Occupational Health Business Plan
Workwell is an Occupational Medicine Program of Centroplex Health System (CHS) designed to reduce health care costs, increase productivity, reduce absenteeism, enhance employee morale, attract and retain high-quality employees, and create a positive return on investment. Workwell will be Killeen’s pioneer Industrial Occupational Medicine Program and will serve area businesses, helping them to become more productive while lowering their costs.
Employers "want" occupational medicine clinics that provide accessibility, drug screening services, high-quality staff, state-of-the-art care, and a wide scope of services. Through its mission of promoting total health–body, mind, and spirit–while developing partnerships with regional businesses, Workwell will fulfill employer "wants" and "needs."
Workwell’s existence is based on two simple facts:
1. Healthy employees are more productive than chronically ill employees.
2. It costs less to prevent injuries than to treat them after they occur.
By helping employees change their behavior patterns and choose healthier lifestyles, Workwell will lower a company’s health care expenditures, raise worker productivity, and decrease medical insurance premiums, absenteeism, turnover rates, worker’s compensation claims, tardiness, and hospital stays.
A key advantage that Workwell has and should maximize is its relationship with Centroplex Health System (CHS). CHS already supports the structures required to develop a successful Occupational Medicine program, such as Workwell. These structures include an Emergency Department, a free-standing walk-in facility (COMC), a network of physicians, and an MCO. Workwell should refer back to these structures to complete the loop. The proposed model is to provide Occupational Medicine services–Workwell–and primary care services under one setting, COMC. This comprehensive system of Occupational Health and Primary Care services will expand the market, reduce expenses, and generate revenue.
Workwell’s keys to success for the next three years are:
1. Development and implementation of a successful marketing strategy/plan to employers.
2. Recruitment of experienced medical and administrative talent.
3. Enter the Occupational Medicine market and build a "brand" name before the competition.
4. Commitment to continuously improve service quality.
5. Demonstrate a financial return on investment.
6. Commitment from Senior Management.
The business plan justifies the development and implementation of an Occupational Medicine program by CHS. Market research shows that total worker compensation injuries were 7,720 last year, of which CHS treated 2,532. Worker compensation injuries are projected to increase to a total of 9,446 in the next four years. The five-year goal of this business plan is to position CHS to treat 5,064 worker compensation injuries and attain 53 percent of the market.
The following chart illustrates the highlights of the business plan over the next five years. Total visits to COMC are projected to increase from 11,085 to 15,918 by Year 5, generating increasing revenues and net surplus.
1.1 Objectives
– Help ESTABLISH Centroplex Health System as the "ONE STOP SHOPPING" MEDICAL CENTER FOR HEALTH CARE IN ITS SERVICE AREA.
– Provide a full continuum of Industrial Occupational Medicine services that ensures responsive, quality medical care to all injured employees.
– Provide Occupational Medicine services to 10 major Killeen employers (50 < employees) and 20 small employers (50 > employees) by the end of Year 1.
– Expand the target market to provide Occupational Medicine services to employers in these zip codes: 76540-43, 76548, 76513, and 76559, by the end of Year 2.
– Expand the target market to provide Occupational Medicine services to Centroplex Health System Service Area employers (Bell, Lampasas, and Coryell County) by the end of Year 3.
– Become the Provider of Choice for Occupational Medicine in the service area.
1.1.1 Observation & Recommendations
OBSERVATION
Occupational health programs have historically not brought in much revenue, but they could become more lucrative if health systems develop the necessary competencies and sell them directly to employers. Providers must be proactive in pursuing new revenue streams. Occupational health services offer the opportunity to establish positive relationships with local employers and tap into new revenue streams.
RECOMMENDATIONS
The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.
1. Obtain the services of a consultant to start the program.
– This option will allow CHS to start offering a formalized occupational medicine program within 30-45 days. Hiring a consulting firm is a wise choice as it brings expertise and proven techniques, saving time and ensuring success. Three consulting firms that have submitted bids are Concentra Health Services, Florida Hospital, and Occupational Health Research.
2. Develop the occupational medicine program in-house.
– The positives of this option include saving money and a customized program. However, the time frame, lack of expertise, and lack of commitment from senior leadership pose challenges.
3. Decision to remain status quo.
– The negatives of this option include continuing to lose revenue, potential loss of market share, missed opportunities to network with area employers, and escalating CHS employee injury costs.
4. Divestiture of COMC.
– This option involves selling COMC, which generates lots of money and allows for investment in new programs. However, there are negatives such as losing a new revenue stream, market share, prime location, and identity within the market.
1.2 Mission
Workwell is a customer-focused premier industrial occupational medicine program that uses a team approach to provide quality occupational health, safety, and rehabilitation services. It addresses a person’s total health–body, mind, and spirit–while developing partnerships with regional businesses.
1.3 Keys to Success
Workwell’s keys to success are:
– Development and implementation of a successful marketing strategy/plan to employers.
– Recruitment of experienced medical and administrative talent.
– Entering the Occupational Medicine market and building a "brand" name before the competition.
– Commitment to continuously improve service quality.
– Demonstrate a financial return on investment.
– Commitment from Senior Management.
Workwell, a non-profit taxable subsidiary of Centroplex Health System, specializes in providing customized services to meet the occupational health, safety, and rehabilitation needs of businesses and industries in its target market. The organization believes that healthy employees are more productive and efficient, so it offers wellness strategies/programs to businesses, promoting total health – body, mind, and spirit – to facilitate positive lifestyle changes among their workforce.
In the previous year, Centroplex Occupational Medicine Center (COMC) recorded a total of 18,050 procedures and 11,085 visits. Of these, 4,611 visits and 9,116 procedures were related to Worker’s Compensation/Occupational Medicine, accounting for 52 percent of total procedures and 42 percent of total visits. These visits generated total charges of $298,050 and total payments of $243,110, with an 82 percent reimbursement rate. In the prior year, the total charges were $337,326 with total payments of $284,264, resulting in an 84 percent reimbursement rate. Additionally, Worker’s Compensation visits to the Centroplex Hospital Emergency Department reached 1,170 during the first year. It is worth noting that these volumes were achieved without any marketing efforts.
Furthermore, in addition to COMC, the Centroplex ER also treated 1,170 W/C injuries, including 213 injuries to Centroplex employees, costing the hospital $437,000 (including lost wages and training).
Overall, Workwell’s aim is to provide efficient and impactful services to businesses in their target market, recognizing the importance of employee wellness and its direct impact on productivity and efficiency.
Past Performance:
1996 1997 1998
Funding: $673,259 $642,265 $555,974
Gross Surplus: $673,259 $642,265 $555,974
Gross Surplus %: 100.00% 100.00% 100.00%
Operating Expenses: $653,060 $681,477 $671,888
Collection Period (days): 111 114 130
Balance Sheet:
1996 1997 1998
Current Assets:
Cash: $248,602 $37,533 $8,437
Accounts Receivable: $153,467 $148,255 $148,255
Other Current Assets: $225,214 $177,600 $184,531
Total Current Assets: $627,283 $363,388 $341,223
Long-term Assets:
Long-term Assets: $75,083 $223,892 $120,579
Accumulated Depreciation: $40,941 $49,156 $60,760
Total Long-term Assets: $34,142 $174,736 $59,819
Total Assets: $661,425 $538,124 $401,042
Current Liabilities:
Accounts Payable: $19,083 $11,028 $9,036
Current Borrowing: $565,480 $576,987 $634,601
Other Current Liabilities (interest free): $923 $0 $0
Total Current Liabilities: $585,486 $588,015 $643,637
Long-term Liabilities: $325,170 $304,574 $293,480
Total Liabilities: $910,656 $892,589 $937,117
Paid-in Capital: $412,000 $412,000 $293,480
Retained Earnings: ($733,744) ($672,730) ($611,473)
Earnings: $72,513 ($93,735) ($218,082)
Total Capital: ($249,231) ($354,465) ($536,075)
Total Capital and Liabilities: $661,425 $538,124 $401,042
Other Inputs:
Payment Days: 30 30 30
Funding on Credit: $504,944 $481,699 $416,981
Receivables Turnover: 3.29 3.25 2.81
2.2 Locations and Facilities
The Workwell Program is based at the Centroplex Occupational Medicine Center, which is located at 2202 S.W.S. Young Dr., next to the Killeen Mall.
We provide services 7 days a week, 24 hours a day. Our office hours at the Centroplex Occupational Medicine Center are Monday through Friday from 8:00 AM to 6:00 PM and Saturday and Sunday from 10:00 AM to 6:00 PM. The Centroplex Hospital Emergency Department provides our services outside of these hours. We will evaluate patient visit hours and expand operating hours as needed.
Workwell can also offer our programs at the employer’s work site as long as the minimum employee participation requirements are met. Additionally, we provide various classes at the Centroplex Hospital campus through the monthly wellness programs.
Services
Workwell specializes in the refinement and efficiency of editorial content. We understand the importance of concise and impactful writing to enhance readability and clarity. Our goal is to eliminate redundant words and phrases while maintaining the integrity and tone of the original text.
2.2 Locations and Facilities
The Workwell Program is located at the Centroplex Occupational Medicine Center, next to the Killeen Mall. We offer services 7 days a week, 24 hours a day. Our office hours at the Centroplex Occupational Medicine Center are Monday through Friday from 8:00 AM to 6:00 PM and Saturday and Sunday from 10:00 AM to 6:00 PM. After-hours services are available at the Centroplex Hospital Emergency Department. Workwell can also provide our programs at the employer’s work site, as long as the minimum employee participation requirements are met. We also offer classes at the Centroplex Hospital campus through the monthly wellness programs.
Services
Workwell is a specialized program that focuses on the refinement and efficiency of editorial content. We understand the importance of concise and impactful writing for enhanced readability and clarity. Our objective is to eliminate redundant words and phrases, while maintaining the original meaning and tone of the text.
3.1 Service Description
Work Environment Assessment:
The Workwell program begins with a questionnaire that assesses an employee’s lifestyle habits, medical history, and readiness for change. The results are summarized in a report for employers, highlighting strengths, risks, and readiness for better health.
Workers’ Compensation & Case Management:
Workwell provides comprehensive care and case management for workers’ compensation injuries. This proactive program includes early intervention, communication, and oversight to reduce Workers’ Compensation costs.
Screening and Testing Services:
Workwell offers a range of screening examinations to identify health problems in the workforce. Comprehensive testing services are also available for a diagnosis. These include pulmonary function, audiometry, cardiac, vision, X-rays, and alcohol/drug testing.
Tailored Physical Evaluation & Ability Assessment Services:
Workwell offers specialized physical evaluations and ability assessments tailored to the needs of employers, employees, and specific jobs. These include post-offer, periodic, DOT, FAA, bus driver evaluations, and fitness-for-duty examinations.
Patient Tracking and Information System:
Workwell provides a comprehensive patient tracking and information system that keeps employers informed about the medical status of their employees. This allows for accommodations and minimal interruptions to company operations.
Regulatory Compliance Services:
Workwell offers services to guide businesses through safety and environmental compliance issues. This includes asbestos management, OSHA/EPA regulatory compliance, hazardous waste/materials management, back injury prevention, chemical right-to-know inventory, facility safety audits, OSHA citation defense/remediation, and indoor air/industrial hygiene studies.
On-site Professional Staffing & Consultation Services:
Workwell provides on-site medical professionals and consultation services for larger companies that outsource their medical staff. These services include health screenings, emergency medical training, medical surveillance, policy assistance, assessments, and injury/illness prevention programs.
Employee Assistance Program:
Workwell’s EAP provides resources for employees and their families facing personal problems, such as substance abuse, emotional, marital, family, career, legal, or financial concerns. Services include immediate access to qualified clinicians, counseling, psycho-educational seminars, and financial/debt management consultation.
Health Promotion & Wellness Services:
Workwell offers customized health and wellness programs to help employees improve their health habits. These programs include stress management, smoking cessation, back care, cancer screenings, heart attack prevention, health risk appraisals, general health programs, and customized fitness/nutritional programs.
Mobile Services:
Workwell’s mobile unit provides medical screening/testing/examination services and safety, health promotion, and wellness programs. These services can be bundled into a single package and are conducted by our professional staff.
Rehabilitation Services:
Follow-up rehabilitation services are available at the Centroflex Rehabilitation Center. This state-of-the-art facility offers physical therapy, occupational therapy, and specialized treatments such as aquatic therapy and computerized testing.
3.2 Alternative Providers
Workwell stands out from others in several ways:
1. The pioneer Industrial Occupational Medicine Program.
2. Sponsored by Centroplex Health System.
3. Established network of Primary and Specialty Providers.
4. Tailored Wellness Strategies.
Workwell is the first Industrial Medicine program in Killeen, offering a full spectrum of occupational medicine programs. We are also part of Centroplex Health System, which allows us to provide additional ancillary and specialty services if needed. Our network of providers ensures prompt scheduling of referrals. Our main objective is to work with client employers to implement a wellness strategy that improves employee productivity and reduces healthcare costs. We are committed to following up and monitoring each individual employee.
3.3 Printed Collaterals
We will begin with a brochure that establishes our position and describes the services we provide. Our sales literature will include services offered at the Centroplex Urgent Care Clinic, the Centroplex Emergency Department, Centroflex, Pavilion, Home Care, and through our network of primary care and specialty physicians. Direct mail pieces are also in development.
Market Analysis Summary
In 1998, US health care costs exceeded $1 trillion, the highest in the world. Workplace injuries, illnesses, and fatalities resulted in 125 million lost work days and cost over $120 billion in 1994. Service and trade industries account for 47% of all workplace injuries and illnesses. The average annual health care cost per person in the US is over $3,000, with employers covering 30% of the cost. Wellness programs have shown a positive return on investment for companies, with savings ranging from $1.91 to $5.78 for every dollar invested. Absenteeism costs businesses $30 billion per year, and unhealthy lifestyles contribute to 40% of US health care costs. It is crucial for employers to prioritize employee health and productivity in order to succeed.
US Employment/Economic Profile
The American workforce is undergoing important demographic changes that highlight the significance of worker productivity in the coming decades. The service-producing industries will account for nearly all job growth, while the manufacturing industry will see a decline in jobs. Skilled workers are decreasing, leading to more competition for labor. Therefore, the health and productivity of each employee are critical for a company’s success.
Within Killeen ZIP codes, we have identified 40 major employers with approximately 20,000 employees. In the Belton ZIP codes, there are 18 major employers with 3,390 employees. In the Copperas Cove zip codes, there are 37 major employers with 3,339 employees. While Workwell will initially focus on the Killeen market, expanding its services to both Belton and Copperas Cove would be beneficial. By the end of 2000, Workwell plans to cover all employers in Bell, Lampasas, and Coryell Counties.
The market for Workwell is not segmented, as potential customers include all Bell, Lampasas, and Coryell county employers who offer medical benefits and are experiencing rising healthcare costs. Workwell tailors its services to individual employers, collaborating with senior management to create personalized health and wellness programs for their employees.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!