CAPITAL
BUDGET
P
R
O
P
O
S
A
L
:
VENICE
FAMILY
CLINIC
AMY
HEATH
N
U
R
S
I
N
G
,
S
O
U
T
H
E
R
N
N
E
W
HAMPSHIRE
UNIVERSITY
IHP-450, HEALTHCARE
MANAGEMENT
&
FINANCE
PROFESSOR
RACHEL
BLACKWOOD
J
U
N
E
19
,
2022
-
R :
$67,214,108
-
N
A :
$52,250,215
-
E :
$57,889,215
S
45,000
H
17
L
&
2
FINANCIAL
CONDITION
THE
VENICE
FAMILY
CLINIC
C
J
17,
2022:
53,863,950
-
6,314,972
-
11,902,271,619
A
I /Automation:
P
R -time
P
HEALTHCARE
TRENDS
•
provide
comfort
for
patients
•
can
monitor
body
temperature,
weight,
heartrate,
blood/oxygen
levels,
and
have
pressure
sensors
•
Allows
staff
to
continuously
monitor
most
patient
vitals
in
one
resource,
instead
of
multiple
technology
items
•
Supports
the
mission
&
vision
by
providing
quality
patient
care,
while
providing
it
efficiently
PROPOSAL
ITEMS:
NEW
HOSPITAL
BEDS:
EXPANSION
TO
SERVE
MORE
OF
THE
COMMUNITY
STRATEGIC
GOALS
•
ovember
1,
2021,
acquired
South
Bay
Family
Health Care
DESIRE
TO
ADD
MORE
MOBILE
CLINICS
TO
PROVIDE
THE
COMMUNITY
WITH
HEALTH
CARE
SERVICES
ON
THE
MOVE
•
Currently
only
have
2
mobile
clinics
•
Hands-on/online
training
for
relevant
staff
before
the
beds
are
implemented
•
Making
sure
staff
is
adequately
trained
for
after
the implementation
•
IT
and
maintenance
staff
are
trained
with
the
equipment
and
able
to
service
the
beds
if
needed
OPTIONS
FOR
PROPOSAL
IMPLEMENTATION
PRICING:
$10,000
$40,000.
S
$6,000
COST
OF
TRAINING:
T
$1,071
.
FINANCIAL
RESEARCH
SUPPORT
FROM
IT
AND
MAINTENANCE
STAFF:
-
Providing
regular
and
periodic
maintenance
for
servicing
equipment
SUPPORT
FROM
ADMINISTRATION
-
Making
training
available
for
not
only
clinic
staff,
but
for
nursing/doctor
education
curriculums
as
well
ORGANIZATIONAL
RESOURCES
A mix of top-down budgeting and
participatory budgeting would help
provide communication among the
VFC and the different departments.
•
Top-down
budgeting:
senior
management
sets
a
budget
and
budget
goals.
•
Participatory
budgeting:
budgetary
planning
is
carried
out
by
a
head
of
a
department.
COMMUNICATION
STATEMENTS:
pertinent
to
the
proposal
–
-
Consolidated
statement
of
functional
expenses
(CSoFE)
-
Consolidated
statement
of
activities
(CSoA)
EXPENSES:
two
major
expenses
associated
with
the
proposal
–
-
Initial
equipment
fees
-
Salaries
that
are
affected
REASONING:
-
Deciding
which
were
the
most
relevant
to
the
proposal
item.
BUDGET
BUDGET
RATIO
CALCULATIONS
RATIOS:
-
Working
capital
ratio
-
Return
on
investments
BUDGET
RATIO
CALCULATIONS:
-
Assets
–
liability
=
total
net
assets
($63,556,411
-
$11,305,742
=
$52,250,669)
PROJECTED
DEPARTMENTAL
BUDGET
Projected
Departmental
Budget
Gross
Revenue
VFC
Budget
for
2021
New
Items
for
Proposed
Budget
Net
Patient
Service
Revenues
28,694,912
Total
Revenue
28,694,912
Total
Revenue-
28,694,912
Expenses
20,292,452
New
Salary
Expense-
20,312,452
Salary
increased
for
purposes
of
Total
Salaries
Expense
20,292,452
training
Supplies
Expenses
Office
Supplies-
Healthcare
82,775
Medical
Supplies
466,953
Supplies
Expenses
total
549,728
Supplies
Expense-
549,728
Miscellaneous
Expenses
Insurance
70,
291
Travel,
training,
workshops
61,
131
Telephone-
Healthcare
379,555
Technology-
Healthcare
494,
674
Repairs/Maintenance
40,751
Proposal
Budget
Item-
200,000
Miscellaneous
Expenses
Total
1,046,402
Misc.
Expense
Total-
1,246,402
Total
of
all
Expenses
21,888,582
Expense
Totals-
22,088,582
Excess
Revenues
over
Expenses
6,806,330
Excess
Revenue
over
Expense-
6,606,330
SHORT-TERM:
-
Pressure
sensors
→
alert
staff
when
a
patient
needs
to
be
repositioned
→
decreases
likelihood
of
pressure
injury
(PI)
developing
→
no
need
for
specialist
involvement
(general
surgery,
wound
care,
plastic
surgery).
-
Data
can
be
transmitted
directly
from
bed
into
patient’s
electronic
medical
record
(EMR)
→
healthcare
team
able
to
view
data
in
real
time
→
quicker
diagnosis
and
treatment
for
patient.
LONG-TERM:
-
Indirect
revenue
by
decreasing
patient’s
length
of
stay.
Sensor’s
alert
stay
when
a
patient
who
is
not
stable
on
their
feet/confused
is
getting
out
of
bed
→
staff
are
able
to
get
to
patient
before
a
fall
occurs
→
decreasing
the
likelihood
of
a
potential
injury.
SHORT
AND
LONG-
TERM
IMPACTS
COST-BENEFIT
IMPACT
2021:
-
$70,291
spent
on
equipment
$200,000
proposal
item
would
increase
this
to
$270,291
-
184%
increase
of
financial
need
for
equipment
VFC
mission:
-
to
provide
quality
primary
health
care
to
people
in
need.
VFC
vision:
-
to
improve
the
health
of
people
and
communities
through
accessible,
quality
care.
STRATEGIC
PLANNING
IMPACT
-
Technology
can
breakdown,
crash,
malfunction
or
be
unavailable
rendering
the
main
benefits
to
this
proposal
temporarily
useless.
-
New
technology
such
as
this
is
expensive,
and
any
maintenance
or
repairs
could
also
be
expensive.
I
MP
A
CT
S/
JUST
I
FI
CA
T
I
ON
CON
FLI
CT
S
REFERENCES
Centers for Disease Control and Prevention (CDC). (2020). Older adult fall prevention. https://www.cdc.gov/falls/data/fall- cost.html
Centers for Disease Control and Prevention (CDC). (2017). Part IV: Benefit-Cost Analysis.
https://www.cdc.gov/dhdsp/programs/spha/economic_evaluation/docs/podcast_iv.pdf
Dubinsky, L. (2017). Can smart hospital beds replace patient monitors? Health Care Business. Can smart hospital beds replace patient
monitors? (dotmed.com)
ELM Learning. (2022). How much does employee training really cost? https://elmlearning.com/blog/how-much-does-employee-
training-really-cost/
HATI International. (2019). How smart technology can help reduce healthcare costs. https://www.hatiintl.com/blog/how-smart-
technology-can-help-reduce-healthcare-costs
Nowicki, M. (2022). Introduction to the Financial Management of Healthcare Organizations, Eighth Edition: Vol. Eighth edition.
Gateway to Healthcare Management. Introduction to the Financial Management of Healthcare Organizations, Eighth Edition
(snhu.edu)
REFERENCES CONT.
Shivdasani,
N.,
&
Beatty,
R.
(2021).
Why
hands-on
training
is
the
key
to
maximizing
job
success.
Forbes.
https://www.forbes.com/sites/ellevate/2021/10/07/why-hands-on-training-is-
the-key-to-maximizing-job-success/?sh=5a2f6b9f2e5d
Tine
Health.
(2017).
How
to
develop
effective
hospital
training
and
development
programs.
https://tinehealth.com/2017/05/02/how-to-develop-effective-hospital-
training-and-development-programs/
Venice
Family
Clinic
(VFC).
(2021).
https://venicefamilyclinic.org/
Walsh,
K.
(2016).
Managing
a
budget
in
healthcare
professional
education.
Annals
of
Medical
and
Health
Sciences
Research,
6
(2).
71-73.
https://doi.org/10.4103/2141-9248.181841
World
Health
Organization
(WHO).
(2022).
WHO
Coronavirus
(COVID)
Dashboard.
https://covid19.who.int/
