MASTERS CAPSTONE FM010 APA INTEXT CITATION
cutie123221
FM010_Assessment_FinancialProjectionsfortheCenterforDiabetesCare2feedback.xlsxSheet1
| Adapted from | |||||||||||||
| http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/O/PDF%20OpenDoorFinancialAnalysis.pdf | |||||||||||||
| Patient-Generated Revenue by Payer | |||||||||||||
| Fiscal year from April 1 to March 31 | |||||||||||||
| Year 1 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income | ||||||
| Medicaid | 1,250 | $133.04 | $166,300 | -67.61 | $ 250,812 | 98% | $245,796 | ||||||
| Medicare | 2,000 | $132.70 | $265,396 | -10.48 | $ 286,356 | 95% | $272,038 | ||||||
| Private Insurance | 100 | $137.08 | $13,708 | $72.44 | $ 6,464 | 80% | $5,172 | Year 3 assumes CHW are at their capactiy of 7200 patient visits, or 4 CHW FTEs see 10 patients per day 4 days per week, 45 weeks a year | |||||
| Self Pay (sliding fee) | 50 | $111.68 | $5,584 | $89.89 | $ 1,090 | 40% | $436 | ||||||
| 3,400 | $ 544,722 | $523,441 | |||||||||||
| Year 2 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income | ||||||
| Medicaid | 1,750 | $133.04 | $232,820 | -67.61 | $ 351,137 | 98% | $344,115 | ||||||
| Medicare | 3,500 | $132.70 | $464,442 | -10.48 | $ 501,122 | 95% | $476,066 | $171.04 | 133.04 | 133.04 | |||
| Private Insurance | 400 | $137.08 | $54,834 | $72.44 | $ 25,858 | 80% | $20,686 | $170.60 | 132.6977549111 | ||||
| Self Pay (sliding fee) | 200 | $111.68 | $22,336 | $89.89 | $ 4,358 | 40% | $1,743 | $176.24 | 137.0847146866 | ||||
| 5,850 | $ 882,476 | $842,610 | $143.58 | 111.6807951356 | |||||||||
| Year 3 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income | ||||||
| Medicaid | 2,000 | $135.70 | $271,402 | -67.61 | $ 406,622 | 98% | $398,489 | ||||||
| Medicare | 3,800 | $135.35 | $514,336 | -10.48 | $ 554,160 | 95% | $526,452 | ||||||
| Private Insurance | 900 | $139.83 | $125,844 | $72.44 | $ 60,648 | 80% | $48,518 | ||||||
| Self Pay (sliding fee) | 500 | $113.91 | $56,957 | $89.89 | $ 12,012 | 40% | $4,805 | ||||||
| 7,200 | $ 1,033,442 | $978,265 | |||||||||||
| Grant Funding by Source | Year 1 | Year 2 | Year 3 | ||||||||||
| PPHF Grant | $100,000 | $100,000 | $100,000 | ||||||||||
| Foundation Grants | $75,000 | $ 50,000 | |||||||||||
| Total | $175,000 | $150,000 | $100,000 | ||||||||||
| Non-Staffing Costs | Year 1 | Year 2 | Year 3 | ||||||||||
| Fringe Benefits | $ 59,609 | $ 60,802 | $ 62,018 | ||||||||||
| Travel | $ 5,000 | $ 5,000 | $ 10,000 | ||||||||||
| Training | $ 35,000 | $ 10,000 | $ 15,000 | ||||||||||
| Equipment | $ 5,000 | $ 2,000 | $ 2,000 | ||||||||||
| Supplies | $ 15,000 | $ 15,300 | $ 15,606 | ||||||||||
| Contractual | $ 8,000 | $ 8,160 | $ 8,323 | ||||||||||
| Allocated Rent | $ 23,418 | $ 23,769 | $ 24,126 | ||||||||||
| Depreciation | $ 26,277 | $ 35,036 | $ 35,036 | ||||||||||
| Insurance | $ 4,004 | $ 4,204 | $ 4,414 | ||||||||||
| Overhead Allocation | $ 9,167 | $ 9,442 | $ 9,725 | ||||||||||
| Uncollectible Income | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Marketing | $ 45,000 | $ 15,000 | $ 15,000 | ||||||||||
| Indirect Charges | $ 54,764 | $ 56,955 | $ 59,233 | ||||||||||
| Total Non-Staffing Costs | $ 290,240 | $ 245,668 | $ 260,481 | ||||||||||
| Staffing costs | |||||||||||||
| Annual Salary | FTE | Year 1 | Year 2 | Year 3 | |||||||||
| Endocronologist | 0.93 | $ 158,000 | $ 165,900 | $ 174,195 | |||||||||
| Contract Specialists | 0.3 | $ 75,000 | $ 78,750 | $ 82,688 | |||||||||
| Nurse Practitioner | 0.95 | $ 84,094 | $ 86,617 | $ 89,215 | |||||||||
| Community Health Workers | 4 | $ 244,000 | $ 251,320 | $ 258,860 | |||||||||
| Reception/office management | 1 | $ 35,000 | $ 35,700 | $ 36,414 | |||||||||
| $ 596,094 | $ 618,287 | $ 641,371 | |||||||||||
| Capital Costs | Year 1 | Year 2 | Year 3 | ||||||||||
| Server | $15,000 | ||||||||||||
| Remodel of office space | $98,550 | ||||||||||||
| Security System | $2,654 | ||||||||||||
| Furniture | $12,281 | 1000 | 1000 | ||||||||||
| Practice Management System | $5,000 | 2500 | 2500 | ||||||||||
| Computers & Cabling | $41,696 | ||||||||||||
| $175,181 | $3,500 | $3,500 |
patient-generated revenue
| Projected Patient-Generated Revenue by Payer | |||||||
| Fiscal year from April 1 to March 31 | |||||||
| Year 1 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income |
| Medicaid | 1,250 | $0.00 | $0 | -67.61 | $ 84,513 | 98% | $82,822 |
| Medicare | 2,000 | $0.00 | $0 | -10.48 | $ 20,960 | 95% | $19,912 |
| Private Insurance | 100 | $0.00 | $0 | $72.44 | $ (7,244) | 80% | ($5,795) |
| Self Pay (sliding fee) | 50 | $0.00 | $0 | $89.89 | $ (4,495) | 40% | ($1,798) |
| 3,400 | $ 93,734 | $95,141 | |||||
| Year 2 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income |
| Medicaid | 1,750 | $0.00 | $0 | -67.61 | $ 118,318 | 98% | $115,951 |
| Medicare | 3,500 | $0.00 | $0 | -10.48 | $ 36,680 | 95% | $34,846 |
| Private Insurance | 400 | $0.00 | $0 | $72.44 | $ (28,976) | 80% | ($23,181) |
| Self Pay (sliding fee) | 200 | $0.00 | $0 | $89.89 | $ (17,978) | 40% | ($7,191) |
| 5,850 | $ 108,044 | $120,425 | |||||
| Year 3 | number of visits | average charge per visit | total charges | average adjustment per visit | amount billed | collection rate | income |
| Medicaid | 2,000 | $0.00 | $0 | -67.61 | $ 135,220 | 98% | $132,516 |
| Medicare | 3,800 | $0.00 | $0 | -10.48 | $ 39,824 | 95% | $37,833 |
| Private Insurance | 900 | $0.00 | $0 | $72.44 | $ (65,196) | 80% | ($52,157) |
| Self Pay (sliding fee) | 500 | $0.00 | $0 | $89.89 | $ (44,945) | 40% | ($17,978) |
| 7,200 | $ 64,903 | $100,214 | |||||
| Adapted from: Chelius, L., Hook, J., & Rodriguez, M. (2010). Financial analysis of Open Door Community Health Centers’ telehealth experience. Retrieved from http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/PDF%20O/PDF%20OpenDoorFinancialAnalysis.pdf |
grant funding
| Projected Grant Funding by Source | ||||
| Year 1 | Year 2 | Year 3 | ||
| PPHF Grant | $100,000 | $100,000 | $100,000 | |
| Foundation Grants | $75,000 | $ 50,000 | ||
| Total | $175,000 | $150,000 | $100,000 | $425,000 |
| Adapted from Chelius, L., Hook, J., & Rodriguez, M. (2010). Financial analysis of Open Door Community Health Centers’ telehealth experience. Retrieved from http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/O/PDF%20OpenDoorFinancialAnalysis.pdf |
non-staffing costs
| Projected Non-Staffing Costs | |||
| Year 1 | Year 2 | Year 3 | |
| Fringe Benefits | $ 59,609 | $ 60,802 | $ 62,018 |
| Travel | $ 5,000 | $ 5,000 | $ 10,000 |
| Training | $ 35,000 | $ 10,000 | $ 15,000 |
| Equipment | $ 5,000 | $ 2,000 | $ 2,000 |
| Supplies | $ 15,000 | $ 15,300 | $ 15,606 |
| Contractual | $ 8,000 | $ 8,160 | $ 8,323 |
| Allocated Rent | $ 23,418 | $ 23,769 | $ 24,126 |
| Depreciation | $ 26,277 | $ 35,036 | $ 35,036 |
| Insurance | $ 4,004 | $ 4,204 | $ 4,414 |
| Overhead Allocation | $ 9,167 | $ 9,442 | $ 9,725 |
| Uncollectible Income | $ 21,281 | $ 39,865 | $ 55,177 |
| Marketing | $ 45,000 | $ 15,000 | $ 15,000 |
| Indirect Charges | $ 54,764 | $ 56,955 | $ 59,233 |
| Total | $ 311,520 | $ 285,533 | $ 315,659 |
| Adapted from Chelius, L., Hook, J., & Rodriguez, M. (2010). Financial analysis of Open Door Community Health Centers’ telehealth experience. Retrieved from http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/O/PDF%20OpenDoorFinancialAnalysis.pdf | |||
| Hi Funmi, there is a danger in adapting from other examples because their financial circumstances and goals will be quite different from CDC. You need to based financial analysis on realistic and specific information based on the community and location of the case sceanrio | |||
staffing costs
| Projected Staffing Costs | ||||
| Annual Salary | ||||
| FTE | Year 1 | Year 2 | Year 3 | |
| Endocronologist | 0.93 | $ 158,000 | $ 165,900 | $ 174,195 |
| Contract Specialists | 0.30 | $ 75,000 | $ 78,750 | $ 82,688 |
| Nurse Practitioner | 0.95 | $ 84,094 | $ 86,617 | $ 89,215 |
| Community Health Workers | 4.00 | $ 244,000 | $ 251,320 | $ 258,860 |
| Reception/Office Management | 1.00 | $ 35,000 | $ 35,700 | $ 36,414 |
| Total | $ 596,094 | $ 618,287 | $ 641,371 | |
| Adapted from: Chelius, L., Hook, J., & Rodriguez, M. (2010). Financial analysis of Open Door Community Health Centers’ telehealth experience. Retrieved from http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/PDF%20O/PDF%20OpenDoorFinancialAnalysis.pdf | ||||
| Designation | FTE | Year 1 | Year 2 | Year 3 |
| Endocronologist | 0.93 | 146940 | 154287 | 162001.35 |
| Contract Specialists | 0.30 | 22500 | 23625 | 24806.25 |
| Nurse Practitioner | 0.95 | 79889.3 | 82285.979 | 84754.55837 |
| Community Health Workers | 4.00 | 976000 | 1005280 | 1035438.4 |
| Reception/Office Management | 1.00 | 35000 | 35700 | 36414 |
| Total | 1260329.3 | 1301177.979 | 1343414.55837 |
capital costs
| Projected Capital Costs | ||||||||||
| Year 1 | Year 2 | Year 3 | ||||||||
| Server | $ 15,000 | Year 1 | 4882 | |||||||
| Remodel of Office Space | $ 98,550 | Year 2 | 5126 | |||||||
| Security System | $ 2,654 | Year 3 | 5386 | |||||||
| Furniture | $ 12,281 | $ 1,000 | $ 1,000 | |||||||
| Practice Management System | $ 5,000 | $ 2,500 | $ 2,500 | |||||||
| Computers & Cabling | $ 41,696 | |||||||||
| Total | $ 175,181 | $ 3,500 | $ 3,500 | |||||||
| Adapted from Chelius, L., Hook, J., & Rodriguez, M. (2010). Financial analysis of Open Door Community Health Centers’ telehealth experience. Retrieved from http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/O/PDF%20OpenDoorFinancialAnalysis.pdf | ||||||||||
| Particulars | Year 1 | Year 2 | Year 3 | |||||||
| Patients Visits Revenue | ||||||||||
| Patient Visists | 4882 | 5126 | 5382 | |||||||
| Revenue Per Visit | $450 | $450 | $450 | Staffing Costs | Non-Staffing Costs | |||||
| Gross Patient Visits Revenue | $2,196,900 | $2,306,745 | $2,422,084.50 | Year 1 | $1,260,329.30 | $ 311,520 | ||||
| Deduction from Patient Revenue | $65,907.00 | $69,202.35 | $72,662.54 | Year 2 | $1,301,177.98 | $ 285,533 | ||||
| Net Patient Visits Revenue | $2,130,993.00 | $2,237,542.65 | $2,349,421.97 | Year 3 | $1,343,414.56 | $ 315,659 | ||||
| Operating Expenses | ||||||||||
| Staffing Salaries | $1,260,329.30 | $1,301,177.98 | $1,343,414.56 | |||||||
| Fringe Benefits | $ 59,609 | $ 60,802 | $ 62,018 | |||||||
| Travel | $ 5,000 | $ 5,000 | $ 10,000 | |||||||
| Training | $ 35,000 | $ 10,000 | $ 15,000 | |||||||
| Equipment | $ 5,000 | $ 2,000 | $ 2,000 | |||||||
| Supplies | $ 15,000 | $ 15,300 | $ 15,606 | |||||||
| Contractual | $ 8,000 | $ 8,160 | $ 8,323 | |||||||
| Allocated Rent | $ 23,418 | $ 23,769 | $ 24,126 | |||||||
| Depreciation | $ 26,277 | $ 35,036 | $ 35,036 | |||||||
| Insurance | $ 4,004 | $ 4,204 | $ 4,414 | |||||||
| Overhead Allocation | $ 9,167 | $ 9,442 | $ 9,725 | |||||||
| Uncollectible Income | $ 21,281 | $ 39,865 | $ 55,177 | |||||||
| Marketing | $ 45,000 | $ 15,000 | $ 15,000 | click on red triangle at bottom left | ||||||
| Indirect Charges | $ 54,764 | $ 56,955 | $ 59,233 | Year 1 Linda Mast: Linda Mast: staffing costs look level across yrs 1 - 3 Does this make sense based on projected growth in volume of patient visits? | $410,239.70 | |||||
| Capital Costs | $175,181 | $3,500 | $3,500 | Year 2 | $1,476,570.07 | |||||
| Net Opereating Expenses | $1,747,030.30 | $1,590,210.98 | $1,662,572.56 | Year 3 | $3,229,749.84 | |||||
| Excess of Revenue Over Expenses | $383,962.70 | $647,331.67 | $686,849.40 | |||||||
| Cummulative Income | $383,962.70 | $1,031,294.37 | $1,718,143.77 | |||||||
| Net Cash From Excess Revenue | $410,239.70 | $1,066,330.37 | $1,753,179.77 | |||||||
| Cummulative Income/Net Cash | $410,239.70 | $1,476,570.07 | $3,229,749.84 |
Projected Annual Patient Visits
Year 1 Year 2 Year 3 4882 5126 5386
Patient Visits
Three Year Staffing and Non-Staffing Costs
Staffing Costs Year 1 Year 2 Year 3 1260329.3 1301177.98 1343414.561 Non-Staffing Costs Year 1 Year 2 Year 3 311520 285533 315659
Three Year Cumulative Net-Income [Profit]
Year 1 Year 2 Year 3 410239.7 1476570.07 3229749.84
Cumulative Net-Income (US$)
http://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/O/PDF%20OpenDoorFinancialAnalysis.pdf
Implementation Plan
| Activity(s) | Responsible Person (s) | Resources | Duration | Duration in Months | ||||||||||||||
| J | F | M | A | M | J | J | A | S | O | N | D | J | M | A | ||||
| Designing of Detailed Strategic Plan & Business Plan, PowerPoint Business Case Presentation, & Risk Management Report | Healthcare Consultant | Dr. Novak CDC-Steering Committee Presentation, Relevant Peer-Reviewed Journals, Interview with Dr. Novak, & Excperts from CNHA | 30 Days | |||||||||||||||
| Submission of the Detailed Strategic Plan & Business Plan to the Western Hospital Board of Directors and Chief Executive Officer for Approval | Dr. Novak | Detailed Strategic Plan & Business Plan | 3 Weeks | |||||||||||||||
| Business case Presentation to the Western Hospital Board of Directors and Chief executive Officer | Dr. Novak | Business case Presentation | 1 day | |||||||||||||||
| Upon Approval by the BOD & CEO, design the Center for Diabetes Care Proposal | Dr. Novak & Healthcare Consultant | Detailed Strategic Plan & Business Plan & | 2 Weeks | |||||||||||||||
| Submission/Application of the Center for Diabetes Care Proposal to PPACA | Dr. Novak | Tthe Center for Diabetes Care Proposal | 1 Day | |||||||||||||||
| Designing of the Center for Diabetes Care Organizational Policies & Procedures | Dr. Novak & Western Hospital HRM | Western Hospital Recruitment Policies & Procedures | 30 days | |||||||||||||||
| Renovation of the Westen Hospital Urgent Care Centre to Accommodate the Center for Diabetes Care | Dr. Novak & Construction Contractor | Construction Equipment & Contracted Competent Supplier | 90 days | |||||||||||||||
| Advertisement & Staffing of the Center for Diabetes Care | Dr. Novak & Western Hospital HRM | Recruitment Policies & Procedures | 30 days | |||||||||||||||
| Procurement & Transportation of Equipments , Furniture, & Fittings | Dr. Novak, Contract Specialists & Supplier | Contracted Competent Supplier | 30 days | |||||||||||||||
| Procurement & Transportation of Supplies | Dr. Novak, Contract Specialists & Supplier | Contracted Competent Supplier | 30 Days | |||||||||||||||
| Instillation & Testing of Equipments, Furniture, & Fittings, plus supplies | Dr. Novak, Contract Specialists & Supplier | Instillation Manuals | 60 Days | |||||||||||||||
| Intensive Training of the Recruited Staff | Dr. Novak, Western Hospital HRM, & Healthcare Consultant | Training Manual on Center of Diabetes Care Goals & Objectives | 30 Days | |||||||||||||||
| Marketing of the Center of Diabetes Care | Marketing Team | Marketing Startegy of the Center of Diabetes Care | 30 Days | |||||||||||||||
| Insuring the Center for Diabetes Care | Dr. Novak, Contract Specialists & Insurance Company | Insurance Policy | 2 weeks | |||||||||||||||
| Designing of the Center for Diabetes Care Community Education Programs | Dr. Novak, Contract Specialists & Nurse Paractitioner | Diabetes Management Best Practices | 60 days | |||||||||||||||
| Intensive Training of the Community Health Workers | Dr. Novak, Contract Specialists & Nurse Paractitioner | Community Education Programs Manuals | 60 days | |||||||||||||||
| Monitoring & Follow-up of Activities | Center for Diabetes Care Team | Monitoring Reports | Continious | |||||||||||||||
| Launching & Operationalizing of the Center for Diabetes Care | Dr. Novak, Western Hospital CEO, PPACA Representatives, & State Senator | Luncheon Session | 2 Days |
