Centroplex Health System (CHS), Workwell is a leading Occupational Medicine Program. It is designed to decrease health care costs and increase productivity. Workwell will be Killeen’s pioneer Industrial Occupational Medicine Program. It will assist area businesses in increasing their productivity and lowering their overall cost.

Employers want to lower their health care costs. They seek out occupational medicine clinics that offer the following components. Accessibility, drug screening services and high quality staff are all important. State-of-the art care is also available. Through its mission of promoting total health–body, mind, and spirit–while developing and nurturing partnerships with regional businesses, Workwell will fulfill area employer “wants” and “needs.”

Workwell&#8217s existence is based upon two simple facts.

1. Healthy employees are more productive than chronically ill employees.
2. It is more cost-effective to prevent injuries, than to treat them.

Workwell assists employees in changing their behavior and choosing healthier lifestyles. Workwell reduces a company’s health care spending while increasing worker productivity. You will see a decrease in health care expenses due to lower medical insurance premiums.

Centroplex Health System’s (CHS), relationship is a key advantage for Workwell. CHS is the preferred provider of health care services within its service area and supports the necessary structures to create a successful Occupational medicine program like Workwell. These structures include an Emergency Department, freestanding walk-in facilities (i.e. COMC), a network o primary and specialty physicians, and an MCO (currently under development). The four structures together should create a loop which serves as a catalyst for business to flow into Workwell. In return, Workwell should refer back to the four structures, complete the loop. The model proposed is to offer Occupational Medicine services&#8211, Workwell and primary care services in one setting, COMC. The service mix will offer a comprehensive alternative to traditional Occupational Health and Primary Care services for our clients employers. The outcome will be a synergy to expand the market, establish new relationships, decrease operating expenses and generate new revenue.

The keys to success and the key factors that will determine your success over the next three years according to Workwell are:

• Successful marketing strategies/plans for employers are developed and implemented.
• Recruitment of experienced medical and administrative talent.
• You can get into the Occupational Medical market and establish a brand#8221 before the competition.
• Commitment to continuously improve the quality of service.
• Demonstrate a financial profit on your investment.
• Senior Management Commitment

CHS’s business plan supports the creation and implementation of an occupational medicine programme. The market research shows that last year total worker compensation injuries were 7,720 of which CHS treated 2,532. Additionally, the number of worker compensation injuries is expected to rise to 9,446 by the end of 2014. The five-year goal of this business plan is to position CHS to treat 5,064 worker compensation injuries and thus attain 53 percent of the market.

Below is a chart that illustrates the overall highlights of the business plan for the next five-years. In Year 5, COMC expects to see an increase in total visits from 11,085 visitors to 15,918. This will result in an increase in total revenues and net surplus.

1.1 Objectives

• Workwell’s primary objective will be to help ESTABLISH Centroplex Health System in its service area as the #8220ONE STOP SHOPPING#8221 MEDICAL CENTER HEALTH CARE.
• All employees who are injured should be provided with a complete range of Industrial Occupational Medicine services.
• Up to 20 Killeen small businesses (50 employees), and 10 large employers (50 workers) will receive Occupational Medicine services by Year 1.
• Expand the target market to provide Occupational Medicine services to employers in these zip codes: 76540-43, 76548, 76513, and 76559, by the end of Year 2.

1.1.1 Observation & Recommendations

OBSERVATIONOccupational health programs have been stepchildren in hospitals because they’ve historically not brought in much revenue. If health systems can develop the necessary competencies and then sell them to employers, these programs could be even more lucrative. As the health care dollar shrinks due to the limitations of discounted managed care, providers must be proactive and aggressively pursue new revenue streams. Occupational health can provide a venue and format for building positive relationships between local employers and employees, which could lead to new revenue streams.

RECOMMENDATIONS

The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.

The following are the options and recommendations that were made:

Get the services of a consultant in order to launch the program

This recommendation is based on two main reasons. First, it requires expertise in the development of an occupational medicine program. Second, we don’t need to reinvent the wheel when there are proven methods. The programs that were evaluated either employed an experienced occupational medicine director, or hired outside consultants to help them realize their goals. CHS has no expertise in this field and doesn’t plan to hire one. Therefore, it is worth considering consulting firms.

There are also other reasons:

CHS can offer area employers, as well as its employees, a formalized occupational therapy program within 30 to 45 days. The personnel burden ($$$) required in developing this program can be utilized towards paying experts to implement their proven techniques. Senior leadership will see a renewed commitment for the program’s future success by investing in consultants.

CHS is at risk of being ‘canned’ and could be subject to legal action, but it is clear that the positives far outweigh any negatives. Three consulting firms have submitted bids to this project. These include Concentra Health Services and Florida Hospital. I have included a copy in your presentation.

In-house occupational medicine program

Positives:

You can save money.

Program customized.

Negatives:

Time frame.

Expertise is lacking

Lack of commitment from senior leadership.

Decision to remain status quo:

This option allows the program to continue as it is now.

Positives:

None.

Negatives:

Continue to lose revenue

Potential to lose market share.

Networking with local employers is a lost opportunity

Do not miss your chance at becoming a « one-stop » shop for all things health care.

CHS employee injuries costs will continue escalating.

Divestiture by COMC

This option allows COMC to be placed on the market for sale.

Positives:

You can spend a lot.

The $$$ could be invested in expanding or developing new programs.

Leadership can be more focused on issues that are closer to their hearts.

At least in the short-term, increase CHS’s bottom line

Negatives:

Lose new revenue stream.

Lose market share.

Loss or relocation of prime real estate.

Competitors should establish themselves in this setting.

Market identity can be lost

1.2 Mission

Workwell is a customer focused premier industrial occupational medicine program, that uses a team approach to provide quality occupational health, safety and rehabilitation services that addresses a person’s total health–body, mind and spirit–while developing and nurturing partnerships with regional businesses.

1.3 Keys to Success

Workwell’s keys to success are:

• The development and implementation of a plan or marketing strategy that is successful for employers.
• Recruitment of experienced medical and administrative talent.
• Building a career in Occupational Medicine and entering the market

Brand name before the competition