Creating a Business Plan and Projecting Revenue for a Cosmetic Laser Center in a Community Hospital
Abstract
In the United States today, cosmetic laser surgery is rapidly increasing as a popular method for physicians to treat aesthetic skin conditions. Patients desiring treatment are now able to choose more simple, non-invasive solutions such as laser technology to accomplish this. In early 1999, the hospital chief executive officer at Sound Shore Medical Center, a not- for-profit community hospital located in southern Westchester County, New York, began gathering information from several staff physicians and patients regarding the rapid rise in cosmetic laser surgery. A preliminary study of Sound Shore staff physicians indicated there would be an interest in using cosmetic lasers, particularly amongst the plastic surgeons dermatologists. Shortly thereafter, the hospital decided to purchase three of the most technologically advanced cosmetic lasers available in today's market. In October of 1999, the researcher was asked to assist in designing and developing a cosmetic laser center during an administrative residency at Sound Shore. This graduate management project discusses the major issues involved in creating a business plan and projecting revenue for a cosmetic laser center within a community hospital. Areas discussed are the budget; breakeven and cash-flow sensitivity analysis; pricing schedule development; hospital privileging criteria; and training and staffing issues. In January of 2000, the first cosmetic laser procedure was performed. As of May 2000, the center is beginning to meet forecasted volume levels.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2000
- Accession Number
- ADA408284
Entities
People
- Matthew T. Mcdevitt