How to write a Healthcare Budget Request (Solved)

How to write a Healthcare Budget Request (Solved)

W2A2 Executive Summary

 W4A3 Projected Expenses and Revenues (Five Year)

 <Include your 5-year projected expenses and revenue here, as completed in W4A3, Part 1. Copy your final worksheet here and include your analysis.>

            Return on investment (ROI) analysis represents an approximate measure of an investment’s profitability. This measure is often used to guide investors in measuring the value of stock shares and to make decisions about purchasing a business (Masters et al., 2017). While taking this into consideration, my plan is to expand my healthcare business and include new departments that can generate more revenue. The Excel worksheet provided below highlights my investments and projected revenue for 5 years.

When evaluating profitability of a business, ROI analysis is a key tool to guide future decision making. The initial expenses for my healthcare business is approximately $1000000 which includes salaries, renovation, machinery, furniture, and other fixed assets. The total revenue generated for the five years period is approximately $1410000 indicating that the business is profitable. The healthcare business expansion is dependent on adding a few departments like physiotherapy, surgical, and outpatient care. These departments are considered because they have a significant effect on reimbursements and they attract many patients. The estimated financial impact of this project is realizable within the identified timeframe, but further analysis throughout the period could provide a better indication.

Return on investment analysis is an efficient measure to assess and compare organizational performance. When interpreting the results, both positive and negative values guide significant changes to a business. Overall, ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100 (Milenova et al., 2022). Although this measure fails to account for the time taken to invest, it provides investors with a margin to predict future trends of the business. According to the provided ROI analysis, the first year produces a negative value of -3.5% meaning that the business did not make a profit. The subsequent years produce values of 15.4%, 28.85%, 58.40%, and 111.12% demonstrating increasing profitability with time. At the end of the 5-year period, the business will have made a profit of 11.12% meaning that successful years will even yield better results.

Healthcare services worldwide are faced with challenges of improving quality and reducing costs making ROI analysis a key tool for successful improvements. ROI analysis is increasingly recommended for evaluating financial returns in healthcare (Milenova et al., 2022). This measure calculates costs against its benefits, but it can also misrepresent reality due to its inability to incorporate some crucial programme outcomes. My ROI analysis only considers the major investments into the new business. I believe the positive results provide support for implementing the business plan, but further insight can be provided by considering other areas of productivity.

The details of the ROI analysis are shown in the excel file below;

Expenses/cost Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Grand Total
               
Start up expenses              
Furniture & Fixture 100000            
Salaries 100000            
Machinery 500000            
Renovation 150000            
Other Expenses 150000            
Total Start Up Expenses 1000000            
               
Operating Expenses              
Furniture & Fixture   8000 9000 9500 11000 13800  
Machinery   50000 52000 57000 65000 75000  
Building Renovation   30000 35000 45000 53000 65000  
Salaries   100000 130000 140000 142000 145000  
Total Operating Expenses   188000 226000 251500 271000 298800  
               
Total Expenses   188000 226000 251500 271000 298800  
               
Revenue/Savings              
Physiotherapy   20000 60000 65000 100000 210000  
Surgical Cases   45000 100000 140000 180000 250000  
Outpatient Services   70000 130000 185000 275000 400000  
Reimbursements   50000 90000 150000 300000 550000  
Total Revenue/Savings 0 185000 380000 540000 855000 1410000  
               
Return On Investment   -3.50% 15.40% 28.85% 58.40% 111.12%  
               

References

Masters, R., Anwar, E., Collins, B., Cookson, R., & Capewell, S. (2017). Return on investment of public health interventions: A systematic review. Journal of epidemiology and community health, 71(8), 827–834. https://doi.org/10.1136/jech-2016-208141

Milenova, M., Nahabedian, N., Grey, B., Soukup, T., & Henderson, C. (2022). Identifying and understanding benefits associated with return-on-investment from large-scale healthcare Quality Improvement programmes: an integrative systematic literature review. BMC health services research, 22(1), 1-23. https://doi.org/10.1186/s12913-022-08171-3

W6A4 Projected Budget (Five Year)

 <Include your projected 5-year budget here, as completed in W6A4, Part 1. Copy your final worksheet here and include your analysis.>

W10/11A6 Organizational Statement Analyses

W10/11A6 Summary/Elevator Speech (PPT slides)

 <Include a handouts view or other printout of your “elevator speech” here, that highlights the value of your proposal, incorporating selling points from your analyses that you believe make the business case for nurse entrepreneurship and leadership’s commitment to your proposed healthcare product or service>

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