Business Budget Case: Ray of Hope Drug Rehabilitation Centre Plan

This business plan outlines the establishment of the 'Ray of Hope' drug rehabilitation center in the Nepean Blue Mountains Local Health District. It addresses the critical need for addiction treatment, particularly among the youth. The plan includes an executive summary, background information on the prevalence of drug addiction, and a detailed proposal for the center's aims and benefits. The proposal emphasizes efficiency gains, potential cost savings, and the comprehensive care provided to patients, including medical and psychological support. The plan also identifies and assesses potential risks, such as financial and patient-related issues, along with mitigation strategies. The operational process, necessary resources (equipment, utilities, administrative costs), and financial considerations are also covered. The report aims to provide a comprehensive overview of the business, highlighting its value to the local health district and its potential to address the growing issue of drug addiction. Attachments provide further details on the project's action plan.

Ray Of Hope - Drug Rehabilitation Centre
Business Budget Case
Student Name
Student ID
1

Table of Contents
Executive Summary....................................................................................................3
Outline........................................................................................................................ 4
Background................................................................................................................ 4
The Proposal.............................................................................................................. 4
Risks........................................................................................................................... 5
Process.......................................................................................................................7
Resources.................................................................................................................. 7
Reporting of outcomes................................................................................................8
Financial Information..................................................................................................8
References.................................................................................................................9
Attachment 1............................................................................................................ 10
Attachment 2............................................................................................................ 10
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Executive Summary
In the rehabilitation center it is very important to make each and every patient free
from the drug addiction. The following business plan aim at analyzing the purpose of
providing a rehabilitation center in Nepean Blue Mountains Local health district. The
business plan would focus on the establishment of ‘Ray of Hope’ in the district that
would help in the needy patients and provide them with the possibility of having a
better and healthy future. The business plan would focus on all the concepts
associated with the business along with a clear risk and financial analysis. The
proposal of the plan is highlighted in this report that would aim at informing the
investors and readers for a better health facility in the selected area.
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Outline
In the Nepean Blue Mountains Local health district, there are many such patients
who are suffering from drug addiction and specifically this is effecting the youth to a
high extent. They want to come out from the addiction but due to lack of systematic
treatment they are unable to do so. Therefore, it is very important to create a drug
rehab center where drug addicted people will get proper treatment.
Local health district will be highly helpful and it will create a lot of value for them if this
drug rehab center is setup. Hence., in order to provide their patients with a better
rehabilitation centre, Ray of Hope should be formed to suffice the need. The local
people who are drug addict and whose family do not have enough money to give
proper treatment to reduce this addiction and they will get immense help from the
rehab center.
It is very important for the rehab center to remain in the business for a long time.
Quality service is one of the important factor which should be kept in mind. Creative
problem solutions technique is necessary to sustain the business in the market.
Thus, this service of treating drug addicted patient is necessary to be introduced as a
business plan. There are many drug addicted people who wants to come out of this
deadly lifestyle into a normal one, but they are unable to do so because a proper
treatment is necessary to stop the addiction. This is another reason which leads to
the setting up of the drug rehab center.
Background
There are a huge number of population across the world who find peace in drugs and
alcohol which is illegal in nature. They cannot anticipate the consequences that may
arise due to the perennial intake of this illegal drugs and alcohol. The young
generation are mostly getting addicted to the drugs and before understanding the
deadly consequences their lives are getting spoiled. In recent years, it has been
noticed in the Nepean Blue Mountains Local health district that most of the people
are getting aware of this types of addiction and they are also becoming aware of the
health risks that are involved due to this addiction. It has been seen most of the drug
addicted victim wants to get rid of this deadly feeling and want to start their life with a
healthy note. Though they want to stop this addiction but they are not aware of the
proper treatment. The reason behind the set-up of a drug rehab center is to provide
proper treatment to those in need so that they can again star their life properly and in
a healthier version.
The cost involved for setting up the business includes hiring specialized doctors and
nurses for the treatment. Psychologists should also be hired because after the
treatment a proper medical counselling of the patients should be done to see the
progress of the patients towards a normal life. An emergency service department
should be there in order to take care of patients who is in a very crucial stage. There
are many drug addicted patients who lose their sanity due to excessive addiction.
This is the reason few security staffs should be hired so that they can have a clear
eye on the patients and see whether the patients are creating any nuisance or not.
The Proposal
Aims
Nepean Blue Mountains Local health district has bene successfully imparting medical
and health facilities to the patients in the area. Long with such provisions, it is quite
important to provide drug rehab services in the center. Treating the patient with
utmost care is one of the aim this means efficiency in service by everyone involved is
of immense importance. Since, there are a significant amount of patients who are
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drug addicted it is expected that they will arrive to the rehab center for their
treatment. Therefore, with more number of patients the business plans aim at
generating more revenues.
Benefits
 Efficiency gains
Efficiency gains is generally measured by taking in to account the relationship
between the earnings and the cost that has been incurred from the business. The
drug rehab center will attract more number of local patients specially the youth
generation. This will help the center to earn more number of revenues and thus there
can be a significant amount of gain from this business.
 Potential savings/increased costs
In a drug rehab center too much of machines are not necessary for the treatment.
Various machineries involved in the treatment of patients involve high amount of
costs. Thus, this cost can be reduced. Estimated increase in costs can take place
due to the involvement of more number of doctors and nursing personnel. In a drug
rehab center psychiatrist are also required because it is very important to measure
the mental condition of the patient more frequently because as discussed earlier
such types of patients can sometimes lose their sanity. Estimated costs can also
increase for setting up of few doctor chambers.
 What are the expected benefits of this proposal?
Factor Benefits
Patients There are many victims of drug addict who wants to get out of this
addiction. This rehab center can help them to do so. A proper
treatment can help them to get back a heathier life. Along with the
physical checkup the patients can also get assistance of psychiatrist
for proper mental checkup.
Facility In the rehab center all the patients will be kept under proper care.
Along with the patients one family member of the patient can also stay
with the patients. The food and place to stay of the patient’s family
member is free. The rehab center also will have an attached medicine
shop from where the medicines can be easily available.
Clinicians Schedule for the checkup is arranged in such a way that doctors can
easily check a significant amount of patient in one day. Doctors will be
assisted with a nursing personnel so that there exists no problem
while carrying out the treatment.
Other There is an arrangement of mid-wives. So, if any family member of the
patient finds it difficult to handle the patients they can hire mid-wives
from the center itself.
Risks
Risk Issue Severity Impact Mitigation Plan Notes
Financial risk Due to the
involvement of
the huge
capital
As the
investment in
this project is
very high, the
In order to
maintain the
client base, the
company need
By keeping in
mind about the
demand of a
physiotherapy
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Risk Issue Severity Impact Mitigation Plan Notes
investment, a
risky financial
factor is being
involved in this
project. The
burden of
incurred
liability and
other interest
from the
investment is
quite big for
the company
and due to this;
the obligation
of the project
management
for the
recovery of the
stated amount
is also great
(Suchman et
al., 2018).
main aim of
the
organisation
should be to
recover the
invested
capital as
soon as
possible. Due
to this, the
service fees
for the patient
can be
increased, or
the
production
cost involved
in the project
can be
reduced in
return of
compromising
some of the
facilities
provided by
the company.
This can
affect the
quality of the
service and in
connection
with this; the
customer
satisfaction
can also be
hampered
(Erikson,
2015). As a
result, the
number of
patient can
be decreased
and the
collection of
revenue will
be lowered.
to make it sure
that the services
provided by the
physiotherapy
center fulfil
utmost customer
satisfaction in
order to
generate more
revenue. If the
management
maintains the
customer
satisfaction, it
will increase the
reputation of the
health care
center and thus,
will be able to
generate more
clients. As a
result, the
revenue will be
generated more
efficiently and
the invested
capital will be
recovered.
centre in the
nearby areas,
it is important
and worth to
take such risks
in the current
scenario in
order to
generate more
revenue and
increase the
reputation of
the hospital.
Patients As the
expected
number of
patients for the
physiotherapy
centre is a
mere
The impact of
the changes
in the number
of the
patients can
be seen upon
the generated
In order to
attract sufficient
amount of
patient in this
hospital, it is
required to
maintain the
The number of
patients taking
service from
the
physiotherapy
centre is very
important as
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Risk Issue Severity Impact Mitigation Plan Notes
assumption, it
is very risky to
invest such a
huge amount
of money in
this respect as
the recovery of
the capital is
totally
dependent on
the fees
collected from
the patients.
revenue of
the
physiotherapy
centre, and
thus the
recovery of
the capital is
directly linked
with the
number
(Cheung &
Gu, 2016).
quality and the
price of service
as it is the key
point for
maintaining the
client base.
this
measurement
is directly
linked with the
revenue
generated by
the hospital
(Wright, 2017).
Insurances The expenses
which are
being incurred
due to the
charges for the
insurance
premium is
also big as it
involve a huge
amount of the
invested
capital.
The
insurance
expenses can
raise the
operational
cost which
means the
incurred
capital liability
in this project
will also be
increased.
Though the
insurance cost
cannot be
reduced, further
expenses
relating the fines
and penalties
can be avoided
by paying the
premium within
the due time.
The insurance
of the
equipment and
other assets is
necessary as
it will serve as
an additional
security for the
health care
centre.
Process
 Action (see attachment 1 in the appendix)
For the process of developing the project, it is required to make a planning committee
for the purpose of making the financial forecast and outlining the primary steps for
collecting the capital and implementing the taken policies into work. Apart from that, it
is also required to create an advisory committee which will track the progress of the
project and suggest some strategies for any unexpected situations (Cleverley &
Cleverley 2017). A management team should also build in order to maintain the
overall progress of the project and this team needs to report the advisory committee
for every action taken in the project.
For the next steps, required staffs such as physiotherapist, receptionist, nurse,
administrative staffs, special rehabilitation doctors and the necessary equipment
such as tilt tables, projector and gym equipment is needed to be purchased (Wright,
2015).
Resources
The additional resources that is necessary for the project is listed below:
 Consumable equipment
o Dynatron Solaris Plus 705
o Electric and non electric tilt tables
o Projector and screen
o Gym equipment
 Utilities
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o Water
o Electricity
o Internet
 Administrative costs
o Repair and maintenance
o Insurance system
o Security system
o Building rent
 Depreciation cost
The cost for the consumables is very important as it involves the quality of the
service for the centre. The utilities are also required in order to perform the basic
operations. The administrative costs are also important in order to maintain the
operations of the centre. The depreciation is also mandatory to calculate in order to
reflect the overall cost structure (Enthoven, 2014).
Reporting of outcomes
The reporting of outcomes should follow the designated authorities. The
administrative department should control the staffs and other operations made in the
physiotherapy center. This department should report the advisory committee about
all the financial and progressive data incurred from the project. The advisory
committee is responsible for reporting the central management of the hospital (Wright
et al., 2017).
Financial Information
The necessary requirements for the zero based budget in this project is considered
are
 Special rehabilitation doctors
 Physiotherapists
 Administrative staff
 Oncost
 Dynatron Solaris Plus 705
 Electric and non-electric tilt tables
 Projector and screen
 Gym equipment
 Water
 Electricity
 Internet
 Repairing and maintenance
 Insurance system
 Security system
 Building rent
 Depreciation
In this case, the cost which is being calculated for the operations of the
physiotherapy centre is calculated as $35,88,144. This cost is included all the
maintenance and other expenses. After implementing the optimal 10% less from the
incurred cost, the cost has been reduced by $149855 and resulting a total operating
cost of $34,38,144.
After calculating the break-even analysis of the project, it can be seen that the
company has managed to incur a total cost of $35,88,000 whereas the expected
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revenue for the project in the upcoming year is calculated as $35,86,500. Thus as a
result, the profit generated by the physiotherapy centre is being calculated as $1499.
References
Cheung, A., & Gu, X. Y. (2016). Health finance. Social Policy Reform in Hong Kong
and Shanghai: A Tale of Two Cities, edited by Linda Wong, Lynn White, and
Shixun Gui, 23-52.
Cleverley, W. O., & Cleverley, J. O. (2017). Essentials of health care finance. Jones
& Bartlett Learning.
Enthoven, A. C. (2014). Theory and practice of managed competition in health care
finance. Elsevier.
Erikson, S. L. (2015). Secrets from whom? Following the money in global health
finance. Current Anthropology, 56(S12), S306-S316.
Suchman, L., Hart, E., & Montagu, D. (2018). Public–private partnerships in practice:
collaborating to improve health finance policy in Ghana and Kenya. Health
policy and planning.
Wright, J. (2015). Essential package of health services country snapshot:
Bangladesh.
Wright, J. (2017). The link between provider payment and quality of maternal health
services: a framework and literature review.
Wright, J., Bhuwanee, K., Patel, F., Holtz, J., van Bastelaer, T., & Eichler, R. (2017).
Financing of universal health coverage and family planning: a multi-regional
landscape study and analysis of select West African countries: Guinea.
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Attachment 1
Process flow chart for new service
Attachment 2
Financial report – total life costs for the proposal (use a spreadsheet if required)
Physiotheraphy 4 x 5 x5 days of operation x 52weeks of operation x $130
Consuelling Session & regular check up 4 x 6 x 5days of operation x52 weeks of operation x $300
TOTAL INCOME Insert total amount here ->
Break Even Calculation
TOTAL INCOME
minus TOTAL COSTS PER YEAR
Profit / Loss
If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income.
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Planning committee
prepare the financial buget
outline the mood of operation
Advisory committee
Govern over the progress of the project
Suggest certain strategies to the project management
Management team
Resposible for maintaining the operations of the operations
Obliged to report the progress to the Advisory committee

Expenses
Category Item/Costs Formula Calculation Explanatory Notes
Staffing Special Rehabilitation doctors 3doctors x $143hourly rate x8 hours x 5days of work x 52 $ 892,320.00
Physiotherapists 4 x $33.9hourly rate x 8hours x 5 days of work x 52 $ 423,072.00
Adminstrative Staff 4x $35 hourly rate x8 hours x 5days of work x 52 $ 291,200.00
Oncosts total cost of staff above x 15% $ 240,988.80
TOTAL STAFFING Insert total amount here -> $ 1,847,580.80
Consumables Dynatron Solaris Plus 705, (2 x 2 x 2 x 5 (per week) x 52weeks of operation) x $41 $ 76,752.00
Eletric and non-electric tilt tables (4 x 6 x 6 x 5 (per week) x 52weeks of operation) x$21 $ 707,616.00
Projector and Screen (5 x 3x 6 x5(per week) x52 weeks of operation) x $16 $ 336,960.00
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