BUSINESS PLAN

Mobile MRI

MRI OUTPATIENT TRANSPORTATION SERVICE LINE

BUSINESS PLAN Content

Background information Summary Company Description Product / Service The market

Strategy and Implementation

Management Team Financial Analysis

BUSINESS PLAN Personal Information

Values and Visions

To provide the best outpatient MRI transportation service in the metropolian Detroit area.

Missions and Goals

Support the promise of community service through customer engagement.

BUSINESS PLAN Executive Description

Ownership Executive Summary

My business plan is to implement a new outpatient transportation service line to accommodate patients in Oakland and Wayne county who are in need of MRI services at the DMC 3 largest facilities. The facilities are Harper University Hospital and SinalGrace Hospitals in Wayne county, and Huron Vally-Sinai Hospital in Oakland county. This proposal is supported by the DMC in an effort to stem the tide of no show patients in MRI throughout the organization.

Facilities and Location(s)

This service will originate from the various physical MRI locations and travel within the designated counties in fulfilling community and organizational demands.

BUSINESS PLAN Summary

Who are we Hospital based transportation service dedicated to the comittment of providing quality community service What do we produce/offer? We offer the convienence of efficient transportation to and from a DMC facility for your MRI exam Which and how many customers? This service is offered to adult men and women in Oakland and Wayne counties First year turnover N/A

First year profit? Projected revenues = $576,000 vs. $238,720 in start up cost. Variance = $337,280 Funding needs? Vechicle Lease/Insurance. Staffing needs. Marketing/ Promotion. Office furniture/maintenance

BUSINESS PLAN Highlights

Transportation
Providing trsnsportation to patients in need of MRI services in the community

Revenue
Revenue generation is projected to exceed $300,000 in year one

Service
Service is in keeping with the DMC mission of providing quality care to all

Business Plan highlights

Marketing
T.V, radio, brochures, pamplets,business cards, website

Capital Cost
Lease of 3 vehicles,Insurance. Fuel, staff salaries,office furniture and marketing

BUSINESS PLAN Product / Service

NEW SERVICE LINE

MRI outpatient transportation service in response to community and organizational needs

Product / Service

CUSTOMERS
Marketing strategy identifies customers in need of service at time of appointment scheduling.

SERVICE
Patients will be transported to MRI 1 hour prior to their scheduled appointments.

Addresses one cause of revenue loss Identifies a community need Provides a service unique to MRI departments. Supported fullly by the organizations adminstration and finance leadership

BUSINESS PLAN The Market

Market Trends
Decreased referrals, insurance authorization delays contribute to MRI no shows affecting revenues.

Market Growth
There is a sizable market for this type of service. Some customers have no transportatio, or unreliable transportation.

Market

Industry Analysis
The competitive nature for MRI patients throughout the industry demands new approches for attracting patients.

Main Competitors
There are other services that offer transportation for general physican services, but none specific for MRI services.

BUSINESS PLAN The Market

The typical private customer

Gender: Adult Male/Female Age: 18 years and older Percentages Wayne County Male (48.1%) Female (51.9%) Oakland County Female (51.4%) Male (48.6%)

The typical business customer

Median Income per County Oakland County - $62,308 Wayne County - $41,886

Geographical factors / limits

Domestic: Servicing Oakland and Wayne Counties Populations Wayne County 1,792,365 (2012 estimate) Oakland County 1,210,145 July 2011)

Assumed number of customers

24 MRI outpatient customers/month 288 MRI outpatient customers/year Additional patients/revenue generation as a result of the transportation service.

BUSINESS PLAN Financial Analysis

Initial Capital
Vehicle purchase Auto Insurance Establish Office

Total Funding Needs

$41,400

Investment
Marketing strategy Service staff and training $201,320/year

Miscellaneous
Fuel cost

14,000/year

BUSINESS PLAN Financial Analysis

6 MRI/WEEK Vehicle Lease/Insurance/Fu el $54,600/YEAR

$12,000/week

24 MRI/month $48,000/month

Budget Expenditures for one year

Staff Salaries $181,320/YEAR

Yearly Total

Marketing
$2,000/YEAR

$576,000/year

BUSINESS PLAN Budget

Budget
3 leased vehicles

Expenses

Revenue
6 MRI/week

MRI Exams

Variance

$37,000/ye ar $3,600/year $14,000/ye ar $2,000/year $181,320/y ear $237,920/y ear

$12,000/we ek $48,000/mo nth

24MRI/week

Insurance/fuel

Marketing

Salaries

288 MRI/Year

TOTAL

$576,000/y ear

$337,280

BUSINESS PLAN Strategy and Implementation

STRATEGY
Obtain the capital funding to address one cause of revenue loss across the DMC Lease the vehicles required for the service Establish a MRI outpatient transportation service complete with staff, office and necessary furnishing/equitpment Commence a media campaign that advertises the new service throughout the DMC and affected counties

IMPLEMENTATION
The marketing campaign will begin 1 month prior to the start of the service The staff will be finalized and fully traine 2 weeks before the service begins The directors of the respective radiology services and director of valet parking will assume administrative responsibility for the service The service is started DMC wide.

BUSINESS PLAN Strategy and Implementation

ADMINISTRATION Approve Capital expendatures associated with service start up cost

MANAGEMENT Identify, hire and train the staff who will transport patients to and from the various MRI facilities

Management responsibilities
Targeted Areas

MARKETING Provide marketing support for aggressively advertising the new service to the community

SUPERVISION Close monitoring of the service and implement process changes as indicated

BUSINESS PLAN Management Team

Radiology Dir. Harper University Hospital Driver

Dir. Valet Parking

V.P. Patient Services

Radiology Dir. Huron ValleySinai Hospital Secretary

Office Clerk .

Radiology Dir. Sinai-Grace Hospital

Driver

BUSINESS PLAN Management Team

DMC VISION
The Detroit Medical Center will be known for: Quality, cost-effective care Accessible, responsive, and personalized service Mutually beneficial relationships with medical staff Management leadership and a positive work environment Community service and stewardship Fiscal control, responsibility and efficiency