Capital
Budgeting
proposal
▪ A capital budget proposal has been created for Venice Family Clinic
▪ Venice Family Clinic is a well-known health care organization that is committed to improving the
health outcome of the community members.
▪ The capital budgeting has helped in identifying suitable investment options for the entity
(Venice Family Clinic, 2021).
▪ Venice Family Clinic is a leading health center
situated in Los Angeles, America.
▪ It has devoted itself for offering quality care to
individuals, families, and communities
▪ For almost five decades, the health care entity
has been caring for the vulnerable with dignity
and compassion.
▪ The financial viability of the health care facility is strong based on its past financial
performance
▪ The table presents the financial figures of Venice Family Clinic for the fiscal year ending June 30,
2021:
▪ The table presents the financial figures of Venice Family Clinic for the fiscal year ending June 30,
2020: (Strand Street Press, 2002 , p. 7)
Revenue
$
61,131,511
Expenses
$
56,975,981
Profits
$ 4,155,530
Revenue
$
67,214,108
Expenses
$
57,889,215
Profits
$ 9,324,893
▪ One of the key trends revolves around the Covid 19 pandemic.
▪ It has increased the health vulnerability of the aged population.
▪ The Affordable Care Act has increased the accountability of health care providers relating to
costs and the delivery of quality care (The Affordable Care Act at 10 years: What's changed in
Health Care Delivery and payment, 2020).
▪ The reliance on digital technology in the health setting has increased in the post-pandemic
era (Ting et al., 2020).
▪ The item that has been proposed in the health care facility
is ‘mobile workstation.’
▪ Mobile workstations encompass portable computer
systems that are designed for running applications that can
promote higher performance, improved reliability and
robust security in the health care domain.
▪ By integrating these technology-driven equipment the
level of automation in Venice Family Clinic can be
upgraded.
The key mobile computing options that have been proposed in the
context of Venice Family Clinic include:
▪ Tablets and Laptops
▪ Webcam
▪ Computer on Wheels (COWs)
▪ Palmtops and
▪ Dongle or networking devices
▪ The equipment has been proposed so that it can aid in improved financial performance by
improving the quality of the care services.
▪ For integrating mobile workstations, the facility will have to incur technology-oriented costs
due to purchasing new equipment from vendors and strengthening the IT infrastructure.
▪ The cost of each of the mobile workstations could range between $ 4000 and $ 5000 (Jen et al.,
2016).
▪ The chief resources that will be needed for implementing the mobile workstations throughout
the facility include:
▪ Support from the Information Technology (IT) team
▪ Support from organizational personnel
▪ HR support for staff training
▪ Financial resources
▪ Effective communication will be crucial
while introducing mobile workstations
within Venice Family Clinic (Skarbalienė et
al., 2019).
▪ Transparent communication and
information flow can aid in notifying diverse
departments across the organization about
the proposed innovative equipment.
▪ The main methods of communication that
will be used include: Face-to-face meetings,
emails, memos, and business letters
▪
The financial statements of Venice Family Clinic, including the
balance sheet, income statement, and cash flow statement, have
been used for making the proposal.
▪
The major expenses that will be incurred are related to purchasing
mobile workstations, upgrading the existing IT ecosystem, and
providing staff training.
▪
The specific budget items have been considered as it has been
observed that expenses increased in initial quarters and legal
expenses declined, thereby enabling cost savings.
P
I
U
T
USD)
(
C
I
T
C
P
Quarter
1
Quarter
2
Quarter
3
Quarter
4
Mobile workstations (5 units)
Cost per unit = $ 5000
Upgrading existing
IT
ecosystem
Buying additional technical
accessories
Streamlining
health
care
services
25000
8000
-
5000
X
X
X
X
X
X
X
IT staff training
5000
-
Total cost (proposed)
38000
5000
43,000
▪
The previous financial indicators of the
facility have helped in making the
departmental budget for Venice Family
Clinic.
▪
It is expected that in the new fiscal year,
the revenue as well as expenses of the
facility will increase owing to the
investment decision relating to
including mobile workstations.
2020
2021
2022
(estimated)
Current
Ratio
=Current
Asset/
Current
liability
9.181
29.715
38.895
The estimated current ratio indicates that the health care facility will be able to pay
off its short-term financial obligations.
= (75000/ 43000)/43000 * 100
= 74.4
The investment will be a favorable strategic move by the facility since it can generate positive
return from the investment.
▪ Short-term impact – Increases in expenses for the Venice Family Clinic due to technical
expenses and staff training expenses
▪ Long-term impact – Improved productivity, streamlined workflow, better efficiency of the
health care facility, and better health outcomes for patients
▪ In Venice Family Clinic, the introduction of the new mobile workstations can create value for
diverse stakeholders.
▪ The implementation of the new workstations within the facility can increase the level of
financial need.
▪ The percentage increase in the financial need of Venice Family Clinic may range between 20 to
30 %.
▪ It may fluctuate depending on the selected vendor and the features that are integrated into the
new mobile system.
▪ The training of staff can also increase the financial need for the organization during the
budgeted period.
▪ The chief strategies of Venice Family Clinic revolve around improving the quality of care
services that is offered in the community to vulnerable community individuals
▪ It even focuses on prioritizing the improvement of workflow and competency of the staff.
▪ The innovative solution has been proposed so that the facility can leverage technology to
achieve its strategic goals.
T
V
F
C
:
R
T
S -sightedness
▪
Jen,
M.,
Cho,
T.,
Rudkin,
S.,
Wong,
A.,
Almassi,
N.,
&
Barton,
E.
(2016).
Mobile
COWs
(Computer
on
Wheels):
Hamburger
or
VEAL?.
Western
Journal
of
Emergency
Medicine
,
17
(5),
527.
▪
Strand
Street
Press.
(2002).
Venice
Family
Clinic
.
Amazon.
Retrieved
June
18,
2022,
from
https://aws.amazon.com/s3/
▪
The
Affordable
Care
Act
at
10
years:
What's
changed
in
Health
Care
Delivery
and
payment
.
(2020,
February
26).
Retrieved
June
18,
2022,
from
https://www.commonwealthfund.org/publications/journal-
article/2020/feb/aca-at-10-years-changed-health-care-delivery-payment
▪
Ting,
D.
S.
W.,
Carin,
L.,
&
Dzau,V.
(2020).
Wong
TYDigital
technology
and
COVID-19.
Nat
Med
,
26
,
459-
461.
▪
Skarbalienė,
A.,
Skarbalius,
E.,
&
Gedrimė,
L.
(2019).
Effective
communication
in
the
healthcare
settings:
are
the
graduates
ready
for
it?.
Management:
Journal
of
Contemporary
Management
Issues
,
24
(Special
Issue),
137-147.
▪
Venice
Family
Clinic.
(2021).
Retrieved
June
18,
2022,
from
https://venicefamilyclinic.org/
