Business planning

Introduction

Health care is an ever-changing environment, so it is critical for health care organizations to plan ahead for the next 5 to 10 years. A strategic plan for an organization is a vital document outlining how organizations propose to address changes in the health care industry, including changes in regulatory platforms, technology, demographics and funding. Typically, strategic plans will include a number (or all) of the following domains:

• 1.

  Improving quality and safety

• 2.

  Leadership in education and research

• 3.

  Financial effectiveness

• 4.

  Organizational environment improvement

• 5.

  Workforce sustainability

A strategic plan of any health care organization therefore provides an overview of the future direction of the organization. Organizational business planning describes the strategies an organization will take to achieve the goals of the strategic plan. The business plan for the organization therefore explains in more detail how the organization is planning to get there.

Units, wards, departments, programs or services within an organization are often required to develop a business plan. The value of a business plan is that it ensures that every service and department is progressing in the same direction.

Business planning help executives, managers, teams and staff by:

• Providing coordination and direction

• Motivating employees and creating a culture of team engagement, ownership and achievement

• Supporting better decision making by helping anticipate and address future problems and risks before they arise, and considering alternatives and evaluating the implications of decisions

• Creating confidence about the direction the organization is taking, how they will get there and what success will look like

• Meeting service expectations by identifying timeframes for action and aligning resources appropriately

• Reducing uncertainty and helping teams prepare for desired changes

Emergency department business planning

Business planning is especially important in the often unpredictable milieu of the emergency department (ED). ED efficiency directly affects the efficiency of the health care process in the hospital and hospital executives are therefore particularly interested in the performance of emergency medicine services. Reporting on the performance of the department is essential to justify their level of current resourcing and may influence future budget cycles.

The ED business plan is usually developed by the ED management team, which includes the medical director, the nurse manager and the finance or business manager. Input from other professionals, such as legal and allied health, also may be required from time to time. Engagement and consultation with the rest of the ED staff is important prior to finalization of the business plan. Final sign-off of the business plan is usually at clinical service/program level prior to submission to the executives of the organization.

Business plan development

The following are useful steps to take in developing a business plan. ¹