etc.? Distinguish between operational and capital items.
• What are the budgeted expenses for the organization in the first year of operation?
• What is the budgeted income and other revenue in the first year of operation?
• Based on the above information, prepare an argument to support opening the practice.
Solution
Introduction
In a location where primary dental care is highly valued, Smile Dental Care, a privately operated for-profit dental practice, will be well-positioned to address the rising need for such services. University Assignment Help, The report examines the business of Smile Dental Care in this setting from many different angles. It covers the anticipated budgeted costs for the organisation's first year of operation. It covers important financial factors such as location costs, equipment and supplies, staffing, marketing and advertising, staff, legal and professional services, and more. The report also classifies expenses as "operational" or "capital," allowing for a clearer understanding of expenditures and returns.
Advocacy for the primary care practice
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Figure 1: Response on Primary Healthcare in Australia
(Source: Statista.com, 2022a)
(Source: Statista.com, 2022a)
Smile Dental Care will be opened in Perth, Australia because the primary healthcare market is growing rapidly. There is a heavy reliance on primary healthcare in Australia, as 43% of respondents to an Ipsos study in 2018 said they saw their family doctor at least three times a year (Statista.com, 2022a). Australia's state and territory governments spent around 24 billion Australian dollars on hospital infrastructure during the 2018-2019 fiscal year, illustrating the significant public investment in healthcare infrastructure (Statista.com, 2022). In comparison, private donations to public hospitals totalled roughly 1.44 billion Australian dollars over the same period (Statista.com, 2022). Significantly, in 2021, Ipso's research showed a high trust in Australia's healthcare system, with 69 per cent of respondents expressing confidence in obtaining the finest treatment, even though 10 per cent remained sceptical about its effectiveness (Statista.com, 2022). These statistics show the importance of public healthcare financing and primary care, which reveal how they have shaped the Australian healthcare system (Statista.com, 2022).
Proposed Location and Justification
The location that will be selected for Smile Dental Care will be 125 St Georges Terrace, Perth WA 6000, Australia. This location has been selected as it is the crown of Perth where people can easily transport. This place is easily accessible, and they can easily come for checkups (Marinkovi? et al. 2018).
Operations in the Private sector
Smile Dental Care will be a privately owned for-profit company. Smile Dental Care's ability to spur innovation and economic prosperity will be a major perk (Crawford et al. 2018).
Activities or programs in the practice
The facility will provide various dental treatment services, including checkups, preventive care, restorative dentistry, cosmetic dentistry, and specialised operations. This growth in dental services is consistent with the large-scale public investment in healthcare infrastructure and the high levels of trust shown in Australia's healthcare system, suggesting promising prospects for the dental healthcare industry (Sowa et al. 2019).
Target Population
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Table 1: Target Population
(Source: Author)
Staff Positions
A diverse and dedicated team of dental professionals and support staff will be essential to operate the variety of dental treatment services Smile Dental Care provides. Multiple skilled general dentists who can conduct basic checkups, preventive care, restorative care, and aesthetic operations are expected to be on the staff (Stormon et al. 2022). Preventive care, tooth cleaning, and patient education are all tasks that dental hygienists may help with. For more involved procedures, the clinic may need specialist dental practitioners including orthodontists, oral surgeons, and endodontists. To provide a positive patient experience, dental assistants must offer chairside support throughout treatments. Administrative staff will handle appointments, patient records, and other administrative responsibilities, including receptionists, billing experts, and office managers (Estai et al. 2016). Clinic patients' health and safety will also depend on the efforts of the cleaning and maintenance staff.
Hourly wages, salary, consultant fees, benefits and sources of compensation
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Figure 2: Wages and Benefits of the Staff
(Source: Author)
The revenue generated by the clinic's dental services will be used to pay employees at Smile Dental Care mainly. Salary, hourly pay, and future performance incentives will be paid using this revenue. Benefits like health insurance and retirement contributions will also be paid out of the clinic's operating budget (Gnanamanickam et al. 2018).
External Factors Required
To successfully manage Smile Dental Care and provide the best dental healthcare services, carefully considering several crucial factors beyond staffing is necessary.
Facility Space: Spanning various treatment rooms, a greeting area, a waiting room, a sterilisation and lab area, and private consultation rooms, this dental clinic has all a patient might need regarding facility space (Lim et al. 2018).
Dental Supplies: Sufficient quantities of items used in dentistry, including but not limited to gloves, masks, dental tools, sterilisation gear, dental materials, and radiography equipment, are required to support dental treatments. (Jones et al. 2016)
Dental Equipment: Modern dental equipment includes dental chairs, X-ray machines, dental drills, and specialised dental equipment for different treatments to ensure accuracy and efficiency in dental care (Crocombe et al. 2022).
Phone and Utilities: Telephone and utilities are dependable telephone systems for patient appointments, questions, and communication. Utilities like power, water, and the internet are also required to ensure efficient clinic operations (Nguyen, 2017).
Computer Systems: Appointment scheduling, patient record keeping, and invoice processing are some of the many tasks made easier by combining Electronic health records (EHR) and practice management software (Sowa et al. 2019).
Insurance: Malpractice insurance helps shield the clinic and its staff from unanticipated legal claims or obligations.
Marketing and Advertising: Promoting the clinic's services and drawing in new patients via various marketing and promotion channels, such as social media, traditional media, and community events (Stormon et al. 2022).
Compliance and Licencing: They will ensure that all necessary licences, permits, and laws are in place and followed, especially regarding infection control in the dental field.
Financial Management: Budgeting, accounting, and payroll services are all components of effective financial management (Estai et al. 2016).
Patient Records Security: Carefully implemented data security procedures to safeguard patient records and ensure compliance with applicable privacy laws (Gnanamanickam et al. 2018).
These crucial elements include the physical infrastructure, operational support, and regulatory compliance needed to develop and operate a successful dental healthcare practice like Smile Dental Care in Perth, Australia.
Difference between operational and capital items
Operational items are expenses necessary for the regular operation of the dental practice and are recurrent (Saeed et al. 2022). These include rent, utilities, time, staff, salaries and wages, marketing and advertising costs, insurance premiums, legal and professional services, time, staff, compliance and licencing costs, and other operational costs. They are essential to the smooth running of the clinic and the administration of its daily activities. However, capital items are investments in long-term assets that benefit the dental practice long after the initial expenditure (Lev et al. 2021). These resources won't be used up fast but will benefit the clinic for years. Capital items include office supplies with extended lifespans and dental equipment such as dental chairs, X-ray machines, and specialised dental instruments. While these items have a high initial cost, they improve the clinic's infrastructure and service quality over time.
Budgeted expenses for the organisation in the first year of operation
Smile Dental Care
Projected Budgeted
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Table 3: Projected Budgeted Expenses
(Source: Author)
Budgeted income and other revenue in the first year of operation
Smile Dental Care
Projected Budgeted Income
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Table 4: Projected Budgeted Income
(Source: Author)
Conclusion
Finally, a strategic strategy to satisfy the rising need for primary dental services underpins Smile Dental Care's first year of operations in Perth, Australia. The population's strong trust in the health care system and Australia's reliance on primary health care are all factors that contributed to the data-driven choice to launch this private, for-profit practice. The detailed budget analysis, which accounts for recurring and one-time costs, lays out an actionable plan for the company's long-term financial health and expansion. This report is an invaluable tool packed with useful information to help steer Smile Dental Care towards a bright future and improve dental healthcare services in the area.
References
Crawford, L., Morgan, G. G., & Cordery, C. J. (2018). Accountability and not?for?profit organisations: Implications for developing international financial reporting standards. Financial accountability & management, 34(2), 181-205. https://rgu-repository.worktribe.com/preview/294524/CRAWFORD%202018%20Accountability%20and%20not.pdf
Crocombe, L. A., Chrisopoulos, S., Kapellas, K., Brennan, D., Luzzi, L., & Khan, S. (2022). Access to dental care barriers and poor clinical oral health in Australian regional populations. Australian Dental Journal, 67(4), 344-351. https://onlinelibrary.wiley.com/doi/pdf/10.1111/adj.12930
Estai, M., Kruger, E., & Tennant, M. (2016). Role of telemedicine and mid-level dental providers in expanding dental-care access: potential application in rural Australia. International dental journal, 66(4), 195-200. https://www.sciencedirect.com/science/article/pii/S0020653920315227
Gnanamanickam, E. S., Teusner, D. N., Arrow, P. G., & Brennan, D. S. (2018). Dental insurance, service use and health outcomes in Australia: a systematic review.
Australian dental journal, 63(1), 4-13. https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/adj.12534
Jones, K., Keeler, N., Morris, C., Brennan, D., Roberts-Thompson, K., & Jamieson, L. (2016). Factors relating to access to dental care for Indigenous South
Australians. Journal of health care for the poor and underserved, 27(1), 148-160. https://scholar.archive.org/work/3eeizicykbh2pfpyn2ia5a2i2e/access/wayback/https://muse.jhu.edu/article/608848/pdf
Lev, B., Radhakrishnan, S., & Tong, J. Y. (2021). Earnings component volatilities: Capital versus R&D expenditures. Production and Operations Management, 30(5), 1475-1492. https://espace.library.uq.edu.au/view/UQ:b701f1a/UQb701f1a_OA.pdf
Lim, M., Riggs, E., Shankumar, R., Marwaha, P., & Kilpatrick, N. (2018). Midwives’ and women's views on accessing dental care during pregnancy: an Australian qualitative study. Australian Dental Journal, 63(3), 320-328. https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/adj.12611
Marinkovi?, S., Nikoli?, I., & Raki?evi?, J. (2018). Selecting location for a new business unit in ICT industry. Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 36(2), 801-825. https://rfos.fon.bg.ac.rs/bitstream/handle/123456789/1790/1786.pdf?sequence=1&isAllowed=y
Saeed, B., Tasmin, R., Mahmood, A., & Hafeez, A. (2022). Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis. The TQM Journal, 34(3), 576-602. https://www.academia.edu/download/67222459/10_1108_TQM_10_2020_0227.pdf
Sowa, P. M., Keller, E., Stormon, N., Lalloo, R., & Ford, P. J. (2019). The impact of a sugar-sweetened beverages tax on oral health and costs of dental care in Australia. European Journal of Public Health, 29(1), 173-177. https://academic.oup.com/eurpub/article/29/1/173/5001571?login=true
Statista.com. (2022). Australia: Public and private hospital spend by source. Statista. Retrieved from https://www.statista.com/statistics/979713/australia-public-and-private-hospital-spend-by-source/
Statista.com. (2022). Australia: Trust in healthcare system 2021. Statista. Retrieved from https://www.statista.com/statistics/916919/australia-opinion-trust-healthcare-system/
Statista.com. (2022a). Australia - frequency of visits to primary care physicians. Statista. Retrieved from https://www.statista.com/statistics/914530/australia-frequency-of-visits-to-primary-care-physicians/
Stormon, N., Do, L., & Sexton, C. (2022). Has the Child Dental Benefits Schedule improved access to dental care for Australian children?. Health & social care in the community, 30(6), e4095-e4102. https://onlinelibrary.wiley.com/doi/pdf/10.1111/hsc.13803
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