Business Plan for Setting up a Satellite Section for Clinical Biochemistry

This business plan outlines the initiative to set up a new satellite section close to the intensive care unit of a hospital to provide a stat lab encompassing ‘Clinical Biochemistry’. It discusses the background information, project description, solution description, cost-benefit analysis, implementation timeline, critical assumptions and risk assessment, and concludes with recommendations.

Business plan 1
Business plan:
Formulate a business plan to support an initiative to set up a new satellite section close to the
intensive care unit of a hospital to provide a stat lab encompassing ‘Clinical Biochemistry’.
Name
Department
Institution name
Contact information
Word count: 2000

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Business plan
The content of the paper presented entails a business plan by the biological laboratory
department which supports the initiative of introducing new satellite next to the intensive care
unit department to provide a stat lab encompassing ‘Clinical Biochemistry’. The plan proposed
will be expected to evaluate the necessary requirement needed for the project that is building the
stat lab to facilitate service delivery in the intensive care unit for the patient in critical health
condition.
The business plan on the proposed project by the hospital pathology department to increase
the efficiency of service delivery from the laboratory department to the intensive care unit
department will be required to serve a large number of departments within the hospital hence
there is an urgent need for the commencement of the project.
Background information
The need for the business plan by the hospital pathology department is to enable the
department to gather and avail the necessary requirements which will be used in the construction
of the newly proposed project, which is building a stat lab near the intensive care unit department
to facilitate their service delivery in times of emergency as stated by Newton.1
Building a stat lab close to the intensive care unit department is believed to be more
advantageous to the personnel in the intensive care unit since patient data on the specimens
tested will be provided very fast as they are close to each other thus saves time during an
emergency.

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Executive summary
The proposed stat lab project to be built close the intensive care unit will provide lab services
to the department in times of emergency thus reducing the workload from the main pathology lab
which always serves the entire hospital hence will guarantee better services to the intensive care
unit while dealing with the emergency services, that is according to McKeever.2
Following high number of emergency cases which requires urgent lab scanning, the hospital
pathology department together with the overall hospital management has resolved to start a new
lab which will only serve the intensive care unit department so as to facilitate department’s
services offered to the patients in critical health condition hence it will save many lives which
might be lost because of the slow response of the medical team from the intensive care unit
department.
The business plan will further discuss the necessary equipment and staff member which will
be needed to work in the new stat lab and also gives the estimated budget for the whole project to
the committee responsible for the construction work. The plan will estimate the time limit which
the project will be completed by the contracted company following the argument by McKenzie.3
Situational and problem statement
The situational or the problem at hand for the case study is the construction of the proposed
project, which is the stat lab that’s is expected to be built next to the intensive care unit as
proposed by the hospital pathology department to ease the workload experienced by the main lab
and also enhance service delivery from the laboratory department as discussed by Uhl ,
Gollenia .4

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The problem statement associated with the business plan for the proposed project is to
determine and estimate the required resources for the construction of the stat lab as proposed by
the hospital pathology department. Budgeting and planning for the equipment which will be used
in the lab together with the staff members who will operate the availed machines are discussed in
the details in the plan so as to ensure the continuous flow of the construction work.
Project description
The project that is stat lab construction will require a professional design from the qualified
architect to ensure that the lab design will accommodate all the lab activities which will be
performed by the technicians in terms of space and segmentation of the whole building. The
proposed stat lab project is expected to accommodate all the emergency response equipment
since its main purpose is to serve the intensive care unit department in times of emergency due to
poor response from the main lab due to the congestion in the lab as stated by Cramer.5
The stat lab will have numerous rooms for consultations and for experimentation equipment
like the microscope devices which will enhance the service delivery and also have rooms where
some of the patients which will require intensive scanning will be attended for by the
technicians.
The stat lab is approximately expected to produce an average of 50 samples per day. The
approximated sample by the hospital pathology department is expected to aid in service delivery
by the intensive care unit hence betters the hospital services as a whole according to the
argument by Lam.6

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Solution description
According to Scarborough, 7 solution for the need of any proposed project like building a stat
lab close to the intensive care unit by the hospital pathology department is to reduce the
congestion in the main lab and also to improve service delivery by the intensive care unit since
the approximated samples to be produced in a day will positively response to the samples needs
by the intensive care unit in cases of emergency. With the positive response to the sample need
by the proposed stat lab, the entire intensive care unit department within the hospital will
improve in their response to the emergency thus saves lives.
Proposed stat lab project will solve most of the community unemployment cases since lab
technicians will be needed in the operation of the newly bought lab equipment. The project will
solve unemployment problems to the freshly graduated members of the society with a bachelor
degree in laboratory management.
The proposed stat lab upon completion will reduce the congestion witnessed in the lab since
the approximated samples produced per day will ease the congestion in the hospital. Congestion
in most of the public hospitals has been a major issue in service delivery following the high
number of patients turn out per day caused by inadequate clinical facilities to aid in service
delivery as stated by McKenzie8.
Cost-benefit analysis
Ward, 9 argued that cost-benefit analysis of the proposed project entails all the financial
requirements for the completion of the proposed project. The construction of the project will
require a large amount of cash in order to purchase the necessary construction materials and also

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to pay laborers, therefore, the management together with the hospital pathology department are
expected to critically analyze the cost and benefits of the proposed project and to come out with
more refined decisions based on the proposed project.
Benefit analysis of the proposed project, which is the stat lab construction was identified by
the management from various departments like pathology department and the intensive care unit,
that it will facilitate service delivery by the intensive care unit department following its
approximated samples to be produced within a day which will comfortable serve their needs.
Secondly, the proposed stat lab will be beneficial to members of the society or people living
around the hospital since it will provides employment during and upon completion as lab
technicians will be needed for the clerical and casual jobs in the lab.
The cost analysis related to the proposed project will involve the cost of raw materials
needed for the construction process, skilled personnel like the construction manager and also
casual laborers according to figure 1. The cost analysis for the project has been evaluated and
provided has an excel document giving the estimated budget of the project that is according to
Laakkonen.10

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Figure 1: cost benefit analysis for construction project
1 2 3 4
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
cost beenefit analysis
operation time of the project in years
benefits of the project
From the graph, cost benefit analysis shows that the benefit of the project will increase over time.
The society will benefit from the graph over time following employment and recruiting of new
staff.
Implementation timeline
The proposed project is expected to take a maximum duration of six months as evaluated by
the site manager who will be responsible for the construction work until the completion of the
project. This will be only necessary when all the required construction materials are availed in
the site in time to avoid any delay or inadequacy of the raw materials fooling the discussion by
Chambers and Humble.11

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The implementation of the project will commence upon sub-contracting the whole project to
the reliable construction firm thus passing all the construction responsibility to the firm,
therefore, the firm managers will plan their working schedule. Through the board of directors
and the management body of the hospital, the funding of the project will be made from the
donations made by the government and other non-governmental organizations.
Jansen, 12 argued that after the subcontracted company through its management will receive
the agreed amount of money for the project into their account, they will be expected to make
necessary arrangement for the commencement of the construction upon confirmation of the
payment. The subcontracted firm will be expected to give a weekly report on the progress of the
project to the board of directors through their chairman.
Critical assumptions and risk assessment
Risk assessment is a term that is commonly used to refer to the overall process of risk
identification and potential causes of the risk in a project and determining the control measures
of the identified risk. The potential risk assumptions related to the proposed project of building a
stat lab were identified as to be accidents from the falling objects, theft of the construction
materials and natural calamities like flood which might carry away the constructing materials or
destroy the unfinished structure as discussed by McCaffery.13
Risk controls measures to be applied by the subcontracted firm in managing the possible risk
like accidents in the construction site was identified as wearing protective clothing and helmet to
avoid unnecessary injuries to the workers.
According to Wang, 14 insurance plan as a risk control strategy was applied by the
management and the board of directors was against theft of the construction materials, fire and

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also natural disasters like flooding following heavy rains in the region. The insurance plan for the
project was necessary in order to avoid or reduce the damage caused to the proposed project
before completion by the uncertainties.
Various critical assumptions were made by the management on the proposed project like the
cost estimation for the completion of the project in which there was a possibility that the
approximated amount will not be enough to complete the project following the discussion by
Johnson and Garvin.15
Conclusion
The proposed project by the hospital pathology department that is building a stat lab next to
the intensive care unit department will positively impact the performance of the intensive care
unit department thus following the approximated samples which the lab can produce within a day
which is up to 50 samples that can serve a large number of patient hence reduces congestions
experienced in the emergency department like the intensive care unit wing.
Risk assessment plan by the management is necessary and vital for the project since
construction work is always faced with many uncertainties ranging from safety issue, security to
the natural disasters like floods, therefore, insurance plan by the management as a risk
assessment strategy is very important as it reduces the magnitude of the damage caused by the
uncertainties upon occurrence.
Cost-benefit analysis performed on the proposed project gives the estimated budget of the
whole project thus it determines the management decision on the commencement of the project
following their financial status.

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Recommendations
1. The department in charge of the construction of the proposed project should continue with
the project up to its completion as it will aid the intensive care unit department to easily response
to the emergency calls due to large sample production volume by the proposed stat lab.
2. The cost analysis for the entire budget of the project is very low thus due to uncertainties
which might occur in the process of the construction and therefore the management should
consider revising the budget to cater form the uncertainties related to the project.
3. The subcontracted company should consider recruiting the workforce with the medical
insurance cover. This will reduce the cost of treatment incurred by the company in case of
injuries and also each worker should be provided with protective clothes and gumboots and
helmets to avoid minor injuries.

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References
1. Newton R. Business Express: How to create an action plan for change: Setting practical
steps and achievable goals. Pearson UK; 2015 Jul 23.
2. McKeever M. How to write a business plan. Nolo; 2016 Nov 30.
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Routledge; 2017 Sep 29.
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Beach; 2018.
7. Scarborough NM. Essentials of entrepreneurship and small business management.
Pearson; 2016.
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Evidence from a business plan competition. The World Bank; 2015 Aug 12.
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Living. Routledge; 2017 Mar 2.
12. Jansen W. New business models for the knowledge economy. Routledge; 2017 Nov 28.

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13. McCaffery P. The higher education manager's handbook: effective leadership and
management in universities and colleges. Routledge; 2018 Aug 8.
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