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1.0 Executive Summary
This business plan will showcase the usage of $2,000,000 for the development of a hospice and palliative care center based in Tacoma, Washington. Hospice, LLC (“the Company”) was founded by Collete Barrett. The business will maintain a 15 suite facility that will provide comprehensive palliative care for its patients. Additionally, the Company will have nurses on staff that can render these services within a patient’s home.
1.1 The Services
The Company will provide a broad range of compassionate palliative care services among people that are terminally ill. The facilities will feature state-of-the-art technology and amenities in order to provide patients with an immense degree of comfort. The business will directly employ a medical director, nurse practitioners, and nurses that will render care on a 24 hour basis.
In regards to payment, the Company will generate most of its fees from private insurance companies. The Company will also receive payment directly from clients in regards to their end-of-life care needs. Hospice, LLC will generate significant per-hour fees when nurses are dispatched to a home setting to render services.
The hospice and palliative care services offered by the Company will be shown in the third section.
1.2 Financing
A commercial loan of $2 million is being sought for the development of the Hospice’s facilities in Tacoma. These funds will cover the cost of the real estate acquisition/renovation, medical equipment, and general furniture. The Company will also use a portion of this capital for working capital needs. A more modest portion of this capital will be used to recruit staff that will work at the facilities.
Moving forward, Hospice, LLC would be able to secure additional funding as necessary as it relates to working capital as well as expansion. These companies are wholly immune from negative changes in the economy, and the Tacoma area is a wealthy market that will continually allow the facilities to operate at or near 100% capacity at all times.
It is not expected that the Company will acquire any additional funding.
1.3 Mission Statement
Hospice’s mission is to provide round-the-clock palliative care that provides a maximum level of compassion and comfort for patients.
1.4 Management Team
Collette Barrett is an experienced nurse that has more than 17 years of experience in the field of palliative care. She is committed to providing a compassionate environment for patients that are terminally ill.
1.5 Sales Forecasts
1.6 Expansion Plan
Management will expand the number of referrals that the business receives from area physicians with a focus on oncologists, hematologists, and other physicians that deal with serious illness. The business will continue to hire nurses that can provide services at a patient’s home. This aspect of operations will provide for significant growth.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Hospice, LLC.
2.2 Required Funds
A commercial mortgage of $2 million is needed to develop the operations showcased in this document.
2.3 Investor Equity
Management is seeking a financial partner to provide the downpayment necessary to develop the Hospice.
2.4 Management Equity
This will be determined at a later time.
2.5 Exit Strategy
Hospice’s are economically secure businesses. It is an unfortunate part of life that people pass away. Given this, the demand for profitable palliative care and hospice businesses is substantial. The Company could easily be sold to a third-party healthcare system within one year’s time. A divestiture of the Hospice is not anticipated to occur unless the P/E multiple is significant and produces an immense return on investment.
3.0 Hospice Services
The hospice facilities will provide ongoing care for people that are terminally ill. Generally, it is expected that patients will remain at the facility for 50 to 60 days. The facilities will be staffed by a medical director (MD or DO), nurse practitioners, and nurses. The Company’s ultimate goal is to provide an unparalleled degree of comfort to patients that are near the end of their lives. The location is expected to feature 15 suites.
The Company will maintain a staff of nurses that can provide services directly at a patient’s home. As many people prefer to pass away at home, Management sees a significant opportunity to expand via this manner. The Company will charge approximately $500 per day for in-home care. This will be the principal driver of revenue growth as the facilities will only be able to accommodate 15 people at a time.
The Company will coordinate with numerous houses of worship and members of the clergy that will come to the Hospice facilities to provide ongoing support for terminally ill people. Additionally, the Company will work with patients in regards to specific requests regarding entertainment, food, and other matters of comfort while they are at the facilities. This will provide the business with a strong differentiating factor as it establishes its operations.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
The demand for comprehensive palliative and hospice care remains immense at all times. The Company intends to operate within the population dense and wealthy market area of Tacoma. It is further expected that people from Seattle will use the Company’s services as well.
At this time, the economy is doing remarkably well. The dire economic issues that were previously experienced have improved markedly. The Company, as interest rates continue to decline, may refinance its underlying debt obligations in order to reduce this expense over the next three years.
4.2 Industry Analysis
Currently, there are 8,000 hospice businesses within the country. This figure includes companies that provide care in the home as well. Annually, these entities produce $32 billion of revenue. As a whole, the industry employs 600,000 people (including nurses that provide onsite palliative care).
The demand for hospice services is expected to expand over the next ten years. Within the United States, the number of people that are reaching age 70 and over continues to increase. This, in turn, will create additional need for hospices and palliative care services. Hospice, LLC is in a strong position to expand within this industry through the life of the business.
4.3 Customer Profile
Any person that is terminally ill is a potential patient of Hospice, LLC. Is it expected that most patients will be over the age of 65. However, the Company will able to provide inpatient care and in-home care to any person at any age.
It is expected that most patients will pay for their services in tandem with private insurance. It is further expected that most patients that are over the age of 65 will use Medicare and other public systems to cover these costs. The total anticipated cost for a patient will range from $10,000 to $30,000.
As it relates to market demographics, it is important that you conduct a thorough analysis of the number of people in your market area, the number of people that could potentially require hospice care within the next five years, income demographics, and wealth demographics. It is also important to note that number of people in your market that have shown preference for having in-home rather than inpatient palliative care rendered.
4.4 Competition
In population dense areas, there are always a number of companies that provide palliative care, hospice care, and other services related to end-of-life matters. As such, these businesses must find ways to effectively differentiate themselves from other hospice facilities. As discussed in the third section of the business plan, the Company will be a smaller scale facility that will be staffed by highly trained palliative care professionals. Additionally, the facilities will provide numerous amenities. Furthermore, the Company’s ability to render services within a patient’s home will set the business apart from other hospice providers.
5.0 Marketing Plan
Foremost, the Company intends to work closely with hospitals, clinics, and physicians in order to receive referrals among people that require comprehensive end-of-life care. The business will directly discuss the facilities with a broad range of healthcare professionals prior to and through the life of the business.
5.1 Marketing Objectives
• Maintain strong referral relationships with oncologists, oncology surgeons, and other healthcare professionals that deal with illnesses that can become terminal.
• Develop and maintain an expansive proprietary website and presence among numerous third-party platforms to create significant awareness for the palliative care programs offered.
5.2 Marketing Strategies
The principal methodology for obtaining patients for the facilities will come from referrals. The Company will work with cancer specialist, cardiologists, and surgeons that often deal with patients that may not recover from their medical issues. This will provide a highly predictable stream of referrals for the Company on an ongoing basis. The Company will use this type of direct marketing program at all times in order to ensure 100% capacity for the 15-suite facility.
The Company’s website will provide video walk-through tours of the Hospice, interviews with the Founder, interviews with the medical director, and other pertinent information regarding the palliative care services offered. The website’s address will be featured on all sales materials distributed by the Company.
The business will only maintain a modest presence among social media platforms. This is due to the fact that most patients will be sent via referrals among healthcare professionals. However, the Company’s presence on social media will allow family members to leave reviews regarding their loved one’s experience under the care of the hospice.
Management and the Company will also become members of numerous associations and professional societies that focus on hospice and palliative care. Although this will not directly lead to new business, it will showcase the Company’s operations as adhering to the highest standards of the industry.
5.3 Pricing
The business will charge $500 per day for inpatient hospice services. These fees may be higher if the patient requires specialized care as prescribed by their physician.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
As a hospice administrator, you will need to showcase that you will be able to bring the operations of your facility to profitable operation. When writing your professional biography, you can discuss all previous experience that you have working as a nurse, doctor, or hospice executive. Alternatively, you can remove this section and include your resume as a separate document.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• A $2,000,000 commercial mortgage will be acquired.
• A private investment of $500,000 will be injected as the downpayment and for working capital purposes.
7.2 Sensitivity Analysis
As has been one of the central elements to this business plan, the demand for palliative care and hospice care remains strong in any economic climate. People that have terminal illness and their loved ones are going to continue to support these expenditures. The Company will have controllable fixed operating costs, which will further allow Hospice, LLC to ensure timely payments of its commercial mortgage while concurrently creating an immense stream of dividends for the owners.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
