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1.0 EXECUTIVE SUMMARY

Optmum Heath Servces offers a unque combnaton of premer home
heath care and communty-based soca servces to Maryand. Market
research ndcates that there s a sgnfcant need for quaty home heath
care and soca servces wthn ths regon and we beeve that by
empoyng competent and we-educated staff and provdng them wth
organzed and responsve management, we can become the home heath
care/soca servce agency of choce n Maryand.
Consumers of our servces w be those ndvduas and fames n need of
home heath care and/or soca servces. These patents are usuay
referred by other heath care professonas such as physcans, attorneys,
nsurance companes and heath care factes. Our agency has aready
deveoped an exceent reputaton wth many of these professonas,
through the work of our Cnca Drector, who has experence through
provdng home heath care servces wth another agency over the years,
and through the presentatons we have made to the communty va
marketng toos and persona nteractons.
Our agency must be censed by the State of Maryand and our servces
rembursed by Medcare, Medcad and other prvate nsurance carrers.
The process for censure and nsurance certfcaton has aready been
ntated and we are we on our way to meetng the reguatons and
gudenes for provdng home heath care and soca servces to patents
n Maryand.
There are currenty ony three other home heath care agences that serve
Maryand whom we are worred about. They do not offer the unque bend
of home heath care and soca servces whch Optmum Heath Servces
w be provdng.
A prcng w be set accordng to Medcare, Medcad and other nsurance
reguaton so prcng s not a ma|or factor of consderaton. Saes
estmates pro|ect heathy revenues n the frst year and modest ncreases
through year three.
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Situation analysis
Optmum heath care s a heath servce company whch specazes n
provdng prvate duty nursng, therapy, Nursng Ade tranng, Durabe
Medca Equpment (DME), Fngerprntng and Nurse Staffng servces to
cents and heath care factes n the state of Maryand. Accordng to
Economc Census Data, the tota number of saes n ths ndustry for the
state s recorded at $516,607,000 the tota number of compettors n ths
ndustry comes up to be comes 292 frms, and the NAICS code for ths
ndustry s 621610. The heath care ndustres s one of the growng
markets
Accordng to a recent study conducted by CareerBuder and Economc
Modeng Specasts Internatona, the heath care ndustry remans one
of the steadest |ob areas, despte the U.S. economy. There have been
49,530 home caregver |obs n the past year. Ths comes as a resut of
the agng boomer generaton optng not to age n nursng homes, has
ncreased the use of home care technoogy and the use of care gvers.
Ths means there s a demand for our servces and t s constanty on the
rse despte the tough economy as heath s a non-negotabe ssue to
most Amercans. Wth the ntroducton of patent Protecton and
Affordabty Care Act (PPACA)aso known as "Obama care" on March 23
2010 has aso ncreased the number of peope who are now egbe to
acqure our servces through the use of government funds. Ths act was
ntended to extend coverage to mons of unnsured Amercans, to
mpement measures that w ower heath care costs and mprove
system effcency, and to emnate ndustry practces that ncude
rescsson and dena of coverage due pre-exstng condtons.
Competitive Analysis
1. Identfy the three frms that you fee w be your most mportant
compettors. Then brefy summarze ther compettve stance, .e.,
dscuss ther market share, compettve strengths and weaknesses and
specuate on what response(s) they mght make n response to the
ntroducton of your product/servce nto the market.
There are three man compettors n the Maryand area that we pay attenton
whch ncude;
1. ManorCare Heath Servces,
Ths company s no onger sted on the stock exchange as t went prvate n
2007 whch mts nformaton avaabe because they are sma busnesses
whch are not pubc thus our knowedge of ther market share. We do know
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they have saes of over $2 mon doars a year and have over 50
empoyees. Some of ther compettve strengths ncude havng a ong
hstory n the heath care servce ndustry and have over 50 other ocatons
natonwde meanng they are abe to provde care at a ower prce compared
to sma busnesses ke us. They aso offer an extensve ne for servces
whch can be a push for customers who have mutpe needs. Weaknesses
that can arse from ths s a oss of quaty due to ther extensve number of
offces meanng there can be ess attenton and care gven to each
ndvdua. They w most key try to make sure a of ther customers are
happy wth ther servces as not to ose customers aways beng a prorty.
Snce they have an extensve budget they mght ook to ncreasng ther
advertsng n order to drown out the new competton.
2. Compassonate Heathcare Nursng Servces
Ths company s not as experenced as the prevous compettor havng ony
been n busness snce 2005. They are a sma busness whch s a
postve sn n ths ndustry from tme to tme as t ndcates more hands
on care on the ndvdua. There s mted nformaton avaabe as far as
the market share goes snce t s a prvate company. They are most key
gong to make sure ther servces are at ther best because they dont
want to mss out on new cents due to us and snce they are a sma
busness and are more key to be more nvoved n ther cent ves t w
be harder for them to oose cents. So they w focus on tryng to keep
gettng new cents.
3. Tota Heath Care Inc.
|ust ke a the other compettors sted there s tte to no market share
nformaton sted. Ths company however s the bggest compettor we
face n the area prmary when focusng on ther saes number whch
come n at amost $3 mon doars. Ths company has a compettve
advantage ke ManorCare for havng been n the communty for over 27
years smary to ManorCare as we due to ther sze means they
probaby suffer when t comes to quaty and hs s a quaty centered
type of busness whch doesnt bode we for them. They w defntey be
ookng to sure up ther customer base before ookng to add new cents
ke ManorCare, snce they are aready so bg because a oss for them
woud mean a gan for us and that s a doube negatve.
Market and Segment Analysis
The heath care market has undergone sgnfcant changes over the ast ten
years. The ndustry as a whoe has seen sgnfcant consodaton. The
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consodaton has occurred prmary as a way for companes to reman
proftabe despte sgnfcant ncreases n heath care costs.
Another way that the ndustry has deat wth rsng costs has been ncreased
adopton of the managed care. Managed care was specfcay desgned
as a way to offer a foundaton of base of heath care whe keepng costs
wthn reason.
Regardess how the ndustry has changed and tred to adopt to the
sgnfcant ncreases n costs, more and more Amercan's are wthout
heath nsurance. Many of the Amercan's that do have coverage have
seen ther pan coverage shrnk. Optmum HeathCare servces w aow
companes to offer the dfferent heath benefts that ther ndvdua
empoyees desre.
As seen n tabe 1 beow there has been an average ncrease for spendng n
the home heath care ndustry by 1.1 over the ast three years even
though that number s ower than t has been over tme ths st bodes
we for the ndustry.
Table 1: Real per capita !" annual gro#t$ rates% by payer and
spending category !istorical average annual gro#t$
Category Average
annual
gro#t$
rate%
2&1&'
2&13
1965-2010 2000-2007 2007-
2010
Home heath and
sked nursng care
1.1 6.5 2.9 2.7
Mission Statement
Here at Optmum HeathCare servces we ke to keep t smpe. Our goa s
to gve our customers the most exceent yet affordabe home heath care
and communty-based soca servces to ndvduas and fames ocated n
the Maryand area.
It s our goa to have the most competent, ovng and prepared staffs who
w be prepared to respond to the needs of a our cents needs, that of
ther fames and the neghborhood n whch they w be servng. A of our
staff w be traned accordng to the requrements of the state of Maryands
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educatons and tranng requrements for the responsbtes whch they are
gong to be provdng.
Target Market
Because our agency specazes n home heath care and communty-based
soca servces, we w focus on those market segments where we know our
servces are most needed. Focusng on those market segments that requre
ony home-based servces w greaty decrease overhead, snce addtona
offce space w not be requred.
)roduct Attributes and )ositioning
Optmum heath care servces products woud be consdered to be shoppng
goods because, amost a of our servces are offered by other peope. Ths
means our customers from often go compare us wth other peope n order to
see whch one best fts ther needs be t prce or quaty. The perceptua map
beow s a vsua representaton of what we mentoned when takng about
our key compettors. We poston ourseves wth the ntent on offerng
quaty servce frst because peope who en|oy the good servce they are
recevng woud care a ot ess that they are spendng a few more doars for
the extra comfort.
OptmumHeath
care
ManorCare
Tota Heath Care
Compassonate
Heath Care
)erceptual Map o* t$e!ealt$ care in M+
hgh prce
bad servce
hgh prce
ow prce
exceent
servce
Our ogo whch can be found n the exhbts s |ust a smpe drawng of
chdren hodng hands around the gobe. We pcked ths not to bette the
peope we take care of but to say that we w care for our cents as f they
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were our own chdren. We aways want to et our customers know that
quaty w aways be our number one prorty so we make sure we aways
put ths message frst. We aso wanted to make sure we demonstrate that
we are a part of the communty we work n thus the gobe, and the dverse
nature of the chdren surroundng the gobe.
)ricing Strategy
There wont be much eastcty n our prces because one thng about ths
ndustry a prcng s be set accordng to Medcare, Medcad and other
nsurance reguaton. So we aways aready have a set rate that we have wth
our cents and then we try to make a our other expenses come out of that
orgna houry charge we requested from the customer. For exampe we b
$15 doars an hour for basc ve n care then we pay our empoyee $10
doars and 5 goes to our other expenses. Aso snce our ndustry s based on
havng oya/ong term customers changng prces woud not bode we as our
customers are key to ook esewhere. Ths s the opposte of reta for
exampe where about 20% of ther centee are oya customers and 80%
come n occasonay. Skmmng or penetraton prcng woud not work wth
ths product because one doesn't se home heath care and persona n|ury
case management; rather one ses exceent care, avaabty, and effectve
nterpersona reatonshps. When t comes to our prcng strategy for our
servces t s often structured n ths manner; anythng that soey requres a
CMT (certfed Medca techncan) we charge $15 and hour. Servces that
need an LPN (censed practca nurse) we charge 30 doars an hour.
Servces that requre an RN (Regstered Nurse) we charge $50 doars an
hour. The servces may seem hgh prced but that s because the hgher up
you go the fewer peope are empoyed at these postons and they are
capabe of dong a varety of thngs and are pretty much Managera roes, or
perform actons that requre very hgh eves of tranng.
)lace-+istribution Strategy
Optmum Heath cares target market woud typcay be peope who ve n
the state or Maryand or neghborng states that are not a consderabe drve
for our staff mted to about an hour drve from our offce headquarters.
Optmum heath care woud have an offce headquarter where t woud
conduct a of ts tranng exercses and carry out other HR actvtes. As far
as the actua product and puttng t out there, snce our products are the
servces of our traned empoyees, and our cents ve n ther homes we w
be gong to them to satsfy ther needs wth each staff most of the tme
havng ther own specfc cents the hande or get rotated wth mted to 3.
Ths way they famarze themseves wth the cents nuances n order to
make t a peasant experence for both ndvduas.
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Market Communications /)romotion0 )rogram
To promote our company we are gong to focus on oca means of advertsng
snce we are at the moment ony n the state of Maryand, as t woud make
no sense to get natonwde recognton when we are not avaabe n a
markets. We sha be usng three man types of advertsng frst w be
through the newspaper and the use of saespeope and a webste. For our
newspaper ads we sha be usng the Washngton Post. The package that we
have wth the post gves us 51 ssues n ther paper n the Heath secton for
a haf a page ad for $7270 doars.
We know that t s a tte harder to get someone to trust another person wth
takng care of them |ust from seeng a newspaper ad. Hs s why we w
partner up wth oca hosptas to try and get ther cent sts for ndvduas
who may be n need of our servces so as to send out our saes peope to
persuade them as to why they shoud choose our servces. Ths peope coud
ncude retred ndvduas who dont want to ve n a retrement home and
have checked out or and through ther doctor notfyng us of ther need for
our servces we can then offer our servces. In ths day and age t s amost
sucde for a busness not to have a webste whch s why t ony makes sense
that we woud have one for our more tech savvy ndvduas or peope who
are ookng for these servces for ther frends and famy to get a tte bt of
nformaton ncase our ads have not reached them. We are defntey gong
to be usng a hybrd approach to our communcatons program, because we
have the saespeope and the connectons to the doctors where we convnce
them to recommend us to a ther cents who need ths sort of servce snce
they are trusted by the cents. When t pertans to the webste and the
newspaper these are both pu strateges as we are not physcay there wth
them tryng to ptch our dea to them but we are hopng our nformaton that
we have wrtten down w make them nterested.
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Supporting "2$ibits
Rado ad
Attenton prospectve Home Care cents
Do you wsh you coud be n the comfort of your own home whe
gettng the medca attenton you need? Do you want peope who can gve
you the stabty and respect you deserve?
We at optmum Heath Care Servces we are a about you and
satsfyng your needs
So ca us today at 1800 -NEED-THEA
Remember t s 1800 NEED THE A
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Bbography
"Amercan FactFnder - Resuts ." American FactFinder - Results . N.p., n.d.
Web. 26 Nov. 2013.
<http://factfnder2.census.gov/faces/tabeservces/|sf/pages/productvew.xht
m?pd=ECN_2007_US_62SSSZ3&prodType=tabe>.
Greene, |ay. "Heath companes grow to meet demand for at-home care
servces." Crain's Detroit Business. N.p., 14 May 2012. Web. 28 Nov. 2013.
<http://www.cransdetrot.com/artce/20120513/SUB01/305139998/heath-
companes-grow-to-meet-demand-for-at-home-care-servces>.
McWams, |. Mchae, Bruce Landon, Mchae E. Chernew. "Changes n
Heath Care Spendng and Ouaty for Medcare Benefcares Assocated Wth
a Commerca ACO Contract," Journal of the American Medical Association,
2013, 310(8), 829-836.
"ManorCare Heath Servces-Roand Park." - Post Hospital Care. N.p., n.d.
Web. 1 Dec. 2013. <http://www.heartand-manorcare.com/RoandPark>.
" Home Heath Ades - Batmore, Maryand - Compassonate Heathcare
Nursng Servces." Home Health Aides - Baltimore, Maryland -
Compassionate Healthcare ursin! "er#ices. N.p., n.d. Web. 1 Dec. 2013.
<http://www.compassonatecarenursng.com/nursng_servces.htm>.
"Washngton Post Ads." Rates. N.p., n.d. Web. 1 Dec. 2013.
<http://www.washngtonpostads.com/rates>.
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