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Occupational Health Business Plan

3 March 2023 Businnes Plan


Occupational Health Business Plan


Centroplex Health System’s (CHS) premier Occupational Medicine Program, Workwell, is designed to lower health care costs, increase productivity and reduce absenteism, improve employee morale, retain and attract high-quality employees, and provide a positive return of investment. Workwell will become Killeen&#8217’s premier Industrial Occupational Medicine Program. This program will support local businesses and help them become more productive while lowering their overall expenses.

Employers seek occupational medicine clinics in order to cut down on health care costs. Workwell, with its mission to promote total wellness of body, mind, heart, and spirit and while developing and nurturing relationships within regional businesses, will meet the needs and wants of local employers.

Two simple facts are the basis of Workwell’s existence:

  1. Employees who are healthy are more productive than those who are chronically ill.
  2. It is less expensive to prevent injuries than to treat them when they occur.

Workwell is a program that helps employees to change their behaviours and live healthier lives. This will reduce a company’s overall health care expenses while increasing worker productivity. Lower medical insurance premiums, less absenteism and turnover, lower worker’s compensation claims and tardiness, as well as shorter hospital stays will result in lower health care costs.

Centroplex Health System is a major advantage Workwell has, and should capitalize on. CHS is the choice provider for health services in its service region and has already supported the crucial structures that are required to establish a successful Occupational Med program, such Workwell. These structures include an Emergency Department, a free standing walk-in facility (i.e. COMC, a network of primary- and specialty doctors and an MCO (currently being built). The four structures together should create a loop which serves as a catalyst for business to flow into Workwell. In return, Workwell should refer back to the four structures, complete the loop. The proposed model combines Occupational Medicine services &#8211: Workwell with primary care services under a single setting, COMC. This combination of services will offer our clients an alternative comprehensive system of Occupational and Primary Care services. The result will be a synergy that expands the market, establishes new relationships, reduces operating expenses, and generates new revenue.

The keys to success and the key factors that will determine your success over the next three years according to Workwell are:

  • The development and implementation of a plan or marketing strategy that is successful for employers.
  • Recruitment of experienced medical and administrative talent.
  • Enter the Occupational Medicine market and build a “brand” name before the competition.
  • Commitment to continually improve the quality of our service
  • Demonstrate a financial investment return.
  • Senior Management’s commitment

CHS can develop and implement an occupational medicine program based on the business plan. According to market research, 7,720 worker compensation injuries occurred last year. CHS was responsible for 2,532. Furthermore, it is projected that worker compensation injury will increase to 9,446 within the next four year. This business plan has a five-year goal to position CHS so that it can treat 5,064 workers compensation injuries, and thus achieve 53 percent market share.

Below is a chart that illustrates the overall highlights of the business plan for the next five-years. The total number of visits to COMC is expected to rise from 11,085 up to 15,918 in Year 5. This will translate into an increase in total revenues as well as net surplus.

1.1 Objectives

  • The key objective of Workwell will be to help ESTABLISH Centroplex Health System as the “ONE STOP SHOPPING” MEDICAL CENTER FOR HEALTH CARE IN ITS SERVICE AREA.”
  • Offer a full range of Industrial Occupational Medicine Services that provide prompt, high-quality medical care for all employees injured.
  • By Year 1, Provide Occupational Medical Services to 10 Killeen Employers (50 employees) as well as 20 small employers (50 employees).
  • Expand the target market to provide Occupational Medicine services to employers in these zip codes: 76540-43, 76548, 76513, and 76559, by the end of Year 2.

  • Increase the market share to provide Occupational Medicine services for the Centroplex Health System Service Area, (Bell Lampasas and Coryell counties) employers by year 3.
  • Become the Provider Choice in Occupational Medicine for your region.

    • 1.1.1 Observation, Recommendations

    OBSERVATIONOccupational health programs have been stepchildren in hospitals because they’ve historically not brought in much revenue. However, they can be lucrative if health systems have the skills and are able to direct employers to purchase them. As the health care dollar shrinks due to the limitations of discounted managed care, providers must be proactive and aggressively pursue new revenue streams. Occupational health services can be used to build positive relationships with local employers. This can help you tap into new revenue streams.

    RECOMMENDATIONS

    The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.

    Here are some options or recommendations:


    Consult a consultant for the launch of the program.

    This recommendation has two main reasons. Second, we don’t need to reinvent the wheel when there are proven methods. All the programs reviewed either hired an experienced occupational physician director or an outside consultant to help the program succeed. CHS does not have the expertise to support this effort and is considering hiring a consulting company.

    You can also use these reasons:

    CHS will be able to offer a formalized occupational medical program to area employers and its employees within just 30 &#8211, 45 days. This program’s personnel burden ($$$) can be used to pay experts to apply their proven methods. By spending the monies to acquire consultants, senior leadership will find a renewed commitment to the success of the program.

    Although CHS runs the risk of having a “canned” program, it is understood that the positives outweigh the negatives. Three consulting firms submitted bids in support of this project. These include Concentra Health Services and Florida Hospital. I have included a copy in your presentation.

    Create the occupational medicine program within-house

    Positives:

    You can save money.

    Customized program.

    Negatives:

    Time frame

    Manufacture of incompetent.

    Insufficient commitment from senior leadership

    Decision to remain status quo:

    The program will still operate as before this option.

    Positives:

    None.

    Negatives:

    Continue to lose revenue

    Potential to lose market shares

    Networking with local employers is a lost opportunity

    Do not miss your chance at becoming a “one-stop” shop for all things health care.

    CHS employee injury costs are expected to continue to rise.

    Divestiture from COMC

    This option allows COMC to go on the marketplace and be sold.

    Positives:

    Many people have a lot to spend.

    You can use the $$$ for expansion or development of new programs.

    Leadership can spend more time focusing on issues closer to “home.”

    Increase the bottom line of CHS (at least for the short-term).

    Negatives:

    Lose new revenue stream.

    Lose market share.

    Loss of prime spot

    Competitors should establish themselves in this setting.

    It is easy to lose your identity on the market.

    1.2 Mission

    Workwell, a premier program in industrial occupational medicine, is customer-focused. The team approach aims to deliver quality occupational health, safety, and rehabilitation services. This includes addressing a person’s overall health (body, mind, and spirit) while building and maintaining partnerships with local businesses.

    1.3 Keys for Success

    Workwell’s keys to success are:

    • Development and implementation of a successful marketing strategy/plan to employers.
    • Experienced medical and administrative talent are sought after.
    • In the Occupational Medicine Market and Building a “”8220”

    brand” name before the competition.

  • Commitment to continually improve the quality and service.
  • Demonstrate a financial return for investment
  • Senior Management should show their commitment

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