CUED
Center
for Urban Economic Development
University of Illinois at Chicago
Community
Health Clinic Feasibility Study for
Accounters Community Center
Project Number: 135
Report Date: March 1981
Author(s): Dereck Wilson
We determined that the neighborhood clinic type of health care delivery model was the most appropriate for the circumstances of our client. We identified both a primary and secondary service market. We derived that there was a potential demand of 411,844 patient visits per year. Only 103,000 of these potential patient visits are actually being accommodated. This left a residual or unmet demand of over 300,000 patient visits. The existing building, if rehabilitated, could capture or accommodate 25,000 annual patient visits or 8 percent of the residual demand. This is a realistic expectation and represents the revenue side of our feasibility study.
We then identified which health problems have a higher prevalence among residents of our market area. This was done in order to determine the health care needs of our service group and develop specific operating costs. The health problems identified were infant and maternal mortality, chronic heart disease, cerebrovascular diseases, cancer, lead poisoning, syphilis, gonorrhea and sickle cell anemia.
An operating budget was prepared for three clinic models designed to meet the neighborhood health problems, each of which had different levels of staffing and space allotments. The most profitable model was further analyzed to determine its capital and equipment costs. We developed a "more likely case" and a "worst case" scenario which dealt with equipment building and rehabilitation costs. We discovered that without public subsidies it would not be feasible for Accounters to establish a health care clinic.
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