NURS-FPX6008 Assessment 2 Developing a Business Case Sample

Economics and Decision Making in Health Care-Developing a Business Case

Healthcare and business are intercepting fields, as discussed in the previous assignment. Businesses can succeed or fail due to internal and external factors affecting their existence. These include financial factors, ethics, competition, and internal and external policies. Healthcare leaders often start businesses to last for a long time; thus, projecting a business to understand factors such as feasibility and sustainability is vital.

NURS-FPX6008 Assessment 2 Developing a Business Case Sample

Understanding a business’s opportunities and risks is essential for financial planning. The proposed obesity and overnight management service line will manage patients and accommodate patients with different types of needs, hence interchangeably using the name fitness center. This essay evaluates the opportunities and risk factors associated with the new business line, a fitness training center, within the next five years.

Economic Opportunities and Risks Associated with the Proposed Initiative

The hospital is located in a region with few modern fitness centers. A tour of these fitness facilities shows that they are few and lack extensive facilities for fitness training. They mainly focus on bodybuilding, thus serving a specific population of bodybuilders. Rivera-Torres et al. (2019) note that the elderly and the sick are unwelcome in many fitness centers due to their many needs, allowing the proposed service line to fill the gap.

The hospital will offer services to its patients, referrals from other hospitals, and walk-in clients from the community, increasing its revenue collection. Turkina (2018) states that sound networking systems are vital in entrepreneurship and key to a business’s success. Technology has infiltrated many fields, including fitness, and the shift to digital resources such as classes and exercise simulations can help improve the field (Anderson et al., 2022).

Technology and digital resources are opportunities that the new line can utilize to reach a wider population. The center will also be located around the hospital, making it manageable for healthcare organization leaders. These opportunities will help reduce the economic costs associated with the proposed fitness center. 

Some of the risks to the fitness center is competition from online education facilities growing in the fitness industry. According to Anderson et al. (2022), individuals opt for online training because they train in the comfort of their homes, and the lessons are cheaper than going to fitness centers. The industry was negatively affected by COVID-19, leading to the developments discussed. According to Sayed et al. (2020), a negative perception of the fitness industry has developed gradually during the COVID-19 period.

The negative perception increased exponentially after corona, and people often fear fitness centers, primarily due to fear of disease transmission. The negative perception has dramatically reduced the number of gym attendants, and the industry is still struggling to regain its regular operation. The situation has forced most fitness centers to engage in other businesses and others to close because they cannot keep up with the market and technological changes (Sayed et al., 2020). Most fitness centers face hidden economic risks, including member liability and accident losses.

Disasters and lawsuits are risks that can threaten the existence or continuity of a business. ­According to Tafoya (2020), more than 60% of businesses are underinsured, and most of these businesses (almost 100%) dissolve when disasters occur. A fitness center is an expensive service line, and financial setbacks from a disaster are difficult to recover without insurance coverage. It can cost a fitness center more than $ 100,000 for a modern fitness center to recover after a disaster strikes causing damage to it.

Fitness training centers, especially those dealing with sick and weak individuals, are prone to injuries, the leading being treadmill injuries with an average cost of $250000 (Eickhoff-Shemek, 2020). Individuals fall or cause injuries when using the machines at a much higher rate than in the hospital or other environments ((Eickhoff-Shemek, 2020)). The higher risks are due to their health and involvement in an activity. Member liability losses such as sexual and physical assault lawsuits may be undervalued but can cost the business a fortune, affecting the business’ existence within five years. Disaster and lawsuits associated with fitness centers can lead to a business dissolution after suffering a significant loss.

Despite the economic risks described above, the opportunities way overpower the risks. These risks are manageable, and the opportunities place the proposed new service line in a position able to mitigate the risks and promote better outcomes for the population. The economic activity selected has both positive economic and clinical outcomes for the patients. Thus, the business will likely be sustainable in the future.

Propose Ethical and Culturally Sensitive Solutions

The most significant risks to the healthcare organization are lawsuits and the increased negative attitude toward physical fitness centers. As identified earlier, health fitness centers are at more risk for injuries due to physical activity and health conditions. Even healthy people are at more risk due to the heavy and moving machines. The increased negative attitude towards fitness centers can be managed by forming allies with other surrounding private and public hospitals to refer their patients to the facility.

Most hospitals do not have these elaborate facilities, and forming allies with the public and private hospitals can help solve the problem. In addition, investing in digital resources will help promote the relevance of the new service line. Digital resources such as online resources also act as marketing platforms and can help increase the familiarity of the program. Developing a solid marketing strategy that includes billboards, posters, and electronic and social media will increase the population’s knowledge of the gym and the number of people visiting the fitness center (Rangaswamy et al., 2020).

Research on all significant fitness centers, national and international results, and expert reviews, the fitness industry has been adversely affected by COVID-19. The number of customers has increased, but the physical fields remain deserted due to the shift to digital resources. According to Anderson et al. (2022), the online industry has grown exponentially over the years, and the growth is expected to rise by over 200% in the next five years. Many organizations have invested in gym equipment which they sell to customers. Others have invested in simulations that give customers the desired experiences in the comfort of their homes (Du et al., 2021).

Besides, trainers record lessons and air them live on social media platforms, increasing access to these resources. Some have extended their services and have formed alliances with local stations where they air exercises and train people at their homes (Anderson et al., 2022). These practices have increased their competitiveness and compensated for the decrease in customers walking in to access their services. Lawsuits and similar losses are cushioned against by developing policies and insuring the institutions. Policies help prevent misconduct related to lawsuits.

Ethics and Care Quality

Networking, marketing, and digital resources are the solutions discussed above. These resources will increase the quality of care and help mitigate risks by ensuring clients can access resources in the comfort of their homes. The initiatives will give individuals who can afford equipment more advantages, such as lower costs, but will also increase access to individuals who cannot afford this equipment. The proposed intervention does not pose any problem to any population. The center serves the population without placing any risk on any population in the community. Thus, the proposed solutions will increase population coverage and service quality and help serve populations without discrimination.

Health Fitness Center and Health Care Delivery Outcomes

Healthcare institutions focus on promoting the health of populations. Health directly affects productivity and the economic level of a nation. The health fitness center will not only promote the health of populations but also rehabilitate their health. Individuals suffering from morbidities such as hemiplegia, loss of function, fractures, contractures, and mobility issues will receive health training to regain their function and improve their quality of life.

The fitness center will thus improve the community’s productivity while bringing revenue to the healthcare facility. Making money while promoting facilities’ health care delivery and outcomes makes the new service line an excellent economic growth opportunity. The facility will receive more rehabilitation patients than an average health fitness center. Most of these individuals are vulnerable to diseases is thus a priority. Keeping the patients safe through practices such as

New Service Line Cost-Benefit Analysis Results

A cost-benefit analysis is vital for any business. The costs of this business, as explained in the table in the appendix, are relatively high. The fitness center is modern with a wide selection of equipment, many trainers, a simulation development team, and an online coaching team. Other costs include paying planners and authorities to get all relevant licenses from various boards, such as the health board (Andersson, Lundgren, & Berg, 2022). The investment will require a huge startup capital and an additional amount for electronic and social media marketing. Human resources or trainers also pose a high cost to the service line.

Andersson, Lundgren, and Berg (2022) note that the annual costs for the gym’s membership will be $800 for rehabilitation clients and $600 for the rest of the population. The three scholars explore the process of developing a fitness center, its implications, and the associated costs. The fitness center will have a capacity of 800 individuals at any one time (an extensive facility) and targets about 6,000 members each year, amounting to about $4000000 of revenue from gym membership each year.

The digital classes will have a limitless capacity with a target of over 10,000 attendees, each paying $300 annually. These numbers are expected to rise exponentially after the marketing and establishing its base. Online simulations are expensive to develop, and thus they sell at a higher price. The initial costs of the gym will be relatively high, but the revenues expected from the gym are high, making the new service line a viable idea. No profit might be realized in the first year of operation due to the high initial costs, but the profits will begin to set in within the second year.

The costs of simulations can increase the costs of the fitness center by over a million. The development, approval, and dissemination process of developing simulations is way too high, especially when factors such as quality and safety and considered. These costs create an alarm and create the need to cut costs and ensure the feasibility and sustainability of the program. These financial costs should be evaluated against the institution’s financial ability for feasibility and reduced costs to prevent overspending on the service line.

Ethical and Equitable Ways of Keeping the Costs under Control

The costs that can be reduced include equipment and human resources. There are various ways to reduce these costs. Getting donations and taking loans from commercial lending institutions ensure quality service delivery of the original plan without eliminating these services (Baker & Judge, 2020). In addition, reducing the volume of the three service offerings can reduce the prices. Purchasing simulations at the beginning instead of developing one will save the institutions a lot of costs. Purchasing fewer but quality resources (including human resources) is another strategy for reducing costs.

Cutting these costs can negatively affect business operations. Reducing the number of staff and equipment will reduce the business’s capacity to deliver quality and safe services. The strategies that could help maintain the service line’s benefits include increasing the trainers’ shifts and hiring the most qualified staff to handle the clients. The quality of the staff goes a long way toward enhancing the productivity and quality of care a business offers its clients

Costs are essential for any business, but there are important considerations to ensure ethical and equitable care. The costs should be cut from items that aren’t urgent. The costs cut will be attention to maintaining high-quality care and client safety. For example, fewer treadmills (20 instead of 35) and weights can be bought instead of the planned quantity (35) but of poor quality at a lower price. The cost reductions will thus cut across the three offerings: physical and online classes and simulation resources. Such considerations will thus be ethical and equitable.


The obesity and overweight management service line will serve as a fitness center for many clients and offer physical and online classes. The business will maximize digital resources given the risks of physical businesses and the potential for the rise in online business. The initial costs are high, but the proceeds from the business will cater to the costs hence the feasibility and sustainability of the business. Securing loans or grants and reducing the fitness center’s equipment and human resources will reduce the costs while maintaining the maximum benefits of the business.

NURS-FPX6008 Assessment 2 Developing a Business Case References

  • Anderson, D. J., Bo, H. H., Zhao, T. T., & Zhang, J. J. (2022). The Digital Fitness Industry in the United States. The Digital Transformation of the Fitness Sector: A Global Perspective (pp. 67–72). Emerald Publishing Limited.
  • Andersson, S., Lundgren, A., & Berg, E. (2022). Digital Marketing Strategies for Startups in the Fitness Industry: A research paper providing a clear picture of how startups in the fitness industry should allocate their resources to achieve the most output.
  • Baker, T. H., & Judge, K. (2020). How to help small businesses survive COVID-19. Columbia Law and Economics Working Paper, (620).
  • Du, X., & Deng, J. (2021, December). Design and exploration of digital fitness equipment based on the Internet of Things. Second International Conference on Industrial IoT, Big Data, and Supply Chain (Vol. 12128, pp. 23-28). SPIE.
  • Eickhoff-Shemek, J. M. (2020). Top five reasons to make fitness safety priority no. 1. ACSM’s Health & Fitness Journal, 24(1), 37-38.
  • Rangaswamy, A., Moch, N., Felten, C., Van Bruggen, G., Wieringa, J. E., & Wirtz, J. (2020). The role of marketing in digital business platforms. Journal of Interactive Marketing, 51, 72-90.
  • Rivera-Torres, S., Fahey, T. D., & Rivera, M. A. (2019). Adherence to exercise programs in older adults: informative report. Gerontology and geriatric medicine, 5, 2333721418823604.
  • Sayed, M. A., Walsh, K., & Sheikh, Z. (2020). COVID-19 and the rise of the full ‘Fitness’ friction burn. Burns, 46(7), 1717.
  • Tafoya, D. W. (2020). Crisis, Catastrophe, and disaster in organizations. Springer Books.
  • Turkina, E. (2018). The importance of networking to entrepreneurship: Montreal’s artificial intelligence cluster and its born-global firm element AI. Journal of Small Business & Entrepreneurship, 30(1), 1–8.

NURS-FPX6008 Assessment 2 Developing a Business Case Instructions and Resources



Also Read: Tertiary Health Care Roles and Functions Table

Resources 1: Cost-Benefit Analysis

  • The following presentation from the CDC’s series on economic evaluation addresses methods to assess programmatic costs.

The following blog post addresses how to effectively write an accurate and thorough cost-benefit analysis.

Resources 2: Cost Effectiveness and Economic Evaluation

  • The following presentation from the CDC’s series on economic evaluation addresses methods to assess programmatic costs.

The following presentation from the CDC’s series on economic evaluation addresses cost-effectiveness analysis.

The following three articles illustrate examples of how to evaluate the cost-effectiveness of new service lines, therapies, or treatment initiatives in different settings.

The following article provides a systematic review suggests that local and national public health interventions are highly cost-saving.

The following article addresses how economic evaluation helps to identify, measure, and compare activities with the necessary impact, scalability, and sustainability to optimize population health.

The following article addresses the significance of the leadership role for problem solving relative to the economic decision-making process. Decision making is multifaceted and inclusive of the factors surrounding the change process, such as data collection, trial and error, and collaboration.

The following article addresses the how and why behind the concept of spending efficiently in health care organizations. It provides an example of efficient spending and what outcomes can be realized.

The following article provides a real-life example of comparing the costs of treatment strategies and reveals all the elements of what is most important to consider from a fiscal management perspective.