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Occupational Health Business Plan

Executive Summary

Workwell is a premier Occupational Medicine Program of Centroplex Health System (CHS) designed to reduce health care costs, increase productivity, reduce absenteeism, enhance employee morale, attract and retain high-quality employees and create a positive return on investment. Workwell will be Killeen's pioneer Industrial Occupational Medicine Program and will serve area businesses, helping them to become more productive, while lowering their overall costs.

In their attempt to reduce health care costs, employers "want" occupational medicine clinics that provide them with the following components: accessibility, drug screening services, high quality staff, state-of-the-art care, and a wide scope of services. 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's existence is based on two simple facts:

  1. Healthy employees are more productive than chronically ill employees.
  2. It costs less to prevent injuries than to treat them after they occur.

By helping employees change their behavior patterns and choose more healthy lifestyles, Workwell will lower a company's health care expenditures, while raising worker productivity. Health care expenditures will decrease due to reduced medical insurance premiums, reduced absenteeism, reduced turnover rates, reduced worker's compensation claims, reduced tardiness and shorter hospital stays.

A key advantage that Workwell has and should maximize is its relationship with Centroplex Health System (CHS). As the provider of choice for health care services in its service area, CHS already supports the essential structures required to develop a successful Occupational Medicine program, such as Workwell. These structures include an Emergency Department, a free standing walk-in facility (i.e. COMC), a network of primary and specialty physicians and an MCO(currently being developed). All four of these structures should form a loop that serves as a catalyst to feed business into the Workwell program, and in return Workwell should refer back into these four structures, which completes the loop. The proposed model is to provide Occupational Medicine services-- Workwell-- and primary care services under one setting, that setting being COMC. This mix of services will offer an alternative comprehensive system of Occupational Health and Primary Care services to our client employers. The result will be a synergy that expands the market, establishes new relationships, reduces operating expenses, and generates new revenue.

Workwell's keys to success and critical factors for the next three years are:

  • Development and implementation of a successful marketing strategy/plan to employers.
  • Recruitment of experienced medical and administrative talent.
  • Enter the Occupational Medicine market and build a "brand" name before the competition.
  • Commitment to continuously improve the quality of service.
  • Demonstrate a financial return on investment.
  • Commitment from Senior Management

The business plan justifies the development and implementation of an occupational medicine program by CHS. The market research shows that last year total worker compensation injuries were 7,720 of which CHS treated 2,532. In addition, worker compensation injuries are projected to increase to a total of 9,446 in the next four years. 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.

The following chart illustrates the over-all highlights of the business plan over the next five years. Total visits to COMC are projected to increase from 11,085 to 15,918 by Year 5. This will in-turn generate increasing total revenues and net surplus.

1.1 Objectives

  • The key objective of Workwell will be to help ESTABLISH Centroplex Health System as the "ONE STOP SHOPPING" MEDICAL CENTER FOR HEALTH CARE IN ITS SERVICE AREA."
  • Provide a full continuum of Industrial Occupational Medicine services that provides responsive, quality medical care to all injured employees.
  • Provide Occupational Medicine services to 10 major Killeen employers (50 < employees) and 20 small employers (50 > employees) by the end of 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.
  • Expand the target market to provide Occupational Medicine services to the Centroplex Health System Service Area (Bell, Lampasas and Coryell county) employers by the end of Year 3.
  • Become the Provider of Choice for Occupational Medicine in the service area.

1.1.1 Observation & Recommendations

Occupational health programs have been stepchildren in hospitals because they've historically not brought in much revenue. But they could become more lucrative if health systems develop the necessary competencies and sell them directly to employers. 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 services offers the venue and format to establish positive relationships with local employers and their employees that can lead to tapping into entirely new revenue streams.

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

Following are the recommendations (options) being made:

Obtain the services of a consultant to start the program

Two main reasons for this recommendation: First, expertise is required in developing an occupational medicine program. Second, why reinvent the wheel when we can learn from proven techniques. All of the programs researched either hired an experienced occupational medicine director or an outside consultant specifically to bring the the program to fruition. Because CHS lacks expertise in this area and currently does not intend to hire a seasoned director to champion this effort, hiring the services of a consulting firm should be considered seriously.

Other reasons are:

This option will allow CHS to start offering area employers as well as its own employees a formalized occupational medicine program within 30 - 45 days. The personnel burden ($$$) required in developing this program can be utilized towards paying experts to implement their proven techniques. By spending the monies to acquire consultants, senior leadership will find a renewed commitment to the success of the program.

Although CHS runs the risk of having a "canned" program, it is understood that the positives outweigh the negatives. Three consulting firms have submitted their bids towards this project. These are Concentra Health Services, Florida Hospital and Occupational Health Research. I have included a copy of this information in your presentation.

Develop the occupational medicine program in-house

Save money.
Customized program.

Time frame.
Lack of expertise.
Lack of commitment from senior leadership.

Decision to remain status quo:
In this option, the program will continue operating as currently.


Continue to lose revenue.
Potential to lose market share.
Lose opportunity to network with area employers.
Miss the opportunity to become a "one stop shop" for health care services.
CHS employee injury costs will continue to escalate.

Divestiture of COMC
This option considers placing COMC on the marketplace to be sold.

Lots of money.
The $$$ can be invested to expand or develop new programs.
Leadership can spend more time focusing on issues closer to "home."
Improve CHS bottom line (at least in the short term).

Lose new revenue stream.
Lose market share.
Loss of prime location.
Have a competitor establish itself in that setting.
Lose identity within the market.

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:

  • Development and implementation of a successful marketing strategy/plan to employers.
  • Recruitment of experienced medical and administrative talent.
  • Entering the Occupational Medicine market and building a "brand" name before the competition.
  • Commitment to continuously improve the quality of service.
  • Demonstrate a financial return on investment.
  • Commitment from Senior Management