Opening a Pathology Lab in a Clinic: Business Proposal and Financial Analysis

Running Head: Health Financial Management
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Project Report: Health Financial Management

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Contents
Executive summary..........................................................................................................3
Background.......................................................................................................................3
The proposal.....................................................................................................................4
Aims..............................................................................................................................4
Benefits.........................................................................................................................4
Risks.................................................................................................................................5
Process..............................................................................................................................7
Resources..........................................................................................................................7
Reporting of outcome.......................................................................................................7
Financial information........................................................................................................7
References.........................................................................................................................9
Attachment 1...................................................................................................................10
Attachment 2...................................................................................................................10

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Executive summary:
The business plan is related to open a pathology lab in the clinic itself. The
commencement of pathology lab in the clinic itself improves the total profitability level of the
business. The laboratory would offer services as well as products to the patient and the local
residents in the New South Wales. the main aim of the pathology lab is to assure that high
quality services is to offered to the residents as well as the total revenue of the clinic could be
improved. Various type of chronic disease has been studied in the report in order to make
sure that the best of the services and variety of products could be offered to the patients.
Outline:
The outline of the report has been set in such a manner that the various associated
cost, revenues, factors etc of new pathology lab could be found and a better decision could be
made about the business. The new pathology lab has been prepared in a way to offer chronic
disease and laboratory services to the local residents in the New South Wales. The legal and
financial serves has also been discussed in the report in order to commence the laboratory
services in the business.
Background:
The total population of the area has been estimated and it has been found that there us
huge scope for the pathology lab in the area. It would improve the profitability level of the
business. As well as it has been estimated that the population would be increased at a great
growth rate in near future. The report explains that along with the improvement in the total
population, the number of disease would also be increased in the New South Wales. It has
been found that in that particular area, no advance pathology lab is there and it would be
tough for the clinic to set up the lab and offer advances services to the patients (Federal
Register of Legislation, 2011). The reports explain that most of the people are suffering from
the various types of diseases. This report suggests that it is the need of the hour for the clinic
to take some new steps for the local resident and grab the opportunity to improve the overall
performance in the industry,
The pathology lab is the crucial step to diagnosis; prognosis and various therapies for
the huge number of diseases which are communicable and non communicable. Along with
the improvement in the diabetes rate and other diseases, the demand of the laboratories’ and

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treatment has been improved (Cashin et al, 2017). Though, it has been estimated that along
with the time, the changes into the clinic and new department would lead to the business
towards higher expenses. But these expenses could be recovered by the clinic in no time
because of the huge demand and higher revenue from the market.
The proposal:
The main business proposal is to commence the new pathology lab in the clinic itself
to meet the demand of the patient and improve the turnover level of the business. The new
business would help the business to reach over a point where the cost of the clinic would be
lower than the total revenue of the business and it would lead towards the higher profitability
level to the business (Schäferhoff et al, 2015).
Aims:
The main aim of the business proposal of new pathology lab is to offer better and
quality services to the clients at nearby area at reduced price. The business has to make sure
that they have better laboratory and specialized in the lab in order to provide the quality
services to their customers. The main aim of the new proposal is to reach over the breakeven
level as soon as possible, the level where the cost and the revenue of the business would be
similar and no extra loss or profit would be occurred by the business (Reich et al, 2016). The
new department of the clinic would improve the total footfall and the revenue level in the
clinic. The clinic could strategies at advance level to meet the demands and aim of the
business.
Benefits:
Because of the pathology lab, the following benefits could be got by the business:
Efficiency gain:
The main aim of the business is to offer the quality services. The quality services
would improve the customer’s level in the clinic. Along with the improvement in the quality
services and the footfall, the gain level of the business would be improved. The flow of the
patient would lead to the business towards higher profitability (Murray, Lim & Dieleman,
2017).