Health Financial Management Assignment: Dental Clinic Business Plan

This report outlines a business plan for a new dental clinic in New South Wales, Australia, focusing on providing comprehensive dental services to address market demand. It explores the clinic's financial structure, including a break-even analysis to determine minimum sales targets. The plan details budget allocation, resource requirements, and a comprehensive business strategy. It examines the background of the project, the proposal, potential risks, and the operational processes involved. The report emphasizes the importance of patient satisfaction, efficiency gains, and potential savings. It also addresses financial, patient, and insurance risks, while providing mitigation strategies. The appendix details the company's process and the requirement of resources. The report aims to improve the overall effectiveness of the hospital, improve the health position of citizens, and reduce the travelling time to other dental clinics. It concludes by highlighting the significance of efficient clinicians, and the importance of attracting patients.

Health Financial
Management
Assignment

1
By student name
Professor
University
Date: 12 May 2019.
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Executive Summary
This report presents an idea about the new dental clinic in the New South Wales, Australia. This clinic
would focus on the dental services and would offer a great range of services to the patient of the clinic
on the basis of their demand. The report focuses on the break even structure to identify that how much
minimum sales must be generated by the business to reach over better performance of the company.
The budget plan as well as business plan of dental clinic has been discussed in the report. All the
necessary information related to the business plan and budget has been attached in the report.
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Contents
Executive Summary.....................................................................................................................................2
Contents......................................................................................................................................................3
Outline.........................................................................................................................................................4
Background..................................................................................................................................................4
The Proposal................................................................................................................................................4
Risks.............................................................................................................................................................6
Process........................................................................................................................................................7
Requirement of Resources..........................................................................................................................8
Reporting of the outcomes..........................................................................................................................8
References:................................................................................................................................................10
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Outline
The report mainly focuses over the business plan of dental clinic. It would be begin in New South
Wales, Australia. It would be controlled by New South Wales local health district centre. The demand of
such health centre in Australian market is high because of the various issues with teeth and mouth
problems of Australian people. The business plan would discuss the financial and administration support
required for the project.
Background
It has been observed that there is little number of dentists available in the nearby areas. There is
high demand of dentist in the market because of the different life style of the people and bad impact
over their health because of bad care of teeth. Market feasibility study explains that demand of such
services is growing rapidly in the market. As an outcome, New South Wales local health district centre
has been approached for a new clinic of dental services. Particularly among the youngsters and office
going people, the need of dentist and better dental service plan is increasing day by day (Schäferhoff et
al, 2015). The nearby hospital is also not offering the specific dentist services to their patient which has
impacted over higher demand of dental services in the market. In order to fulfil these demands, a New
South Wales local health district centre has been approached to open a new clinic of dental in the
market. Also, it has been found that if a clinic would be open up nearby then it would not only improve
the health position of citizens but it would also reduce the travelling time to other dental clinic along
with that, it would reduce the cost. In order to run the clinic, few equipment and consultant would be
required which has been studied in this business plan.
The Proposal
In order to fulfil the demand of citizen regarding a dentist, a dental centre has been commenced
within the hospital premises. The main consideration in the business proposal has been taken that the
incurred cost and expenses of the dental clinic must be recovered within the specific time period. The
main revenue source of the clinic would be fees taken by the patient.
Aims:
The business plan has been projected to lower the harassment level of patients as patients are
quite harassed because of their teeth issues and jaw issues and hence, it becomes tough for them to
manage everything in their personal and work life. The business would offer the better dental services to
the patient in nearby which would reduce higher cost to go out of the town and get treated. The main
attraction of point for the business plan is lower cost and availability as there is no other dentist
available nearby (Reich et al, 2016). Further, it would also help the business to set a grand value and
reach over the BEP point soon. Break even analysis study has been conducted to evaluate the
performance of the plan. the study and feasibility investigation explains that the demand of such
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services are higher and as no other options are available to the patients, revenue of the dental business
would be higher and it would attract a number of people towards it.
Benefits:
Efficiency gain:
It has been found that the main aim of the plan would be offering quality and better services to
the patient. The business plan would improve the overall effectiveness of hospital that would lead
towards the increment in the revenue and goodwill of hospital. On the basis of it, overall efficiency level
of hospital would also be improved. The main work of human resource department in the business plan
would be hiring the dentist, nurses and support staff to run the services. The main aim of the business is
to satisfy the customers and hence, it must be focused by the business that a better dentist would be
hired as well as all the required equipment must be installed in the hospital. Ultimately, it would
improve the overall performance of the employees (Tennant, Kruger & Shiyha, 2013).
Potential savings:
It has been found that due to lack of dental services in the hospital, patients re heading towards
other hospital to get better treatment. If particularly a specific centre would be open in the hospital to
offer dental services then it would improve the footfall of patients in the hospital. However, along with
that the management of hospital has to incur few most cost related to the manpower and equipment.
Because, of such cost it is important for the business to reach over a point where the revenue and
expenses of the company is similar (Paley, Slack‐Smith & O’Grady, 2009). It must be achieved by the
hospital in sooner time so that profitability level and efficiency level of the hospital could be improved.
Factor Benefits
Patient As the essential focal point, it is important for the dentist to focus towards providing
quality administrations to the patients, its point ought to be to build the customer base as
large as would be cautious. So as to do that, the administrations gave from the middle
ought to be sufficient, sensible and reasonable services. The accessibility of such
administrations should build the viability of the emergency clinic and as the patients are
the prime partners of the medical clinic, it is expected to guarantee that the advantage of
the patients and their fulfillment has been organizing basically (Hajizadeh, Connelly &
Butler, 2012).
Facility The services which are being engaged with this dental canter are absolutely subject to the
satisfaction level of patient. Most importantly, the nature of the administration is one of
the key requirements of the centre. The nature and treatment style of the staffs is another
viewpoint which is should have been considered in this perspective. Aside from it, the
specific workforce of the division is another perspective which ought to be another service
that is given to the clients. Also, the offering of the administrations in the close-by region in
a sensible cost is being considered as an office for the centre (Wright & Kupietzky,
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2014).
Clinicians The efficient clinicians are the central point in this regard. Very much prepared clinicians
will expand the effectiveness of the middle and this will build the customer base of the
hospital. The experience and abilities of the clinicians which will be given to the patients
and the nature of treatment ought to be the key factor for drawing in the patients towards
the wellbeing focus (Pinto, Masaki &Harimurti, 2016). These efficiencies ought to be
executed upon the activities of the dentist focus so as to diminish the time range with
respect to the means of the treatment which will be valuable for the middle.
Others Different advantages that can be brought about from the proposed dental focus are being
considered as the notoriety of the association. By opening the medicinal services focus, the
association will be empowered to expand the notoriety and the piece of the pie of the
clinic will be expanded because of the activity. By opening this, the proficiency of the
medical clinic will be expanded and this will pull in more patients towards the emergency
clinic. Aside from these, creating more income will open new degrees for the
administration to present new offices in the operational territories of the hospital (Evans &
Pablos-Méndez, 2016).
Risks
Apart from the various benefits of business plan, there are several risks which are associated
with the business plan. Few of them have been discussed below:
Risk Issue Severity Impact Mitigation Plan Notes
Financial
risk
As there is an
immense measure
of capital is
associated with
this undertaking,
there are a few
dangers that are
engaged with the
task. The
association needs
to consider the
recuperation of
the sum which
thoroughly relies
upon the fees
charged from the
patients.
The weight of the
collected capital
will build the
danger of get back
the amount. In
such manner, the
impact can be seen
upon the working
expense of the
task. The nature of
the administration
can be undermined
so as to reimburse
the capital and the
liabilities and other
expense for the
intrigue can be
The administration needs
to make it beyond any
doubt that the nature of
the administration will
never be undermined
using any and all means
because of its incurred
expenses. As the
collection of revenue and
net profit is absolutely
subject to the charges
collected from the
patients, it is essential to
draw in more patients by
giving the customers
fulfilment so as to
The risk level
ought to be kept
up by the
administration so
as to reduce the
risk level. The
administration
should make
sense of the best
arrangements for
producing a better
income level.
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Risk Issue Severity Impact Mitigation Plan Notes
improved from the
expected sum
(Calache &
Hopcraft, 2012).
produce more income.
Patient
risk
In order to give
the guarantee of
the better
performance of
the association,
the number of
patient is
significant. As the
performance is
absolutely based
on the revenue
gathered from the
patients, deficient
number of patient
will be extremely
risk for the
hospital.
The quantity of the
patient is
completely
connected with the
collection of
income and the
capital contributed
to the business
(Olivi &
Genovese, 2011)
The satisfaction level of
patient is the key point to
create increasingly
number of patients in
such manner.
As the collection
of income is
straightforwardly
connected with
the number of
patients, it is
imperative to
create a sufficient
client base.
Insurance
risk
The total expenses
of the hospital and
new centre
regarding the
insurance is quite
riskier (Tham &
Hardy, 2013).
This consumption
will cause an
expanded measure
of operational
expense in the
hospital.
The premium ought to be
paid in the due time so as
to decrease the expense
brought about from any
sort of penalty.
Particularly for the
various medical
and other
purposes, the
amount of
insurance is
significant as it
gives extra
security to the
business (Cashin
et al, 2017).
Process
The process of the company has been defined in appendix.
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The particular dentist and the prepared medical staff and different material and equipments are
required for the most extreme productivity of the hospital and the business. A prompting council has
been made in which, the departmental heads, specific specialists and a financial counsellor will be
included. The administration technique must be represented by the board of directors while the
operational components must be reviewed by the division head (Jacquin, 2014).
Requirement of Resources
Aside from the manpower and supplies that are required within the business, there are various different
things which are required for the business. As a matter of first importance, an attendant must be
designated so as to manage the drug inventory and for other authority work, for example, arrangement
to the dentist, a representative or a manager must be hired (Koch, Poulsen, Espelid & Haubek,
2017). A manager should be in charge of upkeep of the software and other essential things, for
example, power, water and waste transfer so as to give an extreme customer fulfilment (Calache &
Hopcraft, 2012).
Reporting of the outcomes
On the basis of overall non financial and financial activity, it is required for the business to be careful
about the expenses and all the activity in order to reach over better conclusion and better performance
of the business. Different staffs, for example, bookkeepers, clerks’ specialists must be given the reports
to the reporting manager from which the designated officer would be able to get all the information.
Budget build-up and financial activity
It is required for the business to fulfil the below primary responsibility in order to prepare the budget:
 Dentist
 Receptionist
 Nurses
 Cleaning staff
 Marketing expenses (Luzzi & Spencer, 2011)
 Insurance cost
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 Stock
 Consultancy services (Federal Register of Legislation, 2011)
On the basis of calculations in the appendix, it has been found that total income of the business would
be $ 7,41,000. Along with that, total expenses would be $ 666,137.6. It explains that the profitability
level of the business would be $ 74,862.
In the revised break-even analysis, the total expenditure of the dental clinic is reduced to $74,609.60.
by, cutting costs in various sectors like choosing less rent places, choosing best insurance with less
money and cutting the hours of staff by giving breaks which will bring the organisation 10.10% profit or
savings.
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References:
Calache, H., & Hopcraft, M. S. (2012). Provision of oral health care to adult patients by dental therapists
without the prescription of a dentist. Journal of public health dentistry, 72(1), 19-27.
Cashin, C., Bloom, D., Sparkes, S., Barroy, H., Kutzin, J., O'Dougherty, S., & World Health Organization.
(2017). Aligning public financial management and health financing: sustaining progress toward
universal health coverage. World Health Organization.
Evans, T., &Pablos-Méndez, A. (2016). Shaping of a new era for health financing. The Lancet, 387(10037),
2482-2484.
Federal Register of Legislation. (2011). Work Health Safety Act 2011. Australian Government. Retrieved
from: https://www.legislation.gov.au/Details/C2017C00305
Hajizadeh, M., Connelly, L. B., & Butler, J. R. G. (2012). Health policy and horizontal inequities of health-
care utilization in Australia: 1983–2005. Applied Economics Letters, 19(18), 1765-1775.
Jacquin, L. (2014). A strategic approach to healthcare transformation: transforming the care delivery
model across the continuum is a prerequisite to success under value-based payment
systems. Healthcare Financial Management, 68(4), 74-80.
Koch, G., Poulsen, S., Espelid, I., & Haubek, D. (2017). Pediatric dentistry: a clinical approach.
John Wiley & Sons.
Luzzi, L., & Spencer, A. J. (2011). Job satisfaction of the oral health labour force in Australia. Australian
dental journal, 56(1), 23-32.
Olivi, G., & Genovese, M. D. (2011). Laser restorative dentistry in children and
adolescents. European Archives of Paediatric Dentistry, 12(2), 68-78.
Paley, G. A., Slack‐Smith, L., & O’Grady, M. (2009). Oral health care issues in aged care facilities in
Western Australia: resident and family caregiver views. Gerodontology, 26(2), 97-104.
Pinto, R., Masaki, E., &Harimurti, P. (2016). Indonesia Health Financing System Assessment.
Reich, M. R., Harris, J., Ikegami, N., Maeda, A., Cashin, C., Araujo, E. C., ... & Evans, T. G. (2016). Moving
towards universal health coverage: lessons from 11 country studies. The Lancet, 387(10020),
811-816.
Schäferhoff, M., Fewer, S., Kraus, J., Richter, E., Summers, L. H., Sundewall, J. & Jamison, D. T. (2015).
How much donor financing for health is channelled to global versus country-specific aid
functions?. The Lancet, 386(10011), 2436-2441.
Tennant, M., Kruger, E., & Shiyha, J. (2013). Dentist-to-population and practice-to-population ratios: in a
shortage environment with gross mal-distribution what should rural and remote communities focus
their attention on. Rural Remote Health, 13(4), 2518.
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Tham, R., & Hardy, S. (2013). Oral healthcare issues in rural residential aged care services in Victoria,
Australia. Gerodontology, 30(2), 126-132.
Wright, G. Z., & Kupietzky, A. (2014). Behavior management in dentistry for children. Wiley
Blackwell.
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Appendix 1:
Business plan
A
Collaboration and approval
New south Wales Local Health district
Time
Money
Resources
Resources (human and physical)
Staffing Consumables Utilities
Receptionist (1staff) Gloves and spirit Building rent
Swab balls electricity Bill
Registered nurse Blood collection tubes and Water bill
Health registers containers
(2 RN) Needles
Lab technician (2)
Cleaner (1)
Started dental clinic
Out comes
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Appendix 2:
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