Final
Project
Capital
Budget
Proposal
Presentation
Southern New Hampshire University
IHP-450-X5747 Healthcare Management and Finance
22EW5
June
19,
2022
INTRODUCTION
1
Financial
Condition
According to the Venice Family Clinic's most recent financial
state
me
nt
(2
0
2
1
a,
p.
4):
fi0fi1
•
Total
revenue:
$67,214,208
• Operating margin: 44.77
• De
bt
-
to
-
capit
al:
1
7.
79
%
•
Days
cash
on
hand:
85
days
a fi0fi0
•
Total
revenue:
$61,131,511
• Operating margin: 46.57
• Debt-to-capital: 20.3%
• Days cash on hand: 122
days
Healthcare
Trends
●
COVI
D
-
1
9
sur
ge
s
● Methicillin-resistant
Staphylococcus aureus
●
Vancomycin-resistant
Enterococci
●
Healthcare
acquired
infection
B
S
A
P
Proposal Items
• Uses aerosolized hydrogen
peroxide to kill microorganisms
•
Improve
the
health
of
people
and
communities
• Required hydrogen peroxide refill
kits
Organizational
Strategic
Goals
C Financial
•
Reduce
cleaning
staff
• M
•
S
• R HAI
•
Save
on
salary
expenses
•
Better
reimbursement
from
insurance
•
Savings
from
employee
sick
time
Proposal
0fi
Options
Tru-D
A smart UVC robotic
disinfection system
Xenex
A
more
affordable
UVC
robotic
disinfection system
Bioquell
A smaller, more
affordable HPV
robotic disinfection
system
Financial
Research
Initial
cost:
$125,000
Training:
$4,000
1 T -D
X
3 B
Savings:
$128,740
Payback Period: 1.002 years
NPV:
$64,719.01
IRR:
33.921%
Initial
cost:
$81,000
Training:
$4,000
Savings:
$128,740
Payback Period: 0.649
years
NPV:
$108,719.01
IRR:
82.572%
Initial
cost:
$29,500
Supplies:
$2,148
annually
Training:
$4,000
Savings:
$128,740
Payback Period: 0.241 years
NPV:
$150,919.29
I
RR:
334.6
11
%
Organizational
Resources
•
Environmental
services
• Clinical engineering
• Infection control
• HR
•
No
additional
purchases
are
required
to
begin
implementing
a
disinfection
system
Communication
Managers
•
Staff
meeting
• Training events
• Downtimes
notification
•
Budgetary
changes
•
Issues
and
emergencies
Budget
03
Statements
Financial
statements
describe
the
financial health of the facility.
Track
success
of
capital
purchases
Shows
impact
of
financial
decisions
and
if
changes
need
to
be
made
Financial
documents:
•
Balance
sheets
•
Statement
of
revenue
•
Expense
statements
Expenses
&
Reasoning
E
R
Bioquell System- $29,500
Cheaper
and
modular
compared
to
other
devices. Easy to use for mobile locations
Ancillary
packs-
$537
per
pack
Required for use
Training-
$4,000
To ensure proper use, maintenance, and
care
Ratios
&
Calculations
𝑅𝑂𝐼 =
ROI
$128,740 −
$81,000
$81,000
= 0.58938
RoR
𝑅𝑎𝑡𝑒 𝑜𝑓 𝑟𝑒𝑡𝑢𝑟𝑛
= $81,000
= 694.69%
× 100
𝑃𝑉 =
NPV
𝐹𝑉
=
$108,719.01
(1+𝑖
𝑛
)
$643,700 − $81,000
Projected
Departmental
Budget
Current
Year
New Budget
GROSS
REVENUE
Outpatient
Revenue
Office
Visits
$
16,107,768.00
$
16,107,768.00
immunizations
$ 1,400,000.00
$ 1,400,000.00
Well
Child
Exams
$ 3,195,000.00
$ 3,195,000.00
Pregnancy
Care
$
4,300,000.00
$
4,300,000.00
Diabetes
Education
$ 1,150,000.00
$ 1,150,000.00
Eye
&
Dental
Visits
$
5,5fi3,400.00
$
5,5fi3,400.00
Specialty
Care
$ 13,836,854.00
$ 13,836,854.00
Total
Gross
Patient
Services
Revenue
$ 45,513,0fifi.00
$ 45,513,0fifi.00
Projected
Departmental
Budget
Current
Year
New Budget
EXPENSES
Salaries
Clinicians
$ 15,680,000
$ 15,680,000
RN
$ 13,440,000
$ 13,440,000
Nursing
support
$ 1,fi50,000
$ 1,fi50,000
Other
Staff
$ 1,780,000
$ 1,676,fi60
Total
Salary
Expense
$ 3fi,150,000
$ 3fi,046,fi60
SUPPLIES
Medical
Supplies
$ 443,4fi6.00
$ 443,4fi6.00
Office
Supplies
$ 343,168.00
$ 343,168.00
New
Supplies
$ -
$ 35,648.00
Total
Supplies
$ 786,594.00
$ 8fifi,fi4fi.00
OTHER EXPENSES
Equipment
$ 168,891.00
$ 168,891.00
Legal
Fees
$ 786,49fi
$ 786,49fi
Professional
Fees
$ 1,15fi,fi88.00
$ 1,15fi,fi88.00
Utilities
$ 497,694.00
$ 497,694.00
Repairs
and
Maintenance
$ 113,141.00
$ 113,141.00
Equipment
Lease
$ fi08,fi70.00
$ fi08,fi70.00
Insurance
$ fi3fi,759.00
$ fi3fi,759.00
Bad
Debt
Expense
$ 9fi,000.00
$ 9fi,000.00
TOTAL OTHER EXPENSES
$ 3,fi51,535
$ 3,fi51,535
Total
All
Expenses
$ 36,188,1fi9
$ 36,1fi0,037
Excess
(Deficit)
Revenues
over
Expenses
$ 9,3fi4,893
$ 9,39fi,985
04
Justification
Impact
Short-term:
● Initial investment cost
● Employee training
● Any unexpected losses
●
Imediately
cleaner
environment
Long-term:
● $25,000 in HAI reimbursement
savings
● Reduction in call outs/sick time
● More consistent staffing
● Reduced number of HAIs
● More efficient cleaning
●
Savings
in
housekeeping
salary
Provide
clean
care
to
those
who
need
it
most
Supports mission
Strategic
0fi
03
04
05
statement
to
improve
community
health
Ideal for mobile units
continued
use
in
the
community
Reactive to COVID-19
Pandemic and transition
into endemic
Comprehensive
system
comparison
Planning
Sufficient savings to
support future success
01
06
Conflicts
Positive:
● Kills harmful microorganisms
● Positively impacts VFC’s mission
● Instills community trust
Negative:
●
Unmet
saving
expectations
● Could take longer to see return
●
May
not
meet
expectations
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