Essay Bellaire Clincal Labs
TO: WANDA LANDS
FROM: JOE MACK
DATE: OCTOBER 22, 2003
SUBJECT: 2003 OPERATING PLAN
This memo is being written in regards to the 2003 operating plan for Bellaire Clinical, Inc., the media campaign for 2003, and the future of Bellaire. The purpose of this memo is to highlight key factors regarding the operating plan in order to prepare for the next operating year. Competition has started to increase in the clinical laboratory testing industry, causing some uncertainties in the upcoming year. The new marketing plan looks to promote Bellaire’s accuracy, responsiveness, and flexibility in hopes to bring in new specialty contracts to improve Bellaire’s performance. Numerous hours have been spent developing the …show more content…
There are uncertainties in the contract negotiations Bellaire has with physicians. Recently, a large national laboratory has opened several locations in the close proximity of Bellaire. Several of Bellaire’s contracts with local physicians have not been renewed and Bellaire is at risk of losing some of those orders, due to some physicians believing the large laboratory can provide routine tests efficiently and at low cost. Due to these uncertainties, the total number of routine tests could fall to 800,000 tests.
Although there are some uncertainties, the marketing campaign is expected to increase specialty tests. The marketing campaign hopes to position Bellaire as a state-of-the-art clinical laboratory in order to attract additional contracts for specialized services. These services include clinical study trials of new drugs, oncology testing, and occupational drug testing. With these increased contracts Bellaire Labs has a potential to be a leader in specialized tests. Therefore, specialty tests are expected to increase by 3,600 tests a month or 43,200 tests this year for a total of 200,000 specialty tests.
The next step in the operating plan is to forecast how many tests will be billed to physicians, patients, or other parties. Since it is predictable that Bellaire will lose some physician contracts, it is projected that only half of