Project on:

In The Name of Allah, the Most Beneficent, the Most Merciful

As submitted by:

Muhammad Mazhar Manzoor Muhammad Mazhar Manzoor

CONTENTS

1.1 Vision Statement ………………………………………………11.2 Mission Statement ……………………………………………..21.3 Executive Summary ……………………………………………3

2 Introduction ………..……………….………………………..042.2 Industry Analysis ….................................................................062.3 Description of Venture ………………………………………092.4 Marketing Plan ………………………………………………122.5 Organizational Plan ………………………………………….142.6 Assessment of Risk ...………………………………………..162.7 Financial Plan ………………………………………………..18 2.8 Appendix …………………………………………………….23

UNIT 1

UNIT 2

My vision is to be reputable entrepreneur in our society and giving some facilities to our citizens within affordability of their class. I make some efforts to accomplish our aim.

As i know every entrepreneur is going to start new business and needs preparation for a most accurate business plans which help them out to have a great opportunities in the chosen business. Business plans are nothing short of a must. “To get out and get experience, no matter how good the plan is, i 're going to learn something once i try it. Most successful business has found a low-cost way to experiment and know quickly whether it works. Therefore i have map to work and make a future business plan to setup “Health Care Hospital” at Karachi Pakistan.

Any business, but particularly a small business, must constantly adapt to changing market conditions, new business tools, and new opportunities to continue to grow and prosper its business so that in this report i will diagnosis business situations that looking for growth opportunities. To develop our business plan i focus on the following points.

How i organize this business. What will be the criteria of selection? How i generate and avail resources to give business a practical picture. What will be the main focuses during developing business plans? What type of criteria i should focus to create actual representation. How i manage this business in accordance to market situation. What types of tools are necessary in developing business and business

plan? What kinds of attempts are necessary to solve the problems arising

during and after the business plan?

VVISIONISION 01

Hence, in this report i analyze the situations and state of affairs to know basically about the business developing strategies and business plans.

EEXECUTIVEXECUTIVE S SUMMARYUMMARY

"He who saved a life saved the Mankind - (Al-Quran)”

To work with utmost devotion and boost up the standard of organization with in flinching efforts in challenging conditions and situations. Main mission is to step-in a practical world by creating a future business plan with the help of application of concepts, tools, techniques i have studied so far. This business plan will prove as a guide in future for us.

To work simultaneously, to respect opinions and view of others. To be reliable & accountable for our own team participation. To work on assigned task & challenges, accepting each member thoughts. I will identify, create a plan of action utilizing everyone’s knowledge, soliciting input from all in the organization. Being responsible and acknowledging each personal thought and efforts put in by each member. To be successful as a team & as individuals."

To continually develop the potential by acquisition of key personal and professional skills required for advancement into an executive management position within organization. The value authenticity and joyfulness because seeing these traits in another makes us feel comfortable around them and know that i can trust them. I want to be one who others trust and feel comfortable with, so i will show the authentic, joyful self more often.

EXECUTIVE SUMMARY

MISSIONMISSION 02

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EENTREPRENEURSHIPNTREPRENEURSHIP

Health care hospital currently exists to manage medical practices. These services relieve medical professionals of tedious detail work, but rarely do they offer a means to substantially maximize the practice's bottom line. Health care Hospital will not only free office staff for more crucial tasks, but will also maximize return from insurance carriers.

National statistics show only about 70 percent of insurance claims, initially submitted on paper, and are ever paid by insurance carriers. With electronic submission Physicians 1st Billing and Claims can increase the percentage of claims paid to around 98 percent.

Additional statistics indicate that it currently costs a medical practice beti en $8.00-$10.00 per claim to process insurance for their patients. Health care Hospital can reduce these costs by 50 percent or more.

Statistics show turnaround on paper insurance claims to be 30, 60, even 90 days or longer, creating serious outstanding receivables for the practice. By submitting claims electronically, Health care Hospital can generally have money in the physician's hand within 14-18 days. Of course, this reduces outstanding receivables proportionately and tremendously improves cash flow.

Statistics also show a 30 percent suspension/rejection rate for paper insurance claims. This doesn't mean that the claims are never paid. What it does mean is medical staff must hassle with insurance carriers over payment. With the extensive editing performed on electronic maintain prior to their transmission to carriers, this percentage is reduced to 2-3 percent. Claims are submitted with a 98 percent accuracy rate.

Health care Hospital is contributing over 50,000 to this business. I are requesting to borrow another 25,000. Please give this detailed business plan your attention. The use of these funds is explained in the Start up section.

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EENTREPRENEURSHIPNTREPRENEURSHIP

ENTREPRENEURSHIPENTREPRENEURSHIP

“To create a new business plan”

INTRODUCTION

a. NAME & ADDRESS OF BUSINESS

The name of business is Health - Care Hospital. In Pakistan a substantial portion of the population reside in rural areas with low family incomes and bare realization of importance of healthy living conditions. This document guides planners to create consistent, complete, and efficient business plans. It is meant to serve as a reference for all new business planning. Each opportunity is unique, so elements of this guide which do not apply to a given business opportunity may be omitted. It is looked at Gulistan-e-Jauhar Block-1 Karachi.

b. NAME & ADDRESS OF OWNER

This business is organized by Muhammad Mazhar Manzoor who is residing at Karachi.

c. NATURE OF BUSINESS

This business will provide healthiness services to customer’s basis on small business. The title, Health Information Technology, may not be one with which you are familiar, but people employed in this field are a vital component of every medical setting. You can find Health Information Technicians in every hospital, outpatient clinic, nursing home, health insurance organization, physician's office, hospice and mental health facility.  

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Health Information Technicians are the individuals who compile the data for medical-related agencies. More importantly, they determine specifically how that data is complied and reported to insurance companies, government agencies and others. These individuals have the technical skills needed to maintain the components of health information systems consistent with the medical, administrative, ethical, legal, accreditation and regulatory requirements of the health care delivery system. 

d. Statement of Financing Needed

The project is proposed to be financed with the financial assistance of National Bank of Pakistan under Demand Finance Scheme in the form of local currency loan Rs. 10.192 million, to be paid off over six years. This debt will cover the purchase of land, equipment and construction of Building. The paid up Capital of proposed firm would be Rs: 4,000,000/-. The proposed debt equity ratio would be 60.76%: 39.24%.

e. Statement of Confidentiality

This business is confidential and is the property of the owner listed above. It is intended only for use by the persons to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the member of business is prohibited.

IINDUSTRYNDUSTRY A ANALYSISNALYSIS

INDUSTRY ANALYSIS

Future Outlook and TrendsIn addition to developing a concurrent model of underlying medical care

trends, our objective was also to develop forecasting techniques using leading indicator or economic scenario relationships to project future trends. These models are constructed using software that detects trend variables and other interventions on an automatic basic. The final variables that comprise the statistical models of our medical trend history and resulting forecasts are: CPI (excluding energy), Real Personal Income (with multiple lags generally of 3 to 5 years), and a variable to reflect the relative increase of Medicare vs. Non-Medicare hospital inpatient per diems. These variables have consistently shown a strong relationship over the nearly 15 years i have been doing this modeling. These variables explain the annual growth in our medical care trend model, along with a constant 3.5% per year of excess growth (trend variable) from inception of our data. This is roughly consistent with the average excess Medical GDP vs. Total GDP growth over this period. Hoi ver, in the early 1990s, our models began to over predict future trends. After some time our software was able to identify a paradigm shift and to develop a reduction in the annual "excess growth" from about 3.5% down to about 1% beginning in the late 1980s. The other model variables remained relatively unchanged. I attributed this reduction to the "managed care effect" since it happened concurrently with the rapid "managed care" expansion at that time. This reduction seems to have remained in effect at least through the late 1990s.

THE PROJECT The Proposed project of Health care Hospital and will provide routine

and specialized medical care to the general public in the under fields.1. Operations2. Laboratory3. X-Ray.4. Labour Room5. Physiotherapy6. Dental7. Skins8. Neurology9. Orthopedics10. Eye

For the purpose of this appraisal the operational efficiency of the proposed Hospital has been assumed to be 60% in the first year, 70, in the second year, 80% in the third year, And 80% in the fourth year and Subsequent year basing 330 days in a year.

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IINDUSTRYNDUSTRY A ANALYSISNALYSIS

BUILDINGThe Building proposed to be constructed will have covered area of

11992 Sqft on Multi Story Building the Total Cost of the project building is estimated at Rs: 13.441 million.

EQUIPMENTS The total cost of the equipment proposed to be purchased is estimated at

Rs: 11.253 million based on the quotations received from different machinery suppliers in response to invitation published in the daily news papers calling tenders for supply of equipments for the proposed hospital.

UTILITIES a. WATER: The requirement of water will be met from public Health

Engg: Div KARACHI water tank capacity of 5000 gallons will be constructed.

b. POI R: The poi r requirement is estimated 100 KW which will be obtained from KESC.

c. PERSONNELS: The hospital will employ 90 persons comprising, nurses, technicians, and administrative staff.

OBJECTIVESImportant objective of an effective medical health-care system is to

ensure the availability of facilities for early prevention, diagnosis and treatment of various aliments and diseases which afflict us from time to time. The concern for health standards is of such crucial importance, that government in all the major countries, key health service facilities, registration of medical products are closely monitored by appropriate governmental agencies and standards of quality control are rigidly enforced. As such, hospitals primarily, as an Institution most conveniently and readily stand in position to meet the above objectives professionally and in a sustained way. Even private hospital when monitored properly can function and operate under high degree of standards of comply with the basic objectives of the health policies.

COMPETITORS ANALYSIS:The purpose of this step is to assess the competition by understanding what the competitor is doing and can do and determining its relative strengths and i aknesses. The outcomes of this analysis will aid in focusing on appropriate program development opportunities. Competitor analysis requires identifying:

geographic location of competitors the competitor's service mix the competitor's market share

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IINDUSTRYNDUSTRY A ANALYSISNALYSIS

whether the competitor is for-profit or not-for-profit

the competitor's capabilities and hospital resources the competitor's physician resources existence of other freestanding competitors methods competitors use to attract patients areas where the competitor is most vulnerable potential moves or strategy shifts the competitor will make as a result of

the new service the competitor's pricing structure

In Karachi the main competitor is Aga Khan Hospital because who give the more facilities of every one but Low income persons can not afford because it’s very expensive.

MARKET SEGMENTATIONThe business of hospital is segmented in accordance with location and income pattern of peoples. Location is concern as the low area working class is given preference and small pattern income people are also concerned as preferable.

INDUSTRY FORECASTS (BAR)INDUSTRY ANALYSIS

0%

20000%

40000%

60000%

80000%

100000%

Physicians

Dentist

Other

INDUSTRY ANALYSISINDUSTRY ANALYSISPotential Customers Growth 2003 2004 2005 2006 2007 CAGR

Physicians 2% 867 800 893 906 920 1.49%Dentist 2% 179 183 187 191 195 2.16%Other 2% 18 18 18 18 18 0.00%Total 1.58% 1,064 1,081 1,098 1,115 1,133 1.58%

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DDESCRIPTIONESCRIPTION O OFF V VENTUREENTURE

DESCRIPTION OF VENTUREServices

Our position in the market will be a full-service medical reimbursement business with individual pricing. As stated previously, our goal is one-stop shopping for medical practices when it comes to administrative functions. Health care system Electronic Claims Service's policy is to customize our charges based on the work i do, and the needs of each office. I find that each practice is unique and, therefore, i do not quote a "standard charge" for services.

A detailed description of the electronic submission process follows. The data necessary to submit claims will be downloaded from the medical office and input into specialized computer software. The software performs certain generic edits on the data and stores the information. When a batch of claims is complete for an office, it is time to transmit to the national clearinghouse. The data travels via modems and telephone lines to the clearinghouse where the data is edited a second time. These edits are performed on each claim before they are transmitted on to the carrier, thus guaranteeing accuracy and payment in most cases. Upon receiving the insurance claim from the clearinghouse, the carriers process the claim and send payment directly to the medical practice. With electronic transmission to the clearinghouse and on to the carrier, computerized data verification, and elimination of most of the human element, the process of claims payment is greatly simplified and accelerated. Physicians will no longer wait 30, 60 or 90 days for payment, but will have money in their hands usually within 14-18 days. As practices begin experiencing the benefits of electronic submission, many will see the advantage of out-sourcing other administrative functions.

TOTAL COST OF SERVICES RENDERED

DESCRIPTION COST ON:

1st Year

2nd Year

3rd year

4th year

5th year

Major Operation 428 612 798 1010 1060Minor Operation 428 610 798 1008 1062Eye Treatment 72 102 134 170 176Out door Patients 190 278 360 452 476(Ent. Dental, Skin, TDC)          Laboratory 166 240 306 392 440Physic Therapy 2 4 4 6 6Ambulance Service 28 40 52 66 72Other (X-Rays, Ech ECG) 142 204 264 332 356Total 1456 2090 2716 3436 3648

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DDESCRIPTIONESCRIPTION O OFF V VENTUREENTURE

0

200

400

600

800

1000

1200

1st Year 2nd Year 3rd year 4th year 5th year

Major Operation

Minor OperationEye Treatment

Out door Patients(Ent. Dental, Skin, TDC)

Laboratory Physic Theraphy

Ambulance ServiceOther (X-Rays, Ech ECG)

SIZE OF BUSINESSThis business will provide medical services on the reasonable charges to

small size businesses, which consist on 50-90 employees, are performing their duties.

OFFICE EQUIPMENTS

A. EQUIPMENT TO BE LOCALLY PURCHASED

1. Major Instruments

2. Small Instruments

3. Hospital Kitchen

4. Eye Speculum

5. Cataract Knife (imported)

B. EQUIPMENT TO BE IMPORTED1. Main OT Instruments

2. Blain Forceps

3. Laboratory

4. X-Ray and Ultrasound Machine

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DDESCRIPTIONESCRIPTION O OFF V VENTUREENTURE5. D.C Generator 240 KVA

C. OFFICE EQUIPMENT 1. Computer for Records

2. Inter Com: System

3. Typewriter

PERSONNEL / STAFF1. Consultants

2. Seniors Doctors

3. R.M.O (Doctors Male)

4. R.M.O (Doctors Female)

5. Nurses

6. X-R (Radiologist)

7. Lab Technician

8. Ward Boy

9. Manager Finance

10. Receptionist / Tel: Operator

BACKGROUND OF ENTREPRENEURS

An entrepreneur must take risks with his/ her own capital in order to sell and deliver products and services while expending greater expending greater energy than the average businessperson in order to innovate. He / she able to face with daily stressful situation and other difficulties. He / she will also able to establish a balance beti en ethical exigencies, economic expediency and social responsibility.

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MMARKETINGARKETING P PLANLAN

MARKETING PLAN

PRICINGTREATMENT CHARGES (Rs)   Major Operation 10,000Minor Operation 7,000Eye Treatment 1500Delivery 6,000Out door Patients(Ent. Dental, Skin, TDC) 500Laboratory 280Physic Theraphy 600Ambulance Service 300Other (X-Rays, Ech ECG) 500

DISTRIBUTIONAs i know this factor provides utility to the consumer, that is makes a services convenient to purchase when it needed. Environmental issues may also be important in distribution strategy. Special considerations and regulations regarding drug products are very essential to distribute with the help of this strategy and to provide the products and services to low income customer within affordable rates. I will use different channels in order to provide services to our valuable customers on the basis of services provided strategy.

PROMOTION

MARKET AND ECONOMIC JUSTICATION

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MMARKETINGARKETING P PLANLAN

As such naturally all efforts are made to keep the family medical care expenses at the loi st possible levels in spite of high incidence of diseases and low life expectancy rates as compared to other developed Counties.

The concept of periodic medical check-ups and preventive medical therapy is not given the importance that is considered necessary in the developed Countries. It is only when the ailments/ diseases affect the patients physical and functional capacities, that medical guidance and treatment is considered necessary. Hospitalization of patients generally is restored to only in extreme and unavoidable situations.

Hoi ver, with rise in per capita income, improvements in living standards and increasing a awareness of the important of health conditions, the medical and health – care needs in the country have undergone significant changes and development during the past two decades. Hospital/medical cares institutions have undergone sustain tail reinforcement to meet the requirements of modern health-care and services particularly in the rural areas.

CONTROLSControl allover the hospital staff and market situation this responsibility

is owner of the hospital.

Access controls

o Limit number of visitors to those essential for patient support.o Screen all visitors at point of entry to facility for signs and

symptoms of influenza.o Limit points of entry to facility; assign clinical staff to entry

screening.

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OORGANIZATIONALRGANIZATIONAL P PLANLAN

ORGANIZATIONAL PLAN

FORM OF OWNERSHIPOwner of the hospital should experience consists of three years of

administrative experience, 13 years managerial experience in the Building Materials industry. As a manager, owner of the Hospital gained experience in marketing, back-office operations, sales, and managing people. Owner will use this experience in managing the Marketing and Sales departments. Owner of the hospital must have the experience of medical field.

AUTHORITY OF PRINCIPALSo Administration/senior management (including fiscal officer)o Legal counsel/risk managemento Infection control/hospital epidemiologyo Hospital disaster/emergency coordinatoro Engineering/physical plant/industrial hygiene/institutional safetyo Nursing administrationo Medical staff (including outpatient areas)o Intensive-care unito Emergency departmento Laboratory serviceso Respiratory therapyo Nutrition and food serviceso Pharmacyo Environmental services (housekeeping, laundry)o Public relationso Securityo Materials managemento Education/training/staff developmento Occupational healtho Diagnostic imagingo Information technology

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OORGANIZATIONALRGANIZATIONAL P PLANLAN

MANAGEMENT TEAM BACKGROUND

In conjunction with the design of the organization the entrepreneur will need to assemble the right mix of people to assume the responsibilities outlined in the organization structure. There are some important issues to address before assembling and building the management team. In essence the team must be able to accomplish three functions:

Execute the business plan.

Identify fundamental changes in the business as they occur.

Make adjustment to the plan based on changes in the environment and market that will maintain profitability.

Background of entrepreneur must be from medical field in order to accomplish the business easily.

ROLE AND RESPONSIBILITIES OF MEMBERSHealthcare Facility Responsibilities:

Develop planning and decision-making structures for responding to pandemic infection.

Develop written plans that address: disease surveillance, hospital communications, education and training, triage and clinical evaluation, facility access, occupational health, use and administration of vaccines and antiviral drugs, surge capacity, supply chain and access to critical inventory needs, and mortuary issues.

Participate in pandemic infection response exercises and drills, and incorporate lessons learned into response plans.

State and Local Responsibilities: Develop statewide and local or regional plans to manage an influenza

pandemic. Assist healthcare facilities in conducting exercises and drills to test

healthcare response issues and build partnerships among healthcare and public health officials, community leaders, and emergency response workers.

Develop a communications infrastructure to facilitate and ensure the timely dissemination and transfer of information beti en the healthcare and public health sectors.

Address legal issues that can affect staffing and patient care.

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AASSESSMENTSSESSMENT O OFF R RISKISK

LIFE EXPECTANCYLife expectancy in the country is 63 years. This is low compared to

advanced counties of the world hoi ver; the life expectancy in the country has been steadily improving.

ASSESSMENT OF RISK

EVALUATE My AKNESS OF BUSINESS (HOSPITAL)

Specialty hospital rival strongly contend that such facilities unfairly undermine the fiscal viability of full service community hospitals, to the public’s ultimate detriment. By “losing” better-reimbursed cases to specialty hospitals (which, it is argued, result from alleged physician conflicts of interests rather than greater efficiencies or consumer preferences), community hospitals will become unable to cross-subsidize indigent care and other unprofitable services with the revenue now flowing to the new competitors. Whether such subsidization is itself an economically negative and inefficient practice that merits deference is a topic for actual debate, as is the proper way to calculate the relative “community contribution” of tax paying specialty hospitals when compared with tax-exempt facilities. Such debate seems likely to reverberate among policymakers for the foreseeable future.

STRENGTHSTheir strengths are:

Experience. Education. Large client base.

From the perspective of free market competition, the end of the moratorium can be viei d as a healthy and beneficial step. Viei d through this lens, a specialty hospital is an efficient, technologically advanced “focused factory” in the positive spirit of free market capitalism predict. The removal of needless government barriers to entry will, in this view, greatly benefit the consuming public by applying necessary market discipline to all providers, which will be particularly beneficial in an age of consumer driven health care and increased individual financial responsibility for personal health expenditures.

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AASSESSMENTSSESSMENT O OFF R RISKISK

NEW TECHNOLOGIES

The computer software that is the crux of Health Care Hospital reimbursement business is state of the art. Health Care Hospital is running in Windows 98. The software was specifically developed as a tool for medical reimbursement consultants. This is important because some software being sold is written to manage a doctor's office and does not necessarily incorporate all functions that are needed for consultants. The software also includes the latest features needed for managed care organization management, including tables for the numerous fee schedules which may be required and customized reports to evaluate contacts.

When annual clinical strategic planning has started and hospital leaders have begun to analyze or reaffirm what clinical services they want to offer the community, the hospital can then conduct credible technology strategic planning. Key elements of this planning involve an initial audit of existing technologies for fit with current or desired clinical services, plan for replacement and selection of new technologies, setting priorities for technology acquisition, and developing a process to implement equipment acquisition and monitor ongoing utilization. "Increasingly, hospitals are designating a senior manager (e.g., and administrator, the director of planning, the director of clinical engineering) to take the responsibility for technology assessment and planning. That person should have the primary responsibility for developing the strategic plan with the help of key physicians, department managers, and senior executives.

CONTINGENCY PLANS

For physicians as i ll as established hospitals the overriding decision from which other specific strategy will flow, is the basic but ultimate choice of being “for” or “against” specialty hospital development in an overall sense. This strategic determination may be reminiscent of parallel debates which occurred during the earlier development of a distinct. In that context, many hospital systems initially chose to oppose any development by joined physicians under any circumstances, but ultimately decided to pursue mutually beneficial joint ventures when it became apparent, sometimes at significant cost that the “problem” would not simply go away by itself. In many such instances,

17

FFINANCIALINANCIAL P PLANLAN

creating strategic alliances proved to be a more effective step for all stakeholders rather than choosing sides for a fight to the finish.

A similar path seems likely to unfold for specialty hospitals. In any event, the overriding “yes or no” strategic decision may have lasting repercussions involving more than simple opposition to a possible threat or pursuit of short term economic gain. Such a decision should certainly be made in a dispassionate and i ll informed manner by all concerned parties.

FINANCIAL PLAN

SOURCES AND APPLICATION OF FUNDS

   Sources of Funds     Mortgage Loan 100,000  Personal Funds 50,000  Net Income From operations 46,000  Add: Depreciation 20,000  Total Funds Provided 216,000   Application of Funds  Purchase of Equipment 50,000  Inventory 90,000  Transportation 40,000  Phone System 2,000    182,000Total Fund expended 34,000Net increase in working capital           216,000

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FFINANCIALINANCIAL P PLANLAN

PRO FORMA INCOME STATEMENTFOR THE PERIOD ENDED 30-JUNE-2008

Sales 500,000  Less: sales return -20,000  Net Sales 480,000   Less: Cost of Goods Sold    Merchandise Inventory (Beg) 60,000     Add: Net Purchases    Purchases 300,000  Add: Transportation 60,000    Delivered purchases 360,000  Less: Purchases return -30,000  Net purchases 330,000  Total merchandise available for sale 390,000  Less: Merchandise Inventory (End) -90,000  Cost of good sold -300,000Gross Profit 180,000   Less: Operating Expenses    Salaries Expenses 50,000    Rent Expenses 45,000    Income Tax Expense 10,000    Advertising Expense 7,000    Depreciation Expense 20,000    Utilities Expenses 2000  Total Operating Expense -134,000Income from business operation 46,000   Add: Other Income    Interest income 7000

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FFINANCIALINANCIAL P PLANLAN

  Net Profit           53,000

PRO FORMA BALANCE SHEET   

AS ON JUNE 30-2008      

Equities Assets   Share Holder Equities Fixed Assets Authorized Capital  

Machinery 12,00,000500,000 ord share @ Rs 10 = 50,00,000 Less: Allowance for depreciation(200,000) 10,00,000

Preliminary Expense 6,000Furniture 30,000

Issued & Paid up Capital    Add: Current Assets80,000 ord share @ 10 800,000  Add: Retain Earning 150,000 Cash at Bank 75,000Total Share Holder Equity 950,000 Account Receivable 85,000

  Office Supplies 12,000Add: Liability Prepaid Utilities 2000  Merchandise Inventory (End) 90,000Bond Payable 200,000 Prepaid Rent 10,000Account Payable 30,000  Cash dividend Payable 40,000    Add: Reserves & Fund     Reserve for Plant Expenses 50,000  Reserve for Contingencies 40,000          Total Equities 13,10,000 Total Assets 13,10,000   

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FFINANCIALINANCIAL P PLANLAN

PRO FORMA CASH FLOW    

For the Year Ended June 30 - 2008   Cash Flow from Operating Activities  Net Income 53,000Adjustment for (non cash item)  Add: Depreciation 20,000  Amortization of Patents 5,000 25,000  78,000   Increase in Account Receivable -75,000  Decrease in Inventory 90,000  Decrease in Account Payable -35,000 -20,000Net Cash Generated from operating 58,000   Cash Flow From Investing Activities  Purchase of Equipment (60,000 - 40,000 + 10,000) -30,000Net Cash flow from Investing activities 28,000   Cash Flow From Financing Activity  Payment of Debt -20,000  Received from issue of share 50,000  Cash Dividend Paid -40,000  Net Cash used by financing activities -10,000Net Increased in cash 18,000Add: Cash & Cash equivalent at beginning 50,000Cash & Cash equivalent at ending         68,000

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FFINANCIALINANCIAL P PLANLAN

Break-even AnalysisThe break-even analysis shows that Health Care Hospital has a good

balance of fixed costs and sufficient sales strength to remain healthy. As with any business, the first few months will show negative financial numbers.

Break Even Analysis

Break Even = Fixed Cost Sp - VC

300,000 100,000 - 40,000

300,00060,000

Break Even 50,000

Sales 5000 * 10 500,000Variable Cost -400,000C.M 100,000Fixed Cost -100,000Net Income 0

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AAPPENDIXPPENDIX

APPENDIX

FINAL THOUGHTS Marketing and networking are two of the biggest ingredients that are included in starting a new business.  The problem is that marketing and networking along with other skills are needed to be a successful entrepreneur.  These are not generally taught in exercise physiology undergraduate programs at colleges and universities.  Therefore, it is strongly recommended that in order for exercise physiology as a profession to blossom to its full capacity, exercise physiologist must learn how to market themselves to the public. If they can create a demand in the public sector for our services, i can then obtain credibility in the public’s eyes. 

OPPORTUNTIESOpportunities now abound in the specialty hospital field, certainly for proponents and, to some extent, for opponents as I’ll. Subject to careful assessment of economic (e.g., reimbursement) and business (e.g., managed care contract availability) issues, physicians, hospitals and entrepreneurs are now free under federal law to pursue specialty hospital development to meet perceived consumer demand.

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In contrast, specialty hospital detractors may i‘ll switch their focus to individual state legislatures in an effort to gain legal protection that was rejected by CMS at the federal level. Whether by expanding state “mini-Stark” physician referral prohibitions, creating new certificate of need requirements or otherwise, there will probably be legislative efforts to limit development in some jurisdictions. A clear legal analysis of local requirements will become essential to developing a specialty hospital strategy – whether pro or con – in any event.