Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample

Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample

My neighborhood’s East Chestnut Regional Health System provides health services to the community and its environment. There is a need to examine ECRHS’s financial effects on the marketing strategies that are the primary focus in health economics. Therefore, a plan should be established to achieve and develop new marketing strategies. The ECRHS plans to establish a new women and family health clinic to improve access to women’s and children’s health services. The plan will provide the measures of success, strategies, and overall performance of the new clinic, identify and analyze tactics and success tasks, advertisement strategies, timeframe, and budgets necessary to achieve success in the new project.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Part 1: Market Size Calculation

The organization’s current and long-term goal is to increase access to women’s healthcare services. I first reviewed the demographic page to determine the age, gender, and race interested in receiving women and family health services in the ECRHS. From the case study, 36% of women in the service area would travel across county lines to receive quality services (University of Phoenix, 2021). Secondly, 73% of women would consider using the new women and family health clinic. In this case, about 554343 women will be interested in women and family health services, while the ECRHS has a potential market share of 73% resulting in 404737 total patient visits (U.S. Census Bureau, 2023). Subsequently, my results revealed the following demographics relating to the target audience;(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Children – 0-12 years

Teenagers- 12-17 years

Students- 18-14 years

Adults- 25-34 years

Maturity- 35-65 years

Elderly- over 65 years

The above-listed population will have access to the new women and family health services. The patients will benefit from in-house basic testing with a combination of extra services such as urgent care. The new Center for Women and Family Health will significantly boost health services for the local community, making the project a successful venture by expanding and improving the current services.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Part II: Break-even Analysis

A break-even analysis portrays that the new women and family health clinic has been fully repaid such that the organization had not made any profits or losses in the venture. The financial calculation compares the costs of establishing the new service to the selling price of the units to establish when the organization breaks even (Pakere et al., 2023). The analysis will show the point at which the organization has sold enough units to cater to all the expenses(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

The break-even analysis financial calculation will show the organization’s break-even point (BEP). Mostly, more minor expenses lead to lower break-even points on average. Considering the case study, the organization may charge the customers about $100 for 20-minute women’s and family health clinic visits. The office workers may charge about $40 per patient for the 20-minute visit. The different offices may spend about $10 for supplies. The total charges for a patient seeking the new service will cost $150 (100+40+10), implying that each patient will pay about $150 for every 20-minute office visit. The construction of the new women and family health clinic may cost about $500000, a one-time charge. Therefore, the organization must exceed about 500 visits based on the variable costs, fixed expenses, and revenue earned from each patient.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Part III: Pro Forma Income Statement

1. The new service’s net operating margin of 40% may result from cheap or limited corporate funding.

Market Size Calculation Summary

The demographic search revealed that 73% of women would consider using the new women and family health clinic, and approximately 554343 women are expected to visit the new women and family health clinic (U.S. Census Bureau, 2023). Therefore, the expected market segment is 73% of 554343, which is 404670. The demographic search portrays marketing research’s significance for different organizations to establish a target market. As such, the market search is instrumental in the healthcare business towards understanding patients’ needs to offer quality care while increasing sales and profits. The rejuvenation of the health market is one of the suitable strategies to give patients various options, thus allowing them to access the preferred quality of care at affordable prices. Creating a powerful commission that purchases health on the patient’s behalf will also guarantee quality care. The consumer, the client, should have control over the kind of care they will receive in a healthy market.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Break-even Analysis Summary

A break-even analysis portrays that the new women and family health clinic has been fully repaid. The organization has not made any profits or losses in the venture. The financial calculation compares the costs of establishing the new service to the selling price of the units to establish when the organization breaks even. At this point, the organization will not have earned or earned any money. The total charges for a patient seeking the new service will cost $150 (100+40+10), implying that each patient will pay about $150 for every 20-minute office visit. The fixed costs will be clinic may cost about $500000 in the constriction of the new clinic, while the organization will need more than 500 visits monthly to break even. Subsequently, the organization should conduct a break-even analysis while considering increasing the costs. Although the analysis ignores the market demand, it is an integral component of financial projection for new and expanded projects.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Projected Net Profit Summary

The pro forma income statement has provided a financial projection of how much the organization will make from sales and revenue upon implementing the new service. The statement has provided fixed costs, variable costs that the organization will incur, and how much-retained earnings and profits will be made at the end of the first financial year. The fixed cost has been identified as the construction expenses spent on constructing the new clinic fixed costs is $500000. The variable costs are expenses incurred while providing services to meet patients’ diverse needs. For instance, healthcare providers may use different supplies while attending to different patients. The projected sales and revenue were projected to be $60,710,550, given by taking the projected revenue per visit as $150 multiplied by the number of visits in the market size calculation (4043737). The cost of sales was given by fixed costs +total variable costs for 404,737 visits.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

The costs will be 404,737 X $85 variable cost per visit = $34,402,645 + $500000 fixed cost for one-time construction, giving a total cost of sales of $34,902,645. The gross profit was sales revenue less cost of sales, while the marketing expenses were 7% of sales revenue. The net income was $21,558,166.50, given by gross profit less total marketing expenses, while the net profit margin was the percentage of net income divided by sales revenue (35.5%).(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

 Part IV: Marketing Plan Considerations

The COVID-19 pandemic affected different sectors globally. The healthcare sector was vastly affected due to high acuity treatment and many patients. The marketing practices and consumer behaviors changed during the crisis. However, some notable shifts are noted from the economic turndowns, such as consumption changes from offline to online consumer behaviors.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample) Online marketing strategy is complicated since some consumers may be unable to access the services offered owing to competition and counter-fit products and services in the online platforms. However, the ECRHS should devise strategies to meet customer needs through audience engagement on online platforms. The organization can also focus on cost-saving strategies during marketing by paying less attention to competitors’ strategies. The organization should opt for a marketing strategy that suits the budget and customer demands.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

The new online marketing strategy will allow the organization to acquire more clients. As such, the organization can obtain new customer information through web channels.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample) The information obtained can profile customers by comparing them based on consumer behaviors and purchasing power to obtain new targets. By so doing, the organization creates a client’s individualized relevant marketing strategy for prospective clients. Subsequently, the organization can utilize an effective service pricing strategy and tactics. The 4Ps approach comprising price, product, promotion, and place will be a competitive advantage for the organization (Huang & Rust, 2021). As such, the organization should be cautious when deciding what to charge the new service to attract more clients.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

The product element entails what the organization is selling to the customers. In this case, the organization is offering women and family health services. The place represents the place where their service will be provided. The service will be provided in Walnut, Maple, Oak, and Butternut counties. Promotion is the most vital element in this 4 Ps strategy that entails advertising and marketing strategies. The organization should focus on online platforms such as social media to reach out to many prospective payments while setting an appropriate budget for marketing. Notably, the organization should use pricing to market the new service. Setting the price at affordable consumer prices to serve as competition and attract more customers.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

Conclusion

The East Chestnut Regional Health System aims to establish a new women and family health clinic to improve access to women’s and children’s health services. The calculated market size reveals that about 554343 women will be interested in women and family health services. At the same time, the ECRHS has a potential market share of 73% resulting in 404737 total patient visits. The total charges for a patient seeking the new service will cost about $150 for every 20-minute office visit. The pro forma income statement reveals that the net income will be $21,558,166.50 with a net profit margin of 35.5%. Marketing strategies such as online/social media and 4Ps will be effective competitive advantages.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)

References

Huang, M. H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49, 30-50(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample). https://link.springer.com/article/10.1007/s11747-020-00749-9

Pakere, I., Kacare, M., Murauskaite, L., Huang, P., & Volkova, A. (2023). Comparison of Suitable Business Models for the 5 Generation District Heating System Implementation through Game Theory Approach. Environmental and Climate Technologies, 27(1), 1-15.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample) https://sciendo.com/pdf/10.2478/rtuect-2023-0001

U.S. Census Bureau. (2023). SELECTED CHARACTERISTICS OF HEALTH INSURANCE COVERAGE IN THE UNITED STATES.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample) https://data.census.gov/table?q=Demographics+on+women+that+need+health+women+services+&g=040XX00US55

University of Phoenix (2021). Case Study: East Chestnut Regional Health System.(Market Estimation and Pro-forma Income Statement Comprehensive Nursing Essay Sample)