HCS 449 Capstone Business Plan Scenario

HCS 449 Capstone Business Plan Scenario

HCS 449 Capstone Business Plan Scenario

Community Hospital is a 180-bed acute care hospital that is qualified as a not-for-profit facility. The hospital was originally a county-owned facility and transferred status to an independent facility three years ago. The hospital receives no external funding from governmental agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their triannual survey last year. The hospital has an aggressive quality management program and a low volume of medical malpractice claims. The hospital is located in Bedford, which is a city of 50,000 people with 80,000 people in the regional market. The hospital provides a general range of acute care services including medical and surgical, rehab and emergency care. The president of the hospital has asked you to evaluate the feasibility of establishing an off-site urgent care center at a local mall. You will use data provided in this scenario to make your decisions and recommendations.

Current Performance Analysis
Mission and Vision
Our Mission- To improve health by providing high-quality care through a comprehensive range of services.

Our Vision- Community Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five-year vision is to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology, oncology, and women’s services. Currently the hospital employs three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist.

Market Forces Affecting Hospital
The continued growth of chronic disease will require changes to the care management model.

Percent of population by age:


Five years ago

Five years from now

Under 18



18 to 44



45 to 65



Over 65



Over 53% of residents have at least some college education, with just over 29% possessing an associates, bachelors, or graduate degree. Over 90% of residents possess at least a high school diploma.

The average unemployment rate in the county is currently 9.9%:HCS 449 Capstone Business Plan Scenario

Market share distribution percentage with major competitor:

Five Years Ago

Last Year

Community Hospital






Out of County Hospitals



Patient Origin by Zip Code

96101 is Community Hospital zip code

94963 is major competitor hospital zip code

Continued focus on pay-for-performance and increased wellness programs. Affordable Care Act creating more covered lives, however often with high deductibles.

The median household income for county residents is $59,548. On average, households in county earn more than the state median household income of $44,446 and more than the national average of $53,650. The addition of a new automotive manufacturing plant to the local market this coming year is projected to add 1,500 production line jobs and 300 administrative jobs by year end. Median income for the production positions is estimated at $45,000 and will provide health, vision, and dental insurance benefits.

Projected Payer Mix 5-years

Current Payer Mix

Percentage of Population by Insurance

As part of your review of this data, consider that a portion of the population will become Medicare eligible, the addition of manufacturing positions that include benefits will increase commercial insurance coverage and changes from the Affordable Care Act will increase the number of patients in the market with insurance coverage.

Expected growth in large employers with addition of automotive factory in northwest sector of county.

Continued shortage of medical staff, especially in orthopedics, oncology, and primary care will require increased recruitment efforts.

Other hospital in county, Hanover County Hospital, has an updated facility, which has drawn more market share to their facility.