Strategic Planning
Define + Differentiate Mission / Vision
Mission: Who you are and What you do
Vision: the future "bigger picture" state, inspiration for whats to come
Calculate projected volume of patients + visits per year for a this target population of total hip replacements.
Incidence of pathology (THR)= .005
People in area at age of THR = 43,107
Target population = 215 THR
# of competitors = 10
average # of visits per THR = 23 visits
1. target population (.005 x 43,107 = 215)
2. Projected volume pts/yr (215 target population / 10 competitors = 21.5)
3. Projected visits per/yr (21.5 x 23 visits per episode = 494)
Analyze typical primary sources of revenue and expenses for PT practices + challenges associated with it.
typical: reimbursement, co-pay and sponsorship
Challenges: pt volume, reimbursement rates, optimization of billing and revenue cycle
List 3
consumers
Messages
strategies
outcomes
consumers: pts, caregivers and referrals
messages: quality, goals, data, outcomes, visits etc.
strategies: satisfaction, rates, mission and vision
outcomes: surveys
describe purpose of a strategic planning process
ability to reflect on performance, evaluate + change goals to align with values for next period of time
- Helps prioritize what needs to be done
What is the difference between Discipline Specific and Service Line types of organizational structure? List 1 advantage and dis-advantage to each.
Discipline Specific: This organizes people by their profession or specialty discipline (ex: A PT reports to PT director, OT reports to OT director)
advantage: understands practice / education, Disadvantage: less patient-coordinated
Service Line: This organizes care around a patient population, condition, or program, rather than profession. (ex A stroke rehab service line may include PTs, OTs and SLPs)
Advantages: more Pt centered care, disadvantages: standard needs "split"
Describe all the forms of reimbursement
Fee schedule → pt gets paid per CPT code (PT is incentivised to do more!)
Per-Diem → negotiated payment between insurance and PT of amount paid per visit
Per-case → insurance agrees to pay PT per episode of care (diagnosis)
Capitation → PT paid per population for set amount of time (HMO)
Define the types of branding
consistent message shown and presented with a company logo, slogan or promotion.
What is a SWOT Analysis + define Internal and External factors
way to look at where the business is today and what gaps need to be fixed in order to achieve vision.
Internal: (S + W) mission and vision, compliance, organizational structure + process, financial statement and human resources
External (O + T) geographical reference, target population, competition, referral source and economics.
Differentiate between types of personnel
1. staff mix vs level
2. professional vs non-professional
3. exempt vs non-exempt
4. full-time vs part-time
5. per-diem vs temporary
Staff mix vs Staff Level
Mix: types of employees
Level: how many employees
Professional vs non-professional
P: body of knowledge to educate care (PTs and OTs)
NP: non-trained (PTAs and OTAs)
Exempt vs non-exempt
E: (salaried) getting paid for a certain amount of work
NO overtime → most professionals
A: predictable, cancellations OK
D: more work for same price
NE: (not-salaried) getting paid per hour
A: light day
D: abuse of hour rate per pt
Full-time vs Part-time
FT: 32+ hours a week + benefits
PT: <32 with no benefits
Per-diem vs temporary
PD: as needed, with increased rate (SINCE no benefits)
TP: smaller period of time benefits (13 weeks)
A: housing, insurance and short-term
D: cost alot, salary and company
25% of patients are on Medicare which cost 50 $ per visit
75% of patients are with private insurance which cost 100$ per visit
.25 x 50 = 12.50
.75 x 100 = 75.00
75 + 12.50 = 87.50 per visit
define the 7 P's of Marketing
product: meeting the needs of pts + TP
promotion: methods of informing about company
price: cashed-based, co-pays and deductables
place: where facility is
people: who is hired and their skills and knowledge
process: ease of scheduling, billing etc.
physical: clean, proper, credentials (effects)
Define + Differentiate Organizational goals, measurable objectives and key performance indicators
OG: 3-5 years with setting prioritizes with iron triangle
MO: Smart goals
KPI: short-term goals to indicate achievements in vision (<1 yr)
calculate the number of FTE needed based on these numbers for a total hip replacement operation
18,400 visits per year recorded (800 THR x 23 visits = 18,400)
1 FTE expected 1,950 visits per year (38 hours a week for 52 weeks)
10 FTE (Round up from 18,400 / 1,950 = 9.44)
Differentiate between the different types of expenses
1. labor vs non-labor
2. direct vs indirect
3. fixed vs variable
Labor→ salary + benefits
Non-labor→ building, equipment, EMR
Direct→ tools and supplies used with care
Indirect→ utilities
Fixed→ not dependent on pt (rent)
Variable→ Dependent on pts (detergent)
Finish the parallel based on patient/client model and and strategic planning
referral ->
examination ->
evaluation ->
goals ->
intervention ->
Outcomes ->
referral -> market analysis
Examination -> internal and external factors
Evaluation -> SWOT analysis
GOALS -> GOALS (SMART)
Intervention -> plan of operations
Outcomes -> re-assessment, Key performance indicators and organizational goals
Differentiate between start up, operating and capital budgets
Start-up → (Pro-forma) before business calculated revenue
Operating budget → projection of revenue based on history
Capital Budget → big ticket items > 2,000$
Determine Operating gain and margin based on the revenue and expenses of the THR company
Revenue = 100,000
expenses = 60,000
based on margin %, is this better or worse than a competitor with a OM of 32%?
OM: 40,000/100,000 = 40%
better than competitor = less money spent with a better financial margin