Departmental Budget and Proposal Outline

Departmental Budget and Proposal Outline

Running head: DEPARTMENTAL BUDGET AND PROPOSAL OUTLINE 1

DEPARTMENTAL BUDGET AND PROPOSAL OUTLINE 2

Departmental Budget and Proposal Outline

PART 1

Options:

I believe Venice Family Clinic (VFC) need to implement a major asset of Electronic Health Record (EHR) Systems that would be beneficial for both the population it will serve and the hospital as well (Grain, Martin-Sanchez & Schaper, 2014). Using AHIMA along with Webinars, a certified coder will be chosen that will serve both the inpatient and outpatient, as an alternative option for providing coding updates services. Outpatient coders will meet with certified outpatient coders within the facility while, inpatient coders meet with certified inpatient coders. This exercise will need a trainer who will train the facility’s coding experts once every 3 weeks in a session of 2 hours. I estimate this exercise to cost an approximate of $2000 per year to cater for the two employees who will be teaching the coders. Through webinars, AHIMA lasts 1 hour, starting at noon Eastern Time and their charges start at $98.9 for members and $118 for non-members (Venice Family Clinic, 2018).

Financial Research:

These opportunities come with low or fee charges, though they bring a huge impact to the facility and also improving patient care delivery. According to VFC (2018), various factors determine the types of health care used in a facility, the timing of care and how much health care people use. Cash flow statements are indicated in a separate financial statement as cash flows (VFC, 2018). This implies the company’s health status is indicated by cash flow statements; because a cash flow statement serves as an important organizational asset that assists in determining the facility’s capacity to pay its existing expenses.

Communication:

Support from information technology

Organizational Resources

VFC has an opportunity of using a multitude of resources when organizing its annual financial status. For example, when the organization wants to draft its budget, it can hire an outsider professional consultant. Also, an excel system can be used as an alternative electronic method.

PART 2

Statements

It is important for an organization to do regular statements when doing financial budgeting. The regular statements will help VFC to be accountable for every coin spent and ensure that it is not losing a huge amount of money through unnecessary budgets. I would recommend brief quarterly review statements and a comprehensive annual statement.

Expenses

I estimated my budget for VFC salaries to remain the same; however, there was a slight decrease in RN and staffing salaries. I did this projection for a short period of the term to allow the facility to settle other medical supplies expenditure. Subsequently, the facility will not purchase other equipment in the year to come; this has reduced our equipment’s financial budget by $100,000. Though in case of an emergency purchase, we are allowing for some cushion room. Equipment leases went down slightly, to give room for more insurance coverage.

Reasoning

My budget estimation was a lower end to allow VFC to save a considerable amount of $ 55, 591, thus gaining more on profit generation. This is a more significant understanding that the clinic, unluckily, closed the year of 2017 with a loss of $1.5 million. It is significant for VFC to break even at best because it is a non-profit organization, which is the reason I budgeted conservatively.

Ratios and Ratio Calculations

Total Net Patient Revenue was budgeted to equal $19,340,000, and the Total Net Expenses was budgeted to equal $8,689,000. The Total Net Profit would then be calculated using the equation:

Net profit= (net revenue)/ (net expenses)

Net profit= ($19,340,000)/ ($8,689,000)

Net profit= 2.226

References

Grain, H., Martin-Sanchez, F., & Schaper, L. K. (Eds.). (2014). Investing in E-Health: People, Knowledge and Technology for a Healthy Future: Selected Papers from the 22nd Australian National Health Informatics Conference (HIC 2014) (Vol. 204). IOS Press.

Venice Family Clinic (2018). Retrieved from

https://venicefamilyclinic.org/index.php?view=vfc_about&action=clinic_brief

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