Purchase Solution

Decision making-Proposal for a 24 hour pharmacy

Not what you're looking for?

Ask Custom Question

GYou are the chief financial officer (CFO) at a community hospital. One of the comments that has come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing time value of money tools for the development of this new revenue-generating department. The following points must be covered in your proposal:

Include and discuss the need for working capital to include 2 months of startup drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of equipment
Provide 2 viable options to measure the rate of return to optimize financial performance of the department based on time value principles with rationale and justification.
Include a profitability analysis for 3 years.
Include a schedule of assumptions for your proposal. What questions might the board ask regarding feasibility of this proposal?
How might current changes in federal, state, and local policies influence decisions to be made?
For a resource guide on using the online library to search for references, click here.

Purchase this Solution
Solution Summary

Starting a pharmacy business requires a business proposal that takes into account a combination of technical, financial and community factors. The attached solution highlights the key components of a business proposal for a 24 hor pharmacy in a community hospital that is established to meet the needs of patients based on their survey responses.
References have been cited for further reading.

Solution Preview

Hello,
Please find below my short at the problem as set out above.
I have provided a guiding solution which will help you address the questions asked.
Let me know of those areas which may need further clarification.
I have left some calculations on profuitability analysis for you to practice.
Feel free to come back for further guidance if need be.
I have also attached the solution so that the tables therein are visible

Thank You for using BrainMass

Healthcare Financial management and decision making-Proposal for a 24 hour pharmacy

1. Mission statement-
The mission of this 24 hour service pharmacy within X community hospital is to become the recognized leader in its market segment for providing medicines to patients and their relatives in the community hospital. These comprehensive services to patients and their families include filling prescription drugs, over the counter drugs and general medical supplies, so that they can begin taking their medications immediately instead of waiting until the next day.
2. Products and Services
The primary business of the pharmacy will be to distribute medicines to patients who seek services from the community hospital. The hospital will earn approximately 20 % of all the gross margins. At the beginning of the business, it will employ one full time pharmacist and a pharmacy technician to assist in the management of dispensing of medicines to patients. Besides making profits from medicines, the business will sell general medical supplies and other merchandise including candy, ...

Purchase this Solution
Free BrainMass Quizzes
First Aid

Do you know how to provide first aid?

What everyone should know about MRSA

This quiz focuses on what everyone should know about community MRSA. Community MSRA is an infection in healthy people.

Crohn's Disease

How much do you know about this condition?

Stress Continuum

All humans experience stress and a certain level is motivating for learning. However, a high level of stress for prolonged periods of time may have a negative impact. This information focuses on the four stages of stress. Understanding stress assists in maintaining a healthy level.

Test your health planning and program evaluation knowledge

Health planning and program evaluation is an important aspect of the Health Sciences' field. Organizations and communities must understand the needs of their audiences, and a way to obtain this datum is through proper design and assessment. This quiz will test your ability to understand the importance of planning and evaluation in the health sector.

View More Free Quizzes
Related BrainMass Solutions

  • Advanced Pharmaceuticals - Profitability Analysis

    Another way of putting this is that losing (and failing to replace) a customer representative who works 40 hours per week for 50 weeks a year costs the company between $532,000 ($266 per hour × 2,000 hours per year) and $1,048,000 ($524 per hour × 2,000

  • IV rates

    Your answer should be in milliliters per hour (ml/hr). rate=dose/ concentration, 5.625 (ml/hr). This provides a variety of examples of working with IV rates for various patient situations.

  • Large Pharmacy wait times

    Average Service time in pharmacy = 80% x 2 + 20% x 8 = 3.2 mins Service Rate for pharmacist= 60/3.2 = 18.75 customers/hour Service Rate for Cashier = 60 / hour Arrival Rate = 120/hour 1. for a stable process, utilization < 1, Phramcy: 120

  • Health Science Questions

    A hospital setting requires a DEA number and physician's license at the hospital, as well as dosing for a 24-hour period. The doctor must write for a daily dose and antibiotics have an automatic stop date.

  • Ethical dilemna

    Consider yourself the manager of a nonunion steel mill that must operate 24-hour days, and where the physical demands are such that 8-hour days are preferable to 10- or 12-hour days.

  • Queuing Analysis: Cost comparisons

    As a result, the state estimates that it cost them $10 in taxes, fees and fines for each minute a truck driver has to spend at the weigh station.

  • Confidence intervals for pharmacy customers

    265026 Confidence intervals for pharmacy customers A random sample of 16 pharmacy customers showed the waiting times below in minutes.

  • Managerial Decision Making

    l Approach: Generally, formal research has theoretical approach, as it uses various theories to support the variables in the hypothesis, while, the business proposal has a practical approach for decision making in a business.

  • Construction of 95 Percent Confidence Intervals

    (a) Set up a right-tailed decision rule at α=.025 to decide whether there has been a significant increase in the mean number of arrivals per hour. (b) Carry out the test and make the decision. Is it close?

View More Related Solutions