Purpose: The purpose of developing a business plan is to assist in the implementation of the

organization’s Strategic Plan. The business plan provides a detailed framework in which to

review new business ventures and the expansion of existing programs and services. The

structure of the business plan ensures that a thorough analysis is completed which compares

potential benefits to expected costs.

1. Executive Summary

The Executive Summary is a brief discussion of the key elements of the business plan

including:

¨ A description of the market

¨ Key historical and forecasted data

¨ Growth objectives

¨ A synopsis of the strategies needed for the plan to succeed

1. Program Overview

The program overview provides a brief summary of the program’s history, current status

and future direction.

¨ Mission

¨ Service Line Objectives

¨ Scope of Service

III. Market Analysis

The market analysis defines both the internal and external market in which the program

will operate and the specific needs of the market.

¨ Defined service area

¨ Population demographics

¨ Market share

¨ Utilization volume, both current and projected

¨ Competitor Profile

¨ Performance Metrics

¨ Staffing Issues

1. Physician Analysis

The physician analysis is a simple assessment of the number of active physicians relevant

to the service line being reviewed. The assessment should include:

¨ Medical Staff Age Assessment

¨ Needs Assessment (Supply and Demand)

- Office locations

- Practice patterns

- Referral patterns

- Incidence Rates

¨ Recruitment recommendations

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1. SWOT Analysis

A SWOT analysis is performed in order to identify the internal and external market

forces that currently exist and recognize those that may develop.

¨ Strengths = Items that should be built on

¨ Weaknesses = Items that need to be addressed

¨ Opportunities = Items that need to be capitalized on

¨ Threats = Items that need to be minimized

1. Program Design

This section intricately describes the details of the program. The description should

ultimately explain what need is met by the program and how the program differs from the

competition.

¨ Volume projections

¨ Services provided

¨ Capacity and space allocation

¨ Facility/Equipment needs

¨ Management and personnel

¨ Education and Training

VII. Financial Analysis

The financial analysis provides a historical overview of financial performance as well as

projected financial performance.

¨ Statement of Operations

¨ Capital requirements

¨ Five year financial pro forma (economic justification)

VIII. Service Line Strategies

The strategies directly correlate with the plan’s objective(s) and those items identified in

the SWOT analysis. A general focus should remain on quality of care, consumer

satisfaction, volume, utilization management and cost control.

1. Marketing Initiatives

The marketing plan outlines the efforts needed to reach the population segment that will

generate the projected volume. Follow-up with the Director of Marketing will be

necessary during the development of the business plan.

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1. Implementation and Monitoring of Plan

The section describes the implementation and monitoring of the plan in relationship to

the overall program or service line. Performance indicators, key contacts, and a time

frame should be established in order to monitor the success of the plan. These indicators

may include:

¨ Employees and staff

¨ IS programs and capabilities

¨ Physician referrals

¨ Patient volume

¨ Operations

¨ Marketing

1. Implications

This section provides the reasoning behind the recommended actions of the plan and how

it affects the corporation overall.

¨ Impact of Plan

¨ Risk Factors

¨ Reasonableness of Plan

XII. Appendix

Include any supporting information that does not fit into the context of the Plan