Presented by David Banks, MD
Dr. David Banks presented a superb plenary session reviewing the elements and importance of developing a sedation service business plan.
Dr. Banks began by reviewing the advantages of having a business plan for your service, including providing an organized approach that participants and stakeholders can utilize to stay focused on the same goals and to communicate these goals to others. He then described the key components of business plan development in more detail.
Every business plan should include a brief overall description of the goals and plans for the service as well as a formal mission statement. Often overlooked as not entirely relevant, the mission statement is actually critical to understanding the components of the business plan, because it lays out the principles that will guide the service as well as the plan for addressing unmet needs within the system.
Next, the business overview provides a brief history of “how we got here,” what has been done so far, and a summary of the anticipated service structure and function. A brief summary of the market analysis helps non-clinical folks to understand who the target clients will be (patients/families, proceduralists, and referring providers), what the current market characteristics for a sedation service are in your institution and region (including patient and facility characteristics as well as growth potential), and how internal and external competition might impact your service.
Another key feature of a sedation business plan is a robust marketing plan. What services will your program be providing, and what will be unique about those services in terms of currently unmet needs? How will the financials of your service work, including pricing structure, negotiated reimbursements, and overall financial viability? How will your services be “distributed” i.e. what will be the logistics of how your services are delivered including screening, scheduling, and facilities/staffing? And, how will your services be promoted to increase visibility and encourage utilization?
Operating plans cover the details of service operations, providing the specifics of ownership and management, resources and staffing, facilities and equipment, compliance with regulatory bodies and system policies, etc. The financial plan summarizes financial projections, including the calculated monthly revenues, the calculation that has the single greatest impact on projections based on the business plan. However, it is also very helpful to include a thorough analysis of the inherent value of the sedation service that may not be reflected in direct reimbursements – the ability for other disciplines and programs to accomplish critical procedures that are reflected in their revenue stream, the quality of the care that is being provided as described in the Center of Excellence statement, and the benefit of greater overall system productivity.
Finally, the executive plan puts all of this crucial information together into a single page document that serves as the initial introduction for the total business plan product.
I would highly recommend reviewing the slide set for this presentation in more detail. It is chock full of useful tips for anyone who is involved in the organization and delivery of pediatric procedural sedation services!
