Traject Yourself Towards a Better Future

Trajectory Infusion Center

Marketing Business PlanBy

Gerardo Flores, Carly Knight, Trinity Marquez, Ann Nguyen, Amanda Romano-Kwan, & Conrad Virgo

• Mission• Improving the health and well

being of all individuals in our community.

• Values • Serving with compassion and care• Targeting the best possible future• Aiming for accessible and high

quality care

Trajectory Infusion Center

• Trajectory Infusion Center is a limited liability company focused on ambulatory infusion treatment for cancer patients.

Profile

• Hours of Operation• Mon – Fri: 8:00am to 5:00pm• Saturday: 9:00am to 4:00pm• Sunday: Closed

• Services Offered• Chemotherapy• Blood Transfusions• Immunoglobulin Treatments• Autoimmune Disease Drug

Treatment• Enzyme Replacement Therapy• Specialty Intravenous Fluids

Location & Goals

• Goals• The goal of Trajectory Infusion Center

is to make infusion therapy accessible and affordable to all of our patients. We meet the needs of our patients in any way that is medically safe for them, whether it is simple infusion treatment for a wide range of illness, or long term infusion treatment. Our trained staff is knowledgeable, and is dedicated to providing the best treatment outcome.

• Location• Our first center will be in Signal Hill, California.

Our infusion center will be located in areas of need. We want to make sure that patients can go for infusion treatment outside of the traditional environment such as a hospital.

• Benefits of location• Near by Hospitals include: Long Beach

Memorial, Community Hospital, & Los Alamitos Medical Center.

• Centrally located. • Easy accessibility from neighboring cities.

Resources We Provide

• Oncology trained Nurses.• Authorizations for all patients: This will reduce the hassle

patients may encounter to receive treatment.• Access to labs services, infusion services and rapid times for

lab results. • No barriers to service: We specialize in providing infusion

therapy, this is the primary focus of our organization.• Physicians on call at all times in case any issues arise with

patients.• Constant communication with referring physician about

problems or issues administering care to patients.

Regulations

• Trajectory Infusion Center is a third-party center. Therefore we are required to have voluntary regulation in order for our services to be recognized by the state.

• We are accredited by the Healthcare Quality Association on Accreditation (HQAA). This means that we have accreditation in areas such as IV compounding, Medical Practice, and third-party billing.

Economic Reimbursement

• Our institution is dedicated to provide the best cost for patients. This is done through:• Accepting all forms of payment: e.g. Medicare as well as

private insurance plans.• Using the DRG system to ensure that drugs and other

medication that are given in our facility are properly coded.

• Benefits to the Patient• This not only ensures the financial viability of our infusion

center, but also eliminates charges that patients might have due to improper billing.

Predicted Barriers• Predicted Barriers to Entry

1. Sources of referral for our infusion center.2. Market that is dominated by patients being seen in

the hospital setting for infusion treatment.3. Recruitment and retention of our clinical staff.4. Brand recognition.

• Predicted Barriers to Exit1. The exit barrier for our segment of the

industry are low.2. There are not a lot of infusion centers

that are exiting our industry.3. There will not be much turnover, hence

the longevity of Trajectory Infusion Center is good.

Unique Features & Benefits

• Latest technology and antibiotic therapies• Safer and more reliable experience.• Accessibility improved. • No barriers to serve.• Best alternative to inpatient stay.• Flexible scheduling.• Quick administration of treatment.

• How We Beat Our Competition?• More cost efficient.• Ambulatory services provided

in a hospital setting.• Customized care.• Highest priority is patient

experience.

• Bioscrip Offers• Large quantity of services.• 24/7 access to medical professionals.• Accept both Medicare and Medicaid• Patient has more say

Target Market

• Wealthy older population• Highly innovative technology• Provide care over 70 locations

Market Location Advantage

• Surrounded by a mix of strong diverse neighborhoods.

• Being surrounded by a diverse community allows us to partner with multiple charities and outside. organizations which allows us to create a well known name for our organization.

• We have a marketing team that contributes specifically to the success of charities and outside organizations around us that allows us to receive the support we need to keep our organization going. • Avon Walk for Breast Cancer• Assistance League of Long Beach• Long Beach Ronald McDonald House• The Nonprofit Partnership, etc.

• Location of Services• The goal of our infusion center is to

cater to the patients who wish to receive treatment outside of the traditional hospital setting.

• Providing ambulatory services allows us to easily attain access to patients who are wanting to receive treatment outside of a hospital setting.

• Competitive Advantage• Easy access to all patients who are

located within our community. • Availability to treat patients that have

received treatment from local hospitals such as Long Beach Memorial, Community Hospital, and Los Alamitos Medical Center.

Costs of Services

• Trajectory Infusion Center offers cost friendly services that are provided by experienced staff.

• Without health insurance, costs are typically between $5,000-$10,000.• Including:

• Drug administration fee• Drug cost and facility fee

• With health insurance chemotherapy is typically covered; however there is an out-of-pocket fee. • Out-of-pocket fee includes:

• Doctor visit• Lab and prescription drug copays

Labor Costs of Full Time EmployeesLabor Costs of FTEs

Employees Salary Per Year Total Salary

Nuclear Medicine Technician

2 $85,000 $170,000

Physician 1 $150,000 $150,000

Pharmacist 1 $100,000 $100,000

Medical Assistant 2 $35,000 $70,000

Infusion Nurse 2 $80,000 $160,000

Health Care Administrator

1 $65,000 $65,000

Counselor 1 $65,000 $65,000

Manager 2 $60,000 $120,000

Janitor 2 $25,000 $50,000

Medical Biller 1 $15 / hour

Total 15 - $950,000

Overhead & Margin Costs

• A majority of our overhead costs go toward administration and insurance billing.

• To lower our overhead cost half of our nurses will be on a per-diem model.

• The total margin and operating margin ratios allow us to see if our organization is making sufficient money to stay in business.

• Being a for profit organization we need to make a profit to please our shareholders and stakeholders.

Service Delivery Plan

• Clinical Protocols• Our center works with patients and physicians by educating

them on the best course of action for treatment. • Patients will have access to a comfortable amenities such as

TV and internet access to alleviate the length of infusion treatments.

Methodoloy

• Trajectory Infusion Center offers clinical trials, patient care, and research. • We offer a full range of specialty that diagnose and treat most forms of

cancer: • Chemotherapy• Blood transfusion• Immunoglobulin• Antibiotic therapy• Other intravenous fluids

Flow Chart

FTE & Space Requirements

• Full-Time Employment Requirement• According to the Internal Revenue Service (IRS), a full-time

employment is 40 hours a week, or 160 hours a month.• Space Requirement• We have a diagnostic and treatment function, which requires a

laboratory, so our Trajectory Infusion Center will be 4500ft². • We also have hospitality care, such as food service.

• Non-Clinical (Part-Time v Full-Time)• Healthcare Administrators (1 Full-

time)• Counselors (1 Full-time)• Managers (1 Full-time and 1 part-

time)• Janitor (2 Full-time)• Medical biller (1 full-time)• Social services (contracted)

• Clinical (Part-Time v Full-Time)• Nuclear medicine technician (2

Full-time)• Physician (1 Full-time)• Pharmacist (1 Full-time)• Medical Assistant (2 Full-time

and 1 part-time• Nurses (RN, LVN, LPN) (2 Full-

time)• Physician’s assistant (1 Full-

time)

Human Resource Plan

Benefits

• Benefits will be available to all regular and probationary employees working 40 hours per week, including:• Medical Insurance• Dental Insurance• Paid Time Off ( Holidays, vacation, illness, family need)• Time is accrued each pay period based on length of service and

employment status.

Cash Flow Statement

• Billings• According to one article, “With

uncollected medical bills running as high as 50 percent nationwide, collections must also be made priority at the time of visit” (Ehrhardt, 2012, p. 1).

• We will utilize the weekly cycle billing schedule to optimize our cash flow.

• This will allow monies to be collected throughout the month and not just one day out of the month.

Cash Flow Statement

• Loans• Considering we are already cash strapped and the fact

that our practice will be in the red for the first couple of months, we will consider taking a loan to start our business.

• We will obtain a loan from CaptialOne healthcare financing for $3,000,000.

• Our loan will have a 4% interest rate for 20 years. Our total cost for this loan will be $6,573,369.43 with $3,573,369.43 coming from the interest expense.

Cash Flow Statement

• Expenses paid• Since we are a for-profit organization, we will be subject to several taxes.

• Property tax is currently 1.114851% in Signal Hill.• If our total property value is $1,000,000 and the building is valued at $2,000,000, our total

tax will be $33,445.53 per year. • We will also have an interest expense on the loan we borrowed which will be in total

around $3,500,000.• Other expenses will be the labor costs, overhead, and benefits.

• Start-up costs• According to one article, start-up costs for an infusion center can range from $10,000 to $15,000

(Staff, 2012).• This estimate is just for equipment, however.

• These numbers could vary but if we have 2 physicians, 2 nurses, and a receptionist and a biller, we can be looking at around $75,000 to $100,000 just for the first month in terms of salaries.

• In total, the start-up cost for our infusion center would be around $200,000, including everything from capital to salaries.

Cash Flow Statement

• Promotional Expenses and Insurance• Since we are a for-profit organization, we do not need to give educational

services to the community.• We will run promotions to draw people to our business

• Promotional expenses can be tax-deductible.• Malpractice insurance in California could range anywhere from

$24,000 to $34,000. • Liability insurance, business insurance, and workers comp insurance.• In total we could be paying around $100,000 to $150,000 on

insurance alone.

Cash Flow Statement

• This is our preliminary Cash Flow Statement for our first year of operation.

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