One year’s budget for my clinical practice
Solvency
Total 2 years amount from operations= $1000, 000
Total liabilities for 2 years: $ 800, 000
Company’s solvency = 1000000 / 800000=1.25 or a ratio of 5:4(Operations: Liabilities) (BBC financial analysis, 2013).
Based on the above solvency, the projection for growth for the practice is that the company is projected to grow by a double digit in every 5 years. This will be as outlined in a 30 years plan, which will be a blue print for my practice.
In order for my practice to achieve its goals for the next five years; I would require some financial boost from financial institutions. This loan will be serviced by funds from the operations of my practice. Pricing for my operations will be guided by research. The prices for services offered will be subject to the prevailing charges by other practitioners, with a view to observe modesty. The same will be determined by the nature of services offered, meaning that all services will have their unique pricing criteria (Vives, 2001).
In order to maintain profitability in my practice, I will observe two marketing concepts of differentiation and positioning. In marketing, differentiation is the process of distinguishing a product or service from the rest through describing its unique differences and or characteristics. It is done for competition purposes with a view of creating a market niche for that particular product or service. Differentiation seeks to create a good image about a particular product among the targeted consumers so as to ensure that they perceive it as unique and different from other similar products (Armstrong & Kotler, 2009).
Product differentiation makes the targeted consumers not compare a particular product with others; which gives that particular product a competitive advantage over the others. In doing differentiation, marketers or product owners may rely on advertisement, promotions, improved product quality, lowering or increasing the prices as well as the lack of understanding on the part of the consumers regarding the price and quality of the product being differentiated (Armstrong & Kotler, 2009).
A company may engage itself in differentiation of several products at the same time. This makes it have a definitive number of customers, who are sort of owned by it due to the uniqueness of its products or services. This is what is called positioning. Positing entails using various strategies like promotion, distribution of products or services and production of unique products with unique pricing to build an identity of a particular company or organization in the minds of particular consumers.
Positioning seeks to stabilize and retain the positions of the particular differentiated products for a particular company so as to retain the competitive advantage of the company in regard to those products. For a company to create and maintain a particular position in a market, it needs to do a thorough research and consistent monitoring of market trends so as to modify or readjust the differentiation and positioning strategies for its respective products.
Every business is established with an idea of making profits through provision of goods and services to its customers. However, it is not guaranteed that once a business is started it has to make profits. What this means is that a business must labor to ensure that it provides services which are of good, if not high quality to its customers.
In clinical practice, provision of quality care services impacts the bottom line of any healthcare business in that if the services provided are of poor quality, then very few or no clients will be willing to seek services from that particular healthcare provider. On the other hand, if the services provided are of high quality, then the business will have many people going to seek healthcare services from that particular healthcare provider.
I plan to prevent medical malpractices by ensuring that each and every employee strictly adheres to the code of conduct of the medical profession. Each will be expected to maintain high standards of integrity. I will also ensure that I have in place an organizational culture which upholds best practices so that the employees will not be supervised every now and then. I will also put in place an open policy whereby the customers will have an avenue to report any kind of medical malpractice without the fear of victimization. This will scare away any defiant staff who may be tempted to engage in fraudulent schemes, both internally and externally (Keir, 2008).
I plan to increase revenue collection through establishment of mobile services. This will entail taking healthcare services, including treatment, screening and therapy to the homes of particular patients who for one reason or the other are not able to come to the facility. This will ensure that my revenue bracket will be expanded. I plan to reduce bad debt by ensuring that there is a proper plan of what constitutes essential and non essential costs, and ensure that the plan is strictly adhered to. I will also review financial data on a daily basis to check the day’s revenue from operations, the day’s expenses as well as petty expenses. In every week, I will review the total income as well as the total expenditure while in every month; I will review the comprehensive monthly financial report. The reviews will be aimed at ensuring that any deviations from the plan are noticed the earliest time possible and corrective measures are put in place. The reviews will also inform the plans for my practice.
My key vendors will be registered pharmacists and other registered suppliers. This will ensure that I get products of good quality so as to ensure the safety of my customers. In order to ensure a good relationship with the vendors, I will ensure that I pay them promptly and also maintain good communication with them based on mutual trust and agreement.
References
Armstrong,G., & Kotler, P. (2009). Marketing. An Introduction. (9th Ed). Prentice Hall: Pearson Education Company.
BBC financial analysis (2013). Meaning and definition of Solvency. Web.
Keir, L.(2008). Medical assisting: administrative and clinical competencies. Clifton Park, NY: Thomson Delmar Learning.
Vives, X. (2001).Oligopoly pricing: old ideas and new tools. Cambridge, MA: MIT Press.