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Running Head: CAPSTONE PROJECT 8CAPSTONE PROJECTAbstractVirtual health care has offered sustenance during a universal health crisis with the onset of the COVID-19 pandemic. As COVID-19 continues spreading its arms and affecting thousands of people worldwide, healthcare providers increasingly utilize telemedicine to protect their staff and patients. This has become essential due to the golden rule that everybody is expected to follow, social distancing. The majority of healthcare providers have expanded telemedicine access since the beginning of the pandemic. Virtual health care has become a tool for screening and treating various illnesses and COVID-19 cases remotely and is facilitating visits that would be risky during these tough times. The transitory shifts have made way for an expansion of telemedicine. Telemedicine has ushered in a new era believed to be the next generation of healthcare delivery systems in the United States. This research paper goes through all the stages necessary for the implementation of such a project as telemedicine in AZ Hospital, from the project description, situation and industry analysis, marketing plan, operating plan, organization plan, human resource plan, and financial plan, to determine if the proposed project is worth venturing into.Contents1.0 Executive summary 41.1 Summary of situational analysis 41.2 Key opportunities, issues, and obstacles 41.3 Key recommendations 51.4 Key assumptions used in forecasting results from 61.5 Summary of forecasted operational and financial results 62.0 Description of the project 73.0 Situation and industry analysis 103.1 Market segmentation 103.2 Analysis of the competitive situation 143.3 SWOT analysis 163.4 Industry forecasts and future outlook and trend analyses 174.0 Marketing plan 184.1 Pricing plan with sourcing and analysis 194.2 Distribution channels and practices 214.3 Promotion plan 224.4 Product/ service forecasts 225.0 Operating/production plan 235.1 Capacity 255.2 Equipment 255.3 Processes unique to the project 275.4 Competitive advantage 286.0 Organizational plan 286.1 Venture ownership and form of ownership 286.2 Authority of respective principals 296.3 Management team background 296.4 Roles and responsibilities of team members 306.5 Table of organization 307.0 Human resources plan 317.1 Employee strategic plan 317.2 Recruitment plan 327.3 Retention plan 348.0 Financial plan 359.0 Conclusion 3810.0 Appendix 391.0 Executive summary1.1 Summary of situational analysisCOVID-19 pandemic has exposed the critical infrastructure needs within the overall healthcare system in the United States. Providing relevant healthcare services affordably and conveniently is critical to individuals and the nation’s national security interests. Pandemics, although rare, can have a debilitating impact on society. The pandemic has seen the death of so many people up to date. Moreover, millions have lost their livelihoods. The massive death can be accounted for by the inadequacy in healthcare infrastructure.Furthermore, the cost of accessing health care services has shown an increasing trend over the years. Also, with the current impacts of the pandemic, this unsustainable trajectory does not seem to be decreasing. Telemedicine is a solution to many of such trends. It is a lower-cost solution that will eventually lower the cost of healthcare services. It can also be delivered during a pandemic like what is currently happening, and this makes it a useful tool during such periods of massive social and economic unrest. As a result of the pandemic, people have been forced to be on lockdown and stay indoors to abide by the rule of social distancing. This has caused individuals to be apprehensive about their visits to the hospital. Telemedicine will offer patients an opportunity to access quality healthcare services from the comfort of their homes, without necessarily having to go for the in-patient visits. This efficiency will make it even attractive to consumers.1.2 Key opportunities, issues, and obstaclesThe current pandemic has discovered the gaps present within the overall healthcare system in the…

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…RunningHead:CAPSTONEPROJECT8CAPSTONEPROJECTAbstractVirtualhealthcarehasofferedsustenanceduringauniversalhealthcrisiswiththeonsetoftheCOVID-19pandemic.AsCOVID-19continuesspreadingitsarmsandaffectingthousandsofpeopleworldwide,healthcareprovidersincreasinglyutilizetelemedicinetoprotecttheirstaffandpatients.Thishasbecomeessentialduetothegoldenrulethateverybodyisexpectedtofollow,socialdistancing.Themajorityofhealthcareprovidershaveexpandedtelemedicineaccesssincethebeginningofthepandemic.VirtualhealthcarehasbecomeatoolforscreeningandtreatingvariousillnessesandCOVID-19casesremotelyandisfacilitatingvisitsthatwouldberiskyduringthesetoughtimes.Thetransitoryshiftshavemadewayforanexpansionoftelemedicine.TelemedicinehasusheredinanewerabelievedtobethenextgenerationofhealthcaredeliverysystemsintheUnitedStates.ThisresearchpapergoesthroughallthestagesnecessaryfortheimplementationofsuchaprojectastelemedicineinAZHospital,fromtheprojectdescription,situationandindustryanalysis,marketingplan,operatingplan,organizationplan,humanresourceplan,andfinancialplan,todetermineiftheproposedprojectisworthventuringinto.Contents1.0Executivesummary41.1Summaryofsituationalanalysis41.2Keyopportunities,issues,andobstacles41.3Keyrecommendations51.4Keyassumptionsusedinforecastingresultsfrom61.5Summaryofforecastedoperationalandfinancialresults62.0Descriptionoftheproject73.0Situationandindustryanalysis103.1Marketsegmentation103.2Analysisofthecompetitivesituation143.3SWOTanalysis163.4Industryforecastsandfutureoutlookandtrendanalyses174.0Marketingplan184.1Pricingplanwithsourcingandanalysis194.2Distributionchannelsandpractices214.3Promotionplan224.4Product/serviceforecasts225.0Operating/productionplan235.1Capacity255.2Equipment255.3Processesuniquetotheproject275.4Competitiveadvantage286.0Organizationalplan286.1Ventureownershipandformofownership286.2Authorityofrespectiveprincipals296.3Managementteambackground296.4Rolesandresponsibilitiesofteammembers306.5Tableoforganization307.0Humanresourcesplan317.1Employeestrategicplan317.2Recruitmentplan327.3Retentionplan348.0Financialplan359.0Conclusion3810.0Appendix391.0Executivesummary1.1SummaryofsituationalanalysisCOVID-19pandemichasexposedthecriticalinfrastructureneedswithintheoverallhealthcaresystemintheUnitedStates.Providingrelevanthealthcareservicesaffordablyandconvenientlyiscriticaltoindividualsandthenation’snationalsecurityinterests.Pandemics,althoughrare,canhaveadebilitatingimpactonsociety.Thepandemichasseenthedeathofsomanypeopleuptodate.Moreover,millionshavelosttheirlivelihoods.Themassivedeathcanbeaccountedforbytheinadequacyinhealthcareinfrastructure.Furthermore,thecostofaccessinghealthcareserviceshasshownanincreasingtrendovertheyears.Also,withthecurrentimpactsofthepandemic,thisunsustainabletrajectorydoesnotseemtobedecreasing.Telemedicineisasolutiontomanyofsuchtrends.Itisalower-costsolutionthatwilleventuallylowerthecostofhealthcareservices.Itcanalsobedeliveredduringapandemiclikewhatiscurrentlyhappening,andthismakesitausefultoolduringsuchperiodsofmassivesocialandeconomicunrest.Asaresultofthepandemic,peoplehavebeenforcedtobeonlockdownandstayindoorstoabidebytheruleofsocialdistancing.Thishascausedindividualstobeapprehensiveabouttheirvisitstothehospital.Telemedicinewillofferpatientsanopportunitytoaccessqualityhealthcareservicesfromthecomfortoftheirhomes,withoutnecessarilyhavingtogoforthein-patientvisits.Thisefficiencywillmakeitevenattractivetoconsumers.1.2Keyopportunities,issues,andobstaclesThecurrentpandemichasdiscoveredthegapspresentwithintheoverallhealthcaresystemintheUnitedStates.Thisgapcomesasanopportunityforanybusinessventurethatisinterested.Telemedicinehasgainedpopularity,especiallyamidsttheongoingpandemic.Throughtelemedicine,patientscanstillgetaccesstoqualityhealthcareandaffordablepricingfromthecomfortoftheirhomes.InthecaseofAZHospital,thisopportunityisevenbettersincethehospitalalreadyoffersin-patientservicesandhasawell-establishedandloyalcustomerbase.Therefore,theimplementationprocessisanticipatedtobeseamlessandwithfewerstrugglestoattractconsumers.Telemedicinecandiversifytheproductofferingsandtheincomestreamoftheorganization.Thiswillultimatelyhelpthehospitalharnessalargermarketshareandhigherprofitmargininthelongrun.Thehospital’sproductofferingwillallowforflexibilitysincepatientswillchoosehowtheyengagewiththehospitalbychoosingbetweentelemedicineproductofferingandin-patientservices.Thisdiversityandflexibilitywillallowthehospitaltogainanevenlargercustomerbase,eventuallytranslatingintohigherprofitmargins.Thehospitalwillalsoestablishpartnershipswithothertelemedicineserviceproviderswhoonlyfocusontelehealthservicesandnotin-patientserviceslikex-rays.Oneobstaclethehospitalislikelytofaceinthisventureiscompetitionfromsomeofthealreadywell-establishedtelemedicineserviceprovidersliketheDoctoronDemand,createdbyDr.PhilandhissonJayMcGraw.However,somestrategieshavebeendesignedtodealwiththisissue.Anotherobstaclewouldberelatedtotherapidadvancementoftechnology,makingevaluationsvulnerabletoobsolescenceaskeysoftwareandhardwareconstituentsmovefrombeingthestateoftheearthtooutofdate.1.3KeyrecommendationsTelemedicinehassomespecialcharacteristics,suchassharedinformationtechnologies.Mostnotably,itisnotadiscretesetofinterconnectedtechnologiesorasingletechnology.Itisalarge,diverseconnectionoftechnologies,clinicalpractices,andorganizationalarrangements.Itsimplementationlargelydependsonacomplex,technicalandhumaninfrastructureaffectedbyrapidchangesinthetechnologysystem.Asaresult,realismandpersistenceareimportantforthoseworkingtowardsdemonstratingthepromiseoftheservice.Also,asystematicandrigorousevaluationwillbenecessary,justlikeinanyothertechnology.Decision-makersmusthavegoodenoughinformationincomparingtheeffectsoftelemedicineservicesandapplicationstothoseofotherhealthcarestrategiesforcost,access,andqualityacceptability.Decision-makersmustalsofullyanalyzetheimplicationsofthetelemedicineinfrastructureandtherequirementsnecessaryformaintainingtheproductofferingpasttheinitialstages.Hence,theremustbecarefulprojectandevaluationplanning.1.4Keyassumptionsusedinforecastingresults1.Thehospitalhasasustainablecompetitiveadvantagebyofferingbothphysicalhealthcareservicesandonlinehealthcareservices.Thisprovidesuswithastrongcustomerbaseinwhichtoleveragehightelemedicineadoptionrates.2.Wealsohaveastrongandwell-respectedbrandthatissynonymouswithquality.Ashealthcareisveryimportanttoconsumers,theytypicallydonotpricesensitiveandwantthebestqualitycareavailableatareasonableprice.3.Competitorswhoaregrowinglackthebreadthanddepthofourproductofferingallowsconsumerstochooseusoverthem.4.Competitorslackthebrandawareness,distinction,andcomfortthatourcompanyoffersconsumers.5.Wewillhaveextensivepartnershipswithotherhealthcareprovidersandtelemedicineproviders.1.5SummaryofforecastedoperationalandfinancialresultsAforecastoftheoperationalandfinancialresultswasdoneusingthecurrentmarketshareandthecompetitoranalysis.Aconclusionwasreachedthattheoperationismostlikelytobeasuccess.Thehospitalalreadyhasawell-establishedandloyalcustomerbase.Asaresult,therewouldnotbemanystruggleswiththemarketingplantocaptureacustomerbasetoconsumeourtelemedicineproducts.Thiswilltranslateintohigherprofitmargins.Also,acompetitoranalysiswasdonetoevaluatehowmuchcompetitionthehospitalwouldfaceinthisnewventure.Astrategytobeatcompetitionwasthereforedeveloped.First,thehospitalwillusethepricingstrategytocapturemorecustomersbyoperatingatlowercostsattheinitialstagesoftheimplementation,raisingthecostlater,havingestablishedalargerconsumerbase.Anotherstrategythatwillbeusedtobeatthecompetitionisbasedonthefactthatthehospitalwillofferbothin-patientvisitsandtheonlinecomponent.Thiswillgivethehospitalacompetitiveadvantageoverotherorganizationsinthesameventure.Theseamlesstransitionbetweenonlineandofflineserviceswillgiveusacompetitiveadvantage.Onthefinancialaspect,thepricingstrategyisalsomeanttoleadtohigherprofitmarginseventually.Theinitialstrategywillrevolvearoundalowmonthlybasefeeandtheconsultationfeesbasedontheproductdemandedbytheconsumer.Thelowpricingstrategywillattractmorecustomers.Althoughwemightbestretchedfinanciallyattheinitialstagesbecauseofthispricingmodel,thepricingisboundtochangewithtimeoncetheproducthasestablishedabiggerandloyalconsumerbase.2.0DescriptionoftheprojectThisproposedprojectaimstodevelopandimplementtelemedicineanditsrelatedinfrastructurethroughouttheorganization.Theprojectshallbeusedtoimproveefficienciesintheorganizationwhileenhancingtheoverallqualityofcare.Thisismeanttohelpimproveoperations,reducecancellationsofappointments,andincreaserevenuewhileminimizinghealthcarecostssimultaneously.Healthcareiscurrentlyundergoingfundamentalchange.First,babyboomerscontinuetoutilizeservicesatanalarmingrate.Theoverallpopulationisaging,andassuch,thehealthcareinfrastructurewillneedtochangetoaccommodatechangingdynamicswithintheindustry.Anolderbabyboomergenerationislivingmuchlongerandutilizingmoreservicesthanexpected.Currently,18%oftheUnitedStatesGrossDomesticProductisconsumerbyhealthcareexpenditures.Thismeansthat1ofevery5dollarsusedintheUnitedStatesisspentonhealthcare,andbabyboomersarealargereasonforit.Inadditiontothesechanges,COVID-19hasexposedmanyoftheinequitiesinthesystemrelatedtotreatmentandqualityofcare.Alarge-scalepandemicessentiallyoverwhelmedthehealthcaresystemcausingunnecessarydeathandmaltreatment.Thishascreatedtheneedforunprecedentedstimulusonmanydevelopednationsrelatedtohealthcaretreatment(Baron,Hirani&Newman,2017).Consequently,changeswillneedtobemadeinthefuturerelatedtohealthcaredeliveryandqualityofservice.Forone,infrastructuremustbeinplacetohelptakeonexcesspatientcapacitywhenapandemicoccurs.Second,healthcareinstitutionsneedtobereadytomobilizeandtoexpeditevaccinesandotherapprovalmethodsneededtomitigatetheimpactsoffuturehealthcareproblemsandpandemics.Inaddition,thequalityofcaremustaimforpreventativemeasurestokeeptheoverallpublicabreastofunderlyingcircumstancesrelatedtopandemics.Itisimportanttofocusonhealth,obesity,andotherindividualconcernstomitigatediseaseimpactsonsocietyoverall(Browning,2015).Thisprojectisnecessarybecausetelemedicinewillprovidestrongeconomicbenefitsfortheorganizationwhileenhancingserviceprovisiontotheconsumer.COVID-19pandemichasbeenaneye-opener,helpingusidentifythelargestructuralweaknesseswithinthehealthcaresystem.Thehospitalswereoverwhelmedbyconsumers,limitingtheoverallcapacityandthehospitals’abilitytotakecareofpatients.Theorganizationcanuseelectroniccommunicationsandsoftwaretoofferclinicalservicestopatientswithoutpersonalvisitsthroughtelemedicine.Forinstance,thiscouldhavebeenusedduringtheCOVID-19pandemictohelpstopthevirusfromspreadingtootherpatientsandhealthcareworkers.Toavoidasimilaroccurrencesuchasanotherpandemic,itisimportanttoinstitutechangestocounteractthenextoccurrence.Thetelemedicineservicewillenablehealthcareproviderstoofferservicestopatientselectronically.Personalvisitsarenotalwaysnecessaryinhealthcareprovision.Serviceslikefollow-upmedicalvisits,managementofmedication,andcertainconsultationscanbedeliveredthroughelectronicmeans.Therefore,telemedicinewillprovidetheseservicesinthesamemannerasin-personvisitsusingvideoconferencingtoadministertheservices.Evidencesuggeststhenecessityofthisaspandemicsandotherhealthemergencieswilloccurinthefuture.Byleveragingtelemedicinenow,servicescanbeofferedtoconsumerscontinuouslywithlittletonodisruption.Moreover,healthcareexpenditurescontinuerising.Currently,18%ofGrossDomesticProduct(GDP)isrelatedtohealthcareexpenditures(AmericanHealthCare:SpendingandtheFederalBudget,2018).Withtelemedicine,costscanbereducedsignificantlysincehospitalsnolongerneedtherelatedoverheadadministrativecostsnecessaryforin-personvisits.Throughelectronicinnovations,costscanbereduced,withcost-savingisdirectlytransferredtotheconsumer.Theglobaltelemedicinemarketisestimatedtoberoughly56billiondollarsin2021.Theannualgrowthrateofthetelemedicinemarketisanticipatedtobeabout22percentbetween2021and2028.Thisriseisattributedtoincreasedconsumerdemandandtelemedicineadoptionrates(TelemedicineMarketSizeAnalysisReport,2021).Thekeypersonnelneededwillberelatedtotechnology.Theorganizationwillneedachieftechnologyofficerwhocanleveragetheirexpertisetodelivertechnologyandadoptionsolutions.Moreover,thecompanywillneedtohirealegalteamtoevaluatetheimplicationsoftheimplementedtelemedicineandwhatproductsandservicescanbeprovided.Furthermore,asmallmarketingteamwillalsobeneededtopromotethevalueoftheservice,overseedesigninginformationpackets,socialmediacampaigns,andotherchannels.3.0SituationandindustryanalysisFromaneconomicviewpoint,theadmissionprocessandtransferregulationarevitalsinceanorganizationcontinuouslylooksforwaystoincreaserevenuesandgrowthevolumeineveryserviceline.Iworkinthehealthcareindustryandwitnessinefficienciesthatoccurdaily.Theinefficiencynotonlysacrificesthequalityofhealthcarebutalsoreducestheprofitabilityoftheenterprise.Lowerprofitabilityhasimplicationsforthestakeholdersinvolved.Thisincludesreducedabilitytoattractandretainhigh-qualityemployees.Also,itlowerstheabilityoftheenterprisetoinvestinnewinnovativetechnologiesthatcanfurtherincreasehealthcarequalityoracceleratetreatmentprocedures.ThecurrentadmissionprocessesandtransfersintheorganizationthatIcurrentlyworkforarefragmented.TheWestandEastsidelocationsfollowdifferentalgorithms.Currently,theorganizationcannottrackpatientsaccuratelymovingtootherfacilitieswithinandoutsideorganizations.Todevelopthecorrectservicelinesandincreaseourvolumes,itisessentialtohaveconsistent,definedtransferandadmissionprocesses.Toaccomplishtheabovetasks,theorganizationwillneedtoinnovateinamuchmoreeffectivemanner.Thiswillrequirethecorporatetoleveragetechnologiesthatincreaseefficiencieswhilealsominimizingcosts.Telemedicineanditsabilitytorestructuretheadmissionprocessaremethods(Adams,2019).3.1MarketsegmentationCOVID-19pandemichasexposedinfrastructuregapsinthehealthcaresystemintheUnitedStates.Theprovisionofrelevanthealthcareservicesaffordableandconvenientiscriticaltoindividualsandnationalsecurityinterests.Althoughpandemicsarerare,theycanhaveanincapacitatingeffectonsociety.Aswehaveseenthroughouthistory,pandemicscrippleoperations,causehighdeathlevels,andleadtobusinessoperationsclosure.Allthesehaveanoverallimpactonthenationasawhole.Sincetheonsetofthecurrentpandemic,nearly540,000peopledied,whilemillionshavelosttheirincomesourcesandlivelihoodresultingfromtheinadequacyofthehealthcareinfrastructure.Moreover,healthcareexpendituretrendsthatoccurredbeforethepandemichaveindicatednosignsoflessening.Currently,healthcareexpenditureaccountsforroughly18%oftheUSGDPor$3.6Trillioninmonetaryvalue.Onaper-capitabasis,theseexpenditureshaveprovedtobethehighestintheworldatroughly$11,000perperson.By2028,theprojectionsonhealthcareexpenditureareroughly$68,000asperthecensusbureau.Theresultisthatthecostofhealthcareaccountsforapproximately16percentofthetotalhouseholdincome.Thistrajectoryisunsustainableashealthcaretrendsdonotseemtobereducing.Thefollowingchartrepresentstheriseinthecostofhealthcaresince1961.Chart1Thesetrendsinhealthcaredonotseemtobereducing.Thisisprimarilybecauseofthedemographicsinthecurrentmarket.Forinstance,thepopulationisbecomingmucholderandlivinglonger.Asaresult,thedemandforadditionalhealthcareservicesincreasesoveralongerperiod.Babyboomershavebeenacriticalelementtotheprofitabilityoftheoverallhealthcareindustry.Theyhavelargeamountsofdiscretionaryincome,livelonger,andthereforedemandhealthcareservices.Sincetheyhaveashorterlifespan,theyarelessprice-sensitiveandarewillingtopaypremiumpricesforhealthcareservices.Suchtrendscreatesignificantgustsoftheindustryasithasalarge,wealthycaptiveaudience.In2020,thetelemedicinemarketgrewby23.5%toreach$186billion(Telemarketmarketsizeanalysisreport,2021).MuchofthisisattributedtotheCOVID-19pandemic,whichilluminatedmanyoftheweaknessesintheUnitedStates’healthcaresystemandtelemedicineservices.Forone,theUnitedStateshealthcaresystemisill-equippedtohandlealarge-scalehealthconcernorapandemic.DuringtheCOVID-19pandemic,manyhospitalswereforcedtooperatesignificantlybeyondtheircapacity.Thecountrylackedenoughresourceslikemasksandotherprotectiveequipmentforhealthcareworkersintheirstrifetomitigatethespreadofthevirus.Intermsofhealthcareequipment,thecountrylackedenoughventilatorstoseetheneedsofpatientswhoneededphysicalaccommodation.Asaresult,someseriousailmentscouldnotbeproperlytreatedbecausehospitalswereoverwhelmed.Provisionofhealthcarediminishedduetoinadequateavailabilityofpersonnelandtheoverallcostofhealthcareincreased.Asaresult,telemedicinehasriseninpopularitytosolvemanyofsuchtrendspresentedabove.Ithelpstoprovidealower-costsolutionthatautomaticallylowersthecostofhealthcaretreatment.Additionally,telemedicinecanbedeliveredduringapandemic,makingitusefulduringimmenseeconomicandsocialunrestperiods.Thequalityofservicedeliveredthroughtelemedicineisequalto,ifnotbetterthananyregularin-patientvisitsorprocedures.Thissavestimeforeverystakeholderinvolved.Alsokeytonoteisthattelemedicinehelpsreduceabsenteeismthatresultsfromcancellationsofappointmentssinceindividualscanutilizeservicesfromthecomfortoftheirhomes(Greiwe,2019).Thegloballockdownforcedpeopletostaywithintheirhomes,whichcausedindividualstobeapprehensiveabouttheirvisitplanstothehospital.Also,thepandemicthreatcausedincreaseduseoftelemedicinesinceconsumersfearthattheymayhaveacquiredthevirus.Home-basedorremoteworkingalsoincreasedtelemedicinesinceconsumersweremorefamiliarandcomfortableusingonlinechannelsandmediumsofexchange.Resultingfromthiswasalargeincreaseinadoptionratesandproficiencywithinthemarketacrosstheindustry.Chart2belowshowstheoverallgrowthrateswithintheindustry.Chart23.2AnalysisofthecompetitivesituationAsit’srelatedtoAZgeneralhospitalspecifically,telemedicinecandiversifyitsproductsandincomestream.Theofferingoftheseproductscaneventuallyhelpthehospitalharnessalargershareofthewalletwithconsumerswhilereducingtheoverallexpensesassociatedwithin-patientcancellations.Telemedicinewillallowthecompanytohavehigherprofitmarginsinthelongrunwhileimprovingcustomerserviceatthesametime.Previously,profitmarginswouldbeextremelylowbecausethecompanywouldneedtoplaceaheavyinvestmentinthetelemedicineinfrastructure.Suchinfrastructureincludesadditionalserversfordatastorage,increasedsecuritymeasurestoprotectcustomers’personalinformation,softwarethatscheduleappointment,andotherhardcosts.Softcostsincludedecidingtheservicestobeprovidedbythesystem,trainingpersonaltoknowhowtousethesystemproperly,andlimitationsassociatedwiththeproductoffering.Therefore,manyoftheseelementstaketime,financialcapital,andhumancapitalforeffectivedeployment.Anotherextrarequirementforthecompanyhasanavailablestafftohelpalleviateanytechnicalissuesthatmightoccur.Oncetheproductofferingisestablishedandbecomesoperational,profitmarginsareexpectedtoincreaseduetoeconomiesofscaleandlowvariablecosts.Sincevariablecostsarelow,everytimethecompanygeneratesrevenuesfromtheserviceoffered,profitmarginsincreaseindirectproportion(Wangetal.,2019).Asstatedearlier,telemedicineofferstheorganizationadiversifiedstreamofincomethatgivesoptionalitytoboththeorganizationanditscustomers.Asthepandemichasdemonstrated,optionalityisofgreatbenefitforcompaniesthatwanttotakealargermarketshare.Theabilitytoofferastrongproductonlineandphysicallywillfurtherhelpthecompanyestablishitselfevendeeperincustomers’liveswhileimprovingservices.Consumersgettochoosewhattheywant.Hence,theyarewillingtopaypremiumpricesfortheoptionsavailable(Adams,2019).Justlikeinanyindustry,competitiondoesexistandisfierceinthisindustry.Onereasonforthisistheincreasinglylowbarrierstoentryintothismarket.Therefore,anyhospitalwithhumanandfinancialresourcescanopttoestablishatelemedicineproduct.Also,companiesdealingwithpuretelemedicinehavebeencreated.Thesedonotrequireanyphysicalpresencebutonlyofferonlineconsultations.Forinstance,theDoctoronDemand,createdbyDr.PhilandhissonJayMcGraw,providesseamlessonlineconsultations.Itallowsconsumerstoseeadoctorthroughvideoconferences,andadiagnosisisgiven.Thisventurerecentlycloseda$21Millionseries,aleadbyVenrock.Inthisexample,thecompetitorhasawell-establishedbrandandiswidelyrecognized,hasastrongbusinessplan,andisbackedbyanestablishedfinancier.Additionally,competitorsareusingtelemedicinetoestablishtheirnetworksandbringtheirprogramstothemarket.AmericanWellseekstoprovideitsconsumerswithconvenientaccesstomedicalcareandservicesextendingbeyondurgentcare.Thisistoincludechroniccaremanagementandpost-surgicalfollow-ups.Consideringallthesefacts,manycompetitorshaveseveralbusinessmodelsthatcustomersfindcompellingadappealing.Theexponentialgrowthoftheindustrycomeswithnewentriesintothemarketcontinuously(Cogan&Vogel,2017).AZgeneralhospitalhasauniquecompetitiveadvantageoveritscompetitorssinceitwillhavetheoptionalityofin-personvisitsandtheonlinecomponent.Someconsumersmaystilloptforanentirelyin-personexperience,aservicemanyofthecompetitorscannotprovide.Theywill,therefore,losethismarkettocompetitorslikeAZgeneralhospitalthatcan.Moreover,AZGeneralHospitalhasarangeofservicesthatcanonlybeofferedinperson.Competitorswhoexclusivelyonlinehavelimitedservicestheycanprovide.WithAZGeneralHospital,wecanbeabetterserviceproviderandofferabroaderrangeofserviceswhilestillprovidingtelemedicinetothosewhooptforit.Combiningthesecapabilitieswillallowtheorganizationtosucceedevenastheindustrytakescourseintothetelemedicineproductoffering.3.3SWOTanalysisSTRENGTHS1.Telemedicineprovidesalowercostsolutionthantraditionalservicesprovidedinthephysicallocation.2.AZGeneralHospitalhasacombinationofphysicalandonlinepresencethatprovidesadistinctcompetitiveadvantage.3.AZGeneralHospitalalreadyhasastrongcustomerbasethatallowsthetelemedicineproducttopickupquickly.4.Thetelemedicinemarketisfast-growingandhighlyprofitableanddoesnotrequirecompetitionbasedsolelyonprice.5.Telemedicinerequiresalargeinitialinvestmentthatlimitssmallerhealthcarefacilities’abilitytoestablishtheproductoffering,thusreducingcompetition.WEAKNESSES1.Telemedicineinitscurrentformislimitedintheamountandkindsofservicesitcanprovidesolelyonline.2.Telemedicinedoesrequirealargecommitmentintermsofcoststopurchasenecessaryhardwareandsoftware.OPPORTUNITIES1.Continuousinnovationwithinthetelemedicinesector2.Acquisitionofcompetitorswithasuperiorproductoffering3.Potentialsupplementaryservicesthatcouldincreasethehospitalprofitstream4.TheabilitytoexpandintoothermarketswithserviceswithouthavingaphysicalpresenceTHREATS1.Strongcompetitorsbackedwithwell-establishedfinanciers.2.Competitorswithstrongbrandnamesandrecognition3.Larger,moreestablishedhospitals3.4IndustryforecastsandfutureoutlookandtrendanalysesAsmentionedearlier,telemedicineisundergoingexponentialgrowth.SinceApril2020,telemedicinehasimprovedfromlessthan1%to44%today.Hence,theindustryforecastisthattelemedicinewillbecomeastandardhealthcareserviceofferedacrossallcarehealthcaresystems.AccordingtoresearchconductedbyForrester,aglobalresearchfirm,theUnitedStates’virtualhealthcarevisitsshouldrisetoabouthalfabillioninthenexttenyears.Assuch,patientswillchoosehealthcareprovidersdependingontheirabilitytoprovidestrongtelemedicineproductofferings.AccordingtoCDC,chronicdiseasesthatcanbeavoidedthroughpreventivehealthcareservicesaccountforabout75%ofthenation’shealthcareexpenditure.Withhealthcareexpenditurecurrentlyat$4Billion,preventivecareservicesareaccountableforabout$3billionyearly.Therefore,byprovidingmoreconvenientaccesstofollow-upcare,telemedicinetreatment,andspecialistsforfasterdiagnosis,hospitalswillhavefewerreadmissions,in-patientstays,andcomplications,andreducedcostoftreatmentandservices(Atkinson&Ezell,2019).4.0MarketingplanThepricingmodelfortelemedicineisyettobestandardizedbecausetheindustryisjustbeginning.Hence,manycompetitorsusedifferentpricingmodelsbasedontheirbusinessmodels.Manyarewillingtochargelowerprofitstogenerateloyalcustomerswithlargeamountsofcapitalandfinancialbacking,forstarters.Manytechnology-basedcompanieslikeMicrosoftandamazonfollowedthisstrategyduringtheirstartups.Forinstance,Amazonrecordedsubstantiallossesformostofitsexistenceasitsoughttogenerateabiggercustomerfollowingwhilebuildingitsproductoffering.Microsoftusedasimilarstrategytobecomethedominantprocessingitistoday.Onceitdominated,itwasabletochargehigherpricesandaddadditionalservices.Pricingforstartuptelemedicineorganizationsseekstobeemployingthesametactic.However,thiscanbeverydisruptiveasthesesoftwareprovidersarepurposingtotakefinanciallossesandoperatingonathinmargintotakemarketsharefromcompetitors.Thosecompetitorswhodonothavethefinancialbacking,capital,orinvestorbasetosustainthelosseswilleventuallylosemarketshareandultimatelyprofitability.WearecurrentlywitnessingthiswithintheretailsectorsincemanystoreslikeSears,NeimanMarcus,andJCPennyhavefiledforbankruptcy.Thisresultedfromtheirinabilitytocompetewithonlineretailerswhousedextremelyaggressivepricingstrategies.Ontheotherendaremoreestablishedtelemedicineproviderswhoarenot“pure-play”telemedicineproviders(Adams,2019).Theycombineacombinationofservices,eachwithvaryingprofitcharacteristics.Theresultisthatthesebusinessesdonotrelysolelyonrevenuefromthetelemedicineoperation.Theseoperationshavemuchmoreflexiblepricingrelatedtotheirtelemedicineproductofferingrelativetotheircompetitors.Goingbacktotheretailexampleearlier,Costcohasthrivedinthecurrentenvironment,andtheircoreretailoperationshaveperformedverywellduetotheircostfocusstrategy.EvenwithAmazonoperatingatalossandundercuttingitsprices,Costcostillofferssuchacompellingvaluepropositionthatconsumersstillusedtheirservices.Therefore,theyhaveslowlyrolledouttheironlineserviceofferingtocompetewithAmazonbetter.Inthisinstance,AZHospitalwilladoptasimilarapproachtoitspricingtacticrelativetocompetitors.Thehospitalbenefitsfromother“core”servicesthatallowittobeflexiblerelatedtoitstelemedicineproductoffering.Asaresult,thecompanyshouldnotfeelpressuredtooperateatlossestorolloutitsproductproperly.Instead,thecompanycanbepatientanddeliveracompellingexperience,leveragingitshealthcareexpertiseandpotentiallychargingpremiumprices(Visitiu,2018).4.1PricingplanwithsourcingandanalysisThecurrentpricingstrategywillrevolvearoundalowmonthlybasefeeandtheconsultationfeesbasedontheproductbeingdemandedbytheconsumer.Thispricingstrategywillfirstbeverytransparenttotheconsumerbeforeengagingwiththecompany.Tostart,themonthlybasefeewillstartat$20permonth.Theotherfeeswillbebasedpartiallyoncompetitivepricingandpartiallyoninternalprofitmarginprojections.Asstatedearlier,thecompanywillnotengageinpricewarswithvendorsandprovidersseekingtomarketshare.Instead,thecompanywillsimilarlyleverageitsvaluepropositiontoCostcointheretailindustry.ThispricingmodelisjustifiedbecauseAZHospitalhasaphysicalandonlinepresencethatisdifficultforothercompetitorsinthemarkettoimitate.Consumershavemoreflexibilityandoptionstochoosehowtheywouldliketoengagewithourservicesandproductoffering.Inaddition,duetoourphysicalpresence,ourfacilitycanprovideservicesthatmanytelemedicineproviderscannotimitate.Thissmoothtransitionbetweenonlineandofflineservicesgivesourfirmasustainablecompetitiveadvantageoverourpeers.Insomecases,itwillallowustoformpartnershipswithcertaintelemedicineproviderswhoareunwillingandunabletoprovidetheservicesweoffer.Forinstance,itisdifficultforacompetitorlikeDoctoronDemandtoprovideanX-Rayovertheinternet.Assuch,theymustoftencontractthisworkouttootherhealthcareproviders.Ourpricingmodelaccountsforthecostsneededtomaintainthephysicalpresenceinthemarket,thedepthofproductofferings,theflexibilityofproductofferings,andthequalityinwhichtheseofferingsareadministered.Asaresult,wedon’tintendtolowerourpricesasourcompetitorsdonothavetheseofferingsandtheirassociatedcosts.Chart3belowshowstotaltelemedicinecostsfordifferenttreatments.Takenoteofhowtherangevariesforbasicandoftenroutinetreatments.Asnotedearlier,thisisprimarilyduetotheindustry’sinfancyandthevariouspricingstructuresusedbyourcompetitors(Browning,2015).Chart3-costdisparityfortelemedicinetreatmentChart4belowprovidesthesameexampleaschartone.Herethecharttakesonetreatment,“BirthControl,”andshowsthesplitbetweenthevisitcostandtheprescriptiondrugcost.Thedisparitiesarewideandmostlydependontheprovider,thequalityofserviceprovided,andtheoverallproductofferingfromthechart.Someofourtelemedicinecompetitors,suchasHux,donotchargeanythingfortheirvisit,withtheirrevenuebeingincurredsolelyfromthesaleofprescriptiondrugs.Likewise,competitorssuchasDoctoronDemandchargesalargeconsultationfeeupfront,withverylowprescriptiondrugcostonthebackend.However,mostcompetitorsuseacombinationofbothitemsasitrelatestotheirpricingstrategy.Chart4-costdisparityforbirthcontrolOurpricingstrategywillbeamonthlyfeefortheservice,togetherwithacombinationofprescriptiondrugpricefeeandacompetitiveconsultationfee.4.2DistributionchannelsandpracticesAsnotedearlier,distributionchannelswillcomefromavarietyofsources.Themostsignificantandreliablesourcewillbeourcustomerbase.AZHospitalisuniquebecausewealreadyhaveawell-established,well-documented,andloyalcustomerbase.Therefore,theorganizationdoesnotnecessarilyhavetospendsignificantamountsonmarketing,advertising,andpublicrelationsasmanyofourcompetitors.Thesesavingscanlowermonthlyfeesorconsultationfeesforcustomerstomakethepricingevenmorecompetitive.Therefore,ourcustomerbasewillbeourprimarydistributionchannelduringtheinitialstages.Oncefullyutilized,thecompanywillthenshifttoothertelemedicineproviderswhodonothaveaphysicalpresencewithinthemarket.Here,wecanintegrateourunparalleledproductdepthandqualitywithcompetitor’sabilitytogenerateleadsthroughthetelemedicineproductoffering.Thiscouldimproveourbrandrecognitionandawarenesswhilealsoprovidingtelemedicineanotherincomestream.Finally,ourthirddistributionchannelwillbeviaotherhealthcareprovidersandmajorcompanies.Here,wewillseektoestablishpartnershipswithotherhealthcarepartnerswhomaynothaveastrongofferingorunwillingtocatertothecostofcreatingandmaintainingtheoffering(Browning,2015).4.3PromotionplanThepromotionaspectwillbeprimarilyinternalatfirst,aswewillleverageourcustomerbasetogenerateaconsumerbase.Afterward,thefirmwillengageinlimitedadvertisingandpromotiononsocialmedia,YouTube,Google,andothersocialmediaplatforms.TheinitialpromotionwillbemodesttogaugetheoverallcustomergenerationandROI.Sincetheindustryisrelativelynew,nearlyallmarketparticipantsarenotentirelysurewhichpromotionaltacticswouldgeneratethehighestcustomertrafficandROI.Moreover,promotionthroughourprimarydistributionchannelswithtelemedicineandotherhealthcareproviderswillhelpestablishthebrand.4.4Product/serviceforecastsAsit’srelatedtotheproductandservicesforecast,weexpectthatourproductofferingwillgrowinlinewiththeoverallindustry.Asof2021,theindustryisgrowingatabout20%peryear.Asaresult,webelieveweshouldbeabletogrowsteadilyatthisrateforthefollowingreasons:1.Wehaveastrongandwell-establishedbrandthatissynonymouswithquality.Ashealthcareisveryimportanttoconsumers,theytypicallydonotpricesensitiveandwantthebestqualitycareavailableatareasonableprice.2.Wehaveasustainablecompetitiveadvantagebyofferingbothphysicalhealthcareservicesandonlinehealthcareservices.Thiswillprovideuswithastrongcustomerbasetoleveragehightelemedicineadoptionrates.3.Competitorslackthebrandawareness,distinction,andcomfortthatourcompanyoffersconsumers.4.Competitorswhoaregrowingdonothavethebreadthanddepthofourproductoffering,allowingourconsumerstochooseusoverthem.5.Wewillhaveextensivepartnershipswithotherhealthcareprovidersandtelemedicineproviders,especiallythosewhoareunableandunwillingtoofferin-patientservices.5.0Operating/productionplanTheorganizationwillhavetoestablishacommitteethatwilldecideonvisitsandappointmentsappropriateforthehospital.Additionally,thecommitteewillsetupguidelinesthatwillincludetheclinicalprotocolsandoperationalworkflowsforeveryphysician,staff,andallspecialistswhileconsideringtheroleofadvancedpracticeproviders(APPs).Thiswillhelpensuretheconsistencyofmessagingandallowforefficiencyintriagingpatients’concernsandtheirmedicalconditions.Thiswillfurtherhelpdetermineappropriateservicesandcaretoset,appointmenttypewhenthepatientistendedandbywhom,andtheproviderspecialty.Triagingisimportantsinceitwillhelpimprovepatientmanagementandthemanagementofhospitalresources.Thiswillultimatelyallowforbettercaredeliveryattherightplace,setting,andtime.ItwillalsohelpthehealthcareprovidersprovideclearinstructionsduringthiswhenwemustallabidebytheregulationssetuptoreducethespreadoftheCOVID-19virus,includingsocialdistancing.Moreover,thehospitalwillhavetosetstandardswithcomprehensiveandcleardocumentation(Visistiu,2018).Furthermore,patientswillexpectaconfidential,professionalenvironmentwhethertheycomeforthein-personvisitsorreceivethehealthcareservicefromthecomfortoftheirhomes.Forthisreason,thehospitalandthehealthcareproviderswillhavetoensurethattheirworkspacebackgroundisappropriate.Thismeansnointerruptionsfrompets,familymembers,andcolleagues,andnodistractionsaswell.Forthetelemedicineservice,providersmustkeepinmindthattheyareoncamera.Anotheressentialelementtotheefficiencyoftheservicesandproductsprovidedbythehospitalissettinguptheworkspacetoenablethehealthcareprovidertoseethepatientandeasilyaccesstheelectronichealthrecords,messages,andanyotherrelevantresourceinformation.Thetechnologywillalsobesetuptohelppreventfrustrationbothforthehealthcareprovidersandthepatientsandtopreventmiscommunication.Thiswillensurethatthehospitalhasseamlessoperationsthroughout.Therefore,essentialstoensurethisincludebroadconnectionandgoodsoundandstrongandconsistentWi-Fi.Foraudibilityandgoodsoundquality,thehospitalwillneedgoodheadsetsandmicrophonesfortheusers.Astrongtechnologicalteamwillhelptobringthisintoreality.Thehospitalwillalsohavetoestablishpracticemanagementsystems(PMSs)andelectronichealthrecords(EHRs)forthehealthcareprovidersandothervirtualcommunicationoptions.Therewillalsobetheneedtoestablishtimeslottemplatesandthetypesofappointments,andthelengthofeachtype.Tooptimizescheduling,thecommitteeestablishedbythehospitalwillhavetowalkthroughtheentiretelemedicinecallprocessfromthebeginningtotheend.Additionalbuffertimebetweenvisitswillalsoberequired,especiallyattheinitialstagesoftheimplementationprocess.Thehospital’stechnologyteamofexpertswillalsoensurethatthetechnologyusedbypatientsforschedulingappointmentsisreliableanduser-friendly(Visistiu,2018).Thehospitalwillalsodevelopclearinstructionsforpatientstofollowregardingthetechnologysincemanywillnotbetoofamiliarwithhowthetechnologyworks.Thestaffwillalsobegivenadequatetrainingtoensuretheynavigatethetechnologywitheaseandmastertheprocesses.Alltheseactivitiesareaimedatensuringefficientandseamlessoperation.5.1CapacityThehospitalwillhavetodevelopbuildingcapacityamongthehospital’shealthcareprovidersandstaff.Thisislikelytohaveasignificantimpactontheirpreparednessandcomfort.Thiswilladdressissuesinhistory,skills,communication,andtechnicalproficiency.Also,thenumberofpatientsattendeddailyislikelytoincrease,translatingintoincreasedprofitmargins.5.2EquipmentTelemedicinerequiresalotofspecializedequipmentfortheventuretobeseamlessandsuccessful.However,foralmosteverytoolusedforin-personvisits,thehospitalcanpurchaseatypicalelectronicversion.Thefollowingisalistofthetoolsandequipmentnecessaryfortheimplementationoftheservice.Aremotevitalmonitoringdevicetakesthepatient’svitalsandsendstheresultsstraighttothespecialist’sdevice.Withthisdevice,apatientwhoisatriskofdevelopingaseriousconditionorproblemcanputitoncontinuouslytoallowforconstantmonitoring.Wirelessscalesensurethatthepatient’saccurateweightismeasuredandtransmittedtothehospital’ssystemandthehealthcareprovider’sdevice.Havingarecordofthecorrectpatientweightwillhelpthepractitionersprescribemedicationandtreatmentcorrectlydespitenotphysicallyseeingthepatient.Virtualstethoscopes–thisrecordsaudiofromthepatient’ssideandthentransmitsittothedeviceofthespecialist.Withthisdevice,apatientwillrecordaudiofromtheareathephysicianwouldliketoexamine,includingthelungs,thedigestivesystem,ortheheart.Therecordedaudioisthensentwirelesslytothehospitalsystem,wherethephysiciancanaccessit.Thepatientswillusethermometerstorecordtheirtemperature,whichwillthenbedisplayedonthephysician’sscreen.Thiscanbedonenumeroustimestoenablethephysiciantotrackanychangesinthepatient’scondition.Pulseoximeters–tomeasuretheoxygenlevel,especiallyinseriouscasessuchasCOVID-19infections.Patientscanhavelowoxygenlevelswithoutknowingaboutit,andthiscanbeveryrisky.Digitalotoscopes–thesedeviceslivestreamvideoandimagestothephysiciansandrecordimagesthatcanbeusedforreferenceinthefuture.Suchadevicewillallowpatientstorecordorgansliketheirearsatanytimeandsendtheimagestothephysiciansforviewinganddiagnosis.Anotheradvantagewiththesedevicesisthatthephysiciancanlookattheimageswheneveritisconvenient.High-qualitycameras-thiswillbenecessaryforspecialtypracticessincesomeparticularspecialtiesrequirebetterqualityimages.Forinstance,specialistslikeradiologistsanddermatologistsrequirehigher-resolutionvideosandimagesforaccuratediagnosis.Hardwareandsoftwaretools-forasmoothcollectionofsensitivehealthinformationwirelessly,thehospitalwillhavetohireateamoftechnologyexpertaspartofthehumanresourcetodevelopasecuresoftwaretoolthatwillallowpatientstouploadvideos,images,andfileswhilebeingassuredcompleteconfidentiality.Gettingthenecessaryequipmentfortelemedicineserviceprovisionisimportant.Withtheacquisitionofsuchtools,thehospital’soperationswillbeefficientandconvenientsothatmorecustomerswillbeattracted.Theequipmentmentionedaboveiseasilyavailableinthemarket.Also,severalinfrastructureswillberequiredtoimplementtheservice,includingaplatformforvideointerface.Thiswillbeacriticalpieceoftelemedicineinfrastructure.Avarietyofvideosystemsareeasilyavailableinthemarket.5.3ProcessesuniquetotheprojectAZHospitalisuniquebecauseitalreadyhasawell-established,loyal,andwell-documentedcustomerbase.Asaresult,theorganizationwillnothavetospendsubstantialamountsofmoneyonmarketing,publicrelations,andadvertisingasmanyofourcompetitorsdo.Thesesavingscanthenbechanneledtootheroperations,lowerconsultationfees,andcustomers’monthlyfees.Thisapproachmakesthehospitalunique,moreappealingtoconsumers,andgivesthehospitalacompetitiveadvantage.Consumersarealwaysattractedtoqualityservicesataffordableprices.Ourstrategyofcompetitivepricingis,therefore,anticipatedtoattractanevenlargerconsumerbase.Anotheruniqueprocesswillbechannelingourdistributionthroughmajorcompaniesandotherhealthcareproviders.Withthisstrategy,wecanestablishpartnershipsbetweenourproductofferingandotherhealthcareproviderswhomaynothaveastrongofferingorunwillingtotakeonthecoststocreateandmaintaintheproductoffering.Thiswillbemadepossiblebyourphysicalpresencesincewewillofferbothin-patienthealthcareserviceandonlinetelemedicineproductofferingcoupledwithourpricingstrategy.Asaresult,wewillnotneedtolowerourpriceslikeourcompetitors.Ourfacultycanofferservicesthatmanytelemedicineproviderscannotimitate.Forinstance,itwillbedifficultforsomehealthcareproviderstoprovidex-raysovertheinternet.Asaresult,suchproviderswillseekpartnershipswithotherprovidersthatcanphysicallyprovidesuchservices.AZhospitalwill,therefore,maximizesuchopportunities.Thiswillalsohelpincreaseourpopularityinthemarket,hencebuildingastrongerbrandnamethatwillstayoperationalwithhigherprofitmarginseveninyearstocome.5.4CompetitiveadvantageWithAZhospital,thecombinationofphysicalpresenceandonlineproductofferingprovidesadistinctivecompetitiveadvantageagainstothertelemedicineserviceproviders.Forone,thehospitalalreadyhasabuilt-incustomerbaseinwhichthetelemedicineproductofferingcanleverageimmediately.ThisallowsAZhospitaltoquicklyputupoperationswithoutspendingtimehuntingorrecruitingpotentialhospitalpartnersorconsumers.Likewise,thephysicalpresenceofthehospitalprovidescustomerswiththeoptionalitythatotherpuretelemedicinecompetitorscannotmatch.Allowingconsumerstohavetheoptiontouseeitherofferingoracombinationofthetwowillalsohelptoincreaseadoptionandusagerates(Wangetal.,2019).Consumerswillhavetheflexibilitytochoosehowtheywouldliketoengagewiththehospital.Theflexibilityofourproductofferings,thedepthofproductofferings,andthequalityofserviceadministrationareconsideredanaddedadvantage.Thiswillofferusacompetitiveadvantagebyattractinganevenbiggerconsumerbasebecauseoftheflexibility.Thisseamlessintegrationofofflineandonlineserviceswillgiveusasustainablecompetitiveadvantageoverothertelemedicineserviceproviders.Anothercompetitiveadvantagewillcomefromourpricingstrategy.Thiswillrevolvearoundalowmonthlybasefeeandacombinationofconsultationfeesbasedontheproductindemandbytheconsumers.6.0Organizationalplan6.1VentureownershipandformofownershipTheventureintotelemedicinewillbeasoleproprietorshipsincetheventurewillbefullyownedandfundedbythehospital.Thehospitalcanalsoseekadditionalfundingfromsomerelevantbodiestohelpwiththeinitialstagesofsettingupthetelemedicineproductoffering.Thismeansthatthehospitalwillberesponsibleforanyprofitsorlossesincurredinoperationsandliabletothesame.TheformofownershipwillalsobesoleproprietorshipastheventurewillbesolelyownedbyAZhospital.Eventhoughthehospitalwillestablishpartnershipsconcerningprovidingin-patientservicestootherhealthcareproviderswhosolelyprovidetelemedicineservices,thehospitalwillstillhavesoleownership.6.2AuthorityofrespectiveprincipalsThegovernancecapabilitywillprovidetheorganizationwiththorough,timely,andaccurateinformationaboutthetelemedicineproductoffering.Thehospitalwillhavetoselectatelemedicineexecutivechampionandatelemedicineleaderwhowillplaykeyrolesintheimplementationprocess.Thesepositionsarecriticalingivingoutdirectivesoncetheopportunitiesandriskshavebeencalculated.Thetelemedicineexecutivechampioncanbeselectedfromvariousofficerslikethechieftechnologyofficer,chiefoperating,chiefmedicalinformation,chiefmedical,chiefexecutive,orchiefinformationofficers.Thisperson’srolewillbetoensureproperevaluationoftelemedicineoptionsandensureappropriateallocationofresourceswithintheorganization.Thetelemedicineleader’srolewillbetosupporttheexecutivechampion.6.3ManagementteambackgroundAsitrelatestotheroleofleadersonthisproject,everyleaderwillhaveamuch-diversifiedrole.Theleadermustfirstbeaprojectmanagerasmanydifferentanddiversetasksarerequiredtosucceed.ThesetasksincludecollaborationwithteamslikeIT,Finance,Marketing,Law,andHumanResource.Eachleadermustalsobeabletodelegatetaskstoallowthemtoprocessresponsibilitiesrealistically.Inaddition,eachleadermustbeastrongcommunicator.Heorshemustdevelopafascinatingandinterestingvaluepropositionforthewholeteamtoimplement.Throughthevision,theleader,therestoftheteamcanbetterincentivizeactivitiesrelatedtotheoverallvisionofthehospital.Forinstance,theseincentivescouldbeincreasedpayformakingpredeterminedsigns.Ineachcase,theleadermusthelpdeliverthetelemedicineprojectontimeandwithinthebudget.Thiscanbeverycomplicated,consideringthemanyvariablesinvolvedintheprocess.Asaresult,eachleadermustbemultidimensionalandmultitaskunderdifferentbusinessandeconomicconditions.Eachleadermusthaveexperiencedealingwithverystressfulandcontentiousjobswithalargeamountofuncertainty.Inaddition,theymustrelyonexpertswhoareoftenwiserandmoreknowledgeablethantheyareasitrelatestotelemedicine.6.4RolesandresponsibilitiesofteammembersTelemedicineisaninnovationbasedontechnology.Assuch,thehospitalwillneedcoderswhoareuniquelyfocusedandtechnology-skilledtoimplementtheprogram.Thecoderswillalsohavetobeskilledincodingusingvariouslanguages,havestrongcommunicationskills,andbeflexibletochange.Theteammembersmustalsoshowstrongtrackrecordsofbeatingdeadlinesandhavestrongcollaborationskills.Theirrolesandresponsibilitieswillgenerallyrevolvearoundadministeringqualityproductofferingswhileabidingbytheethicalcodeofthehospital.Everyteammemberwillbeexpectedtomaintainahighleveloftheteamplayingtoensurethatthehospital’sgoalsareattained.6.5TableoforganizationVPOperationsIn-PatientmedicaldirectorDirectorOut-patientmedicaldirectorManagerCoordinatorTeammembersandotherstaff7.0HumanresourcesplanHumanresourceisacrucialelementtoanybusinessventure.Humanresourceshavebecomeevenmorecriticalduetoglobalizationandindustrytransitionintoamuchmoreservice-orientedmodel.Asaresult,forAZhospitaltotransitionintotelemedicine,thefirmmusthiretherelevantandqualifiedpersonnelforthetask.Forone,technologyinnovationsaredifficulttoimplementandneedskilledpersonnelandlargeinvestmentsinequipment.Delayorhiringtheincorrectindividualscancauseunwarranteddisruptionstotheoverallimplementation.Similarly,whenhighturnoverhappenswithatechnology-basedproduct,muchoftheproductknow-howleaveswiththeindividual.Asaresult,anynewhireswillhavetobeaccustomedtotheworkofthedepartingpersonnelandmakeappropriatechangesasrequired.Thiscouldstillcausefurtherdelays,whicharealsocostlyanddetrimentaltotheoverallproject.Hence,attracting,hiring,andretainingskilledandcompetentpersonnelisacriticalaspectoftheproject’soverallsuccess(Atkinson&Ezell,2019).7.1EmployeestrategicplanTelemedicineisatechnology-basedinnovation.Assuch,AZhospitalwillneedauniqueanddedicatedtechnologyskillsettoimplementtheproject.Herein,thecompanywillneedemployeeswhoareskilledatcodingindifferentlanguages,havestrongcommunicationskills,andtrackrecordofimplementingtacticalchangewithinatraditionalsetting.Theemployeesmustalsohaveastrongrecordofmeetingdeadlinesandhavestrongcollaborationskills.AsAZhospitalisatraditionalestablishmentfocusedondeliveringhealthcareservicesinamuchmoretraditionalsetting,thecurrentemployeebaseisinadequatelyequippedwiththeseskills.Inmanyinstances,theemployeebasehasatraditionalmindsetanddoesnotsharetheinnovativevisionrequiredforthetelemedicineprojecttobesuccessful.Asaresult,theorganizationwillneedtoseekexternalskills.Asaresult,anentirelynewdepartmentwillneedtobecreatedtohelpfostertheinnovativeculturenecessarytoimplementthetelemedicineproductoffering.However,asitisrelatedtoleadership,ateamleaderfromthehospitalwillbepresentonallteamdecisionsontechnologytoensurethattheethicsandcultureoftheorganizationaremaintained(Atkinson&Ezell,2019).7.2RecruitmentplanSeveralessentialinfrastructureelementswillberequiredfortheimplementationofthetelemedicineproductoffering.First,thevideoconnectionandplatformforavideointerfaceareessentialforatelemedicineinfrastructure.Currently,therearevariousvideosystemsavailableintheopenmarket.Themostbasicsystemisdirectlyrelatedtotheconsumersystem.Theconsumerwilluseahomecomputerorsmartphonewiththeapptocommunicatedirectlywiththephysician.Thesesystemsarenormallyprovidedviaathird-partyretailer.However,inthecaseofAZHospital,thiswillbedevelopedinternallytoensurehigh-qualitystandards.Additionally,therecruitmentplanwillneedacompetenttechnicalteamtosupportoperationscontinuously(Cogan&Vogel,2017).Herein,thestaffwillhelpwithtechnicalorhardwareissuesthatoccuroccasionally.Therecruitmentplanwillinitiallybeconservativewithrecruitmenteffortsandwillthereforeonlyhireasmallteam.Oncebudgetaryconcernsandstaffingneedsareaddressed,thecompanywillhireadditionalteammemberstojointhetechnologydepartment.Belowisasummaryofthenumberofemployeesneededandtheskillsetsrequired(Greiwe,2019)EmployeeTypeNumberofEmployeesSkillSetTechnicalSupport21.Strongcommunicationskills2.Strongproblem-solvingskills3.Priorcustomerserviceexperience4.Technology-focusedbackgroundTechnologyDepartmentLeader11.StrongLeadershipSkills.2.Priorexperienceleadingateam.3.Strongtechnologybackgroundandcomputercodingskills.4.Strongcommunicationskills5.Problem-solvingandabilitytomultitask.6.AbilitytomeetandexceeddeadlinesCoders21.CodingSkillsinavarietyoflanguages2.Priorhistoryofperformingcodingatahighlevel3.Strongcommunication,multitasking,andproblem-solvingskills7.3RetentionplanEmployeeevaluationsoccureverysixmonths,onceatthebeginningoftheyearandtheendoftheyear.Evaluationswillbebasedonkeycorporateobjectivessuchasprojectcompletion,teamwork,andoveralldepartmentalsuccess.Recognitionwillbegivenintheformofannualbonusesgivenatthebeginningoftheyearbasedonindividualandteamperformance(Cogan&Vogel,2017).Asitrelatestoretention,AZhospitalwillbeatorabovemarketratesfortalentedandskilledcoders.Asahospital,thecompanycanofferaverycaptivatingbenefitspackage,particularlyforhealthcare-relatedbenefits.ThiswillgiveAZhospitalaretentionadvantageasotherindustrycompetitorswillbelesslikelytomatchthecompany’shealthbenefits.Thisbenefitwillbeevenmoreattractivetotheutopianwhoareenteringthestageoftheirliveswheretheyhavechildren.Assuch,thehealthcarebenefitsbecomemuchmoreadvantageoustothem.Furthermore,theretentionplanwillincludeotherattractivebenefitslikemarketcomparablePTOrates,accesstovariousinsuranceproductsthatincludedisabilityinsuranceandlifeinsurance.Thecompanyprovidescompelling401kbenefitsforretirement,offeringan8%companymatchhigherthantheindustryaverage.Finally,thecompanyofferstuitionreimbursement.Here,theemployeemuststaywiththecompanyforatleasttwoyears,forthefullamountoftuitionwillbereimbursed.ThisnotonlyencouragesretentionbutallowsAZhospitaltobenefitfromtheskillsgainedfromtheemployeeduringtheiradditionaltimespentinschool(Adams,2019).Rewardsandrecognitionwillvarythroughouttheyear.AZhospitalwillprovideemployeeswithaccesstotherewardedbanquetonceayear.Here,exemplaryperformanceswillberecognizedandawarded.Astelemedicineiscriticaltothefutureofthebusiness,manyoftheemployeeswillberecognizedduringthisevent.8.0FinancialplanAsitrelatestoAZhospital,financialmanagementisacriticalcomponenttothefranchise’ssuccess.Forone,profitallowsthecompanytooperateeffectivelyinaverycompetitivehealthcareindustry.AsitrelatestoAZhospitalanditsproductofferings,managementheavilyutilizedtheNPVmetric.Notonlyisthismetricthemostcomprehensive,butitisalsothemostpracticalgiventhelow-interest-rateenvironment(Wangetal.,2019).First,thelow-interest-rateenvironmenthascreatedauniquesetofstrengthsandweaknessesrelatedtoprojectvaluationandfinancialmanagement.Forone,thelow-interest-rateenvironmenthascreatedhigherassetpricesandthusprojectvaluation.Thisisprimarilyduetolowrisk-freeinterestrates.Discountratesortheratesatwhichfuturecashflowsarediscountedarepredicatedontherisk-freerate.ThisisbecauseallinvestmentsoutsideofgovernmentTreasurybills,notes,andbondsareconsideredrisky.DebtissuedbythegovernmentisnotconsideredriskyastheUnitedStatesgovernmentbacksit.ThegovernmentcanprinttheUSdollarand,assuch,doesnothavedefaultriskassociatedwithit.Theprevailingwisdomisthatthegovernmentcanprintdollarstopayanyoutstandingdebts.Now,unfortunately,thevalueoftheoverallpaymentcouldpotentiallydeclineduetoinflation.Ifthegovernmentprintsanexcessiveamountofmoney,itcouldleadtoinflationwhichisalossofpurchasingpowerforeverycurrencyunit.Fromaneconomicstandpoint,theprintingofmoneywillnotcauseinflation.Instead,itistheprintingofmoneyandtheoverallvelocityofmoneythatcancauseinflation.Thisequationiswhathaskeptinflationfearstemperedoverthelastdecade.Thegovernmenthasengagedinnumerousactivitiestofloodthemarketwithdollars.Theseactivities,thebondpurchasecurrentlyunderwaybytheFederalReserveorquantitativeeasing,wereaprogramerectedin2011tohelpensuretheeconomy.Ineachcase,themarketsawanincreaseinthemoneysupplybutdidnotseeanincreaseininflation.Thisisbecausethevelocityofmoneywasextremelylowduetohistoricalcontext.Thevelocityofmoneyreferstohowfasttransactionsoccurintheopenmarket.Typically,whenpeoplehaveexcesscash,theytendtospenditonvacations,newcars,newhomes,clothes,andotherdiscretionaryitems.Instead,consumerssavedtheirexcesscash,paiddowndebt,paiddownconsumercreditcards,createdanemergencysavingsfund,orinvestingthestockmarket.Thequantityofmoneyincreasedbythevelocityofmoneydecreased,creatingverylowinflation.RegardingfundingoptionsforAZhospital,theNPVcalculationmusttakeintoaccountpendinginflation.Forone,COVID-19hasseverelyrestrictedtravelandotherconsumptionoptions.Asaresult,thereispent-updemandthatwillincreasethevelocityofmoneyandinflation.ThismustbeaccountedforinanNPVcalculation(Browning,2015).Anetpresentvaluecalculationoperatesunderthefundamentalpremisethatthevalueofanyassetisderivedfromthevalueofitsfuturecashflows.WhenlookingatAZhospitalanditsinvestmentintelemedicine,thecompanymustlookatthePresentNetValueoftheinvestment.Herethecompanymustevaluatethefuturecashflowsrelativetothecapitalexpenditures.Thecompanymustdeterminethefuturecashflowsofthisproductofferingoveritsusefullifeasitrelatestotelemedicine.Telemedicineisgrowingrapidlyinthehealthcareindustry.Itisusedindifferentsectors,includingbehavioralhealth,radiology,andcardiology.Thiswillfurthercreatenewbusinessmodelsintelemedicine.Peoplewouldprefervirtualconsultationsinceitreducesthecostofotherhealthcareserviceslikehospitaladmissions.Fromabusinessperspective,italsoreducesthecostofcanceledappointments.Inaddition,thepositivegrowthratescreateahigherlikelihoodinthefuture.Theapparentcostoftelemedicineisincludingthecostassociatedwithequipmentsuchascomputers,servers,monitors,storage,andpersonneltoreviewandoverseetheseproducts.ThiscostmustbeincludedintheNPVcalculation.Inthisinstance,thehospitalmustfirstaccountforthefuturecashflows.Theseshouldincludetheprofitsrelatedtoprovidingthetelemedicineproductoffing.Inaddition,thehospitalmustforecasttheexpendituresrelatedtoprovidingthesecosts.Theprevailingdiscountratethendiscountsthefuturecashflowstoarriveatthepresentvalueofthecashflowsexpectedinthefuture.Thediscountrateispassedontheprevailingrisk-freeinterestrate.Becausetheprojectisriskierthantherisk-freerate,thediscountrateishighertocompensatetheinvestorfortheincreasedrisk.Inthisinstance,thelow-interestratecreatesalowhurdlerate.Forexample,becausetheprevailingtreasurynetisroughly1.7%,thediscountrateusedforthetelemedicineprojectwillbebetween3%and4%tocompensateinvestorsfortheincreasedrisk.Thefuturecashflowsarethus“discounted”bythisrate.Oncecompleted,ifthediscountedfuturecashflowsarehigherthanthecashexpenditures,thenthebusinessshouldundertaketheinvestment.Also,thereareotherfinancialmetricsthatthebusinesscanusetoevaluatetheprospectsoftheoverallbusiness.Anothersuchmethodisthepaybackperiod.Thisisthetotalamountoftimeitwilltakeanybusinessventuretorecovertheinvestmentcost.Inotherwords,thisisthedurationaninvestmenttakestoreachabreak-evenpoint.Theperiodasitrelatestotelemedicinecanbecomplicatedmetricstodetermine.Forone,capitalinvestmenttypicallyaccruesoveraverylongperiod.Thetechnologyandinfrastructureinvestmentcanlastformanyyearsastheprogramisdeveloped.Likewise,therevenuemaynotbegeneratedformanyyearsasthetechnologyisproperlyimplementedandcustomersproperlyadopttheprogram.However,oncetheprojectisstabilized,thepaybackperiodprovidesagreatmetricfordeterminingtheprogram’ssuccess.Alowerpaybackperiodindicatesahighamountofprofitabilityandsuccessfulinvestment.Alowerpaybackperiodindicateslowerprofitabilityandalowerperiodtoreachbreak-even(Browning,2015).Returnoninvestmentisanotherkeymetric.Here,areturnoninvestmentindicatestheprofitabilityofaninvestmentrelativetothecapitalused.Returnoninvestmentisacriticalindicatorrelativetothecostofcapitalneededtocreatetheasset.FortheAZhospital,thecostofinvestmentisbasedontwofactors,thecostofdebtandthecostofequity.Thecostofdebtisrelativelylowdueprimarilytothelow-interest-rateenvironment.Inthisinstance,debtfinancingisrelativelyabundantandcheapcomparedtohistoricalstandards.Theequitycostisdirectlyrelatedtothereturnonaninvestmentthattheequityholderdemandsregardingtheinvestmentrisk.Thisistypicallyhigherthanthecostofdebtandreflectstheopportunitycostofinvestinginarelativelysimilarinvestment.ROIisheavilyusedtoindicatehowprofitablethetelemedicineoperationcanberelativetootherinvestmentalternatives(Atkinson&Ezell,2019).9.0ConclusionTelemedicineenableshealthcareproviderstoassess,diagnoseandtreatpatientsremotelyusingtelecommunicationstechnology.Itinvolvesusingelectroniccommunicationsdevicesandsoftwareapplicationstoprovidehealthcareservicestopatientsremotely.Telemedicinetechnologyisoftenutilizedformedicationmanagement,consultations,chronicconditionsmanagement,andfollow-upvisits.Theseservicescanbeprovidedremotelythroughsafeandconfidentialaudioandvideoconnections.Thisinnovationcansignificantlyreducehealthcarecostswithoutsacrificingquality.AsindicatedwithCOVID-19,thisinnovationisoftenneededbybothyoungandolderclientswhoarelookingtoleveragetechnologyfortheirbenefit.AsCOVID-19heavilyrestrictedtheabilityofindividualstoseeahealthcareprofessionalinperson,telemedicineprovidedanalternativethatcouldbeusedtohelpsupplementtheindustryduringtheunprecedentedperiod.Notonlydoesithelpreducetheexposuretobothpartiesofpotentiallycontagiouspathogens,butitalsohelpstoincreaseefficienciesforbothparties.Aspectssuchastravel,waittimes,check-ins,andotherbarriersaresignificantlyreducedwithtelemedicine.Telemedicinereducesthetimeawayfromworkforpatientswhilealsoincreasingprivacyrelatedtoexaminationanddiagnosis.Fromabusinessperspective,healthcarepractitionerscanrecognizeincreaserevenuesandimproveofficeefficiencies.Thisalsohelpstoalleviatemissedrevenuethroughmissedappointmentsandcancellations.Thus,theimplementationandadoptionoftelemedicinehelptothoroughlyincreaseprofitabilityforhealthcareoperationswhilealsominimizingexpensesrelatedtobusinessoperations.Telemedicinealsoreducesthegeographicconcernsrelatedtoseparateoperationsinvaryingjurisdictionsandseparatecountries.Thisultimatelyallowsthehealthcareorganizationtostreamlineoperationswhilesimultaneouslyimprovingthequalityofcareandprofitability(Greiwe,2019).10.0AppendixWiththecontinuousspreadofCOVID-19aroundtheglobe,healthcareprovidershavebeenforcedtoexpandtheirservicestooffertelemedicineinabidtosafeguardtheirstaffandpatients.Approximately97percentofhealthcareprovidershaveexpandedtelemedicineaccesssincetheonsetofthepandemic.Telemedicineisessential,especiallyinthepandemicwhenpeoplemustabidebytheruleofsocialdistancing.Accordingtoasurveydone,morethan60percentofpatientsadmittedthatthepandemichadincreasedtheirwilltotrythenewtechnologythatcomeswiththemedicine.Themajorityofthemarewillingtotrytelemedicine.Currently,themedianhouseholdincomeisroughly$68,000perthecensusbureau.Assuch,healthcarecostsaccountforroughly16%ofhouseholdincome.Thistrajectoryissimplyunsustainableashealthcaretrendsoveralldonotseemtobewaning.By2028healthcarecostsareexpectedtoaccountfor1outofevery5dollarsofGDPorroughly$18,000perperson.Telemedicineisasolutiontomanycurrenttrendsinthehealthcaresystem.Itisalower-costsolutionthatmayultimatelylowerthecostsofhealthcareservices.Thequalityofservicethattelemedicineoffersisequalifnotbetterthantheroutinecheck-upsandprocedures.Asaresult,itistime-savingforeverystakeholderinvolved.Theglobaltelemedicineindustryisroughly20Bdollars.Telemedicinehasrecordedexponentialgrowthinthehealthcareindustryovertheyears.In2020alone,theindustryhasgrownbyover90%,primarilybecauseoftheCOVID-19pandemic.Thehealthcareindustryisnowbecomingamuchlargepartoftheglobaleconomy.Healthcareexpendituresstandatroughly18%ofGDPorroughly$3.8Trillionasitstandsnow.Theseexpendituresareexpectedtoberoughly20%ofGDPintheyear2028.Currently,Americansspendroughly$11,582peryearonhealthcarecosts.Healthcareamongafewindustriesthatareessentialforconsumers.Inthisinstance,properhealthcareenablesallotherbusinessactivitiestocontinueuninterrupted.AsCOVID-19hasillustrated,anunhealthycitizenrycannotwork,purchasegoods,orinnovateexistingservices.Americahasthefirst-handexperienceoftheimpactofbusinessshutdownsontheoveralleconomy.Duetohealthcareconcerns,schoolscannotoperateproperly.Workershavebeenforcedtoworkremotelywhiletakingcareoftheirchildren.Businesses,particularlytravelandtourism,haveexperiencedasteepdropinrevenuesandprofitsasconsumersnolongerdemandtheirproductsduetothepandemic.Essentially,withoutproperhealthcareinfrastructure,aneconomyaspowerfulastheUnitedStatescancompletelystopashealthcareconcernsoverrunbusinessoperations.Recognizingthisfact,entrepreneurs,businesses,andinvestorsalikehavelookedtotaketheirfairshareofthe$4Trillionhealthcaremarket.Eachoftheseconstituentshasintroducednewandinnovativeproductofferingstomitigatetheimpactofthenexthealthcarepandemic.Ineachoftheseofferings’managementhashadtoanalyzevariousfinancialmodelingtechniques,whichincludeROI,paybackperiod,NPV,andothermetrics(Telemedicinemarketsizeanalysisreport,2021)

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"A Company 's Financial Management Plan" 30 April 2021. Web.4 June. 2026. <
https://www.aceyourpaper.com/essays/company-financial-management-plan-2181156>

Latest Chicago Format (16th edition)

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"A Company 's Financial Management Plan", 30 April 2021, Accessed.4 June. 2026,
https://www.aceyourpaper.com/essays/company-financial-management-plan-2181156
   

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