Detailed Proposal: Implementing a New Physiotherapy Department

This assignment presents a detailed proposal for establishing a new physiotherapy department within a hospital to address the community's need for accessible and affordable care. The report outlines the background, aims, benefits, and risks associated with the project, emphasizing the potential for increased revenue and improved patient outcomes. A comprehensive financial analysis, including capital and revenue expenditures, is provided to ensure the project's financial viability. The proposal aims to enhance the hospital's service offerings, reduce patient travel burdens, and improve overall operational efficiency, ultimately leading to better healthcare services within the locality. Desklib offers a wealth of similar assignments and study resources to support students in their academic endeavors.

Running head: NEW DEPARTMENT FOR PHYSIOTHERAPY
New PhysiotherapyDepartment
Name of the Student:
Name of the University:
Authors Note:

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Contents
Executive Summary:......................................................................................................2
Outline............................................................................................................................3
Background....................................................................................................................3
The Proposal...................................................................................................................4
Aims:..........................................................................................................................4
Benefits......................................................................................................................5
Risks...............................................................................................................................7
Process............................................................................................................................9
Resources:......................................................................................................................9
Reporting of outcomes:................................................................................................10
Financial Information:..................................................................................................10
References....................................................................................................................11
Attachment 1................................................................................................................14
Attachment 2................................................................................................................15

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Executive Summary:
The inhabitants of the area are in dire need of a Physiotherapy facility within the
vicinity of the locality engaged in providing the care at cheaper rates. The purpose of
the report is to establish whether the proposed new department will yield value to the
locals and the inhabitants of the locality in the long run. For the purpose of ensuring
main goals and objectives of the Physiotherapy center, the that detailed analysis of the
prospect has been presented is being taken upwith the help of several tables has been
taken up. Within the table details regarding The report is being prepared to indicate
the benefits, and the risk that are involved and the revenue that is going to be incurred
in respect of by the company. Every financial detail regarding this center has been
objectively analysed and listed out. In addition to that a well prepared an objective
break even analysis of the same has been presented taken up to make it sure ensure
that a clear picture of the financial condition of the organisation is being presented in
front of the management of the company to ensure that the target revenue that was
expected has to be gained achieved by it for the purpose of ensuring that the costs
incurred by it is recovered entirely. the physiotherapy center has been collected
successfully and the expected profit after excluding the expenses is up to the par.
After t The analysis it was found that there are states several capital as well as
revenue expenditure that are going to be incurred by the entity for the purpose of
implementing and integrating the new department within the hospital.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Outline
In the present report an effort will be made for the purpose of analysing the
various costs and the revenue that are going to be incurred and generated by way of
operating a Physiotherapy clinic.
Immense value will be created in respect of the Local Health District from
this. The reason of this is being that due to the unavailability of the Physiotherapy
services in the nearby area. tThe inhabitants had to travel long distances for the
purpose of getting the service in relation to this (Todini et al., 2018).
The present report presents and analyanalyse sis of the revenue that is being
generated and the cost that is going to be incurred in respect of opening up of in case
of opening a special department that is associated concerned with the physiotherapy
treatment of the patients of the hospital.
The Local Health District will be able to garner a significant profit and
revenue out of it. Previously the patients had to travelrse long distances for the
purpose of getting decent physiotherapy service done (Erikson, 2015). The travel that
had to be done by them involved both their time and cost.
The introduction of the same at the locality and in the premise of the hospital
will ensure that the revenue of the hospital is increased and the patients are being able
to avail the benefits within their localitylocally.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Background
Presently the hospital is not providing any sort of specialised physio therapy
treatment to its patients. Due to the lack of the requisite human resource and the
initiative on the part of the hospital the introduction of the same has not been till date
center could not be established till now. Consequently the patients are currently
travelling long distance to get their treatments done (Cleverley, 2017). This is actually
detrimental to their well-being, as the reason being that the travel that they are being
forced to undertake is causing additional stress in their muscles and the benefit of the
treatment that they are receiving is neutralised. Hence it is of utmost importance that
the hospital should opens up a department that solely deals with physiotherapy
(Carroll& Smith, 2016).
The Proposal
The proposal that is being made in this case suggests instructs the hospital to
open up a physiotherapy centre at the hospital. The proposal states involves that the
primary function of the department will be to ensure that the service whichthat is
being provided by the department is of specialised nature and the quality of the care
and treatment that is being provided is up to the market standardof very decent quality
(Beith et al., 2017). The hospital has to ensure that the costs incurred by it for the
purpose of commencing the functions of the department is duly recovered from the
increased revenue that will beis generated from the increasing number of patients
footprintvisiting in the hospital.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Aims:
One of the most significant aims of the entire project is to ensure that
implementation achievement of specialised center specialisation by the hospital in the
treatment that is bigprovidedgee it in this regard can play a significant role in the near
future. The hospital will have to ensure that by opening up a completely new
department that will deal with the same can solve the current issues that the patients
are dealing with. The primary aim of the hospital is to ensure that the costs that are
incurred by the patients in this respect are reduced simultaneously while offering the
standard quality of the service that is expected from it by the patients (Dabbs et al.,
2018). By adoption of the same it will be possible of It is important for the hospital to
ensure that break-even point is being reached by it in a considerable very short period
of time. The efficiency and the effectiveness of the organisation’s company’s service
providing giving capability will be improved, if it engages with in the provision of the
services by opening up of a new department that will solely be concerned in this
respect. The revenue that will be is generated by the hospital will increase consistently
when after the increase in the efficiency in the operation is being achieved by the
hospital hospital will start to gain the expected efficiency in this regard. If the hospital
engages in the provision of the services at lower prices and without hampering the
quality of the service that is being offered by the hospital then the efficiency of the
operations of the hospital will be improved significantly (Verguet et al., 2015).
Benefits
 Efficiency gains:
One of the most significant improvements regarding in the efficiency in the
efficiency and in the performance of the hospital will be that the quality of service

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NEW DEPARTMENT FOR PHYSIOTHERAPY
that is being offered to the patients of the hospital will improve very significantly.
As the entire human resource that will be acquired or arranged by the hospital for
the purpose of delivery of physiotherapy will be engaged to in the performing that
sole job, the effectiveness and the efficiency by of the way they provide the
services will improve significantly (Rotz et al., 2017). The indirect costs that are
being incurred by the entity will be allocated to the right department and this will
improve the way by which the hospital records its overheads.
.
 Potential savings/increased costs:
The organisation company at present is losing huge portion of the expected
revenue due to the fact that the patients who are suffering from acute muscle pain
and other ailments of similar nature are not getting the service and care that they
want from the hospital. This non-availability is decreasing the patient footprint of
the hospital and thereby affecting the revenue very adversely (Rotz et al., 2017).
Hence, due to this the revenue that was being lost by the hospital was increasing
every day. It was better for the organisation it to ensure that the leakage was being
blocked immediately for the purpose of ensuring that no extra opportunity cost is
incurred by the hospital.
For the purpose of bridging the gap the hospital will have to incur capital
expenditure in the starting period and thereafter the expenditure will be reduced
gradually (Cashin, 2016). The capital expenditure that is being incurred by the
hospital will ensure that corresponding revenue makes up ofor that in a very short
period of time. Some of the expenditure that will be included in the capital
expenditure are connection of electricity, the water supply etc. The cost of the

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NEW DEPARTMENT FOR PHYSIOTHERAPY
hospital will also be increased due to the inclusion of some variable expenses like
that of repair and maintenance, building rent, depreciation etc.
 What are the expected benefits of this proposal?
Factor Benefits
Patients Patients are the primary receiver of all the benefits that are going to
accrue out of the project. The reason being that all the new
developments are to be done in accordance with the fact that the goal is
to keep the quality consistent and tothe serve the customers in the best
way possible. In the previous case the non-availability of a specialist
barred the patients from getting the care that they expected from the
hospital (Scheffler et al., 2018). After an entire department has been
allocated for this specific area will increase the satisfaction that is
being received by the patients.
Facility The facility itself will experience a face lift off. the reason being that
the reason being that tThe introduction of the care will ensure that new
equipments, chairs and furniture, expansion of the area of operation of
the hospital is all improved. This will result in increasing the
operational ability of the facility and thus the quality of the service that
is being provided by the hospital.
Clinicians The clinicians who will beare hired or the existing ones that are
transferred to the new department will have to take special training in
this elide. This will significantly improve the quality of the service that

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NEW DEPARTMENT FOR PHYSIOTHERAPY
is being provided by them and the knowledge base that they possess.
Risks
Risk Issue Severity Impact Mitigation
Plan
Notes
Financial
risk
The severity
involved in
of the risk
involved is
very high.
The reason
of being that
is the
amount of
funds
required for
the purpose
is very high.
The expenditure will
increase the financial
burden of the hospital.
All the
sources must
be considered
for the
purpose of
taking the
loans or
arranging
finance from
other sources.
The main
aim should
be the
reduction of
the financial
burden.
Patients There is
moderate
risk
associated
The numbers of the
patient will directly
influence the revenue
that is being generated
The hospital
must ensure
that the
quality of the
The aim
should be to
increase the
customer

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Risk Issue Severity Impact Mitigation
Plan
Notes
with the
number of
patients that
are going to
come.
by the entity. service
provided is
maintained
throughout.
footprint.
Insurances The risk
involved
with the risk
is very low.
The hospital will have
to incur an additional
expenditure of
insurance for the new
place and the
equipmentsequipment’s
purchased by it.
The cheapest
insurance
product must
by the
selected by
the hospital.
Insurance
will guard
the hospital
from any
accident and
sever loss in
the future
due to the
accident.
Process
 Action:
For the purpose of overlooking and monitoring all the activities related to the
commissioning of the project a specialised team will have to be formed. The
qualification and the training of the present human resource available with the
hospital will have to be overviewed. All the costs and the corresponding revenue that

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NEW DEPARTMENT FOR PHYSIOTHERAPY
is being generated will have to be listed out properly (Andrews et al., 2017). Also
there will be a requirement to hire financial advisors concerned with the provision of
financial services.
Resources:
The resources that are going to be required for the purpose of effectively and
efficiently conducting the operations of the hospital will include the following items:
a) Physiotherapist:
The most important part of the resources will be constituted by the physiotherapist
that is going to be hired by the hospital (Abel-Smith, 2016).
b) Massage creams:
For the purpose of conducting the physio therapy massage cream will be required.
This will do the healing part of the treatment. be regarded as an accessories of the
center.
c) Security system:
As a completely new department is going to be open,ed up a security system
will have to be put in place. This will ensure to take care of the internal control of the
new department (Buckley et al., 2016).
d) Electricity:
New electricity connection will have to be obtained for the new department.
Reporting of outcomes:
For the purpose of determining the cost that are going to be incurred in respect
of the entire project, experienced and trained professionals will be hired. The primary
responsibility of the professional will be to report to the management about all the

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NEW DEPARTMENT FOR PHYSIOTHERAPY
information that is being gained in respect of the costs that are going to be incurred
for the hospital and the corresponding revenue that is going to be generated by the
hospital (Alebachew et al., 2014).
Financial Information:
The break-even analysis of the entire project has been made for theFOrate
purpose of providing the requisite financial information that is related to the particular
project. The entire break even analysis will enable the hospital to ensure that clear
information is being provided in respect of the cost that are going to be incurred for
the purpose of ensuring that breakeven point is being reached by the hospital in a very
short period of time (Mittal, 2018). With the inclusion of all the relevant costs that are
going to be incurred by the hospital for the purpose of generation of the revenue the
decision making process of the management will improve.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
References
Abel-Smith, B. (2016). An introduction to health: policy, planning and financing.
Routledge.
Alebachew, A., Hatt, L., Kukla, M., &Nakhimovsky, S. (2014). Universal health
coverage measurement in a low-income context: An Ethiopian case study.
Andrews, R. J., Khan, T. M., & Crisp, N. (2017). Physicians, poverty, and profits: can
Robin Hood finance health care in developing countries?. World
neurosurgery, 99, 786-789.
Beith, A., Wright, J., & Ergo, A. (2017). The link between provider payment and
quality of maternal health services: Case studies on provider payment
mechanisms in Kyrgyz Republic Nigeria and Zambia.
Buckley, N., Cuff, K., Hurley, J., Mestelman, S., Thomas, S., & Cameron, D. (2016).
Should I stay or should I go? Exit options within mixed systems of public and
private health care finance. Journal of Economic Behavior &
Organization, 131, 62-77.
Carroll, N. W., & Smith, D. G. (2016). Addressing the healthcare finance faculty
shortage: Perspectives and paths forward. Journal of Health Administration
Education, 33(2), 311-319.
Cashin, C. (2016). Health financing policy: the macroeconomic, fiscal, and public
finance context. World Bank Publications.
Cleverley, W. O. (2017). Essentials of health care finance. Jones & Bartlett Learning.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Dabbs, D. J., Serdy, K., Onisko, A., Clark, B. Z., Bhargava, R., Smalley,
S., ...&Brufsky, A. M. (2018). Abstract P4-08-04: The clinical utility of
oncotypeDx for patients with recurrence scores of 10 or less: A value based
pathology study of tumor histopathology and outcomes analysis in an
integrated delivery and finance health system.
Erikson, S. L. (2015). Secrets from whom? following the money in global health
finance. Current Anthropology, 56(S12), S306-S316.
Mittal, R. (2018). Frail Elderly, Inconspicuous Finance System, Complex Healthcare:
Are We Realists or Optimists?. Journal of the American Medical Directors
Association.
Rotz, S., Fraser, E. D., & Martin, R. C. (2017). Situating tenure, capital and finance in
farmland relations: implications for stewardship and agroecological health in
Ontario, Canada. The Journal of Peasant Studies, 1-23.
Scheffler, R. M., Hoang, D. D., &Shortell, S. M. (2018). Proposal to Use Three
Initiatives to Lower Healthcare Spending and Finance Universal Health
Insurance Coverage in California.
Todini, N., Hammett, T. M., &Fryatt, R. (2018). Integrating HIV/AIDS in Vietnam's
Social Health Insurance Scheme: Experience and Lessons from the Health
Finance and Governance Project, 2014–2017. Health Systems & Reform, 4(2),
114-124.
Verguet, S., Olson, Z. D., Babigumira, J. B., Desalegn, D., Johansson, K. A., Kruk,
M. E., ... &Memirie, S. T. (2015). Health gains and financial risk protection

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NEW DEPARTMENT FOR PHYSIOTHERAPY
afforded by public financing of selected interventions in Ethiopia: an extended
cost-effectiveness analysis. The Lancet Global Health, 3(5), e288-e296.
World Health Organization. (2015). WHO report on the global tobacco epidemic
2015: raising taxes on tobacco. World Health Organization.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Attachment 1
Process flow chart for new service
A committee for the implementation and the commencement of the
proposal has to be establishedIt will comprise of financial advisors and experts
and a team of specialists doctors.
The committee will ensure the success of the
proposal.
Recognition of the financial sources of the hospital will be done
The financial advisors and the experts of the feild
will ensure the implementation of the optimal
capital structure for the hospital
All the costs associated with the sources of funds
will have to be taken into consideration.
Ascertainment of the costs inolved
The help of the experts will be taken in this reps The experts are needed to consider all the
relevant expenditure for the decsion making
process.

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Attachment 2
Financial report – total life costs for the proposal
Expenses Income
Category Item/Costs Formula Calculation Explanatory Notes Category Product/Service Formula Calculation
Staffing Physiotherapist 3 x 55 x 8 x 5x 52 343,200.00$ Income Acupuncture 4x4x5x52x90 374,400.00$
Nurses 2x 40 x 8 x 5 x 52 166,400.00$ Taping 4 x 4 x 5 x 52 x 80 332,800.00$
Adminstrative staff 2 x 30 x 8 x 5 x 52 124,800.00$ Deep Massage 6 x 5 x 5 x 52 x 45 351,000.00$
Oncosts total cost of staff above x 15% 95,160.00$ TOTAL INCOME Insert total amount here -> 1,058,200.00$
TOTAL STAFFING Insert total amount here -> 729,560.00$
Consumables Strapping tape 4x 3 x 4 x 5 (per week) x 52 12,480.00$ Break Even Calculation
Braces and supports 4 x 2 x 3 x 5 x 52 6,240.00$ TOTAL INCOME 1,058,200.00$
Slings 3 x 2 x 4 x 5 x 52 6,240.00$ minus TOTAL COSTS PER YEAR 1,057,120.00$
Massage creams 2 x 3 x 5 x 5 x 52 7,800.00$ Profit / Loss 1080
TOTAL CONSUMABLES Insert total amount here -> 32,760.00$
Utilities Electricity 500x52 26,000.00$ If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income.
Internet 200x52 10,400.00$
Water 300x52 15,600.00$
TOTAL UTILITIES Insert total amount here -> 52,000.00$
Administration Security system 300x 52 15,600.00$
Insurance 400 x 52 20,800.00$
Repair and maintenance 200x52 10,400.00$
Building Rent 3000 x 52 156,000.00$
TOTAL UTILITIES Insert total amount here -> 202,800.00$
Depreciation Depreciation 200000x 20%
TOTAL DEPRECIATION Insert total amount here -> 40,000.00$
TOTAL COSTS PER YEAR Total of each of the five section totals $1,057,120

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NEW DEPARTMENT FOR PHYSIOTHERAPY
Expenses Income
Category Item/Costs Formula Calculation Explanatory Notes Category Product/Service Formula Calculation Explanatory Notes
Staffing Physiotherapist 3 x 55 x 8 x 5x 52 343,200.00$ Income Acupuncture 4x4x5x52x90 374,400.00$
Nurses 2x 40 x 8 x 5 x 52 166,400.00$ Taping 4 x 4 x 5 x 52 x 80 332,800.00$
Adminstrative staff 2 x 30 x 8 x 5 x 52 124,800.00$ Deep Massage 6 x 5 x 5 x 52 x 45 351,000.00$
Oncosts total cost of staff above x 15% 95,160.00$ TOTAL INCOME Insert total amount here -> 1,058,200.00$
TOTAL STAFFING Insert total amount here -> 729,560.00$
Consumables Strapping tape 4x 3 x 4 x 5 (per week) x 52 11,232.00$ Break Even Calculation
Braces and supports 4 x 2 x 3 x 5 x 52 5,616.00$ TOTAL INCOME 1,058,200.00$
Slings 3 x 2 x 4 x 5 x 52 5,616.00$ minus TOTAL COSTS PER YEAR 1,053,844.00$
Massage creams 2 x 3 x 5 x 5 x 52 7,020.00$ Profit / Loss 4356
TOTAL CONSUMABLES Insert total amount here -> 29,484.00$
Utilities Electricity 500x52 26,000.00$ If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income.
Internet 200x52 10,400.00$
Water 300x52 15,600.00$
TOTAL UTILITIES Insert total amount here -> 52,000.00$
Administration Security system 300x 52 15,600.00$
Insurance 400 x 52 20,800.00$
Repair and maintenance 200x52 10,400.00$
Building Rent 3000 x 52 156,000.00$
TOTAL UTILITIES Insert total amount here -> 202,800.00$
Depreciation Depreciation 200000x 20%
TOTAL DEPRECIATION Insert total amount here -> 40,000.00$
TOTAL COSTS PER YEAR Total of each of the five section totals $1,053,844