Directory Image
This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Policy.

Itouch medical solutions

Author: Janet Peter
by Janet Peter
Posted: Dec 20, 2018
itouch medical

Name

Course

Course instructor

Date

ITOUCH MEDICAL SOLUTIONS

Executive Summary

ITouch Medical Solutions will be a Medical Billing and coding company that will purely focus on increasing the Revenue of physician practices and hospitals of entire United States. Including both (CMS-1500) and (UB04) For the better understating the difference between both are CMS-1500 is a claim form which is used to prepare the claim for the individual Physician practice whereas UB04 Is used to Bill for major and big hospitals. Medical Billing and coding services play a critical in the management of healthcare practices. Particularly, these help medical professionals to avoid long, complex work by providing a way to substantially maximizing medical profession’s bottom line. Health professional 1st Billing and Claims will free office employees for critical tasks and maximize return from insurance providers. Nationally, statistics continue to show that carriers ever pay over 70 percent of insurance claims that were formally submitted to paper. Through automation of Physicians, 1st Billing and Claims Submission paid claims can increase even to 100%. Research also shows that it costs a medical practice around $10.00 per claim to process patients’ insurance. Medical Billing and coding services will make Billing and Claims to lower costs by percentage. It is also evident that turnaround on manual insurance claims takes one, three, or more months. This leads to critical outstanding receivables. Through electronic submission of claims, Physicians 1st Billing, as well as Claims, can assure money for a physician in fewer periods. This lowers outstanding receivables and enhances cash flow. It is also evident that there is high rejection on paper insurance claims (Richards, 2010). This implies that health care worker has to toil in insurance carriers for successful payment. Since electronic claims undergo thorough editing before transmitting to carriers, the percentage of rejection will reduce significantly because claims will be submitted almost 100% accuracy. American medical graduates, as well as students, continue to hold the view that their work is managed a practice and not an enterprise. Hence, many end up overlooking simple practices such as observing insurance specifications as well as regulations trends for timely payment of claims. They similarly assumed the role of concentrating on receivables as well as co-payments collection. Additionally, they continue not to realize that they are supposed to ensure that fees need to be at the maximum allowable insurance carriers to pay. Need for procedure codes for successful claims are also expected of them. Because of not taking the practice as a business entity, outstanding receivables increased with bad-debt write-offs increasing. On the other hand, good returns encouraged healthcare practices to overlook critical business processes (Smiley, 2012). Medical reforms have been a significant trend in the country. With current management demands, physicians continue to realize reduced profit margins. This has been a major lesson from the fact that remaining in the current world business needs adopting highly efficient business initiatives. ITouch Medical Solutions is prepared to assist local health care providers to move to the last of the 20th century and into the 21st century with sound practices that will guarantee business success and, in turn, guarantee quality health care for our families and our country. ITouch Medical Solutions has $100,000. To completely fund this business, we intend to borrow $10,000. Kindly accord this business plan attention

Statement of Mission and Company Description

The Mission of the company is to become premier billing company in the country by reaching the client expectations.

Our purpose at iTouch Medical Solutions is to provide the tools and resources to Physician private practices and Hospitals which leads them to increase the Revenue. To become a distinguishing and Prudential as it becomes a trusted Billing and Coding partner in the fields of Medical services in providing solutions to the billing challenges in the industry

Industry Analysis and Trends

The National Government's influence remains quite welcoming. Two decades ago, the administration for Health Care Financing which is Medicare governing body came up with "payment floors" to address Medicare claims. In this process, Carriers who were contracted to pay Medicare claims were to hold paper claims' payments up to "at least the third last day after the receipt. Computerized claims were, on the other hand, held up to the end of the second week through they had to be paid on or before the 19th day. If error free claims were not disposed of the 19th day, the National Government was to pay to pay interest on the claim. At the same time, there were no penalties for paper claims. The AB-92-5 Program Memorandum stated above greatly benefitted electronic medical claims industry (Andress, 2010). Currently, several states have passed their mandates, but unfortunately, there is no real initiative on the part of the national Government concerning billing issues. Since the world is changing, we expect that sometimes shortly, the Congress will make electronic Medicare claims submission compulsory and outlaw paper claims and after this paper, Medicare claims will be invalid. If history is any indication and today’s trends remain, insurance carriers will be obliged to follow the same route. Of course, it is one of their main and best interests. Research reveal that today, it demands a commercial carrier around $2.60 to over $20.00 in processing a single claim. Conversely, the same claim can only cost $1.10 if it is electronically processed. It is evident that the costs for conversion from paper to electronic can be too much, but in the future, saving substantial will be realized(Andress, 2010). In Healthcare Industry the Policies and Billing Guidelines will be keeping on frequently changing to make the industry more stabilized and strong (Comprehensive health insurance: Billing, coding, and reimbursement, 2015). For example, in the year 2015, the Industry took the major decision to follow the ICD-10 instead of ICD-9.ICD-10 means International Classification of Diagnosis Version 10. So the entire coding system is changed in the billing. Medical Billing is Central Pillar of all healthcare practices. Although the care is a top priority, Your Practice is still in a process to make sure you are getting paid for the service you provide. Billing Company will be more knowledgeable, reliable, focused and also will be on the ball to chase the denials and rejections of health insurance companies.

Target Market

ITouch Medical Solutions’ target market will consist of any health care delivery unit or any medical practice that utilizes the (CMS-1500) and (UB04) formats which federal standard used by Medicare to submit claims. In particular, the market targets include psychologists, physical therapists, family practice, chiropractors, surgeons, specialists, ambulance services, podiatrists, medical laboratories, internal medicine, etc. iTouch Medical Solutions’ will also process dentist’s claims using special ADA program. Current initiatives are particularly as iTouch Medical Solution can help the new physician as well as his staff for training in billing and claiming. Through enough training trained staff manage to handle claims and put efficient billing program in place. ITouch Medical Solutions’ Billing and coding will reduce staff stress in startups and enhance practice success by increasing cash flow.

ITouch Medical Solutions Market Segmentation

Based on the fact that our market targets will entail the previously stated, below is the chart showing market segmentation based on specialty across the nation.

Clinical Genetics

Child Psychiatry

Dental, Dermatology

Diabetes

Diagnostic Radiology

Education

Allergy-Immunology

Anesthesiologist, Neurology

Cardiovascular

Cardiovascular Surgery

General Surgery Burns

Gynecology

Hematology

Infectious Diseases

Internal Medicine

Ch Physical Med. & Rehab.

Physical therapy

Pediatric Nephrology

Plastic Surgery

Pathology

Pulmonary

Chiropractors

Neurological Surgery

Obstetrics

Nephrology

Neonatal-Prenatal Medicine

Nuclear Radiology

Psychologists

Pediatrics Pulmonary

Obstetrics & Gynecology Resident

Occupational Medicine

Oncology

Ophthalmology

Orthopedic Surgery

Orthopedic Surgery Resident

Optometry

Pediatrics

Psychiatry

Rheumatology

Therapeutic Radiology

Thoracic Surgery

Urology

Vascular Surgery

Emergency Medicine

Ear, Nose, and Throat

Family Practice

Family Practice Residents

Family Practice Sports Med.

Gast Clinical Immunology

Colon Rectal Surgery

Critical Care Medicine roentgenology

Geriatrics

General Surgery

ITouch Medical Solutions initiative is to sign a single doctor practice as well as major hospital practice. Hence, the ideal targets for this company would be all physician practices as well as hospitals.

The Competition

This plan bases on the evaluation of each medical practice in marketing aspects. This is critical in determining the practice needs and ways to charge for services provided. In the competitive evaluation, time to key patient and claims information into the software is considered. The other consideration is the number of claims a practice submits monthly. The third is the approximate value a practice submits to insurance carriers in a month. The other key considerations are determining how accurate is the data obtained from the Office, How often the information must be gathered and the method that is best. Then the last one involves the services that can interest the practice. From this information, iTouch Medical Solutions will manage to customize charging of the practice. This is aimed at ensuring that ensures that clients are not undercharged or overcharged for the services. Our current competitors do not offer full-service analysis. They are also unable to provide two-way computer communications as well as record posting with file updates. The main competing force comes from Bi-State Medical Consulting. This company offers fully integrated medical billing and coding management. Their main strengths include vast experience in the market, Investment in education as well as broad client base. On the other hand, their weaknesses include One-way claims communication and software as well as inadequacy in advertising. Despite their highlighted strengths and weaknesses, it is evident that they have limited negative effects because they dominate all local markets and there is no other player in the field providing software features or the dedicated service that iTouch Medical Solutions will offer. My company’s bottom line to compete will, therefore, lie in the ability to offer physicians with free practice management software, two-way computer communications to enhance next day patient recording updating to improve cash flow.

Strategic Position and Risk Assessment

Since the market has other players with vast experience, our company will strategize its activities to ensure that it gains a competitive advantage. Our strategic positioning will entail the provision of Superior Service with Comprehensive Practice Analysis. The company will also enhance strategic position by offering free State-Of-The-Art Practice Software and excellent service experience. As a way of going beyond what our competitors have been doing, we will offer Next Day Patient Record Updating as well as Two-way Computer Communications. This will enhance the ability of our clients to have Full Service regarding Medical Claims Management. Regarding risk assessment, we will ensure that we comply with the legal demands of the federal organizations as well as the international standard to ensure quality service. Since there are few players in the market, we will focus on quality services to increase our client base and avoid risks of failure.

Marketing Plan and Strategies

In any business, the success lies in personal service (Burgos, Johnson & Keogh, 2016). People no longer value robotic salespeople, empty sales promises as well as poor support from technical staff who do not respond. The modern clientele value being cared for and be helped to address their problems. Most of them value fully thought out initiatives that assure benefits. ITouch Medical Solutions knows this because we have clients before. ITouch Medical Solutions also knows that clients desire reasonable pricing for services. That is why iTouch Medical Solutions takes the time in determining each medical office needs to customize all service and charges, based on the identified needs. ITouch Medical Solutions will ensure it does not overcharge or undercharge clients. If we overcharge our clients, then they will be unhappy and move to our competitors. On the other hand, undercharging won’t make us happy for our good job. ITouch Medical Solutions intends to make it a win-win and long-term engagement with its clients. We feel that feels we are a company that all people across the United States will be grateful to work with.

Competitive Edge

ITouch Medical Solutions will provide some advantages. These include;

  • Superior Service
  • Complete Practice Analysis
  • Unpaid State-Of-The-Art Practice Software
  • Experience
  • Next Day Patient Record Updating
  • Two-way Computer Communications
  • Full-Service Medical Claims Management
  • Currently, there are no players in the local market with the ability to offer this package of services.

Marketing Strategy

When a diverse range of items used in concert to achieve the set goal, there is always a marked increase in results. This is a contract for services between our company and health care practice. ITouch Medical Solutions plan will entail five parts: An initial communicating with the medical practice through phone and cold call. The second part will entail identification of gatekeeper and develop contact with them. The third aspect will entail dropping off information or sending mail. This will encompass self-mailer, promotional letter or three-panel brochure. The third aspect will entail planning for presentation appointments. Contacts for the implementation this marketing strategy will come from a prior designed database of physicians who are not using electronic medical claim filing. This information is available in public records.

Promotional Strategy

ITouch Medical Solutions has a strong believe that it is efficient for a medical practice to engage in out-sourcing the comprehensive work of insurance processing to a professional healthcare reimbursement service rather than attempting transitioning to internal processing. It is evident that for long, medical practices have continued to depend on expert advice for accounting services for tax as well as financial planning matters. These have turned out very sophisticated, and expertise is a necessity for judicious decisions. Processing in insurance has many complexities as well and hence, demanding the reliance on expertise as a way of maximizing reimbursement from carriers (Fordney, 2013). Many medical offices are automated to the extent of owning a computer as well as software to set appointments, print paper insurance claims and bill patients. Unfortunately, many are limited when it comes to electronic or scientific transfer of claims to evaluate all the managed care contracts. Many of them find transitioning very costly. Despite their inadequacy, their systems as well as software have been stable and requiring no update. Submitting claims electronically is highly volatile, and different firms always need regular software modifications to adapt to new demands. Expert knowledge and time a necessity over and above anything that ordinary medical office can offer. For many offices, transitioning start with new hardware purchase or update on the existing claims software, communications software, modems among others. It is highly likely that current medical staff can find difficulties in handling upgrades, installing software programs, understand baud rates, testing modems, carrying out first testing as well as other critical skills. Thus, the office must source these skills or access comprehensive support service. Based on the fact that there is always a high medical personnel turnover, additional employee means a new challenge. The comprehensive solution to satisfy national mandates of electronic claim processing entails electronic medical billing as well as reimbursement service expertise. This is important from the fact that it permits existing office staff to resume their primary like helping patients

Marketing initiatives

Through our service-oriented enterprise, clients will have to come on one at a time. The comprehensive practice analysis will be carried out based on individual needs. Negotiation will be applied in determining the charges based on the needs. After successful fulfillment of individual practice, the practice will put the focus on promoting our Billing and Coding business to other medical practices that have the potential to benefit from iTouch Medical Solutions services. Current research continues to show that have shown that the commonest and successful way of expanding medical reimbursement business involves referrals from existing clients. Apart from our current initiative highlighted above, iTouch Medical Solutions will include an additional array of strategies to run simultaneously. These will include

  • Attending as well as volunteering services for medical fundraising and health fairs as well as sustaining an information booth at state and federal medical trade exhibitions.
  • Attending Blue Shield, Medicaid, Medicare as well as Worker’s Compensation initiatives
  • Carrying out Networking as Chamber of Commerce members at state civic organizations as well as federal medical associations
  • Carrying out networking related professionals, like medical as well as professional consultants, accountants and legal officers whose clients are mainly medical, medical equipment salespersons as well as pharmaceutical representatives
  • We will also affiliate with local as well as federal peer organizations, particularly those using online platforms
  • We will also carry out a series of advertisements on the state as well as federal newsletters
  • Becoming members of the Better Business Bureau will also a major initiative.
  • I Touch Medical Solutions will also be welcoming invitations to appear on the state as well as federal radio talk show and providing press releases to l all state as well as federal newspapers.
  • ITouch Medical Solutions will also focus on article writing in federal as well as state health publications.
  • Of great importance, iTouch Medical Solutions will ensure strong listing in the state and federal Yellow Pages. ITouch Medical Solutions knows the importance of stability as well as professionalism. The reason is that major players in any business are always located through Yellow Pages. The company will use a one-line listing because this is not that major client source. This will only serve professional appearance purposes.

Pricing Strategy

ITouch Medical Solutions pricing strategy will be a two section practice:

Section 1:

The initial issues to in the process of negotiation will be, "Does the practice desire full claims management?" if yes, iTouch Medical Solutions will deliberate services on a percentage basis. The percentage will have a range of 6 to 10 percent depending on practice size.

Section 2:

If the event that the practice demands basic claims billing and coding, the pay-for-services will be base on sliding scale that will range from $2.50 and $4.00. The following is a representation of how the scale will be divided

  • Patients

Price Per Claim

1-100

$2.50

101-200

$2.50

201-300

$2.50

301-400

$2.50

401+

$2.50

A set up for a one-time charge between $140.00 and $500.00 on patient load basis will be determined to be due during the signing of contracts.

Industry Participants

If the legislature mandated electronic insurance claims claim 20 years ago, a good number of physicians would still scrambling to work with the mandates. Physicians with Medicare as well as Medicaid patients are required by law to file the claims for their clients. If they are unable to work with the mandates, losing a significant portion of the patient can be automatic. A few years ago, medical practice's interest in Total Quality Control (TQC) increased. This is based Government as well as public’s interest to reform the health sector. Physicians are therefore continuing to have feared that inability to voluntarily comply will lead to the imposition of more Federal regulations. The movement for managed care in the United States is also impacting medical practices. Previously, doctors individually determine charges for their services. Currently, this fee-for-service payment initiative is dumped. With managed care, they can sign contracts and link with other health maintenance organizations (HMOs) or (PPOs). Many of them decide to affiliate because their colleagues are doing it or they take it as a way of increasing their client base. Conversely, for the majority of physicians, their patient bases go up while their incomes reduce. Through "capitation" payment schedules, many physicians make less as compared to the fee-for-service model. Associating with managed care organizations enhances tremendous new paperwork demands. Companies complain how paperwork is hard. As a result, medical practices have remained with no alternative but looking for innovative for enhanced office efficiency.

Key to Success

About 30 years ago, the National Government was at the forefront in pushing the health care industry to implement electronic submission of insurance claims. At the moment, research shows that electronic submission can save millions of dollars. Currently, over 95% of all pharmaceutical claims, as well as over 70% of major hospital claims, get submitted electronically. Unfortunately, Physicians and dentists stand as the most left behind with just 25-30%. The Government has never been happy with this trend, and this prompted the demand by the legislature that physicians file claims on behalf of their Medicare patients. Many practitioners on the other hand not prepared for this volume of paperwork. Years past with doctors continuing with paperwork. As a matter of fact, the 1996 motions that called for electronic submission of Medicare claims remained echoes in congress halls. No obligation was ruled, but the paperwork goes on mounting up, and as the by then baby boomers approaches retirement age, the problem is only worsening with the possibility of the echoes turning into screams. Currently, above a trillion dollars medical charges will be issued amounting to over 9 billion medical claims. Hence, Medical practices will be obliged to satisfy the demands, and growing volumes of paper and many are not equipped for the transition. The greatest solution for this will be outsourcing the process to professionals to save money and offer a faster return from carriers to handle the claims accurately. Currently, few businesses can say the Government is behind them. Another key to success for iTouch Medical Solutions will be flexibility. ITouch Medical Solutions knows well that each medical practice has its uniqueness. Even same specialty practices will have a diverse array of staff offering diversified services. ITouch Medical Solutions will assess the needs of individual practice and avail options to enhance the practice efficiency. Some clients can desire all services from our company while others can pick a few. Our billing and coding services will undergo customization to each need. The other key factor for success will be our diversified services. ITouch Medical Solutions will offer a one-stop-shopping experience for all medical administrative services. ITouch Medical Solutions Company’s key factors that will lead to success in the Medical Billing services sector will also include: Measuring the marketing efforts on regular bases and Utilizing the technology to satisfy the client’s needs and expectations. Increasing the revenue of the Physician Practices and Hospitals; providing the quality of work and maintaining the database of the clients safely and securely; respecting and following the HIPAA guidelines Very Strictly.

Operations Plan

ITouch Medical Solutions’ operation plan will entail a full-service medical reimbursement entity with individual pricing. The company’s main goal will be one-stop shopping for medical practices regarding administrative functions. ITouch Medical Solutions billing and coding Service's policy will be to customize charges based on work done, and each office need. Since we know that each practice is different, we will not be quoting standard charges for our services. Initially, iTouch Medical Solutions will offer electronic billing and coding of medical insurance claims. This is a highly needed service for many medical practices and is critical because of the Federal mandate of Medicare claims in coming days. The detailed description of our operation plan in billing and coding for electronic submission will be as follows. The data to submit claims will be acquired through downloading from the medical office and input into specialized computer software. Secondly, the software will carry out some generic data edits and keep the data. When some of the claims are complete for the office, it gets transmitted to the federal clearinghouse. This will happen through modems as well as telephone lines. The data will then undergo second time editing. This will incorporate insurance firm’s specifics. The insurance carriers will then notify the clearinghouse of particular edits perceived important for claim payment. The edits will be carried out on individual claim prior being transmitted on to the insurance carrier. This process will assure accuracy and successful payment of many claims. After the insurance claim is received from the clearinghouse, the insurance carriers process the claim and directly forward the money to the medical practice. Through electronic transmission, computerized data verification, as well as removal of the human element, will make claims payment simplified and faster. Medical practice will not have to wait for a long period for their payments. As iTouch Medical Solutions start to realize benefits of billing and coding, medical practice will realize the benefits of out-sourcing other administrative functions. ITouch Medical Solutions full-featured practice management software will make the company meet clients’ needs. In this case, physicians will be able to bill for co-payments and in demanding cases, money which insurance firms failed to cover. Other insurance will also be tracked with payments as well as balances applying correctly. Our billing and coding software will use state-of-the-art; open item accounting unlike in other systems where balance-forward systems are used. Through our billing and coding, outstanding receivables will be tracked with insurance reports for easy use. A comprehensive analysis will enhance efficiency through pointing where funds come from. For all individual procedures, charges, as well as total charges percentage, will be calculated and recorded timely reference. Such Transaction Journals, as well as Detail Ledgers, will offer real practice picture. Through national managed care sweeping, it will be important for medical practices to know the advantages received from affiliations. The managed care contract service will, therefore, tracks payments and determine the information to give customized reports of profitability with each care facility. Such reports will be important for decisions contract renewal and negotiation. Our billing and coding state-of-the-art software will enable physician to carry out comprehensive dictation transcription to allow meeting the new HCFA demand on all Medicare claims clarity. ITouch Medical Solutions number one goal will be to provide best billing and coding services in an outstanding way. ITouch Medical Solutions’ dedication to service will be through the provision of physician one-stop shopping for all billing and claims needs. Our operations services will include complete patient record setup, Electronic and manual medical claims filing, Patient Billing, Claims posting and patient record updating, Collection services, and Complete practice analysis. Other operational services will include assistance in negotiating health care contracts, automated transcription service as well as Volume discounting. In our initial operation, we will prioritize on billing and coding claims filing, and after stabilizing, we will focus on the provision of one-stop shopping to serve the purposes of managing physicians’ medical office. All these services will help iTouch Medical Solutions to reach as much client base as possible.

Technology Plan

When it comes to technology plan, iTouch Medical Solutions will mainly focus on using current technology in medical billing and coding. This will not only increase Revenue for physician practices but also major hospitals in the United States. Technology will encompass automated (CMS-1500) and (UB04). The computerized software that is the crux of iTouch Medical Solutions is state of the art. ITouch Medical Solutions to run Windows 95 which is specifically designed for medical reimbursement consultancy. This is vital from the facts that many software in the markets are written for purposes of managing doctor’s office without incorporate other functions for consultancy. This software similarly entails the modern features necessary features for management of managed care organization such as tables for the fee timetables which can be necessary to be customized reports to facilitate contacts evaluation. The ET&T clearinghouse which has the responsibility of verifying all claims data stands the test of time in billing and coding industry. They have membership of and certification from AFECH which is a federal policing entity. They use Federal Standards formats which are Medicare recommended and accepted by all insurance carriers. This technology guarantees 98 percent accurate claims prior sending to insurance carriers. ITouch Medical Solutions intends to use this technology in billing and coding to enhance physician practices Revenue profitability. ITouch Medical Solutions will continue investing in innovations for more enhancements of billing and coding in the medical practice. This will help individual care practice as well as major hospitals to have efficiency and profitability for their services.

Management and Organization

Based on the fact that the company will be individually owned, the primary management of iTouch Medical Solutions will be in the hands of an expert employee called Mark Bruce. As iTouch Medical Solutions’ President, he will bring 20 years of management expertise to this position. He holds a Bachelor of Science degree from Kansas State University in Education. His education, as well as experience in the medical field, emanates from his vast training in Physiology as well as Anatomy which was his major part of his Health Science degree. Bruce managed Florida pharmaceuticals from 1984 to 1998. Being in charge of sales in which recorded excess of $12 million, he is highly capable of managing iTouch Medical Solutions firm in New Jersey. He will be in charge of all marketing as well as sales functions. He will also oversee data processing, accounting, and training as well as computer departments. Lucy will be the Chief Operating Officer in charge of administration as well as clerical services. She has 18 years of extensive experience in her administrative position. She has a Bachelor of Science degree from Harvard University in Education. She was successful in organizing and heading several community endeavors that without her expertise would have hit the rock. Lucy will manage initial telemarketing, customer service, data entry as well as passing of company information. Apart from her stated experience, she also has 12 years of experience in medical claims filing as well as four years in secretarial training. These two traits directly lend to her departments in iTouch Medical Solutions. This means that the company and its customers will be in right hands with Lucy’s expertise. Bruce and Lucy will take full-time management responsibilities as well as hire employment at iTouch Medical Solutions. The company will also have other part-time employees who are valuable for the work they will play in the operations of iTouch Medical Solutions. They are Leon and Scholastic. Leon will work in data entry tasks as well as and facility maintenance. On the other hand, Scholastic will take facility maintenance duties at the beginning and later shift to data entry. Erika and Leon will also be in charge of manual, clerical duties which are critical to the iTouch Medical Solutions’ operations.

Management table

Personnel Plan

Year 1

Year 2

Year 3

Bruce

$20,000

$24,000

$26,000

Lucy

$20,000

$24,000

$26,000

Leon and Scholastic

$10,000

$12,000

$15,000

Total People

4

4

4

Total Payroll

$50,000

$60,000

$67,000

Community Involvement and Social Responsibility

Community involvement and social responsibility will not be enough through our quality of services, competitive prices or our technology. Thus, protecting customers and the society will be our important pursuit. ITouch Medical Solutions will adopt a socially responsible conduct for a medical practice and hospitals to enhance our competitiveness and to protect our external image. For instance, our company will analyze and find approaches to help the medical practice to treat waste product that can pollute the environment safely. This is important because developed countries like ours stand highly responsible for large toxic material proportion. This will be an important aspect because it is highly accepted that health care firms, as well as medical billing and coding that focus on social responsibility, are highly favored for supporting local societies. We will also put up solidarity programs because many physicians and hospitals are always engaged in social projects for advantages such as employment promotion. We will also implement reverse discrimination policies as a way of protecting cultural minorities. Lastly, self-regulation is promoted due to social pressure and financial investment. Since we will be operating in a health sector, we will remain closer to community links to facilitate our social responsibility engagement. Society linked management models will adapt best to our practices since its public nature, they are highly competitive and, will focus on achieving value, focus on stakeholders, focus on output optimization, performance evaluation, and value innovation as well as entrepreneurs. We will also establish a participative structure, flexibility, transparency and national coverage in an interdependent model to strengthen corporate social responsibility. In implementing Corporate Social Responsibility, iTouch Medical Solutions will also involve other agents such as pharmaceuticals. But because of specificities of corporations and overlooking the fact that in some areas their social responsiveness has to be optimized, our company will focus on hospital social responsibility. As a billing and coding company, we will put conformance with performance in equilibrium with corporate responsibility. In this respect, the company will remain instrumental in meeting stakeholders’ needs for unequivocal efficiency, ethical standards as well as value. We will continue the emphasis on corporate strategies which will be the gold standard. In particular, we will champion for hospitals and other medical practice to follow required ethical principles. In effecting our community involvement and corporate social responsibility, our company will avoid all precarious labor and support flexible labor regulations for community members. The company will create support services for the disabled community members with medical bills. The company will also create assistance services as a way of satisfying religious needs. ITouch Medical Solutions will support social well-being as well as solidarity initiatives. Apart from this, the company will come up with marketing initiatives that are in line with ethical standards. We will also help hospitals and medical practice to courteously treat toxic, poisonous residues to avoid harm to the community. iTouch Medical Solutions will also be at the forefront of protecting animal and human rights, preservation of the environment as well as championing policies that allow participative decision-making on specific patients entities as well as and Non-Governmental Organizations.

Development, Milestones and Contingency/Exit Plan

ITouch Medical Solutions plans to ensure that its medical billing and coding business gain a minimum of one client every month to ensure growth in the industry music charts. We plan to ensure that the company has the necessary consultancy with resources to achieve a professional medical billing and coding enterprise. In creating an organized, productive as well as an efficient firm with excellent operating procedures for each position responsibilities, the company plans aiming at having a minimum of.40% market share in the industry in the initial three years. The maximum full-time employees will be two within the first three years while those on part-time arrangement will also be five after the three years. On the other hand, contract employees and other possible desired employees will continue fluctuating yearly. Funds for startup will be a large fiscal offset to start with, though with small upgrade, income for the initial three years afterward will assist in keeping the cost lower. Despite the high start-up cost associated with billing and coding, income for the initial three years will be more than the starting costs. As iTouch Medical Solutions reaches highest profitability levels, several lucrative exit situations will become a reality. This will include an opportunity for acquisition by a major record federal department based on our preferences and the ability to liquidate ownership.

Milestones

Milestone

Start Date

End Date

Budget

Manager

Department

100 First Client Group

1/1/2018

1/31/2018

$2,000

Bruce & Lucy

S&M

100 Second Client group

2/1/20188

2/28/2018

$2,000

Bruce & Lucy

S&M

100 Third Client group

3/1/1018

3/31/2018

$2,000

Bruce & Lucy

S&M

100 Fourth Client group

4/1/1998

4/30/2018

$2,000

Bruce & Lucy

S&M

100 Fifth Client group

5/1/2018

5/31/2018

$2,000

Bruce & Lucy

S&M

Totals

$25,000

The Financials

ITouch Medical Solutions business will be funded through cash flow. Through a service focused business our primary investment will be initial software together with computer equipment. In the preceding years, apart from ordinary overhead, the company will also focus on Payroll and benefits, monthly marketing fees to Claim Systems advertising account and membership renewals to states as well as federal organizations. The other aspects will be reference manuals as well as books updates and office utilities and supplies.

Financial Control

ITouch Medical Solutions will have established policies and procedures to track manage as well as report financial resources and its transactions. As a company, we will do this through, income statements, cash flow statements, budget sheets, accounting systems as well as operating ratios.

Income Statement: Annual and Three-Year Projection

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales

$150,000

$170,000

$190,000

Direct Cost of Sales

$0

$0

$0

Other Costs of Sales

$0

$0

$0

Total Cost of Sales

$0

$0

$0

Gross Margin

$150,000

$170,000

$190,000

Gross Margin %

100.00%

100.00%

100.00%

Expenses

Payroll

$50,000

$60,000

$67,000

Marketing/Promotion

$15,000

$15,000

$16,000

Depreciation

$0

$0

$0

Franchise Fee

$2,000

$0

$0

Rent

$1,600

$800

$600

Utilities

$800

$500

$400

Insurance

$200

$200

$200

Payroll Taxes

$0

$0

$0

Other

$0

$0

$0

Total Operating Expenses

$76,800

$76,500

$84,200

Profit Before Interest and Taxes

$73,200

$93,500

$105,800

EBITDA

$73,200

$93,500

$105,800

Interest Expense

$1,400

$1,000

$600

Taxes Incurred

$18,800

$18,000

$19,000

Net Profit

$53,800

$74,500

$86,200

Net Profit/Sales

35.87%

43.82%

45.37%

Cash-Flow Projection

In the initial period, cash flow will be supported by available capital of $100,000 and a loan of $10,000 together with assets.

Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received

Cash from Operations

Cash from receivable

$0

$0

$0

Cash sales

$150,000

$170,000

$190,000

Subtotal Cash from Operations

$150,000

$170,000

$190,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

New Investment Received

$0

$0

$0

Subtotal Cash Received

$150,000

$17,000

$190,000

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

$76,800

$76,500

$84,200

Bill Payments

$19,400

$19,000

$19,600

Subtotal Spent on Operations

$96,200

$95,500

$103,800

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$4,000

$5,000

$4,000

Other Liabilities Principal Repayment

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

Subtotal Cash Spent

$100,200

$105,500

$107,800

Net Cash Flow

$49,800

$65,500

$82,200

Cash Balance

$59,800

$124,300

$206,500

Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets

Current Assets

Cash

$$59,800

$124,300

$206,500

Accounts Receivable

$0

$0

$0

Other Current Assets

$0

$0

$0

Total Current Assets

$59,800

$124,300

$206,500

Long-term Assets

Long-term Assets

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

Total Long-term Assets

$0

$0

$0

Total Assets

$59,800

$124,300

$206,500

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities

Accounts Payable

$

$0

$0

Current Borrowing

$6,000

$4000

$2000

Other Current Liabilities

$0

$0

$0

Subtotal Current Liabilities

$6,000

$4,000

$2,000

Long-term Liabilities

$0

$0

$0

Total Liabilities

$6,000

$4000

$2000

Total Liabilities and Capital

$6,000

$4,000

$2,000

Net Worth

$53,800

$120,300

$204,500

Sources and Uses of Funds

The main source of funds for this business will be personal savings which stands at $150. This will also be supplemented with a loan of $ 10,000. Money will be used in paying employees, marketing as well as maintenance of services. Another proportion will be used for transports

Assumptions Sheet

ITouch Medical Solutions financial plan depends on some critical assumptions as illustrated in the table.

Assumptions

Year 1

Year 2

Year 3

Plan Month

1

2

3

Current Interest Rate

12.53%

12.53%

12.53%

Long-term Interest Rate

12.53%

12.53%

12.53%

Tax Rate

18.90%

20.00%

20.73%

Other

  1. li>
  2. li>
  3. li>

Appendices

Sales Forecast

Sales Forecast

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Unit Sales

Service 1

0%

100

200

,300

400

500

600

700

800

900

1000

1100

1200

Service 2

0%

0

0

0

0

1000

1,600

2,000

2,400

2,800

3200

3,600

4,000

Total Unit Sales

100

200

300

400

1500

2100

2700

3200

3700

,4200

  1. 700
  2. 200

Unit Prices

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Service 1

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

$2.50

Service 2

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

$1.50

Direct Unit Costs

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Service 1

0.00%

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Service 2

0.00%

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Direct Cost of Sales

Service 1

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Service 2

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Personnel

Personnel Plan

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Lucy and Bruce

0%

$1,000

$1,000

$1,000

$1,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

John

0%

$1,000

$1,000

$1,000

$1,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Leon and Scholastic

0%

$500

$500

$500

$500

$500

$500

$1000

$1000

$1000

$1000

$1000

$2000

Total People

4

4

4

4

4

4

4

4

4

4

4

4

Total Payroll

$2,500

$2,500

$2,500

$2,500

$4,500

$4,500

$5,000

$5,000

$5,000

$5,000

$5,000

$6,000

Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received

Cash from Operations

Cash from receivable

$0

$0

$0

Cash sales

$150,000

$170,000

$190,000

Subtotal Cash from Operations

$150,000

$170,000

$190,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

New Investment Received

$0

$0

$0

Subtotal Cash Received

$150,000

$17,000

$190,000

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

$76,800

$76,500

$84,200

Bill Payments

$19,400

$19,000

$19,600

Subtotal Spent on Operations

$96,200

$95,500

$103,800

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$4,000

$5,000

$4,000

Other Liabilities Principal Repayment

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

Subtotal Cash Spent

$100,200

$105,500

$107,800

Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales

$150,000

$170,000

$190,000

Direct Cost of Sales

$0

$0

$0

Other Costs of Sales

$0

$0

$0

Total Cost of Sales

$0

$0

$0

Gross Margin

$150,000

$170,000

$190,000

Gross Margin %

100.00%

100.00%

100.00%

Expenses

Payroll

$50,000

$60,000

$67,000

Marketing/Promotion

$15,000

$15,000

$16,000

Depreciation

$0

$0

$0

Franchise Fee

$2,000

$0

$0

Rent

$1,600

$800

$600

Utilities

$800

$500

$400

Insurance

$200

$200

$200

Payroll Taxes

$0

$0

$0

Other

$0

$0

$0

Total Operating Expenses

$76,800

$76,500

$84,200

Profit Before Interest and Taxes

$73,200

$93,500

$105,800

EBITDA

$73,200

$93,500

$105,800

Interest Expense

$1,400

$1,000

$600

Taxes Incurred

$18,800

$18,000

$19,000

Net Profit

$53,800

$74,500

$86,200

Net Profit/Sales

35.87%

43.82%

45.37%

References

Andress, A. A. (2010): Coding notes: Medical insurance pocket guide. Philadelphia: F A Davis.

Burgos, M., Johnson, D., & Keogh, J. E. (2016): Medical billing and coding demystified.

Comprehensive health insurance: Billing, coding and reimbursement. (2015). Place of publication not identified: Appleton & Lange.

Fordney, M. T. (2013): Insurance handbook for the medical office.

Richards, C. A. (2010). Coding basics: Medical billing and reimbursement fundamentals. Clifton, NY: Delmar, Cengage Learning.

Smiley, K. (2012): Medical billing & coding for dummies. Hoboken, NJ: John Wiley & Sons

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in nursing essay help USA if you need a similar paper you can place your order from custom college papers.

About the Author

"Janet Peter is the Managing Director of a globally competitive essay writing company.

Rate this Article
Leave a Comment
Author Thumbnail
I Agree:
Comment 
Pictures
Author: Janet Peter
Premium Member

Janet Peter

Member since: Dec 11, 2017
Published articles: 353

Related Articles