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Posted: March 1st, 2023

Business Plan for a Healthcare Organization

Business Plan for a Healthcare Organization
Two main tasks:
The first task is: Source of Revenue: An Increase in the Medicare Patient Population

The president of Gentiva Health Services is considering increasing her number of Medicare patients served next year. However, to do so she must begin to use RNs for client visits, which Medicare reimburses at $45 per visit. An RN costs $35 per hour versus the current cost of $15 for an LPN or nurses aide. The president believes she can increase her patient visits by 15% by accepting Medicare patients. She is also aware that if she increases her Medicare patients, the companys administrative costs will increase by approximately $10,000 per year because of the claims file complexity.

Using the Gentiva Health Services Statement of Income http://investors.gentiva.com/financials.cfm, use the following volumes for your calculations:

Volume for the year:
Flexible budget: 6,000 visits
Static budget: 5,945 visits
Actual budget: 5,889 visits

Prepare a two-page report that addresses the following:

How many more visits will the company generate if it accepts Medicare patients
What would be the estimated profit or loss associated with the Medicare service line
Would you recommend that Gentiva Health Services increase its number of Medicare patients served Why or why not

The second task is: Business Plan

Review the quarterly report and develop a business plan for the organization for its upcoming financial year. Be sure to include the following in your organized business plan:

Organization segment
Marketing segment
Financial segment
Projected cash flow statement
Projected income statement
Projected balance sheet

Feel free to take liberties with information needed that is not available in the report.

You may find the quarterly report at http://investors.gentiva.com/financials.cfmInclude all required tasks for this assignment in a Word document.

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