Feasibility Study

A feasibility study is basic research on whether a projected plan will work and be of benefit to the group or business that is considering the action. In many businesses, the need to project what is likely to happen is a usual activity before proceeding. The study involves gathering information, analyzing, and evaluating. The information should be used to answer the question “Should we move forward with Plan X?”

Steps to take include the following:

• Define the specifics and objective of the plan (number, location, and so on).
• Determine the stakeholders in the change.
• Study community feedback, concerns, and issues.
• Answer the question, Is it a reasonable change?
• Define and study the demographics.
• Establish a financial plan with projections of cost, revenue, and losses.

Certain basic issues need to be considered. The range depends on the program, the costs involved, and finally the manpower needed to support the program. A good example might be the consideration to increase the size of the neonatal intensive care unit (NICU) at a university hospital.

The first step is to identify the present census of the NICU and the demand for use. If the unit is rarely full and you can take all cases, you may not need to pursue additional beds. If, in contrast, your unit is the only NICU in an entire county of 1 million lives and you are unable to keep up with the demand, you need to proceed. Data from the information systems (ISs) should be able to provide the necessary information to answer these questions.

The second step is to identify the population and define who is in the geographic area for these beds. A demographic review may determine if sufficient people will potentially need the service.

For example, you might expect an area with the median age of 33 years to have a greater need for these services than where the median age is 55. In the first area, additional NICU beds might be useful, but in the other, perhaps additional medical intensive care unit (MICU) beds might be needed instead.

Once these questions are answered, you will know if you should proceed.

Look at the estimated volume of beds needed to satisfy the demand, being careful not to have too many beds that lie vacant. Estimate costs per bed for staffing and equipment, length of time to make the additions, interference with routines, costs associated with the additions, and potential costs of lost business while the changes take place. Staffing requirements may be dictated by state mandates and, as one of the most costly elements of such a change, need to be factored into the entire study. New systems may be required to support the added beds, and technology and upgrades may also be factors to include.

The business plan should be completed and discussed with those affected. Meetings should be held with the executive administrators who deployed the study and consultants who performed the study (if applicable). Major[Page 208] players, such as representatives of nursing, information technology, dietary, housekeeping, infection control, architects, construction, social work, and public relations should be at the discussion table to complete the study.

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