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Summer 2018 agintseterCase StudyServices Expansion: Rehab Center Acquisition of srhall community hospital by a large healthcare systemAllegash Health operates four acute care, nonprofit, hospitals in a densely populated eastern state (a total of 925 licensed beds), as well as nine..seyarate physicianractz_ises(52 doctors and 10 NPs), and an PT/OT/Speech center. As part of its defensive strategy for competitive market share, Allegash Health recently acquired a fifth, small 50 set-u • beds , comm i • I, al Earren Hospitai.)Warren is just outside the Allegash Health catchment area and has been languishing for the past two years with a census below 50%. The state’s Hospital Review Authority originally had wanted Warren to close, but reconsidered and unanimously approved its sale to Allegash Health. Warren Hospital is located juston the edge of an upscale suburban community (average household income of $97,000). The community is growing, thanks to a very good school system and the community’s high-speed commuter-train to a Gotham City, a major metropolitan area.Your group is the clinical development team for Allegash Health, and you have been charged with creating a high-level business plan for Warren Hospital that makes this new acquisition break-even-within Allegash Health’s plan is to take the existing Warren structure and adapt it to a full-service rehabilitation center, th inpatient S3521alf

ec111p:ieds plus outpatient services leg., PT/OT/Speech, cardiac and stroke rehab, brain injury and sports medicine), and diagnostic testing. In a public statement, Allegash Health states it has set aside $25-million for infrastructure and technology improvements. The existing therapy services building would be converted to a primary care multi-specialty group.One of the acute care hospitals in the Allegash Health system is overfilled, is experiencing severe operating room scheduling delays, and needs to decompress 30 two-bed rooms to private rooms. It plans to off-load most of its rehab services to Warren Hospital, which is 20 miles away. This isn’t part of your project development, but will impact your market share and future plans. Allegash has one physiatrist but no other specialized physicians or NPs. Competition for rehab services in this state is minimal, but there is one big competitor — Select Medical, which has two dedicated hospitals with this service line within 35 miles.Requirements Specific to This ProjectThis project requires your group to create a 3-year business plan, from the Warren Hospital perspective, one that is financially positive for the Allegash Health system. You also will need answers the questions below. Remember to refer to general case study requirements in your Course Syllabus. Feel free to make up information that fits your plan — but make sure it’s reasonable!