Capital
Budget
Proposal
Patient
Education
Kiosk
Introduction
• It is estimated that by the year 2030, there will be 500 million more people diagnosed with diabetes and
this number will continue to rise (Laursen, 2017).
• Joslin Diabetes Center is in Boston Massachusetts, with many satellite clinics across the globe.
The mission of the center is to treat and find a cure for diabetes (Joslin, 2021).
• Joslin also has a vision to ultimately find a cure for diabetes through research, education, and
providing diabetes care through its clinic (Joslin, 2021)
• Outpatient visits to diabetes clinics increased by 20% between 2005 and 2010.
• Regardless of age, half of diabetes patients visited their providers more than 4 times per year
(Ashman, 2015).
Financial
Status
•
Joslin
Diabetes
is
largely
funded
by
government
and
research
grants,
and
donations.
In
2019,
Joslin
received
86%
public
support
(IRS,
2020).
•
The
Center’s
financial
condition
seems
to
be
declining.
Revenue
has
declined
by
over
$3,000,000
between
2019
and
2020.
Expenses
have
increased
to
$1,737,576
between
2019
and
2020
(IRS,
2020).
•
Assets,
according
to
the
balance
sheet
went
from
$116,544,681
in
the
beginning
of
2019
to
$107,556,453
at
the
end
of
2019(IRS,
2020).
Healthcare
Trends
Affecting
Capital
Purchases
• The Omnibus Budget Reconciliation Act (OBRA) of 1990 moved capital costs to
prospective payment over a ten-year implementation period, which slowed down capital
spending significantly (Nowicki, 2021).
• Patient Consumerization (Martin, n.d.)
• Artificial Intelligence and Automation (Martin, n.d.)
Patient
Educational
Kiosks
• Healthcare digital signage can educate patients on better health practices and provide updates in
waiting rooms. This provides an interactive learning platform to help improve health and wellness
(Redyref, n.d.)
• Health information kiosks are a good tool to disseminate health information among various
users in clinical and community settings, with high acceptance and satisfaction by
users(Joshi, 2014).
• Introduces new treatment options and devices new to diabetes care, which will lead to
increased patient revenue.
• Kiosks align with the Joslin mission of preventing, treating, and curing Diabetes (Joslin,
2021).
Strategic
Goals
•
Patient educational kiosks can further
Joslin’s strategic goal of having a world free
of diabetes along with providing global
education and advising (Joslin,2021).
Kiosk Proposal
•
Option 1: DigitalComms Indoor Interactive Kiosk 32” ($6,500)
•
Option 2: Petro LED Double Sided Digital Sign 38”X75” ($11,600)
(PetroLed, n.d.)
•
Option 3: United Visual Product Freestanding Touchscreen Kiosk 55”
($6,543.71) (School, n.d.)
Financial
Research
D
I
K
P LED S
UVP F
T K
T C
17,300
22,400
17,344
T B
20,000
24,000
25,000
C -Benefit R
1.2
1.0
1.4
Organizational
Resources
Needed
•
IT Department
•
Employees
•
Medical
Providers
•
Outside
Repair
Vendors
Communication
Methods
•
Email
•
Company Letter or memo
•
In person meetings
•
Financial
and
board
meetings
•
Methods
of
communicating
are
methods
already
in
use,
so
no
extra
money
will be spent in this regard.
Statements
Used
for
Kiosk
•
Balance
Sheet
•
Statement of Cash Flow
•
Revenue
Statement
Major
Expenses
Associated
with
Kiosk
Proposal
•
Investments
•
Interest
•
Insurance
•
Salaries
•
Maintenance
•
Supplies
Reasoning
•
Joslin
runs
mainly
from
grants
and
donated
gifts(IRS,
2020)
•
Addition
of
a
kiosk
can
reduce
costs
and
become
a
valuable
asset.
•
Unrestricted grants and donations can be used to purchase the kiosk.
Ratios
•
Payback
Period
•
Return on Investment
•
Debt
to
Capitalization
Ratios
• Payback period for all 3 options would take over 10 years, as the net assets of the organization are
-$19,497,756 and the capital investments are less than $23,000.
• Return on Investment
• Option 1) Digitalcomms Interactive Kiosk: $926,976 -$17,300/$17,300= 53%
• Option 2) Petro LED Sign : $926,976-$22,400/$22,400= 40%
• Option 3) UVP Freestanding Touch Kiosk: $926,976-$17344/$17344 = 52%
• Debt to Capitalization Ratio:
• Option 1)17,300/17,300+ 107,556,453= 17,300/107,573,753+17,300= 17,300/107,591,053= $1.61
• Option 2) 22,400/22,400+107,573,753 = 22,400/107,596,153= $2.10=
• Option 3) 17,344/17,344+107,573,753 = 17,344/107,591,097 =$ 1.62
Projected
Clinic
Budget
Joslin Diabetes Clinic Budget
Current
Year
New
Budget
Revenue
Contributions,
Grants,
Other
non-
33,046,867
33,046,867
Program
Service
Revenue
40,609,412
50,609,412
eivable
and
investment
property)
107,556,453
105,573,797
and
temporary
cash
investments
2,256,070
2,256,070
Total Revenue
183,468,802
191,486,146
EXPENSES
Salaries
$ 35,549,713
50,549,713
Accounts
Payable
10,580,574
10,580,574
Investment
Fees
382,484
400,000
quipment
Rental
and
Maintenance
192,670
210,014
Information
Technology
$ 520,177
570,177
Total Expenses
$ 47,225,618
62,310,478
SUPPLIES
1,000,000
100,017,344
Total Supplies
1,000,000
100,017,344
OTHER EXPENSES
Legal
Fees
$ 108,786
108,786
Professional
Fees
152,288
160,288
Utilities
497,694
597,694
Insurance
1,001,239
1,101,239
TOTAL OTHER EXPENSES
$ 1,760,007
1,968,007
Total
All
Expenses
$ 49,985,625
164,295,829
Excess (Deficit) Revenues over Expenses
$ 133,483,177
27,190,317
Projected
Clinic
Budget
Capital
Budget
SAMPLE
Specific
Department
Patient
Education
FY
2019
ITEM
REQUESTED
PURPOSE
/
USE
ITEM
COST
INSTALLATION
TOTAL
COST
PROPOSED
QUARTER
OF
PURCHASE
1st 2nd 3rd 4th
Educational
Kiosk
Patient
Education
$ 6,544
$ 10,800
$ 17,344
X
TOTALS
$ 6,544
$ 10,800
$ 17,344
Submitted
by:
Karima
Barbour
Johnson
Approved
by:
Date
:
6/4/2022
Date
:
Impacts
and
Justifications
Short
Term
•
Kiosks
increase
efficiency
and
cost
savings
(Letafet-Nejad,
2020)
• Salaries will increase due to the need to implement the additional item into the clinic
• Training will increase
• Revenue increase
• Expenses increase
• Liabilities increase
Impacts
and
Justifications
Long
Term
•
The
new
asset
will
pay
for
itself
in
a
matter
of
years
•
Insurance
increase
•
Revenue
increase
Cost-Benefit
•
The
benefit
of
the
kiosk
purchase
will
outweigh
the
cost,
as
it
will
provide
valuable
information
to
patients.
This
in
turn
will
reduce
patient
volume
over
time, reducing staff increases and cost (Nowicki, 2021)
Strategic
Planning
and
Conflicts
•
Aligns
with
the
Joslin
mission
of
treating,
and
curing
diabetes
•
Large
amounts
of
funding
are
for
research
purposes
and
global
education(Joslin,2020)
•
The
gap
in
grant
and
donation
funding
from
the
current
budget
(IRS,
2020)
REFERENCES
Fernando, Jason (2022, May 13). Return On Investment (ROI). Investopedia. Retrieved from
https://www.investopedia.com/terms/r/returnoninvestment.
Magner, Evan (2021). The Comprehensive Cost of Implementation: How to Budget for Digital Signage. Retrieved from
https://mvixdigitalsignage.com/blog/budget-for-digital-signage/
Internal Revenue Service. (2020). Return of Organization Exempt from Income Tax (990). Retrieved 6/4/2022 from
https://www.joslin.org/about/leadership/financials
PetroLED. (nd). LED Signs for Business. Retrieved June 11, 2022 from https://www.petro-ledsigns.com/led-signs-for-
business-double-sided-38-x-75-5-year-warranty.
School Specialty. (nd). United Visual Products Freestanding Touchscreen Kiosk, 55 Inch Screen. Retrieved June 11, 2022 from
www.schoolspecialty.com/united-visual-products-freestanding-touchscreen-kiosk-55-inches-2018574
Joslin Diabetes. (2021). Joslin Diabetes About. Retrieved from Joslin Diabetes: https://www.joslin.org/
Skoler, E. M. (2020, June 22). The Biggest News in Diabetes Technology, Drugs, and Nutrition: Highlights from ADA 2020.
Retrieved from DiaTribe Learn: https://diatribe.org/biggest-news-diabetes-technology-drugs-and-nutrition-highlights-
ada-2020
REFERENCES
Letafat-Nejad, M., Ebrahimi, P., Maleki, M., & Aryankhesal, A. (2020). Utilization of integrated health kiosks: A systematic
review. Medical journal of the Islamic Republic of Iran, 34, 114. https://doi.org/10.34171/mjiri.34.114
Ashman, Jill. (April, 15,2015). Examining Office Visit Trends for Diabetes. Physicians Weekly. Retrieved June 6, 2022
https://www.physiciansweekly.com/examining-office-visit-trends-diabetes
Martin, Geoffrey. (n.d.). Top 10 Emerging Trends in Health Care for 2021: The New Normal. American Hospital
Association. Retrieved June 6, 2022 https://trustees.aha.org/top-10-emerging-trends-health-care-2021-new-norm
8 Examples of Digital Healthcare Kiosks and Signage. (n.d.) Retrieved June 6, 2022 from
https://redyref.com/healthcare-kiosks-examples/
