Executive Summary

Acme Hospital, an 800-bed teaching hospital with a level one trauma unit, has the opportunity to acquire a nearby 65-bed general hospital. This acquisition will allow Acme to expand its service offerings and alleviate overcrowding in its existing OBGYN unit. The plan includes:

• Purchasing the nearby general hospital and integrating its management into Acme.
• Establishing a new Level Two Trauma Unit within Acme East (7,500 sq ft).
• Constructing a new 50-bed delivery suite with all private rooms (5,000 sq ft).
• Utilizing Acme’s medical staff, including residents, to staff Acme East in attending roles.

This expansion will solidify Acme’s position as a leading healthcare provider in the region, enhancing patient care access and improving clinical outcomes.

Program Overview

Location: The newly acquired hospital will be renamed Acme East Hospital Medical Center and will operate strategically close to Acme’s main campus.

Services:

• Level Two Trauma Unit: Offering advanced resuscitation and stabilization for critically injured patients.
• 50-Bed Delivery Suite: Providing high-quality obstetric and gynecological care in a modern, patient-centered environment.
• Integration of existing services from the acquired hospital (services to be determined based on needs assessment).

Other Professional Offerings:

• Collaboration with local universities and colleges to create residency and fellowship programs at Acme East.
• Educational and training opportunities for medical professionals in the region.

Staffing Needs:

• Acme’s existing medical staff, including residents, will take on attending roles at Acme East.
• Recruit additional physicians, nurses, and other healthcare professionals to fill staffing gaps.
• Develop a residency program specifically for Acme East, focusing on emergency medicine and obstetrics/gynecology.

Operating Model:

• Utilize a centralized administrative structure with oversight from Acme’s leadership team.
• Implement a collaborative care model, integrating specialists from Acme’s main campus as needed.
• Leverage technology for efficient communication and data sharing between both facilities.

Market Profile

Market Overview:

• Analyze demographic trends to identify potential patient populations for the new services.
• Conduct market research to assess the demand for Level Two trauma care and advanced obstetric services in the region.
• Identify and partner with local ambulance services and primary care physicians to create referral networks.

Demand Forecasting:

• Utilize historical data from Acme’s existing OBGYN unit to project the volume of deliveries at Acme East.
• Analyze regional trauma data to estimate patient volumes for the Level Two Trauma Unit.
• Collaborate with local healthcare providers to assess potential patient demand from underserved communities.

Financial Analysis

Capital Requirements:

• Develop a detailed budget for the acquisition of the existing hospital, construction of the new units, and equipment purchases.
• Utilize resources like the Fixr cost database (reference provided) to estimate construction costs for the Level Two Trauma Unit and delivery suite.
• Explore financing options including loans, grants, and public-private partnerships.

(Please note: A separate Excel sheet will accompany this plan detailing the breakdown of capital requirements.)

Reimbursement Model:

• Negotiate favorable reimbursement rates with private and public insurance providers for the new services offered at Acme East.
• Implement strategies to maximize patient collections and minimize bad debt.
• Explore opportunities for value-based care models that reward positive patient outcomes.

Cost per Patient Visit:

• Conduct a cost analysis to determine the average cost per patient visit for the Level Two Trauma unit and delivery suite.
• Identify areas for cost optimization and efficiency improvement.

Pro Forma

(A separate Excel sheet will accompany this plan with a detailed pro forma outlining the following):

• Patient Revenue: Projected income from patient care services offered at Acme East.
• Operating Expenses: Detailed cost breakdown for staffing, supplies, equipment, and other operational expenses.
• Income from Operations: Projected profit generated by Acme East’s operations.
• Total Expenses: The sum of all operational costs incurred at Acme East.
• Net Cash Flow: Projected cash flow after accounting for all income and expenses.

Conclusion

The expansion of Acme Hospital through the acquisition and development of Acme East Hospital Medical Center presents a strategic opportunity for growth and improved patient care. This plan outlines a comprehensive approach for successful integration, staffing, service offerings, and financial sustainability. The implementation of this plan will solidify Acme’s position as a leading healthcare provider in the region, ensuring continued high-quality services for the community.

Additional Considerations:

• Regulatory approvals: While the case study specifies no CON is required, explore any necessary licensing and certification requirements for the new units.
• Community engagement: Develop a communication plan to inform the community about the expansion and the benefits it will bring.
• Staff training