Venice Family Clinic
Capital Budget Proposal
IHP 450 Healthcare Management and Finances
June 19, 2022
Financial Condition
•
Operating income $30,426,379
•
Total Operating Revenue
$44,112,383
•
Profitability margin 69% in 2018
•
Median profitability margin 46%
in 2016
Proposal Items
•
Vehicle for mobile crisis
response
•
Aligns with mission and value to
provide accessible help to
community
•
Reimbursed by Medicaid
Organizational Strategic Goals
•
Aligns with street team to go to
patients who cannot come to
the clinic
•
Helps members of the most
vulnerable population
•
Provides additional safety to
members of the community
•
Provides relief to police
department who would
otherwise respond to crisis calls
Options
• Kia Seltos
•
Costs $22,990
•
25-29 city and 30-35 highway miles
per gallon
•
Increased maintenance long term
• Chevrolet Bolt
•
Costs $35,150
•
Electric-offers 39 miles per hour of
charging
•
Option that enables charging of up to
100 miles in 30 minutes
• Toyota Prius
•
Costs $25,075
•
53 city and 58 highway miles per
gallon
•
Lower maintenance long term
Financial Research
•
Kia Seltos
• lowest purchasing price
• requires gas
•
Chevrolet Bolt
• highest purchasing price
• electric, needs at least 77.7 minutes to fully charge at DC fast charging station and
6.6 hours to charge at standard station
• No all-wheel drive
•
Toyota Prius
• Averages 55.5 miles per gallon
• Can combine with electricity to get 133 MPGe
Organizational Resources
•
Qualified behavioral health care
professionals
•
Auto insurance
•
Maintenance
•
Repairs
•
Gas
Communication
•
Budget meetings
•
Departmental management
meetings
•
Proposal meeting with
stakeholders
FISCAL
YEAR
ENDING
JUNE
2018
PDF
bod
Full
Text
990,FILED
ON
Now.
4,
201),
Raw
XML
TotalRevenue
$45,962,242
Total
Functional
Expenses
$44,455,370
Net
income
$1,506,872
Notable
sources
of
revenue
Percentof
total
revenue
Contributions
$15571902
33.9%
Program
services
$30,426,379
66.2%
Investment
income
$125,905
0.9%
Bond
proceeds
$0
Royalties
$0
Rental
property
income
$0
Net
fundraising
$0
Sales
of
assets
-$161.344
Net
inventory
sales
$0
Other
revenue
30
Notable
expenses
Percent
of
total
expenses
Executive
compensation
$2,475,523
5.6%
Professional
fundraising
fees
$0
Other
salaries
and
wages
$21,670,697
48.7%
Other
Total
Assets
$38,892,913
Total
Liabilities
$1,704,633
Net
Assets
$37,188,280
Key
Employees
and
Officers
‘Compensation
JAY
W
LEE
(MEDICAL
DIRECTOR)
$274,050
Statements
Expenses
•
Expense Categories
• Salaries
• Repairs and maintenance
• Insurance
• Technology fees
Reasoning
•
Salaries
•
Salaries will be an increased expense
•
Annual additional salaries equal
$502K
•
Third-party reimbursement
•
Medicaid reimburses $500 per mobile
crisis call
•
Approximately 7,300 calls annually
generates over $3.6M
•
Government support
•
Funding stream from American
Rescue Plan
WallStreet
Prep
a
Internal
Rate
of
Return
(IRR)
=
(Fes
vate
Number
of
Periods
F
WallStreet
Prep
Present
Value,
Net Return
Return
on
Investment
(ROI)
=
Cost
of
Investment
‘WallStreet
Prep:
Unrecovered
Amount
Years
Before
Payback
Period
=
Years
Belore
Cash Flow
in
Recovery
Year
Ratios
Ratio Calculation
•
ROI (Net Income)/Cost of Investment=X%
• $3,141,995/$25075= 125% Prius
• $3,130,025/$22990= 136% Seltos
• $3,145,142/$35,130= 89% Bolt
•
Payback Period
• With such a significant revenue during year one, the payback period would be
one year
•
IRR
• Prius 12530%
• Seltos 13615%
• Bolt 8952%
Short-Term Impact
•
Increase in expenses to maintain
vehicle
•
Increase in gas, auto insurance,
and technology
•
Eight new FTEs and one new PTE
•
Increase in government support
•
Increase in third party payer
revenue
Long-Term Impact
•
Depreciation expense on income
sheet
•
Increased revenue from mobile
crisis calls and follow up
appointments
Cost-Benefit
•
NPV=$8,757,339.49
•
IRR=12530%
•
Car can be paid off after first
year
•
Percentage decrease of .15%
Strategic Planning
•
Vision to improve the health of
people and communities
through accessible, quality care
•
Mobile crisis provides access to
mental health in emergent
situations
•
Services under-served
populations
•
Prevents medical emergencies
from being law enforcement
cases
Conflicts
•
Patients may not follow up
•
Crisis line assigns calls
•
May be difficult to protect staff
on calls
•
Non-Medicaid patients without
insurance may not be served
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