Business Plan Development
Elizabeth Jones, FNP-BC, has been an NP for 8 years. She has worked in the primary care setting, as well as the urgent care setting. She is considering relocating to a state that allows for unrestricted independent practice and opening her own primary care clinic. There are multiple benefits to owning an independent practice. However, owning a practice requires extensive knowledge and support. For an NP to establish independent practice, an appropriate plan must be developed. For this Assignment, you will create a Business Plan for your potential future business.
Write a 2-3 page paper Business Plan that addresses the following:
Identify and explain your chosen business structure
Estimate monthly cost for establishing your own independent practice in your home state, including:
Clinical site expenses
Employee structure and expenses
Utilities and other overhead expenses
Continuing education expenses
Services identified that you will provide (e.g., primary care services, drug screens, DOT exams)
Projected monthly income necessary to support your independent practice
Business Plan for a Primary Care Clinic
Nursing Practitioners (NPs) face a major challenge in their attempt to practice full authority and in respect to the practice agreement. From the education and experience to credentialing under the Scope of Practice, key barriers for NPs to fully execute their services such as ordering tests and prescribing medication include the requirement for an authority agreement from the collaborating physician and hostile environment from physicians. This business plan focuses on setting up a primary care clinic by a NP.
Based on the increasing need for primary care clinics, this business will be owned and managed by a nursing practitioner. The NP being the manager makes the business to be a sole proprietorship. The NP will be responsible for the patient safety and quality of healthcare to all clients thus creating a profitable and viable business. The roles and responsibilities of the NP will be according to the Scope of Practice in Texas. Besides prescribing medication, ordering for laboratory tests, and performing small procedures, the NP will refer patients with adverse conditions for further assessment and treatment.
The primary care clinic operates in sole proprietorship form where the NP is the owner and manager. However, the NP will operate with a receptionist who will be responsible for receiving, directing, and billing the patients. The receptionist will act as assistance on administrative issues while the NP will focus with the health matters. The primary care clinic anticipates growth in future to include a ward and diversify on services where equipment such as X-rays can be purchased for use at the clinic to eliminate the referrals. The clinic will work with larger healthcare organizations, laboratory facilities, and those offering imaging services for referrals and tests. The primary care clinic will function under three key objectives including providing healthcare services beyond the patient’s expectations, providing affordable care to all individuals regardless of their diversity affiliations, and assist in serving the society needs. The primary care clinic will also have a website where all services are outlined as well as storage of organizational data.
Various factors are considered in financial planning. In Texas, the total monthly cost for establishing the primary care is dependent on the capacity, equipment, and facilities. The site expense is estimated at $2000 per month. Considering the employee structure, the receptionist is employed on a contractual basis with annual pay of $30000. For the supplies which mainly include the drugs, syringe, and gloves among other items for the healthcare services will cost $10000. In addition, the start up requirements including the furniture and patient bed will cost $20000. For the utilities which will include electricity and water will cost $1000. Malpractice insurance for NP per year is $30000. A significant growth approach is through learning where the education expenses will be $5000 per month. For the accounting fees, it will be $50 per year. Notably, $2000 will be set aside for additional expenses. The total expense for the primary care startup will be $100000.
The clinic will provide diverse services including primary care, routine check-ups, minor procedures, drug administration, and referrals. With an expected number of patients per day being 10, the monthly income is estimated at $9000. This will be sufficient to support the independent NP and is more than the average pay for a NP. Besides, future growth is anticipated which will further increase the income.
In summary, the above business plan involves setting up of a primary care medical clinic for an independent NP. The clinic will provide various services including primary care, minor procedures, and referrals. While working with other healthcare facilities including laboratories and imaging units, this clinic will aim at providing profound services that are beyond the patient’s expectations. For the startup, the clinic estimates using $100000 and generating a monthly income of $9000.