American InterContinental University Pharmacy Expansion Proposal Paper

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American InterContinental University

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Individual Project: 8/24

You are the chief financial officer (CFO) at a community hospital. One of the comments that have come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing the time value of money tools for the development of this new revenue-generating department.

The following points must be covered in your proposal:

? Include and discuss the need for working capital to include 2 months of startup drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of equipment

? Provide 2 viable options to measure the rate of return to optimize the financial performance of the department based on time value principles with rationale and justification. ? Include a profitability analysis for 3 years.

? Include a schedule of assumptions for your proposal. What questions might the board ask regarding the feasibility of this proposal?

? How might current changes in federal, state, and local policies influence decisions to be made? For a resource guide on using the online library to search for references, click here.

The body of the resultant paper should be 4 - 5 pages and should include at least 5 relevant academic or professional references published in the past 5 years.

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Individual Project: 8/24 You are the chief financial officer (CFO) at a community hospital. One of the comments that have come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing the time value of money tools for the development of this new revenue-generating department. The following points must be covered in your proposal: ? Include and discuss the need for working capital to include 2 months of startup drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of equipment ? Provide 2 viable options to measure the rate of return to optimize the financial performance of the department based on time value principles with rationale and justification. ? Include a profitability analysis for 3 years. ? Include a schedule of assumptions for your proposal. What questions might the board ask regarding the feasibility of this proposal? ? How might current changes in federal, state, and local policies influence decisions to be made? For a resource guide on using the online library to search for references, click here. The body of the resultant paper should be 4 - 5 pages and should include at least 5 relevant academic or professional references published in the past 5 years.
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Running head: PHARMACY EXPANSION PROPOSAL

Pharmacy Expansion Proposal
Name:
Institution:

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PHARMACY EXPANSION PROPOSAL

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Abstract
A community hospital intends to extend the working hours of its pharmacy to make it
operational for twenty-four hours a day. The proposed expansion requires a significant initial
outlay of $220000 and monthly expenses amounting to about $100000. However, its prospects
are good, and it is intended to have an equally high return on investment, a finding which will be
instrumental in helping the board to approve of the expansion. The pharmacy will continue to
adhere to state, federal, and local laws regulating the operations of pharmacies.

PHARMACY EXPANSION PROPOSAL

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Introduction
Nazarene Community Hospital operates for twenty-four hours. However, the pharmacy is
closed during the night and operates from seven in the morning to six in the evening, unlike the
rest of the hospital. Patients have raised concerns over this fact necessitating the consideration of
the opening of the pharmacy for twenty-four hours to serve patients through the night as well like
the rest of the hospital. After deliberations, the consideration has been approved, and a twentyfour pharmacy will be set up within the community hospital. This essay features a proposal for
the first three months of operation for the pharmacy complete with the working capital needs for
the pharmacy, options for the measurement of the financial performance of the project, a
schedule of the assumptions made with regard to the project’s feasibility, and the impact of
current changes in policies on the viability and operation of the project.
Working Capital Requirements
The proposed twenty-four-hour pharmacy is intended to help patients and their families
to fill prescriptions so that the patients can start taking their medication right away as opposed to
the following morning when th...


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