Business Plan for Nurse Practitioner Joining a Primary Care Practice

Executive Summary With diabetes, heart failure, and hypertension at epidemic proportions and with the expected influx of millions of newly insured Americans, a nurse practitioner position in a primary care office in Manahawkin area will assist with the shortage of primary care physicians. The nurse practitioner can provide much of the same services as primary care physicians. These include diagnosing and treating acute and chronic conditions, order, perform, and interpret diagnostic tests, and developing treatment plans. A nurse practitioner joining a primary care practice would be able to be implemented within six months. The nurse practitioner would cost the practice at least $60,000 less than hiring a primary care physician, without lower quality of care for the current and potential patients of the practice. By adding a nurse practitioner position in the practice would lower overhead costs and show a breakeven in as little as six months of their joining the practice. A profit would be seen in as little as one year of joining the practice.

The Project With the American healthcare system in major change due to healthcare reform and the increasing shortage of primary care physicians. Nurse practitioners are the answer to handle these challenges in a cost effective manner, while providing high quality care that equals that of a physician. There will be millions of newly insured in the near future, along with retiring primary care physicians and only 2% of graduating physicians choosing primary care in the United States. Nurse practitioners are able to step in immediately and provide quality care, where it will take years to educate enough primary care physicians to even help with the shortage. After doing a market analysis, it was found that there was a clinic ran by the local hospital Southern Ocean Medical Center, that employed a few nurse practitioners and physicians to provide care. It also showed that there were several single practicing primary care physicians that were interested in having a partner or nurse practitioner to help cover the increasing overhead costs of getting electronic medical record software, along with others. A nurse practitioner joining a primary care practice is a good choice because the practice will be able to see more patients and increase revenue in a very short period of time.

Financial Projections

Implementation

The timeline for this process to be operationalized is six months. This is from the time of the nurse practitioner agreeing to join the practice and signing the contract of employment and collaborative agreement. During the six month time the nurse practitioner will get privileges at Southern Ocean Medical Center and become oriented to their computer software and operating policies. The nurse practitioner will also work with the office staff in marketing themselves to the current patients and the community.

Start-up Expenses

Marketing the NP $1000.
Office Furniture $300.
Computer $2000.
Communications $390.
Office Supplies (etc. Business cards) $300.
Malpractice Insurance for NP $800.
Continued Education for NP $1000.
Legal Fees (contract & agreement) $500.

By having the nurse practitioner join the practice, it will cost approximately $6290. of upfront costs to the practice. This includes marketing, computer system, office supplies and equipment, and legal fees. This amount does not include the annual salary of $80,000 for the nurse practitioner. The annual salary will be offset by the nurse practitioner providing care to existing patients, that would not be able to be seen in the past due to limited appointment available with only the primary care physician providing care. The nurse practitioner will be able to free up time for the primary care physician to see patients that may have a need for higher level of care in the hospital or office. Within six months the practice will breakeven with the start-up costs and within a year show a profit over the total amount of the start-up costs and the nurse practitioners annual salary. The nurse practitioner’s salary along with contract will be renegotiated after a year.

Industry Environment
Overview of the industry

Nationwide $190 billion dollars is generated by primary care practices and it is only expected to grow with the growth of the population and the aging of the current population. With Healthcare Reform nearing the beginning of those that are uninsured becoming insured, this will mean millions of newly insured looking for a primary care physician. Primary care will need to be prepared for this influx and one way is for nurse practitioners to join practices and provide care to the community.

Potential customers

The nurse practitioner’s customers will be men and women living in the surrounding area of the office.

Direct competitors

Currently there are two primary care practices that have nurse practitioners included in their practices. There are approximately 15 primary care practices in the fifteen mile range.

Marketing
Marketing Objectives:
• Establish relationships with medical professionals in the target market.
• Implement a local campaign with the use of flyers, local newspapers advertisements, and word of mouth.
• Develop a website and blog on health education.

Financial Projections