Clermont Health Facility Feasibility Analysis

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Porter’s Five Forces [pic 2]

Note: The Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation

SWOT Analysis

Strengths

Weaknesses

- Highly trained and capable employees

- Market experience

- Strong leadership

- High level of organizational efficiency

- Excellent facilities

- Strong commitment to bettering the community

- Increased cost of healthcare could lower our clientele

- Limited staff resources

- Limited cash flow to hire and train new employees

- Lack of resources

Opportunities

Threats

- Fast growing technology opens new doors for using state of the art equipment to better serve the patients.

- Nursing and residential care is one of the fastest growing industries

- Aging population

- Uncertainty in political and economic climate causes hesitation for receiving new patients.

- Funding constraints

- Highly competitive market

Our SWOT analysis gives us a wider view of how to compensate our threats and weaknesses with our strengths and opportunities. As we continue to develop our business plan for Clermont facility it’s important that we identify the areas in which we excel and the ones in which we need improvement. Our core strength is our highly trained and skilled staff, as our main goal is to improve the health status of our community. One of our weaknesses is limited staff, however we are hoping to start an internship program where we can help nursing students advance in their careers through learning how care for and treat our patients. We would love to take this weakness and make it into an opportunity for our business to grow.

Product and Service Analysis

Our services will be used by patients who cannot afford experimental treatments and patients who have been abandoned by the system because hospitals can no longer provide medical assistance. At our facility, we will be able to work with the families and provide them with different payments options, such as low monthly payment plans. Our main goal is to be able to treat the patient at a very affordable cost; however, if any patient does not possess the means to pay for treatment, he or she would not be turned away; our facility will tap into government and private funding to cover treatment cost.

The beauty of this service is that there isn’t a charge of any kind to take part in our program because it is completely funded by government grants. Individuals that would take part would more than likely not have the means to pay a monthly deductible. Due to the nature of the business listed as a non-profit agency, there is no way to make a profit of any kind, as it would jeopardize the business in its entirety.

Some of the market factors that create a demand for our services include the need of medical care after having maximized all resources, the number of low income families, and the number of patients facing health issues needed extended medical care.

An opportunity that may derive from this business is the opportunity to expand and open multiple facilities, while extending a helping hand to many more in need. The risk, however, are the unstable funds deriving from grants. This can pose a huge threat to the business, as grants often fluctuate and cannot be counted as constant income.

After studying the healthcare system and current policies in place, data shows many individuals facing severe health issues usually go untreated and uncared for due to the outrageous cost of medical care. It is devastating to see how often people, especially the elderly, are sent home and forgotten for the mere reason that hospitals and doctors are not willing to care for patients without financial means. In fact, in 2009 Harvard news reported 45,000 annual deaths due to lack of health coverage in the U.S. alone, which is significantly higher than the 18,000 reported by USA Today in 2002.

Financial Analysis

Clermont will be a nonprofit organization, dedicated to help the most needed. To open the facility fully operational we must take in consideration some fixed expenses like the land acquisition, permits, interest, brokers, administration fees, professionals (facility setup), staff, reports (environmental, occupational, fire, FDA), electricity, water, phone, water & sewer , connections, taxes, insurance, management, security, advertising, accountants, food, lawn mowers, bank fees, etc.

The facility will have a total value of approximately three million dollars, but if we break the price of the land acquisition in to a thirty (30) year mortgage we can star up the business with an investment of approximately $ 233,944.61 USD to cover the first month of operation including all the startup permits and connections. After the first month the fixed expenses will be $184,444.00 USD with the exception of the months were taxes are due; taxes are around $ 43,000.00 USD paid quarterly will increase the tax month (depending on the facility fiscal year) for $ 10,750.00 USD approximately. We will fund all the costs with private and public funding, fundraiser, events, raffles, and most important with the help of the community. Donations are to be received from big companies, churches, research groups and allocate many alliances within the medical industry.

Clermont is a nonprofit organization and will give the relief to the families in need. No one will be rejected because they do not have the money or the insurance cannot help. No money will be required from patient and every single dollar received will be spent in the patients, and in improving our facility and our service every day.

Our financial even breaking point will be a year after we begin operations, and be profitable soon after. There are many patients in need, and with the government and public grants each person will receive the treatment they need,