Business Case for Department of Obesity in Local Health District - May 2017
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This business case outlines the proposal, risks, process, resources, and financial information for the Department of Obesity in the Local Health District. It includes details on the aim, benefits, and expected outcomes of the proposal.
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[New South Wales] Local Health District [Department of Obesity] Business Case May 2017 Unnamed LHD Business Case version 230/08/2024pg.1
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Contact details(key contact) Department:Department of obesity Name:Rickey Position:Head of the department TelephoneN/A Email:DOO.NBMLHN@yahoo.com Unnamed LHD Business Case version 230/08/2024pg.2
Contents CONTACT DETAILS (KEY CONTACT)------------------------------------------------------------------------2 INTRODUCTION------------------------------------------------------------------------------------------------------4 THE PROPOSAL-----------------------------------------------------------------------------------------------------4 RISKS--------------------------------------------------------------------------------------------------------------------6 PROCESS--------------------------------------------------------------------------------------------------------------7 RESOURCES----------------------------------------------------------------------------------------------------------8 RESOURCE DETAILS----------------------------------------------------------------------------------------------8 REPORTING OF OUTCOMES------------------------------------------------------------------------------------8 FINANCIAL INFORMATION---------------------------------------------------------------------------------------8 OPTIONS--------------------------------------------------------------------------------------------------------------10 INTELLECTUAL PROPERTY-----------------------------------------------------------------------------------10 OTHER IMPLICATIONS------------------------------------------------------------------------------------------10 IMPLEMENTATION PROCESS---------------------------------------------------------------------------------10 IMPLEMENTATION PLAN---------------------------------------------------------------------------------------11 SUPPORTING DOCUMENTATION----------------------------------------------------------------------------13 SIGN OFF BY EXECUTIVE--------------------------------------------------------------------------------------13 References-------------------------------------------------------------------------------------------------------------17 Unnamed LHD Business Case version 230/08/2024pg.3
Introduction Outline The report focuses on the budget and financial factors of the new department of the hospital which is related to the obesity. local health district of the Sydney market has been approved that this department would help the community and the local resident to improve their overall level in the society. the advanced technology would be used in the business in order to assure the process and the meeting of the goal of the business. Background As studied, in the recent times, along with the change in the lifestyle, people are facing obesity issues. A report explains that the number of people who are suffering from the obesity case in improving day by day. Due to which, the demand of such department a services have been improved in the hospital industry. Currently, it has been studied that if the new department of obesity would be introduced by the business than it would incur huge cost to the hospital because of the new equipment, new hiring and other equipment related to the obesity disease. On the basis of the calculations and the study in the market, it has been studied that the total associated cost with the project would be $782,534.40. The contract of the new department would be of 1 year only at the initial level. If the department would be able to meet the BEP level than the hospital management would make further decision to make the investment or not in the business (Kroneman et al, 2016). In order to commencement of the new department in the business, it is important to set up a new management committee and hire professional people who could manage all the activities of the business. The different aspect would occur different outcome in the business and thus it become important for the business to measure all the factors and make the decision accordingly. the local health district has also assured that these changes and the commencement of the new department would help the business to improve at better level and the footfalls of the patient would also be improved. The Proposal The business proposal of the new obesity department in the business is as follows: Aims The main aim of the new department of obesity is to offer the efficient and professional services to the patient in lower prices so that the market share of the hospital could be improved along with the higher revenue in the market. It explains that the hospital is engaged to offer better services to its patients in order to assure the higher revenue and better market share in the area. the better equipment would be bought by the hospital in order to assure better treatment of the patient in the hospital. At initial level, the capital cost of the hospital would be higher but market research explains that the patient number are huge in the market who are suffering from the obesity issues and thus the hospital would be able to recover the capita cost in lesser time ad it would help the business to reach Unnamed LHD Business Case version 230/08/2024pg.4
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revenue. OtherLHD could offer various benefits to the hospital. The market share and the opportunity level in the hospital industry would be improved. (Kastor & Mohanty, 2018) Risks List the risks (in the table) that are associated with this proposal either perceived or real Risk IssueSeverity code as per MoH Risk ImpactMitigation PlanNotes Financial riskPublic liability Fraud Commercial income Administration Operational budget and financial performance The financial risk would affect the total cost and the investment level in the business. along with that, it would affect the total revenue of the business. Better strategies and plan could help the hospital to mitigate the financial risk level in the business. At the initial level, all the financial factors must be studied by the management to assure that the level of financial risk is lower in the business. Delegation levelsLitigation Intellectual property Regulatory compliances Contract management The delegation risk could affect the business at huge level. it could even stop the business and lead to the business towards higher loss. Better advices, strategies and plan could help the hotel to mitigate the delegation risk level in the business. At the initial level, advises must be taken from the lawyer about the business operations and contract. ProcurementStrategic and operational planning Government stricture and financial management Economic circumstances Enquiries and Procurement is the main key for the business. avoidance of procurement could affect the business at internal as well as external level. The professional procurement level and a depth research could reduce the procurement level in the business. At the initial level, better planning must be done. Unnamed LHD Business Case version 230/08/2024pg.6
Risk IssueSeverity code as per MoH Risk ImpactMitigation PlanNotes ministerial Monitoring performance PatientsInfection control Cleaning services Better dietician Obesity services Patients are the main stakeholder of the department. the patient risk could occur huge loss in the business. A good relationship and healthy communication could reduce the patient risk in the hospital. The good communication is the only key to reduce patient risk. InsurancesContractor and compliances Workplace health and safety Workers compensation and injury management Insurance risk could occur huge cost in the business (Kastor & Mohanty, 2018). Insurance would improve the labour, patient and professional trust in the business. Insurance services must be availed by the hospital to encourage the people. OtherWaste control Cleaning services Air quality, noise and radiation Other risks could lead to the business towards loss and affect the market share of the business. The better strategies could reduce the risk level in the business. All the factors must be considered before. Process ï‚·Action(insert as a flow chart as attachment 1) The process chart explains that each of the staff is responsible for his or her duty. The responsibilities have been divided among the professionals and staff on the basis of their knowledge and the capabilities. the entire plan and the process has been set by the top level management and the head of department to assure the efficiency of the business. the entire process has been attached in the attachment 1 at the end of the report. Resources It has been found that in order to commence the new department, below resources would be required in the business: Unnamed LHD Business Case version 230/08/2024pg.7
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Human resource department: It is required to manage all the staff and doctors of the hospital. Financial department: it would manage all the funds and revenues of the business. Training programs: training programs to nurse, receptionist at periodic basis would help the business to improve at efficient level (James, Gmeinder, Rivadeneira & Vammalle, 2018). Resource Details ï‚·Training and support yes, a training is required for the staff of the department to treat the patient at better level. ï‚·FTE requirements and costs The staff is required to work for 8 hours in the hospital. the skilled and unskilled labour would be offered different salary on the basis for their experience and the knowledge about the work. Reporting of outcomes The entire monitoring would be done by the top level management and head of department of the business. The financial and non financial performance would be studied by them to assure the efficiency level and the profitability level of the business. The different head of the department such as marketing, finance, HR etc would make their own reports and send it to the head of the obesity retreatment monitor and make the changes in the strategically level (Wright et al, 2016). Financial Information The financial considerations for this proposal will be required in detail ï‚·Total net cost of this proposal shown as total net cost = total cost minus any revenue The net cost calculations have been seen in the attachment 2. The total cost occurred in the department is $ 782534.4 and the total income of the business is $ 782600. It epxians that the total profit of the business is $ 65.6. TOTAL INCOME$782,600.00 minus TOTAL COSTS PER YEAR$782,534.40 Profit / Loss$65.60 ï‚·List the Cost Centre(s) The list of the cost centre has been attached in the attachment 2 at the end of the report. ï‚·Source of funding The hospital requires huge fund in order to commence the new business. and for it, the funds would be raised from the bank loan and the financial institution by the hospital. the cost centre of the business is favourable (Pinto, Masaki &Harimurti, 2016). ï‚·Resource requirements (Set up) Unnamed LHD Business Case version 230/08/2024pg.8
The set up cost of staff of the new department is $ 490,360. the template has been attached below. Recurrent costs There is no recurrent cost in the business. the entire calculations amount the cost and services have been attached in the attachment 2. Identify revenue potential the total revenue would be achieved by the business from the doctor’s fee, laboratory fee and the pharmacy supplies, the total revenue of the business is $ 782,600 (Reich et al, 2016). Cost reduction If few changes would be done in the labour prices and the place than the total cost of business could be reduced to $ 737924 against the total revenue of $ 816,400. these changes are better for the business. What are the proposed costs over the life of this proposal? please find the spreadsheet in attachment 2. Offset costs and other factors Compared the current process and costs with the new proposed process and costs in the table below - as applicable Current process Existing process step 1 Action step 2 Action step 3 Action step 4 Action step 5 Action step 6 Receptionist salary Market has been observed A receptionist has been recruited $ 8 per hour has been offered Deal has been accepted Total receptionist salary has been higher. New process New Process step 1 Action Step 2 Action Step 3 Action Step 4 Other stepsOther steps Receptionist salary Market has been observed A receptionist has been recruited $ 0.5 per hour reduced rate has been offered Deal has been accepted Total receptionist salary has been reduced. (Liaropoulos & Goranitis, 2015) Unnamed LHD Business Case version 230/08/2024pg.9
Options What are the options for this proposal? List the implications if status quo was continued followed by the most preferred option first, followed by subsequent and less favoured options. Eg best method to achieve a value for money outcome OptionsList implicationsList net cost position Comments Do nothing optionNo changes in the doctor salary No changes in the registered medical caretaker The net cost of doctor and caretaker are $ 2,70,400 and $ 104,000. Changes would affect the professionals capability and service efficiency. Outline option most preferred Reduced labor rateThe receptionist salary has been reduced. It would not impact much on the service level. Outline the second best option Improve the laboratory fee The revenue has been improved. It will help the business to improve the profitability level. Outline the least preferred option Changes in the doctors fee The loyalty level would e reduced. People will start searching for other options (Lu et al, 2016) Intellectual Property There is no intellectual property as the business would only provide treatment on the basis of the already available techniques. Other implications The business is just required to evaluate all the available options in the market for better treatment and choose the best one for the business. Implementation Process Option No.BenefitRiskComments 1.Changes in the fee structure Improve the profitability and revenue level Affect the total revenue and market share Better strategies must be planned after studying the market. 2.reducedReduce the totalThe efficiency level would beBetter strategies must Unnamed LHD Business Case version 230/08/2024pg.10
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Option No.BenefitRiskComments labour rate costaffectedbe planned after studying the market. 3.Changes in the place Reduce the total cost The area plays an important roleBetter strategies must be planned after studying the market. 4.changes in the facilities Reduce the total cost The loyalty level and the service level would be reduced Better strategies must be planned after studying the market. Implementation Plan What are the steps that need to be undertaken to achieve the rollout of this business case? It needs to include the full life cycle of the process/procurement implementation being proposed. It should also consider whether a policy or procedure needs to be written or updated? Undertake a tender process as applicable. Contract management plan needs to be developed as applicable ACTIONPROPOSED DATE PROPOSED OUTCOME OR COMMENT FOLLOW-UPRESPONSIBILITY Collaboration and approval 1stNov 2018Must be discussed with the LHD Weekly follow upHead of the department Study on time, money and resources 1stNov 2018Must be discussed with the different departmental heads Daily meetings and follow up Head of the department Staffing15stNov 2018Must be discussed with the HR head Twice in weekHR head Consumables15stNov 2018Must be discussed with the doctors and the professionals Twice in weekStrategic department head Utilities15stNov 2018Must be discussed with the doctors and the professionals Twice in weekStrategic department head Commencement of department 1stJan 2019Along with the approval of advisory DailyTop level management Unnamed LHD Business Case version 230/08/2024pg.11
ACTIONPROPOSED DATE PROPOSED OUTCOME OR COMMENT FOLLOW-UPRESPONSIBILITY committee, LHD and other department Outcomes31stDec 2019Must be monitored by the top level management MonthlyTop level management Unnamed LHD Business Case version 230/08/2024pg.12
Supporting documentation Project owner: Rickey Martin Signature: Rickey Martin Date: 26 Oct 2018 Sign Off by Executive Insert line manager: John Fassel Signature: John Fassel Date: 26 Oct 2018 General Manager /Director: Porter Cruise Signature: Porter Cruise Date: 26 Oct 2018 Director Finance Business Information: Banley Cole Signature: Banley Cole Date: 26 Oct 2018 Chief Executive Officer NBMLHD: Tom Martin Signature: Tom Martin Date: 26 Oct 2018 Unnamed LHD Business Case version 230/08/2024pg.13
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