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Attachment 1: BOCC/BOH Joint Dinner Meeting 04/01/04 <br />OCHD will use its current base of vendors for medical supplies, equipment, and drugs. To offset the <br />increased cost of pharmaceuticals that will ensue, OCHD will assist patients in completing applications to <br />receive drug assistance (free medications) from the major pharmaceutical companies and where <br />necessary, will dispense these medications according to company - specific guidelines. <br />First year expenses (which include start -up and operating costs) are expected to be <br />approximately $93,132 (Appendix B). <br />The following graph provides the most likely scenario for revenues, expenses, and net income for the first <br />five years of operations (Appendix E). Expenses in the first year are much higher than revenues, <br />primarily due to start -up costs. However, the gap between revenues and expenses subsides each year due <br />to higher patient volume (expected increase of 20% per year) and operational efficiencies. Nearly <br />breakeven is expected between year 5 and 6, if revenues and expenses continue as projected. <br />Future Financial Projections for Primary Care <br />$150,000 k i , <br />_ e <br />+v. <br />MET <br />$100,000 <br />$50 000 Re�nues <br />iq- §1v��,� �- Expenses <br />•-r "y' .rte` x -�rcd -.� a RE A-03 <br />$0 Y ZSE z - Net Income <br />.�=-' �l <br />$50,000 <br />f �''t3' -r „a...rt <= ti ':4 ^+• Sri -c �a <br />t <br />$100,000 <br />Year <br />Success will be measured in several domains: Increased patient visits, decreased emergency room use, <br />and patient satisfaction with the service. OCHD has projected 750 patient visits for the first year; if this <br />goal is met or exceeded then the primary care services will be considered initially successful. Semi - annual <br />surveys of clients using OCHD's primary care services will be conducted. Emergency room usage and <br />patient satisfaction among other factors will be assessed. A decrease in emergency room usage from the <br />original survey and an overall 85% satisfaction rating by clients will be considered a success. <br />Detailed financial analysis follows. <br />* We acknowledge and thank UNC Students Allyson Banos, Victoria Huntley, and Moneica R. Kiser for <br />their work on developing the draft of this Business Plan. <br />2 <br />