Preliminary Market Analysis

Preliminary Market Analysis

According to Nomura & Terwilliger (2019), a preliminary market analysis is conducted to determine the probability of a new business achieving success. Furthermore, it provides an opportunity to assess potential competitors, study their tactics, and identify existing gaps in their practice (Nomura & Terwilliger, 2019). Additionally, preliminary market analysis enables the understanding of the legal and socioeconomic aspects of the business (Nomura & Terwilliger, 2019). This paper presents a preliminary market analysis for a geriatric psychiatric unit in an acute care hospital. Do you need help with your assignment ?

The Population of the Service Area

Geriatric psychiatry deals with the elderly population. This is the population of the service area that will support the new service line. In 2019, the number of people aged above 65 was approximately 703 million globally (Department of Economic and Social Affairs of the United Nations, 2019). The number is expected to surge and reach approximately 1.5 billion by 2050 (Department of Economic and Social Affairs of the United Nations, 2019). In 2019, approximately 54 million Americans were aged 65 years and above (CDC, n.d.). Projections indicate that the number will reach ninety-five million by 2060 (CDC, n.d.). Approximately 20 per cent of the elderly population suffer from mental and other neurological disorders (Sutton et al., 2019).

According to the CDC (n.d.), the most common mental and neurological disorders affecting the elderly population include depression, anxiety, and dementia. Depression accounts for approximately 7 per cent of the total cases, whereas dementia accounts for about 5 percent (CDC, n.d.). Anxiety accounts for approximately 3.9 percent of the cases of mental disorders (CDC, n.d.). The other disorders that have been diagnosed in this population include delirium, substance use disorders, sleep disorders, and personality disorders (Patel et al., 2020). Factors that predispose this population to mental health problems include life stressors and vulnerabilities. Stressors are common in the elderly due to reduced functional ability and diminished socioeconomic status (Patel et al., 2020).

According to Sutton et al. (2019), dementia is a chronic syndrome marked by a progressive disturbance in thought, behaviour, and memory. Dementia can be caused by Alzheimer’s disease (AD), alcohol, vascular- ischemia, and Parkinson’s Disease (Sutton et al., 2019). AD is the most common type of chronic progressive dementia in the elderly population (Mok et al., 2020). Data indicates that more than five million people have been diagnosed with AD in the USA (CDC, n.d.). The incidence is expected to double by 2060 as the elderly population continues to grow (CDC, n.d.).

Early diagnosis of AD is beneficial to the patients and the physicians. It enables prompt initiation of therapy that can prevent further deterioration of the disorder (Mok et al., 2020). Physicians can address safety concerns associated with AD, hence averting accidents and other emergencies among this population. Early diagnosis enables patients to better understand AD and plan accordingly for their employment and financial security (Mok et al., 2020). People with AD and other forms of dementia require psychiatric services that address primary prevention, rational drug use, and lifestyle modifications (Mok et al., 2020).

According to the CDC (n.d.), depression and anxiety disorders account for most cases of geriatric mental disorders. The elderly population is at risk of catatonic and psychotic depression, and the incidence of depression-related suicide is higher in this population (CDC, n.d.). Geriatric psychiatric services are relevant in this context because they help manage suicidal cases and those who do not respond to medication. Cognitive-behavioural therapy, neuromodulation, and antidepressants such as selective serotonin reuptake inhibitors have been used to manage depression in the elderly population (CDC, n.d.). The incidence of anxiety disorders associated with stressors is high in the elderly. Generalized anxiety disorder is the most prevalent form of anxiety (CDC, n.d.). Geriatric psychiatrists use different techniques, such as cognitive behavioural therapy and sedative anxiolytic medications, to manage these patients (Patel et al., 2020).

Accordingly, the new service unit will target the elderly patient population. It will have a capacity of twenty patients per day. The geriatric psychiatric unit will target patients’ mental health problems such as depression, anxiety, dementia, bipolar affective disorder, and schizophrenia. The cases of dementia to be handled by the new service line are likely to be associated with Alzheimer’s disease, Parkinson’s disease, and vascular ischemia (Sutton et al., 2019). In addition, the new service line will address geriatric mental health problems associated with alcohol and substance use, delirium, sleep disorders, and personality disorders.

Moreover, the new geriatric psychiatric unit will offer this population health promotion and preventive services. This will include screening and diagnosis, evidence-based preventive services, and initiation of nonpharmacological and pharmacological interventions. Subsequently, this will improve the coordination of healthcare services and promote a continuum of care for this population (Patel et al., 2020). The unit will be established in an existing vacant place, hence cost-effective. Furthermore, it will be strategically located to target the patients visiting the hospital. This will be the first geriatric psychiatric unit in this area. Accordingly, the service unit will benefit the elderly, their family members, and caregivers.

Satisfaction of Geriatric Psychiatric Patients in other Facilities

Data from existing literature can be used to evaluate and determine patients’ satisfaction with geriatric psychiatric services in other facilities. The study by Fortin et al. (2018) revealed adequate satisfaction levels among patients. The study involved 325 elderly patients receiving mental health services in four healthcare facilities. A rating scale of 1 to 5 was used to evaluate patients’ satisfaction levels (Fortin et al., 2018). Findings revealed that the average score for patient satisfaction with services was about 4.11 (Fortin et al., 2018). Additionally, the minimum score was 2, whereas the maximum score was 5 (Fortin et al., 2018). The mean score of 4.11 out of 5 indicates that the level of patient satisfaction with geriatric psychiatric services is adequate (Fortin et al., 2018).

The enablers for patient satisfaction include perpetual mental health services, the presence of a case manager, and the quality of services discharged. Additionally, optimized ratios of geriatric psychiatrists to patients were reported as enablers of patient satisfaction (Fortin et al., 2018). Psychiatrists working in adequately staffed units are most likely to discharge quality mental health services and promote a continuum of care for the elderly (Fortin et al., 2018). Fortin et al. (2018) also reported that admission was associated with lower levels of satisfaction among elderly patients. Additionally, low satisfaction levels were caused by unmet expectations that would have been triggered by unoptimized staff ratios.

Furthermore, the findings of Fortin et al. (2018) were supported by the study conducted by Hantke et al. (2020). The study by Hantke et al. (2020) focused on evaluating the satisfaction of patients with geriatric services provided via teleconference. Findings from the study indicate that approximately 90 percent of the respondents were contented with geriatric telepsychiatry (Hantke et al., 2020). Additionally, 83 per cent of the respondents stated that telepsychiatry services were similar to those provided in a face-to-face session (Hantke et al., 2020).

The findings by Fortin et al. (2018) and Hantke et al. (2020) are relevant in this context, where a new geriatric psychiatric unit is to be established. The findings that the satisfaction levels of patients receiving geriatric psychiatric services are high. Furthermore, satisfaction levels are correlated with the quality of services and the continuum of care. A shortage of psychiatrists leads to un-optimized ratios and lowers the quality of services provided to the population. This is likely to lower their satisfaction levels. Findings by Hantke et al. (2020) indicate that 83 per cent of patients considered telepsychiatry services similar to those provided by face-to-face sessions. Accordingly, this upholds the generalizability and transferability of the findings to the context of the new Geriatric psychiatric service line.

Profits in Other Similar Service Lines

The new geriatric psychiatric unit can profit both the patients and the healthcare institution. The profits accrued by the healthcare facility are related to patients’ treatment costs. The geriatric psychiatric unit will serve approximately 20 patients per day. The inpatient costs of managing older adults with mental health problems are relatively high. The patient’s out-of-pocket cost for managing schizophrenia is approximately $5700 for seven days, whereas those for bipolar affective disorder are approximately $4350 for five days (Ride et al., 2020). The out-of-pocket costs for managing depression are approximately $3,600 for four days, whereas those for managing alcohol and drug use disorder are approximately $7,670 for four days (Ride et al., 2020). Studies indicate that the rates are significantly higher for insured patients.

According to Ride et al. (2020), Medicare reimbursement for each schizophrenic patient is approximately $8,500 for 11 days, whereas for bipolar affective disorder is approximately $7,500. Medicare reimbursement for the management of depression is approximately $6,990 for eight days, whereas that for the management of alcohol and drug use disorder is approximately $10,500 for seven days (Ride et al., 2020). These out-of-pocket and reimbursement costs cover all services offered to elderly patients in the geriatric psychiatric unit. The healthcare facility is expected to collect this amount of money from the patients and insurers after implementing the geriatric psychiatric service unit.

Jaworski (n.d.) reports that the largest source of revenue for geriatric psychiatric units is Medicaid. Commercial pay is most likely to be bonuses rather than an elaborate strategy for revenue generation. Jaworski (n.d.) identifies various factors contributing to better revenue collection and more profits. Psychiatric units should embrace high-quality, coordinated care and establish open communication with referral partners. By so doing, they are most likely to receive referrals due to their quality of care and open communication.

The second strategy to increase revenue and profits is by embracing direct-to-consumer engagement. This involves marketing the quality of geriatric psychiatric services directly to elderly patients. In this context, elderly patients and other patients attending the healthcare facility should be informed about the new unit, its services, and its merits. Jaworski (n.d.) reports that a direct-to-consumer engagement strategy is associated with a two-fold to a four-fold increase in revenue and profits for psychiatric units.

The other strategies that have been embraced involve the optimization of staff ratios and the creation of a better care experience for patients. Optimizing staff-to-patient ratios can increase the quality of care provided to patients. It can minimize burnout and the needs of staff members. Jaworski (n.d.) reports that creating a high commercial pay mix can help to minimize burnout and staff needs. By so doing, the quality of service delivery is most likely to increase. This creates a better patient experience and higher satisfaction levels and increases the likelihood of receiving referrals (Jaworski, n.d.). By so doing, the facility’s revenue and profits will increase significantly. Patients benefit by receiving optimal care services that aim at promotive and preventive health and adequate management of their psychiatric problems.

Requirements and Costs for Staffing the Unit

The implementation of the geriatric psychiatric unit will require adequate resource allocation for staffing. A multidisciplinary team of healthcare professionals will be recruited during the implementation of the facility. The members of this team include social workers, nurses, psychiatrists, physiotherapists, occupational therapists, and physicians (Sutton et al., 2019). Nursing staff in this context involve members such as registered nurses, certified nursing assistants, and nurse managers (Sutton et al., 2019).

Findings indicate that staffing costs constitute a significant percentage of the operational costs. The total staffing costs for a 16-bed capacity in a geriatric psychiatric unit were reported to be approximately $ 2.5 million annually (Puddle & Silva, 2019). This cost constitutes the resource allocation toward the remuneration of approximately 36 staff members. Additionally, other operational costs, including staff training, medication, food, and laundry services, were approximately $600,000 annually. Accordingly, the total operational costs for implementing the 16-bed capacity were found to be approximately $ 3.1 million annually (Puddle & Silva, 2019).

In this context, the new geriatric psychiatric unit will have a capacity of twenty patients per day. The staffing costs are projected to be similar to those reported for the 16-bed capacity in a geriatric psychiatric unit (Puddle & Silva (2019). This is because, currently, the healthcare facility has approximately 20 staff members who can be assigned to the new unit. Essentially, this implies that approximately 20 more staff will be recruited to the new unit to prevent the possibility of staff shortage. Staff shortage is undesirable because it can decrease the quality of services delivered to patients. The multidisciplinary team will be required to uphold evidence-based practice in their routine operations. They will be actively involved in operations such as preadmission screening, prompt initiation of treatment, discharge, rehabilitation, and resocialization programs.

Conclusion

A preliminary market analysis is conducted to determine the probability of a new business achieving success (Nomura & Terwilliger, 2019). This entails evaluating the target population and determining whether the business idea is their priority (Nomura & Terwilliger, 2019). Geriatric psychiatry deals with the elderly population. Data indicates that this population demonstrates high satisfaction levels with geriatric psychiatric services. Staffing costs are a significant aspect to consider during resource allocation for a geriatric psychiatric unit (Puddle & Silva, 2019).

References

CDC. (n.d.). The State of Mental Health and Aging in America. https://www.cdc.gov/aging/pdf/mental_health.pdf

Department of Economic and Social Affairs of the United Nations. (2019). World population ageing, 2019 : In World population ageing 2019. https://digitallibrary.un.org/record/3846855

Fortin, M., Bamvita, J. M., & Fleury, M. J. (2018). Patient Satisfaction with Mental Health Services Based on Andersen’s Behavioral Model. Canadian Journal of Psychiatry, 63(2), 103–114. https://doi.org/10.1177/0706743717737030

Hantke, N., Lajoy, M., Gould, C. E., Magwene, E. M., Sordahl, J., Hirst, R., & O’Hara, R. (2020). Patient Satisfaction with Geriatric Psychiatry Services via Video Teleconference. American Journal of Geriatric Psychiatry, 28(4), 491–494. https://doi.org/10.1016/j.jagp.2019.08.020

Jaworski, N. (n.d.). Why Are Psych Hospitals So Bad at Making Money?. Circle Social Inc. Retrieved 31 May 2022, from https://www.circlesocialinc.com/why-are-psych-hospitals-so-bad-at-making-money/.

Mok, V. C. T., Au, L., Cordonnier, C., Gorelick, P. B., Pendlebury, S., Wong, A., Alladi, S., Bath, P. M., Biessels, G. J., Chen, C., Dichgans, M., Dominguez, J., Kim, S., Kwok, T., Greenberg, S. M., Lam, L. C. W., Yin, B., Lam, K., Lee, A. T. C., … Black, S. E. (2020). Tackling Challenges in Care of Alzheimer’s Disease and Other Dementias Amid the COVID-19 Pandemic, Now and in the Future. June, 1–11. https://doi.org/10.1002/alz.12143

Nomura, K., & Terwilliger, P. (2019). Self-dual Leonard pairs Preliminary market of PEEK in South America : opportunities and challenges a. 341–348. https://doi.org/10.1515/epoly-2019-0035

Patel, M., Bhardwaj, P., Nebhinani, N., Goel, A. D., & Patel, K. (2020). Prevalence of psychiatric disorders among older adults in Jodhpur and stakeholders perspective on the responsive health system. Journal of family medicine and primary care, 9(2), 714. https://doi.org/10.4103/jfmpc.jfmpc_1016_19

Puddle, J., & Silva, W. (2019). Cost model: Mental health facilities. https://www.building.co.uk/cost-model-mental-health-facilities/5098908.article

Ride, J., Kasteridis, P., Gutacker, N., Aragon Aragon, M. J., & Jacobs, R. (2020). Healthcare Costs for People with Serious Mental Illness in England: An Analysis of Costs Across Primary Care, Hospital Care, and Specialist Mental Healthcare. Applied Health Economics and Health Policy, 18(2), 177–188. https://doi.org/10.1007/s40258-019-00530-2

Sutton, J. L., Gould, R. L., Coulson, M. C., Ward, E. V., Butler, A. M., Smith, M., Lavelle, G., Rosa, A., Langridge, M., & Howard, R. J. (2019). Multicomponent Frailty Assessment Tools for Older People with Psychiatric Disorders: A Systematic Review. Journal of the American Geriatrics Society, 67(5), 1085–1095. https://doi.org/10.1111/jgs.15710

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Clinicians are practising EBM when they use data from research that shows desirable outcomes and then make decisions on how to treat patients. Likewise, leaders and managers use EBMgt to make decisions on how to operate, improve, or add new services to a healthcare organization.

You are the chief executive officer (CEO) of an acute-care hospital. The governing board has expressed interest in adding a new service line, a twenty-bed geriatric psychiatric unit. This unit would be constructed in an existing vacant space within the hospital.

Create a preliminary market analysis for a geriatric psychiatric unit. Your primary focus for this project is to research credible sources of data that should be used in creating an evidence-based analysis. This analysis will then be used to determine the need and potential success or failure of the new service line.

Assume the unit will maintain a census of twenty patients per day. The market analysis must include the following data:

Population of the service area that will be required to support the new service line
Satisfaction of geriatric psychiatric patients in other similar organizations
Profits in other similar service lines
Requirements and costs for staffing the unit
To support your work, use your course and textbook readings and credible Internet sources, and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Submission Details:
Your assignment should be addressed in an 8–10-page document, not including your title and reference page. Much depth and discussion from thorough research are needed to complete this heavily weighted assignment.