CAPSTONE PROJECT

Abstract

Virtual health care has offered sustenance during a universal health crisis with the onset of the COVID-19 pandemic. As COVID-19 continues spreading its arms and affecting thousands of people worldwide, healthcare providers increasingly utilize telemedicine to protect their staff and patients. This has become essential due to the golden rule that everybody is expected to follow, social distancing. The majority of healthcare providers have expanded telemedicine access since the beginning of the pandemic. Virtual health care has become a tool for screening and treating various illnesses and COVID-19 cases remotely and is facilitating visits that would be risky during these tough times. The transitory shifts have made way for an expansion of telemedicine. Telemedicine has ushered in a new era believed to be the next generation of healthcare delivery systems in the United States. This research paper goes through all the stages necessary for the implementation of such a project as telemedicine in AZ Hospital, from the project description, situation and industry analysis, marketing plan, operating plan, organization plan, human resource plan, and financial plan, to determine if the proposed project is worth venturing into.

Contents

1.0 Executive summary 4

1.1 Summary of situational analysis 4

1.2 Key opportunities, issues, and obstacles 4

1.3 Key recommendations 5

1.4 Key assumptions used in forecasting results from 6

1.5 Summary of forecasted operational and financial results 6

2.0 Description of the project 7

3.0 Situation and industry analysis 10

3.1 Market segmentation 10

3.2 Analysis of the competitive situation 14

3.3 SWOT analysis 16

3.4 Industry forecasts and future outlook and trend analyses 17

4.0 Marketing plan 18

4.1 Pricing plan with sourcing and analysis 19

4.2 Distribution channels and practices 21

4.3 Promotion plan 22

4.4 Product/ service forecasts 22

5.0 Operating/production plan 23

5.1 Capacity 25

5.2 Equipment 25

5.3 Processes unique to the project 27

5.4 Competitive advantage 28

6.0 Organizational plan 28

6.1 Venture ownership and form of ownership 28

6.2 Authority of respective principals 29

6.3 Management team background 29

6.4 Roles and responsibilities of team members 30

6.5 Table of organization 30

7.0 Human resources plan 31

7.1 Employee strategic plan 31

7.2 Recruitment plan 32

7.3 Retention plan 34

8.0 Financial plan 35

9.0 Conclusion 38

10.0 Appendix 39

1.0 Executive summary

1.1 Summary of situational analysis

COVID-19 pandemic has exposed the critical infrastructure needs within the overall healthcare system in the United States. Providing relevant healthcare services affordably and conveniently is critical to individuals and the nations national security interests. Pandemics, although rare, can have a debilitating impact on society. The pandemic has seen the death of so many people up to date. Moreover, millions have lost their livelihoods. The massive death can be accounted for by the inadequacy in healthcare infrastructure.

Furthermore, the cost of accessing health care services has shown an increasing trend over the years. Also, with the current impacts of the pandemic, this unsustainable trajectory does not seem to be decreasing. Telemedicine is a solution to many of such trends. It is a lower-cost solution that will eventually lower the cost of healthcare services. It can also be delivered during a pandemic like what is currently happening, and this makes it a useful tool during such periods of massive social and economic unrest. As a result of the pandemic, people have been forced to be on lockdown and stay indoors to abide by the rule of social distancing. This has caused individuals to be apprehensive about their visits to the hospital. Telemedicine will offer patients an opportunity to access quality healthcare services from the comfort of their homes, without necessarily having to go for the in-patient visits. This efficiency will make it even attractive to consumers.

1.2 Key opportunities, issues, and obstacles

The current pandemic has discovered the gaps present within the overall healthcare system in the…

Running Head: CAPSTONE PROJECT

CAPSTONE PROJECT

Abstract

Virtual health care has offered sustenance during a universal health crisis with the onset of the COVID-19 pandemic. As COVID-19 continues spreading its arms and affecting thousands of people worldwide, healthcare providers increasingly utilize telemedicine to protect their staff and patients. This has become essential due to the golden rule that everybody is expected to follow, social distancing. The majority of healthcare providers have expanded telemedicine access since the beginning of the pandemic. Virtal health care has become a tool for screening and treating various illnesses and COVID-19 cases remotely and is facilitating visits that would be risky during these tough times. The transitory shifts have made way for an expansion of telemedicine. Telemedicine has ushered in a new era believed to be the next generation of healthcare delivery systems in the United States. This research paper goes through all the stages necessary for the implementation of such a project as telemedicine in AZ Hospital, from the project description, situation and industry analysis, marketing plan, operating plan, organization plan, human resource plan, and financial plan, to determine if the proposed project is worth venturing into.

Contents

1.0 Executive summary 4

1.1 Summary of situational analysis 4

1.2 Key opportunities, issues, and obstacles 4

1.3 Key recommendations 5

1.4 Key assumptions used in forecasting results from 6

1.5 Summary of forecasted operational and financial results 6

2.0 Description of the project 7

3.0 Situation and industry analysis 10

3.1 Market segmentation 10

3.2 Analysis of the competitive situation 14

3.3 SWOT analysis 16

3.4 Industry forecasts and future outlook and trend analyses 17

4.0 Marketing plan 18

4.1 Pricing plan with sourcing and analysis 19

4.2 Distribution channels and practices 21

4.3 Promotion plan 22

4.4 Product/ service forecasts 22

5.0 Operating/production plan 23

5.1 Capacity 25

5.2 Equipment 25

5.3 Processes unique to the project 27

5.4 Competitive advantage 28

6.0 Organizational plan 28

6.1 Venture ownership and form of ownership…

Running Head: CAPSTONE PROJECT

CAPSTONE PROJECT

Abstract

Virtual health care has offered sustenance during a universal health crisis with the onset of the COVID-19 pandemic. As COVID-19 continues spreading its arms and affecting thousands of people worldwide, healthcare providers increasingly utilize telemedicine to protect their staff and patients. This has become essential due to the golden rule that everybody is expected to follow, social distancing. The majority of healthcare providers have expanded telemedicine access since the beginning of the pandemic. Virtual health care has become a tool for screening and treating various illnesses and COVID-19 cases remotely and is facilitating visits that would be risky during these tough times. The transitory shifts have made way for an expansion of telemedicine. Telemedicine has ushered in a new era believed to be the next generation of healthcare delivery systems in the United States. This research paper goes through all the stages necessary for the implementation of such a project as telemedicine in AZ Hospital, from the project description, situation and industry analysis, marketing plan, operating plan, organization plan, human resource plan, and financial plan, to determine if the proposed project is worth venturing into.

Contents

1.0 Executive summary 4

1.1 Summary of situational analysis 4

1.2 Key opportunities, issues, and obstacles 4

1.3 Key recommendations 5

1.4 Key assumptions used in forecasting results from 6

1.5 Summary of forecasted operational and financial results 6

2.0 Description of the project 7

3.0 Situation and industry analysis 10

3.1 Market segmentation 10

3.2 Analysis of the competitive situation 14

3.3 SWOT analysis 16

3.4 Industry forecasts and future outlook and trend analyses 17

4.0 Marketing plan 18

4.1 Pricing plan with sourcing and analysis 19

4.2 Distribution channels and practices 21

4.3 Promotion plan 22

4.4 Product/ service forecasts 22

5.0 Operating/production plan 23

5.1 Capacity 25

5.2 Equipment 25

5.3 Processes unique to the project 27

5.4 Competitive advantage 28

6.0 Organizational plan 28

6.1 Venture ownership and form of ownership 28

6.2 Authority of respective principals 29

6.3 Management team background 29

6.4 Roles and responsibilities of team members 30

6.5 Table of organization 30

7.0 Human resources plan 31

7.1 Employee strategic plan 31

7.2 Recruitment plan 32

7.3 Retention plan 34

8.0 Financial plan 35

9.0 Conclusion 38

10.0 Appendix 39

1.0 Executive summary

1.1 Summary of situational analysis

COVID-19 pandemic has exposed the critical infrastructure needs within the overall healthcare system in the United States. Providing relevant healthcare services affordably and conveniently is critical to individuals and the nations national security interests. Pandemics, although rare, can have a debilitating impact on society. The pandemic has seen the death of so many people up to date. Moreover, millions have lost their livelihoods. The massive death can be accounted for by the inadequacy in healthcare infrastructure.

Furthermore, the cost of accessing health care services has shown an increasing trend over the years. Also, with the current impacts of the pandemic, this unsustainable trajectory does not seem to be decreasing. Telemedicine is a solution to many of such trends. It is a lower-cost solution that will eventually lower the cost of healthcare services. It can also be delivered during a pandemic like what is currently happening, and this makes it a useful tool during such periods of massive social and economic unrest. As a result of the pandemic, people have been forced to be on lockdown and stay indoors to abide by the rule of social distancing. This has caused individuals to be apprehensive about their visits to the hospital. Telemedicine will offer patients an opportunity to access quality healthcare services from the comfort of their homes, without necessarily having to go for the in-patient visits. This efficiency will make it even attractive to consumers.

1.2 Key opportunities, issues, and obstacles

The current pandemic has discovered the gaps present within the overall healthcare system in the United States. This gap comes as an opportunity for any business venture that is interested. Telemedicine has gained popularity, especially amidst the ongoing pandemic. Through telemedicine, patients can still get access to quality healthcare and affordable pricing from the comfort of their homes. In the case of AZ Hospital, this opportunity is even better since the hospital already offers in-patient services and has a well-established and loyal customer base. Therefore, the implementation process is anticipated to be seamless and with fewer struggles to attract consumers. Telemedicine .......help the hospital harness a larger market share and higher profit margin in the long run. The hospitals product offering will allow for flexibility since patients will choose how they engage with the hospital by choosing between telemedicine product offering and in-patient services. This diversity and flexibility will allow the hospital to gain an even larger customer base, eventually translating into higher profit margins. The hospital will also establish partnerships with other telemedicine service providers who only focus on telehealth services and not in-patient services like x-rays.

One obstacle the hospital is likely to face in this venture is competition from some of the already well-established telemedicine service providers like the Doctor on Demand, created by Dr. Phil and his son Jay McGraw. However, some strategies have been designed to deal with this issue. Another obstacle would be related to the rapid advancement of technology, making evaluations vulnerable to obsolescence as key software and hardware constituents move from being the state of the earth to out of date.

1.3 Key recommendations

Telemedicine has some special characteristics, such as shared information technologies. Most notably, it is not a discrete set of interconnected technologies or a single technology. It is a large, diverse connection of technologies, clinical practices, and organizational arrangements. Its implementation largely depends on a complex, technical and human infrastructure affected by rapid changes in the technology system. As a result, realism and persistence are important for those working towards demonstrating the promise of the service.

Also, a systematic and rigorous evaluation will be necessary, just like in any other technology. Decision-makers must have good enough information in comparing the effects of telemedicine services and applications to those of other healthcare strategies for cost, access, and quality acceptability.

Decision-makers must also fully analyze the implications of the telemedicine infrastructure and the requirements necessary for maintaining the product offering past the initial stages. Hence, there must be careful project and evaluation planning.

1.4 Key assumptions used in forecasting results

1. The hospital has a sustainable competitive advantage by offering both physical healthcare services and online healthcare services. This provides us with a strong customer base in which to leverage high telemedicine adoption rates.

2. We also have a strong and well-respected brand that is synonymous with quality. As healthcare is very important to consumers, they typically do not price sensitive and want the best quality care available at a reasonable price.

3. Competitors who are growing lack the breadth and depth of our product offering allows consumers to choose us over them.

4. Competitors lack the brand awareness, distinction, and comfort that our company offers consumers.

5. We will have extensive partnerships with other healthcare providers and telemedicine providers.

1.5 Summary of forecasted operational and financial results

A forecast of the operational and financial results was done using the current market share and the competitor analysis. A conclusion was reached that the operation is most likely to be a success. The hospital already has a well-established and loyal customer base. As a result, there would not be many struggles with the marketing plan to capture a customer base to consume our telemedicine products. This will translate into higher profit margins. Also, a competitor analysis was done to evaluate how much competition the hospital would face in this new venture. A strategy to beat competition was therefore developed. First, the hospital will use the pricing strategy to capture more customers by operating at lower costs at the initial stages of the implementation, raising the cost later, having established a larger consumer base. Another strategy that will be used to beat the competition is based on the fact that the hospital will offer both in-patient visits and the online component. This will give the hospital a competitive advantage over other organizations in the same venture. The seamless transition between online and offline services will give us a competitive advantage.

On the financial aspect, the pricing strategy is also meant to lead to higher profit margins eventually. The initial strategy will revolve around a low monthly base fee and the consultation fees based on the product demanded by the consumer. The low pricing strategy will attract more customers. Although we might be stretched financially at the initial stages because of this pricing model, the pricing is bound to change with time once the product has established a bigger and loyal consumer base.

2.0 Description of the project

This proposed project aims to develop and implement telemedicine and its related infrastructure throughout the organization. The project shall be used to improve efficiencies in the organization while enhancing the overall quality of care. This is meant to help improve operations, reduce cancellations of appointments, and increase revenue while minimizing healthcare costs simultaneously. Healthcare is currently undergoing fundamental change. First, baby boomers continue to utilize services at an alarming rate. The overall population is aging, and as such, the healthcare infrastructure will need to change to accommodate changing dynamics within the industry. An older baby boomer generation is living much longer and utilizing more services than expected. Currently, 18% of the United States Gross Domestic Product is consumer by healthcare expenditures. This means that 1 of every 5 dollars used in the United States is spent on healthcare, and baby boomers are a large reason for it. In addition to these changes, COVID-19 has exposed many of the inequities in the system related to treatment and quality of care. A large-scale pandemic essentially overwhelmed the healthcare system causing unnecessary death and maltreatment. This has created the need for unprecedented stimulus on many developed nations related to health care treatment (Baron, Hirani & Newman, 2017).

Consequently, changes will need to be made in the future related to healthcare delivery and quality of service. For one, infrastructure must be in place to help take on excess patient capacity when a pandemic occurs. Second, healthcare institutions need to be ready to mobilize and to expedite vaccines and other approval methods needed to mitigate the impacts of future health care problems and pandemics. In addition, the quality of care must aim for preventative measures to keep the overall public abreast of underlying circumstances related to pandemics. It is important to focus on health, obesity, and other individual concerns to mitigate disease impacts on society overall (Browning, 2015).

This project is necessary because telemedicine will provide strong economic benefits for the organization while enhancing service provision to the consumer. COVID-19 pandemic has been an eye-opener, helping us identify the large structural weaknesses within the healthcare system. The hospitals were overwhelmed by consumers, limiting the overall capacity and the hospitals ability to take care of patients. The organization can use electronic communications and software to offer clinical services to patients without personal visits through telemedicine. For instance, this could have been used during the COVID-19 pandemic to help stop the virus from spreading to other patients and health care workers. To avoid a similar occurrence such as another pandemic, it is important to institute changes to counteract the next occurrence.

The telemedicine service will enable healthcare providers to offer services to patients electronically. Personal visits are not always necessary in healthcare provision. Services like follow-up medical visits, management of medication, and certain consultations can be delivered through electronic means. Therefore, telemedicine will provide these services in the same manner as in-person visits using video conferencing to administer the services. Evidence suggests the necessity of this as pandemics and other health emergencies will occur in the future. By leveraging telemedicine now, services can be offered to consumers continuously with little to no disruption.

Moreover, healthcare expenditures continue rising. Currently, 18% of Gross Domestic Product (GDP) is related to healthcare expenditures (American Health Care: Spending and the Federal Budget, 2018). With telemedicine, costs can be reduced significantly since hospitals no longer need the related overhead administrative costs necessary for in-person visits. Through electronic innovations, costs can be reduced, with cost-saving is directly transferred to the consumer.

The global telemedicine market is estimated to be roughly 56 billion dollars in 2021. The annual growth rate of the telemedicine market is anticipated to be about 22 percent between 2021 and 2028. This rise is attributed to increased consumer demand and telemedicine adoption rates (Telemedicine Market Size Analysis Report, 2021).

The key personnel needed will be related to technology. The organization will need a chief technology officer who can leverage their expertise to deliver technology and adoption solutions. Moreover, the company will need to hire a legal team to evaluate the implications of the implemented telemedicine and what products and services can be provided. Furthermore, a small marketing team will also be needed to promote the value of the service, oversee designing information packets, social media campaigns, and other channels.

3.0 Situation and industry analysis

From an economic viewpoint, the admission process and transfer regulation are vital since an organization continuously looks for ways to increase revenues and grow the volume in eve