1. I am starting a small care facility called the Streeter care facility. This facility will be
based in Paoli Pennsylvania. This will be considered a small business and will only have room
for a few very well trained employees. There will be very few patient payments for this facility
and for the some that the patients will have to pay they will be non-expensive. The reason that
they will be non-expensive is because we will be covered under Medicare and Medicaid.
Medicare and Medicaid cover at least 80% of the costs that the patients need and the 20% that
the patients need to pay will be very cheap. Some of the necessities that the patients will have to
pay for will be the bedrooms, facilities, and any extra services that the patient would need that is
not met under the contract that they sign. The bedrooms cost the patients $10,000 a year. So if a
patient stays for 10 years it will cost them around $100,000. Facilities include water, heat, and
gas. These will cost $5,000 a year. So if the patient stays for 10 years they are looking at about
$50,000 a year.
The insurance will pay for most of the services at the care facility. The main services
include physical and occupational therapy. The physical and occupational therapy will be given 3
times a week on a Monday, Wednesday and Friday for 2 hour sessions. This will cost the
insurance company around $25,000 a year for these services. The insurance is also paying for the
dining services. This is not a big dining service because like I said before this is a small practice.
The dining services will cost around $10,000 a year. The patients will get 3 meals a day
breakfast beginning at 8am lunch beginning at 12pm and dinner beginning at 6pm. The insurance
company will also pay for necessities like wheelchairs Gerry chairs etc.
2. Starting out we will need a lot of supplies and man power. Starting out we will most
likely need around $500,000 budget. This includes supplies like wheelchairs and Gerry chairs,
computers, paper and filing cabinets, pens, pencils etc. These two supplies alone will most likely
cost around $50,000 if we were to get good quality items. Other supplies include bed sheets,
dressers and other room supplies that will go into the rooms. These will cost about $25,000-
50,000. Labor is also going to set us back a lot. This is a small practice but we will need some
very talented staff like occupational therapists and physical therapists. They will cost about
$50,000-75,000. Their benefits will include benefits will include health insurance, dental
insurance, stock options, and PTO time.
Some of the staffing levels include 3-4 Occupational therapists, 3-4 Physical therapists.
Their salary will be based on their credentials negotiation with the facility. There will 10 nurses
on call 24-7 and their salary will also be based on their credentials and negotiation. There will be
a manager of the facility who will be Monday thru Friday and their salary will be based on
credentials and negotiation. There will be 10 janitors that will work. 5 will work the day shift and
the other 5 will work the night shift their salary will be 10 dollars an hour. There will be 10 aids
and their salary will be $15 dollars an hour.
This facility will hold approximately 200 patients. As stated before their payment will be
in a 10 span will be about $150,000 so in one year the patient will pay 15,000 thousand dollars.
Which includes the water, heat and electricity. Most of these patients will be short term patients
and will be in and out periodically. They will have unlimited number of visits because the
Medicare and Medicaid will be paying for all of their medical expenses including OT and PT and
most nursing care.
