Final
Project:
Joslin
Diabetes
Center
Capital
Budget Proposal
Southern New Hampshire University
IHP 450 : June 19th, 2020
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Introduction
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Intro:
Financial
Condition
Beginning total assets:
$121,882,330
Beginning total assets:
$116,544,681
2018 2020
2017 2019
Beginning total assets:
$129,902,651 2018
Total assets: $93,755,336
(Joslin Financials, 2020)
Intro:
Healthcare
Trends
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Intro:
Proposal
Items
• Item 1: Purchase a smart application
from a third party
• Item 2: Telehealth application for remote
visits
•
Item
3:
Continuous
Glucose
Monitoring
System
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Intro:
Strategic
Goals
Proposal:
Options
• Option 1: Purchase a smart application
from a third party
•
Option
2:
Develop
Joslin’s
own
application
in
house
• Option 3: Lease the rights and data from
an application that is already established
Financial
Research
•
Cost
to
Build-
$700,000
• Cost to Buy- $300,000
• Cost to Lease- $6000/month
Organizational
Resources
•
IT
• Customer Service
•
Research
and
Development
•
Nutritionist
Communication
•
Email
•
Presentation
•
Meetings
• In person
•
Online/Virtual
Budget
Statements
• Form 990 from 2020 was the most recent
tax statement used to formulate this
proposal
•
Financial
support
for
the
budget
item
can
be
confirmed by the 2020 statement reporting
$116 million in total assets
Expenses
• The major expenses are:
1.
The cost of the application
2.
Server Maintenance
3.
Maintenance of the
application
through
third-
party contract
4.
IT Department
5.
Nutritionists Department
Reasoning
• The previous year budget data shows
salaries as an $55,023,927 million expense
• Other expenses totaled $28,780,996
Ratios
•
Payback
Period
• Net Present Value
• Internal Rate of Return
Calculations
• To calculate a payback period take:
Unrecovered
cost
at
beginning
of
year
__
Cash Flow during the year
Projected
Department
Budget
1.
Application
cost
2.
Salaries of IT, Nutritionist, and
Customer Service
3.
Potential hiring of IT and
Nutritionists
4.
Outsourcing
maintenance
and
updates
for
the
application
Total potential increase for the
first year: $2,897,288
Impacts and
Justification:
Short-Term
• An initial first year cost of $2,897,288
• Initial cost of the server is $275,000
• Decreased work hours for the Research and
Development
Department
• Increased revenue from patient visits
• New revenue stream for subscription to application
• Increased work hours for the following departments
•
IT
•
Nutrition
•
Customer
Service
Long-term
impact
SERVER
MAINTENANCE THIRD
PARTY
CONTRACT
EXPENSE-
UPDATES
AND
MAINTENANCE
OF
THE
APPLICATION
ANNUAL
SUBSCRIPTION
FEE
ROUTINE PATIENT VISITS
Cost-Benefit
• Percent increase in financial need is 3% for
the first year
• The potential return to total revenue is 4% in
the first year
• The cost-benefit ratio is 1.16
•
Using
Medicare
to
cover
subscription
cost
Strategic-
Planning
U
M
I
N
C
C
Conflicts
•
The
subscription
cost
may
be
too
high
and
may reflect poorly on our company for
charging to receive data on patient intake.
• Patient satisfaction
• Ease of use
References
• Athanasiou, M., Zarkogianni, K., Karytsas, K., & Nikita, K. S. (2021). An LSTM-based Approach Towards Automated Meal Detection from Continuous Glucose Monitoring in Type 1 Diabetes Mellitus. 2021 IEEE 21st
International Conference on Bioinformatics and Bioengineering (BIBE), Bioinformatics and Bioengineering (BIBE),2021 IEEE 21st International Conference On, 1–5. https://doi-
org.ezproxy.snhu.edu/10.1109/BIBE52308.2021.9635246
• Crilly, P., Jair, S., Mahmood, Z., Moin Khan, A., Munir, A., Osei-Bediako, I., Samir, M., & Kayyali, R. (2019). Public views of different sources of health advice: pharmacists, social media and mobile health applications.
International Journal of Pharmacy Practice, 27(1), 88. https://doi-org.ezproxy.snhu.edu/10.1111/ijpp.12448
• Drync. (2018, April 20). Getting your own mobile app: Buying vs. Building - Drync. Medium. https://medium.com/@drync/getting-your-own-mobile-app-buying-vs-building-d1ada6d3905a
• Hayes, A. (2021, September 7). How the Benefit-Cost Ratio (BCR) Works. Investopedia.
https://www.investopedia.com/terms/b/bcr.asp#:%7E:text=The%20benefit%2Dcost%20ratio%20(BCR)%20is%20an%20indicator%20showing,a%20firm%20and%20its%20investors.
• Hook, D. (2018). Reimbursement and Coding for Nutritional services [Slides]. PSU.Edu. https://sites.psu.edu/ndep/files/2018/03/Reimbursement-and-Coding-for-Nutritional-services-NDEP-2018-Hook-Debra-1s1ic4q.pdf
• Joslin Diabetes Center. (2020). Financials. https://www.joslin.org/about/leadership/financials
• Moazed, A. (2017, May 4). How Much Does It Cost To Make An App? Applico | Platform Experts. https://www.applicoinc.com/blog/much-cost-build-app/
• Michael Nowicki. (2022). Introduction to the Financial Management of Healthcare Organizations, Eighth Edition: Vol. Eighth edition. Gateway to Healthcare Management.
• Porntharukchareon, T., Worawichawong, S., & Tawinprai, K. (2022). Telehealth for Diabetes Care During Coronavirus Disease 2019 Pandemic. Asia-Pacific Journal of Public Health, 34(4), 459–462.
https://doi- org.ezproxy.snhu.edu/10.1177/10105395221083388
• Siregar, Y. H., Rahayuwati, L., & Susanti, R. D. (2022). The Effectiveness of Low-Carbohydrate Diet on The Type 2 Diabetes Mellitus Patiens’ Quality of Life Improvement: A Systematic Review. Malaysian Journal of
Medicine & Health Sciences, 18, 234–238.
• Telehealth & Home Healthcare Solutions Witnessed Exponential Uptake in the Last Few Years - Arizton. (2021, October 8). Plus Company Updates,
NA. https://link.gale.com/apps/doc/A678349610/ITOF?u=nhc_main&sid=ebsco&xid=02fe39be
