IHP 450 Capital Budget Proposal

IHP 450 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a capital
budget proposal in which you will analyze a specific healthcare
organization, identify areas of need
and/or improvement within the organization, research various
options to address these needs, and create a presentation in
which you propose your options to
decision makers. This will require close analysis of historical
budgetary information for the organization, research regarding
healthcare trends, and careful
alignment of your proposal to the organization’s mission,
vision, and values. The final product represents an authentic
demonstration of competency because,
while healthcare organizations differ greatly, managers in
various departments in various organizations must present
changes to processes, the purchase of new
equipment, the addition of employees, and many other changes
to executives and boards to obtain approval. A specific example
of the necessary presentations
department managers often perform is a capital budget proposal,
whereby managers identify the various needs or areas of
improvement in their department
and prepare proposals for decision makers.
In addition to the analysis and presentation needs discussed,
this assessment will provide you with the opportunity to apply
the financial budgetary knowledge
you have gained throughout this course to a healthcare

organization, as you would in the real world. While you will not
be building the organization’s entire
budget yourself, you will be discussing how your proposal
impacts the current budget and what impact your proposal will
have on future financial statements if
implemented through the creation of a projected departmental
budget that implements your proposal in the upcoming year.
To complete this project, you will utilize one of two provided
case studies, which will include the financial statements and
information necessary for you to
analyze while preparing your budget request. Your final
submission will be a presentation (either PowerPoint or an
equivalent tool) with speaker notes, along
with a projected departmental budget for the next year. You will
not have to record your presentation.
The project is divided into three milestones, which will be
submitted at various points throughout the course to scaffold
learning and ensure quality final
submissions. These milestones will be submitted in Modules
Two, Five, and Six. The final product will be submitted in
Module Seven.
In this assignment, you will demonstrate your mastery of the
following course outcomes:
x Analyze healthcare trends to inform effective decision making
and financial planning within healthcare management
x Integrate effective communication and leadership principles
into financial proposal presentations
x Articulate the purpose and importance of financial statements
and principles for healthcare decision making
x Create realistic departmental budgets based on financial
statements, healthcare trends, and strategic plans

x Create proposals that incorporate missions, visions, and
values and align to strategic plans
Prompt
Your capital budget proposal presentation should use 12–20
PowerPoint slides (or similar presentation software) to answer
the following prompt and it should
include an accompanying projected departmental budget: Select
one of the following two organizations and accompanying
financial information to create a
reasonable capital budget proposal that addresses the needs of
the organization while aligning to the organization’s mission,
vision, and values. Note that while
you will submit a single proposal, your proposal might include
multiple items. For example, you might propose that the
organization acquire a new piece of
equipment. Implementation of that item (the equipment) might
require additional items such as software, spare parts, etc.
In order to utilize real-world financial statements, you must
choose one of the following organizations to provide the
context, background information and
organizational information for your proposal:
Organization #1: Venice Family Clinic
● 2018 Annual Report (most current Annual Report available)
● Consolidated Financial Statements for the Year Ended June
30, 2018
Organization #2: Joslin Diabetes Center
● Consolidated Financial Statements and Supplemental

Information – 2013 and 2012 (most current Consolidated
Financial Statement available)
● Consolidated Financial Statements and Supplemental
Information – 2012 and 2011
Specifically, the following critical elements must be addressed;
however, the following order is not necessarily the order in
which you will present:
I. Introduction
A. Financial Condition: Describe the overall financial condition
of the organization based on financial statements and explain
your reasoning.
B. Healthcare Trends: Describe what current healthcare trends
influenced your proposal. Could any of these trends impact the
organization
financially?
C. Proposal Items: List your proposal items and indicate how
each one is linked to the organizational mission, vision, and
values. You might need to
infer the vision or values based on the information provided in
the organization’s annual reports, website, etc.
D. Organizational Strategic Goals: How will your proposal
further the strategic goals of your department and/or
organization as a whole? You
might need to infer the strategic goals based on the information
provided in the organization’s annual reports, website, etc.
II. Proposal
A. Options: What options are available for each item in your
budget proposal? You will want to have various options ready

that will meet your
needs because one option may not be approved by your
supervisor or board, but another option may better fit their
needs.
B. Financial Research: Describe the cost-benefit of each option
based on relevant information and research. Information and
research can include
research on the items or vendors, organizational numbers, price
quotes, and more. Be sure to provide relevant documentation in
an appendix or
reference slide (e.g., sources for the cost of the items in your
proposal, company resources, and financial calculations) to
show the depth of your
research and the various options available.
C. Organizational Resources: Identify what resources would be
needed to implement one of the options in your proposal (e.g.,
support from
information technology, accounting, janitorial, volunteers).
D. Communication: What method of communication would be
used to notify departments across the organization and what
methods would be
used throughout proposal implementation? Justify the
appropriateness of your suggestions.
https://venicefamilyclinic.org/
https://s3.amazonaws.com/media.venicefamilyclinic.org/2019/0
6/2018-VFC-Annual-Report.pdf
6/VFC_2018_Audited_Financials.pdf
https://projects.propublica.org/nonprofits/display_audit/285420
181
https://web.archive.org/web/20150907225040/https:/www.joslin

.org/docs/Joslin-Diabetes-Center-Audited-Financial-Statements-
FY_2013.pdf
https://web.archive.org/web/20150908004116/https:/www.joslin
.org/docs/Joslin-Diabetes-Center-Audited-Financial-
Statements_-_FY2012.pdf
III. Budget
A. Statements: What statements were utilized for formulating
your proposal? Why? Select the appropriate statements for
analysis and defend
your choices.
B. Expenses: What major expenses are associated with your
proposal items and what budgetary accounts are impacted?
C. Reasoning: Based on the previous year’s budget data, why
did you select these budget items for adjustment over other
options?
D. Ratios: Research the various ratio options (including ROI)
used for reviewing financial statements. Determine what ratios
you will use for your
proposal items and explain why.
E. Ratio Calculations: Using budget statements, formulate
calculations that support each recommendation.
F. Projected Departmental Budget: Create a projected
departmental budget for the upcoming year that incorporates the
costs of the proposed
changes.
IV. Impacts and Justification

A. Short-Term Impact: What short-term impact will this request
have on the overall financial statements used for decision
making and on financial
planning?
B. Long-Term Impact: What long-term impact will this request
have on the overall financial statements used for decision
making and on financial
planning?
C. Cost-Benefit: What is the percentage increase in financial
need? How does this balance with the potential value added by
your requests? What
is the cost-benefit of these requests?
D. Strategic Planning: Provide an explanation for each budget
request in your proposal, taking into consideration strategic
plans. How do your
budget requests show strategic planning and forethought?
E. Conflicts: Describe the strategic impact and any potential
ways in which your recommendations might conflict with the
overall strategic vision.
Milestones
Milestone One: Major Trends
In Module Two, you will submit a short paper analyzing the
potential impact of healthcare trends on the finances and
mission of healthcare organizations. This
milestone will be graded with the Milestone One Rubric.
Milestone Two: Departmental Budget and Presentation Outline
In Module Five, you will create a budget for a healthcare
department and outline your capital proposal presentation. This
milestone will be graded with the

Milestone Two Rubric.
Milestone Three: Implementation Options and Cost-Benefit
In Module Six, you will submit a short paper describing options
for implementing your capital budget item(s), their cost-benefit,
and their anticipated impact on
key healthcare operating indicators. This milestone will be
graded with the Milestone Three Rubric.
Final Submission: Capital Budget Proposal
In Module Seven, you will submit your final project. It should
be a complete, polished artifact containing all of the critical
elements of the final product. It should
reflect the incorporation of feedback gained throughout the
course. This submission will be graded with the Final Project
Rubric (below).
Deliverables
Milestone Deliverable Module Due Grading
One Major Trends Two Graded separately; Milestone One
Rubric
Two Departmental Budget and Presentation
Outline
Five Graded separately; Milestone Two Rubric
Three Implementation Options and Cost-Benefit Six Graded
separately; Milestone Three Rubric

Final Submission: Capital Budget Proposal,
including Projected Departmental Budget
Seven Graded separately; Final Project Rubric
Final Project Rubric
Guidelines for Submission: A comprehensive proposal
presentation will be between 12–20 slides; however, the content
and quality of those slides are more
important than the quantity. All resources must be appropriately
cited in APA format. All speaker notes must be written in the
“notes” section of each
PowerPoint. In addition to your presentation, you must submit a
final draft of your proposed departmental budget, which you
drafted in Milestone Three using
the Departmental Budget Sample as a base.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Introduction: Financial
Condition
Meets “Proficient” criteria and
evidences keen ability to
interpret financial statements to
gain understanding of financial
conditions
Accurately describes the overall
financial condition of the
organization based on the
financial statements

Describes the overall financial
conditions of the organization,
but with gaps in accuracy or
detail based on the financial
statements
Does not describe the overall
financial conditions of the
organization
2.74
Introduction:
Healthcare Trends
evidences keen insight into
application of current healthcare
trends to organizations
Accurately describes the current
healthcare trends that influence
the proposal and how they
impact the organization
financially
Describes the current healthcare
trends that the proposal was
based on and how they impact
the organization financially, but
with gaps in detail or accuracy
Does not describe the current
healthcare trends that the

proposal was based on and how
they impact the organization
financially
6.4
Introduction: Proposal
Items
evidences keen understanding of
how to further missions, visions,
and values in organizations
Links each proposal item to the
organization’s mission, vision,
and values, comprehensively
explaining each connection
Links each proposal item to the
organization’s mission, vision, and
values, explaining each
connection, but lacks detail
Does not link each proposal item to
the organization’s mission, vision,
and values, explaining each
connection
6.4
Introduction: Strategic

Goals
evidences keen insight into the
methods for further strategic
goals
Clearly details how the proposal
will further the strategic goals
of the organization
Explains how the proposal will
further the strategic goals of the
organization, but with gaps in
clarity or detail
Does not explain how the proposal
will further the strategic goals of
the organization
6.4
Proposal: Options
evidences keen analysis of
potential options for proposal
implementation
Provides reasonable
implementation options for
each proposal item
Provides implementation options

for each proposal item, but
options are not reasonable
Does not provide implementation
options for each proposal item
6.4
Proposal: Financial
Research
research and information
requirements of financially
sound proposals
Describes the cost-benefit of
the listed options based on
relevant research and
information
Describes the cost-benefit of the
listed options, but with gaps in
relevant research and information
Does not describe the cost-benefit
of the listed options
6.4
Proposal:
Organizational
Resources

organizational needs for
proposal implementation
Accurately and clearly identifies
the organizational resources
that will be needed for proposal
implementation
Identifies the organizational
resources that will be needed for
proposal implementation, but
lacks accuracy or clarity
Does not identify the
organizational resources that will
be needed for proposal
implementation
6.4
Proposal:
Communication
communication needs across
departments for successful
implementation
Proposes methods for
communicating budgetary

changes and communicating
throughout proposal
implementation to departments
across the organization, and
justifies the appropriateness of
these methods
Proposes methods for
communicating budgetary
changes and communicating
throughout proposal
implementation to departments
across the organization, but does
not justify the appropriateness of
these methods
Does not propose methods of
communication for notifying
departments across the
organization and for proposal
implementation
6.4
Budget: Statements
the use of financial statements
for proposal creation
Selects and comprehensively
defends the appropriate
financial statements for use in
the proposal

Selects and defends financial
statements for use in the
proposal, but statements are not
appropriate or not
comprehensively defended
Does not select and defend
financial statements for use in the
proposal
6.4
Budget: Expenses
the breakdown of budgets and
expenses
Accurately identifies the major
expenses associated with the
proposal and the budgetary
accounts that would be
impacted
Identifies the major expenses
associated with the proposal and
the budgetary accounts that
would be impacted, but
identification is not accurate
Does not identify the major
expenses associated with the
proposal and the budgetary

accounts that would be impacted
2.74
Budget: Reasoning
the use of budgetary information
for informing future budgets
Justifies why the selected
budgetary accounts were
chosen for adjustment based on
analysis of previous year’s
budget
Justifies why the selected
budgetary accounts were chosen
for adjustment, but not based on
previous year’s budget
Does not justify why the selected
budgetary accounts were chosen
for adjustment
2.74
Budget: Ratios

use of ratios for financial analysis
and budget support
Selects appropriate ratios to use
for support of the proposal and
justifies logically
Selects and justifies ratios to use
for support of the proposal, but
does not select appropriate ratios
or justification is not logical
Does not select and justify ratios to
use for support of the proposal
6.4
Budget: Ratio
Calculations
calculations are performed
correctly, resulting in accurate
and applicable results
Calculates the selected ratios
based on the budget statement
analysis
Calculates the selected ratios, but
not based on the budgetary
statement analysis
Does not calculate the selected

ratios
2.74
Budget: Projected
Departmental Budget
demonstrates keen insights into
the specific needs of the
department
Creates a projected budget that
applies the proposed changes
to the specific department
Creates a projected budget but is
missing key elements of a
departmental budget
Does not create a departmental
budget applying the proposed
changes to a specific department
2.74
Impacts and
Justification: Short-
Term Impact
evidences keen insight informing
decision making and planning in

healthcare
Logically determines the short-
term impact of the proposal on
the financial statements and
organizational financial planning
Determines the short-term
impact of the proposal on the
financial statements and
organizational financial planning,
but with gaps in logic
Does not determine the short-term
6.4
Impacts and
Justification: Long-Term
Impact
evidences keen insight into
informing long-term financial
planning
Logically determines the long-
term impact of the proposal on
the financial statements and

Determines the long-term impact
of the proposal on the financial
statements and organizational
financial planning, but with gaps
in logic
Does not determine the long-term
6.34
Impacts and
Justification: Cost-
Benefit
cost-benefit is accurate given the
financial information and
potential value
Determines the cost-benefit of
the proposal based on detailed
analysis of financial information
and potential value added
Determines the cost-benefit of
the proposal, but not based on
analysis, or analysis of financial
information and potential value
added is not detailed
Does not determine the cost-

benefit of the proposal
2.74
Impacts and
Justification: Strategic
Planning
reflection evidences keen insight
into strategic financial and
management planning in
healthcare
Reflects thoroughly upon and
explains in detail how the
budget proposal evidences
strategic planning and
forethought
Reflects upon and explains how
the budget proposal evidences
strategic planning and
forethought, but reflection lacks
comprehensive attention or
explanation lacks detail
Does not reflect upon and explain
how the budget proposal
evidences strategic planning and
forethought
2.74

Impacts and
Justification: Conflicts
evidences keen insight or
intuition regarding potential
conflicts with healthcare
organizations’ strategic visions
Accurately describes the
strategic impact of the proposal
and identifies logical, potential
conflicts with the overall
strategic vision of the
organization
Describes the strategic impact of
the proposal and identifies
potential conflicts with the
overall strategic vision of the
organization, but with gaps in
accuracy or logic
Does not describe the strategic
impact of the proposal nor identify
potential conflicts with the overall
strategic vision of the organization
6.4
Articulation of
Response

Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a
professional and easy-to-read
format
Submission has no major errors
spelling, syntax, or organization
Submission has major errors
that negatively impact readability
and articulation of main ideas
Submission has critical errors
that prevent understanding of
ideas
4.08
Earned Total 100%
Capital Budget Proposal
Wearable glucose monitoring System

Southern New Hampshire University
1
Hello everyone, my name is Margaret Breault and I am here
today to present the proposal for the capital budget for the year
2020 for Joslin Diabetes Center. This proposal will maintain the
mission and vision of Joslin to treat and cure diabetes.
1
Introduction
Mission Statement
“Our Vision: A world free of diabetes and ins complications.
Our Mission: To prevent, treat and cure diabetes.”
About
-Joslin Diabetes Center was founded in 1898 by Elliot P. Joslin,
MD
-A non-profit organization which ranks in the 10% in the nation
for controlling blood sugar, blood pressure, and cholesterol
(Joslin, 2019)
-Joslin Diabetes Center provides care to pediatric and adult
patients (Joslin, 2019)
2
2
Financial Condition
2012

Total Current Assets:
$43,248,771
Total Current Liabilities:
$19,476,111
Total Expenses:
$85,983,404
Total Revenue:
$85,030,025
2013
$34,891,187
$18,695,139
Total Expenses:
$88,101,099
Total Revenue:
$85,291,074
3
2011
$42,993,914

$19,247,415
Total Expenses:
$82,045,013
Total Revenue:
$80,116,904
Diabetes is one of the most prevalent diseases currently, more
and more people are being diagnosed. There needs to be more
research done by Joslin, in order to accommodate newer influx
of patients. Overall, the total expenses have been higher than
the total revenue, but if there is a way to increase the revenue,
like this proposal suggests, then there would be more money
that Joslin could put into research to find the cure or better
treatment options for patients with diabetes. Joslin Diabetes
Center is a non-profit organization which relies on grants to
allow for less out of pocket expenses, this clinic provides
outpatient services which typically could decrease revenue, but
this proposal would allow this center to continue making strides
towards a possible cure for diabetes.
3
Healthcare Trends
Wearable technology: “The wearable and remote patient
monitoring market has just started to take off; the Apple watch
can now detect irregular heart rhythms and diabetics can
monitor their blood sugar levels with digital glucose monitors”
(Waldron, 2019).
Wearable glucose monitors: “The existing continuous glucose

monitors have trouble with accuracy at the very highest and
lowest glucose levels…although they are improving” (Dotinga,
2018).
Patients would not need to obtain finger sticks, their wearable
devices would monitor the sugar levels remotely.
Better health management for patients with diabetes due to
continuous monitoring of trends in their sugar levels
4
Technology is prevalent in everyday life, and now it is
becoming more available for healthcare, especially with
wearable technology. There are devices that can monitor heart
rates, sleep-wake cycles, as well as glucose levels, without the
need to provide a finger stick. Since this organization strives to
cure diabetes, or at least provide better treatment options, this
trend of wearable technology can help prevent complications
from diabetes by having glucose monitoring done continuously,
and easily. Also, since this organization works with all age
groups with diabetes, it is possible that it could allow for a
better quality of life for all affected by this disease. The
implications for the mission of Joslin’s Diabetes Center is to
provide the best and updated care to their patients, and they are
proud of the research that they continually are doing with
regards to diabetes (Joslin Diabetes, n.d.). Since this wearable
technology would allow for monitoring in the comfort of the
patients’ home and allowing for physicians and medical
personnel to monitor the levels remotely, Joslin would stay
current with the trends in healthcare technology.
4
Proposal Items
Initiate wearable glucose monitors with Bluetooth monitor

Purchase 100 Dexcom wearable monitors and Bluetooth devices
Bluetooth set up for physicians to monitor patients’ levels
Add educational program for staff and patients on new
technology, increase staff (i.e. IT support)
5
This project will incorporate wearable technology to monitor
the trends of glucose levels constantly throughout the day
without the need for finger sticks. The readings will be able to
be shown on the Bluetooth device, or an app on a cell phone,
which would allow the patient to monitor their levels, record the
medication they receive, as well as any other type of data
regarding their health maintenance. This device would also be
able to be accessed by physicians to also monitor the trends and
determine patient compliance with their treatment regimen. This
would allow for better patient-centered care, and better
treatment choices for these patients based on compliance and
glucose level trends.
5
Strategic Goals
Implement a program to monitor continuous glucose levels in
order to provide better management and treatment of diabetes
Improve patient outcomes for all patients
The data collected from the continuous wearable glucose
monitors will help to fulfill Joslin’s mission statement, “To
prevent, treat, and cure diabetes.”
6

The main purpose of this proposed project is to determine a
relationship between the glucose trends in patients, their
compliance with diet and medication administration, and overall
healthier A1C levels. By implementing this program, there will
be more research provided for further treatment of the disease
and allow patients to manage their diabetes much easier. The
CDC states that as of 2015, 30.3 million of the U.S population
has diabetes and 84.1 million people in this population has
prediabetes (2017). Treatment and management of this disease
has become more costly over the years, according to the
American Diabetes Association (n.d.), so the implementation of
this device could help decrease patient costs by decreasing
supplies needed to manage this disease.
6
Options
Option one is to purchase the wearable glucometers along with
the Bluetooth device.
Option two is to lease the wearable glucometers from Dexcom
as a trial.
Option three is to provide no change in care, allowing patients
to only monitor their blood glucose levels via finger stick
7
Dexcom is the most common wearable glucometer, and if this
clinic collaborated with that company and purchased these
devices in bulk, it would allow for the generation of revenue, as
well as patient-centered care. This device removes the need to
rely on glucose readings from finger sticks, which would
decrease the need for purchasing lancets, test strips and other
supplies. This purchase would be similar in use to Dexcom, with
easy insertion and application, hence making it easier for
patients to learn and use. Since diabetic care costs are rising,

this proposed item should be implemented within the first two
quarters of fiscal year 2020.
7
Financial Research
Drop in assets from $43,248,771 in 2012 to $34,891,187 in
2013.
Collaborate with Dexcom to determine cost of monitors & if
there is a discount associated with a bulk purchase of the
wearable device and Bluetooth device as a bundle
Purchasing Dexcom monitors eliminates leasing fees
Collaborate with IT department to purchase software to allow
Bluetooth device set-up as well as application set up for
cellphones
Collaborate with healthcare staff, researchers, and human
resources to determine salaries for any new staff, and for
existing staff
Increased revenue due to shorter in office appointments once a
month for healthier patients, and new incoming patients
requiring care
8
Joslin’s financial statement for the FY 2013 shows that the total
expenses for both 2012 and 2013 were greater than the total
revenue. There was a financial drop in assets from 2012 to
2012. If there are more office appointments within a month due
to faster visit times, as well as an influx of new patient visits,
this clinic has a chance to generate revenue. With these
financial statements in mind, if the wearable glucose monitors
are not implemented, there would be no other way to increase
this companies revenue.
8

Organizational Resources
Physicians and nurses
Diabetic educators
Diabetic researchers
Adult & pediatric clinics
Renal & eye clinics
IT staff
Billing staff
9
When it comes to diabetic research and management, Joslin
Diabetes Center is considered world renowned. The healthcare
staff of physicians and nurses, as well as researchers, are
dedicated to fulfilling the mission to better treat and eventually
cure diabetes. Since this staff is so dedicated to their patients
and the mission of this organization, I truly believe that most
staff members would want to implement wearable glucometers.
9
Communication
Continuous monitoring of glucose readings with a device that
alarms whenever levels reach too high or too low, based on the
physician/patients’ set range
Data on patient readings will be sent via Bluetooth to
physician’s office once patient comes in for monthly
appointment
Monthly meetings to discuss patient data and collaborate on
different treatment options if necessary
10

Communication will improve between patients and healthcare
staff because each month when the patients arrive for their
wellness check, their Bluetooth device that is synced to their
wearable glucometer, will sync to the electronic patient chart,
which will download the data from the entire month. This data
would include the ranges and trends of glucose levels, as well
as the compliance of the patient with their medication
management. Also, when the patient is not in the clinic, this
device would alert the patient of irregular readings, which could
remind them of proper treatment, whether insulin is needed, or
if there needs to be an increase in sugar or carbohydrate intake.
Patients using this device will experience patient-centered care
because their data allows for specific treatment plans based on
their trends.
10
Statements
11
Assets
Liabilities
Current Ratio
Joslin’s clinic assets are decreasing, as mentioned earlier in the
slides, especially for FY 2012 to 2013. When calculating the
current ratio, it is obtained by dividing assets by liabilities.
These ratios are used to see if an organization will be able to
generate enough revenue to pay off debt (Nowicki, 2018). If
there is a current ratio of over 1, it means that the organization
is financially stable enough to recover from debt. However, for

Joslin, the current ratios are declining, but still remains over 1,
which means that there is available room financially to
implement this project.
11
2011
$42,993,914
$19,247,415
2012
$43,248,771
$19,476,111
2013
$34,891,187

Expenses/Reasoning
Total expenses for wearable glucometer: $81,000 (wearable
glucometer, Bluetooth device monitor)
Associated costs are with educational supplies as well as tech
support
Staff salaries will remain the same apart from $10,000 to
implement IT staff/tech support and educators
Revenue will be generated with increased office visits, well-
child visits, pregnancy care, and diabetes education
Total cost of the program: $91,750
12
The current budget proposal is broken-down above, as well as a
full copy attached of the proposal which provides details
regarding estimated costs for this budget. Within the first year,
I have estimated that the generated revenue would be up to
$70,000. There was a slight increase in ancillary staff salaries
due to more education provided to diabetes educators, as well as
IT/tech support regarding this new product. There are no new
hires, salaries are not purchased yearly and generally stay the
same, so it is important to purchase these devices within the
first or second quarter of the fiscal year, which would allow for
an increase in revenue. There will not be any additional projects
for this year, as I have proposed this program to be the way in
which revenue is generated.
12
Ratio’s/Calculations
Year 0 Cash Flow: $-92,750 Net Cash Flow:
$-92,750

Year 1 Cash Flow: $70,000 Net Cash Flow: $-
22,750
Year 2 Cash Flow: $35,000 Net Cash Flow:
$57,750
$92,750
$127,750
$162,750
Payback period is 3 years
Net Present Value is $101,520.33 with a 3% discount rate
(https://www.calculatestuff.com/financial/npv-
calculator?initial_investment=91750.00&discount_rate=3.000&
cash_flows%5B%5D=70000&cash_flows%5B%5D=35000&cash
_flows%5B%5D=35000&cash_flows%5B%5D=35000&cash_flo
ws%5B%5D=35000#results)
The benefit cost ratio (BCR) = discounted value of benefits/
discounted value of cost $101,520.33/$92,750 = 1.09 which is
positive
13
Return on Investment (ROI): (net profit/total investment) X 100
=
($162,750/$92,750) X 100 = 175.4%
This program has a goal to be paid back fully within 5 years. As
shown above, the payback period, where this program allows for
a breakeven point, occurs at year 3. This means that within 3
years, this program will have not only increased revenue, but
the down-payment for this program will be completely paid off.
The cash flow will decrease after one year and maintain steady
due to changing need for office visits.
The Net Present Value Calculator showed that the NPV is
$101,520.33 with a discount rate of 3%. This shows the

profitability that this program yields, and since it is higher than
the initial investment, the potential for an increased revenue is
almost guaranteed.
The BCR comes out to be 1.09 after dividing the discounted
value of benefits and the discounted value of cost. Since this
number is over 1, it is considered positive, which means that
this project should be supported.
The ROI is 175.4% after the projected revenue in five years.
All calculations are positive and depict why this program will
financially benefit this organization.
13
Projected Departmental BudgetTotal Gross Patient Services
Revenue9,950,000$11,300,000.00increase in revenue for
projected healthier managed patients, and new influx of patients
seeking treatmentEXPENSESSalariesMD $ 2,500,000
$2,500,000.00MD salaries combinedRN $ 800,000
$800,000.00RN salaries combinedLPN $ 350,000
$350,000.00Nursing staff salaries combinedOther Staff $
180,000 $190,000.00tech support, educators, newer
implemented employeesTotal Salary Expense $ 3,830,000
$3,840,000.00slight increase in wages for yearly salaries,
implementation of new employeesSUPPLIESMedical Supplies
485,000 485,750sample devices, display devices for education,
lancets and test stripsOffice Supplies 265,000
265,000resource manuals for new monitors for patients and
employeesTotal Supplies 750,000
$750,750.00OTHER EXPENSESEquipment $ 250,000.00
$81,000.00wearable glucometer, bluetooth deviceLegal Fees $
108,786 $100,000.00decreased due to better monitoring of
glucose levelsProfessional Fees 152,288
$152,288.00no change in cost with this budgetUtilities
497,694 $500,000.00no change in cost with this budgetRepairs
and Maintenance 506,984 $509,000.00slight increase
for electronic devicesInsurance 154,996

$155,050.00liability insurance, device insuranceBad Debt
Expense80,000$80,000.00Uncollectable accounts, no
changeTOTAL OTHER EXPENSES $ 1,750,748
$1,577,338.00Total All Expenses $ 6,330,748
$6,168,088.00Excess (Deficit) Revenues over Expenses $
3,619,252 $5,131,912.00
14
As shown above, this project is expected to increase the overall
budget. This could increase and generate revenue, as well as
provide quality patient-centered care and improved quality of
life for diabetic patients. In total, this project is estimated to
cost $91,750 which has been added on to the budget listed
above, as well as attached in a separate spreadsheet.
14
Impacts & Justifications
Short-term
$81,000 for Dexcom wearable glucometers (with Bluetooth
monitor device)
Increased staffing costs of $10,000
$750 worth of educational supplies for the staff as well as
patients
Recorded data and easy access to 24-hour monitoring of glucose
levels to personalize patient care
Long-term
Cash flow of $70,000 for the first year
Personalized treatment plans for patients based on their
personal recorded trends
Improves patient-centered care
Stays true to Joslin’s vision and mission
15

The total projected budget for this project is $91,750, and if this
was purchased in the first quarter, healthcare staff will be
provided with the education needed to implement this device
faster, which will allow for the implementation of this program
to start sooner. Initially, the cost of the wearable glucose
monitor will be $75,000 for 100 monitors, and the cost of the
Bluetooth monitoring devices will be about $5,000 to start with
an estimated $1,000 in installation fees for the 100 devices
purchased. Educational supplies is estimated to cost $750, and
there will be an estimated increase in staff salaries of $10,000.
Long-term implications include better patient outcomes with
regards to health and disease management due to the continuous
monitoring of glucose levels, and the electronic recording of
these trends. Physician access to monthly trends allows for
individualized treatment plans which will improve the health
status of the patients at Joslin and promote self-management
and compliance within the diabetic community.
15
Cost-Benefit Analysis
Cost
Dexcom wearable continuous glucose monitoring devices (with
Bluetooth monitoring device)
Educational supplies (staff and patients)
Salaries for staff (educators, IT)
Benefits
Allows patients to continuously monitor glucose levels
Levels recorded and synced monthly to physician records to
monitor trends in glucose levels
Physicians and researchers can monitor trends and adjust
treatment accordingly
Bluetooth monitor alarms if readings are too high or too low,
per set range from physician

Staff members are more motivated with a feel of quality patient
care
Estimated 3-year payback period, increased revenue
16
When creating a cost-benefit analysis, it allows companies to
estimate the costs and the benefits that go along with the
estimated costs (Nowicki, 2018). The reasoning behind this
analysis is to see if the benefits are worth the costs, and if the
costs are worth the benefits. If there are more benefits than
costs, that is a good sign that the project should be
implemented.
As shown above, the benefits outweigh the costs significantly.
By purchasing the wearable glucose monitors instead of leasing
them, there would not be any interest charges on the lease, and
the purchase price would be a one-time deposit, not a yearly
fee. Overall, the implementation of the wearable continuous
glucose monitors is better patient outcomes, and personalized
care based on their trends in glucose levels. Each patient is
different, and this proposal allows them to be treated as such.
16
Strategic Planning
Joslin’s mission will be followed if this is implemented
Overall health of diabetic patients will improve with the
continuous wearable glucometer
Personalized treatment plans based on individual glucose trends
Patient-centered care and quality care is the main outcome of
this project

17
Joslin’s mission statement focuses on advancements in the
treatment and finding a cure for diabetes, which this proposed
plan follows. This project shows strategic planning because it
would be completed within a five-year time span, and it follows
the steps of strategic planning such as planning horizon and
objectives (Nowicki, 2018). Joslin is a non-profit organization,
and with this proposed project, it will generate revenue from the
out-patient clinic visits, which will allow more money to go into
researching new treatment ideas for diabetes. This plan will also
increase patient numbers because of shorter monthly visits,
allowing for more time for newer patients. This will also allow
Joslin to stay within the patient-centered goals it projects and
even increases quality of care based on personalized treatment
plans.
17
Conflicts
More accurate/better working technology
Patients’ compliance could decrease overtime
Staff could become overwhelmed with managing a new device
Connection issue with the Bluetooth device could arise
18
Conflicts are bound to occur with any program or project. Some
conflicts that could arise with this proposed project could be
future technological advances with better working devices could

become available, patients’ compliance could decrease overtime
which could impact their treatment and overall health, staff
could become slightly overwhelmed with implementing and
learning about a new device, and there could be connection
issues with the Bluetooth device, or generalize malfunctioning
of the device. If in the future, there are more technological
developments for glucose monitoring, Joslin’s financial stability
could be negatively impacted. Also, there could be additional
fees related to fixing any issues with the wearable glucose
devices as well as the Bluetooth monitors.
Despite these possible conflicts, I feel that this project will
positively affect the diabetic community, increase the quality of
patient care provided at Joslin, and ultimately it will lead to a
future without diabetes; which fulfills Joslin’s vision and
overall mission.
18
Conclusion
19
In conclusion, this proposed project will benefit all diabetic
patients receiving care at Joslin, and Joslin will continue to be
at the forefront of technology and research, with the hopes of
finding a cure for diabetes.
19
Follows Joslin’s mission to “Prevent, cure, and treat diabetes”
Provides personalized and patient-centered care

Better treatment plans based on data collected from these
devices, centered on individual results
Positive financial outcome
20
20
References
21
American Diabetes Association. (n.d.). The big picture:
Checking your blood glucose. Retrieved December 14, 2019.
www.diabetes.org
Center for Diseases. New CDC report: More than 100 million
americans have diabetes or prediabetes . (2017). Retrieved
December 14, 2019, from
https://www.cdc.gov/media/releases/2017/p0718-diabetes-
report.html.
Dotinga, R. (2018). Hope and hype: inside the push for
wearable diabetes technology. MDedge: Endocrinology.
Retrieved from
https://www.mdedge.com/endocrinology/article/162275/dia
betes/hope-and-hype-inside-push-wearable-diabetes-technology

Joslin Diabetes Center. 2019. About Joslin. Retrieved from:
https://www.joslin.org/about-joslin.html
Joslin Diabetes Center, INC. and Subsidiaries. (2012-2013).
Consolidated financial statements and supplemental
information. KPMG. Boston, Massachusetts.
Nowicki, M. (2018). Introduction to the financial management
of healthcare organizations. (7th ed). Chicago, Illinois:
Health Administration Press.
Waldron, T. (2019). Top 8 healthcare trends in 2019. Definitive
Healthcare. Retrieved from
https://blog.definitivehc.com/top-8-healthcare-trends-2019
To improve the health of people and communities through
accessible, quality care.
Community Mobile Radiology Unit
Southern New Hampshire University
Hello, my name is XXXX. Welcome to this meeting on
Community Mobile Radiology Unit proposal.
1
Introduction
Venice Family Clinic started in 1970 by Philip Rossman, MD
(founder) and Mayer B. Davidson, MD (co-founder) in a
borrowed storefront dental office
Venice Family Center (VFC) a non-profit, private, community-
based clinic including: 12 locations, 370 staff members and
1,371 volunteers
Provides comprehensive services including primary care,

behavioral health services, dental and vision care
75% of clientele live below poverty line and 16% are homeless
Venice Family Clinic (VFC) is a community health facility that
provides health care to those people in need (i.e. homeless
and/or low-income). Currently 75% of the clientele treated by
VFC live below the poverty line and about 16% are homeless.
The present comprehensive services provide specialized
treatment in various specialties, but their current Street
Medicine program is diversified and an area of growth and
progress.
2
Financial Status of the Organization
VFC’s current ratio for 2018 is 22.05. Current assets
($24,286,070) ÷ current liabilities (1,101,514).
VFC’s 2017 ratio = 14.93 (18,078,363 ÷ 1,210,695). Increase in
the ratio shows financial stability and growth.
Revenue: insurance reimbursements, grants, donations, and
additional subsidized by state and federal resources.
Largest portion of reimbursements received from “third-party”
vendors and grants.
Improvement in care associated to the increase in assets from
2017 to 2018 of $6 million.
Reduction in liabilities total $359,000
Based upon the annual report from 2018 the acknowledged
current ratio from 2017 to 2018 shows a growth from 14.93 to
22.05. These numbers reflect financial stability within the
organization and growth/progress. Primary reimbursement
received from “third-party” vendors with additional revenue
acquired from grants , donations, scholarships, and federal/state
subsidizing.

3
Current Healthcare Trends
There are various healthcare trends impacting the operations of
many healthcare organizations. First and foremost technology
has affected how information is collected, organized, and then
disseminated within any healthcare organization. Using
technology to provide access to the impoverished and homeless
population is now readily available through mobile medical
clinics and now mobile radiology units. Using state-of-the-art
equipment we can now receive test results quickly and
efficiently and reduce duplication of orders. Another trend that
influenced healthcare is the transition to “value-based
purchasing” not only in hospitals but also smaller clinics and
private practices. Providing care and services based upon
quality instead of quantity has affected healthcare outcomes.
Access to mobile units can decrease the risk of health
complications for at-risk populations and impact the health
issues within the community.
4
Technology improves access to resources within the community.
Reduces duplication of ordering tests/labs.
Decreases time-frame for results processing and reporting
Value-based purchasing impacts the access and availability to

testing
“Value-based programs, they are part of a larger government
effort to pay providers for quality rather than quantity by
providing better care for individuals, better health for
populations, and lower cost” (Nowicki 2018, pg. 209)
Decreasing the risk of health complications for the homeless
and poor communities can impact the health issues for society
Strategic Goals
Providing comprehensive health care that includes medical,
dental, and mental health treatments for “pediatrics, general
adult medicine, women’s, senior, homeless, and chronic care
services” (VFC 2018)
Street Medicine program providing “house calls for people
without a home.” Additional services to include mobile
radiology services to the low income and homeless population
will improve treatment options. (VFC 2018)
Most reimbursement received from Medicare/Medicaid and
private health services (third-party payer) in addition to grants,
scholarships, and financial aid which are impacted by
government policies such as the Affordable Care Act which
provides a large portion of our support. Current policy changes
or repeal of the ACA would impact outpatient services such as

radiologic testing
“Increased numbers of uninsured patients, together with both
the loss of Medicaid revenues associated with the Medicaid
expansion and most federal grant funding, would be a severe
financial shock to health centers and likely leave them unable to
sustain their operations and capacity at current levels”
(Rosenbaum, Paradise, Markus, Sharac, Tran, Reynolds, and
Shin 2017)
Within VFC’s mission and vision “to improve the health of
people and communities through accessible, quality care” (VFC
2018). Access to quality care improves the health and wellness
of the community, but also increases rates of reimbursement.
Reimbursement rates based upon specified quality care goals
and diagnosis-related groups (DRGs) can be influenced by
utilizing the current Street Medicine program and expanding on
the services provided. Any changes to the government policies
such as the Affordable Care Act (ACA) will impact any
outpatient services VFC can provide. “Increased numbers of
uninsured patients, together with both the loss of Medicaid
revenues associated with the Medicaid expansion and most
federal grant funding, would be a severe financial shock to
health centers and likely leave them unable to sustain their
operations and capacity at current levels” (Rosenbaum,
Paradise, Markus, Sharac, Tran, Reynolds, and Shin 2017).
5
Proposal for Community Mobile Radiology Unit
The current Street Medicine program provides necessary

services within the impoverished community that would not
otherwise be available. The ability to have basic radiologic
testing in “real-time” reduces the time between assessment and
treatment. Prevention of overworked staff it would be prudent
to hire 2 additional staff members to operate the mobile
radiologic unit to prevent delays in testing or lack of resources
if short-staffed. Additionally the reduction in ER visits through
the Street Medicine program and the mobile radiology unit can
reduce misuse of resources and re-admission rates for those
clients that can be maintained at “home”. Out-of-pocket
expenses can also be reduced when not referring our clientele to
an outside facility or affiliation.
6
Mobile Radiology Units in conjunction with the Street Medicine
program can also provide basic radiological services to the
homeless & homebound population.
Tests including chest x-rays (CXR), hip, knee and/or ankle x-
rays in cases of minor injuries.
Hiring 2 additional staff members to properly operate the
mobile units and equipment and prevent overworking existing
staff
Reduction in unnecessary uses of Emergency Centers for non-
emergency visits and potentially decrease readmissions if timely
outpatient monitoring can be maintained.
Addition of mobile radiology unit also decreases the out-of-
pocket expenses for our clientele from affiliation fees using
other healthcare facilities

Proposal for mobile radiology unit continued…
The purchase of a mobile radiology van/bus customized for
outpatient radiologic services will increase the access of
healthcare within the community. Additional fees will be
associated with the purchase to include equipment/supplies,
customization process, taxes, licensing and insurance fees.
Equipped with laptop/computers with hotspots/WIFIF and
connecting with the existing electronic health record (EHR)
would maintain contact with the clinic community and access to
the patient medical records.
7
Mobile units include the purchase of van/truck that can be
customized for specialized use.
Proposal includes purchasing the vehicle, equipment/supplies,
customization fees, and taxes, licensing and insurance fees.
Mobile unit would include laptop/computers with hotspots and

WIFI technology to maintain contact with clinics and access to
patient medical records
Proposed Options
Reviewing dealers currently providing van/buses for mobile
units like Odulair VFC can have the vehicle customized and
equipped with the necessary supplies and materials for efficient
and effective care. The best option for VFC would be to
purchase the vehicle outright versus a used vehicle which could
include additional maintenance costs and or additional fees if
the vehicle needs modification. Leading a vehicle would create
possible end of lease fees and most companies will not allow
customization of a vehicle after the lease is signed. All options
would include the hiring of 2 staff members to operate the
vehicle and equipment.
8
Purchase of one mobile X-ray van/bus (equipped) and the hiring
of 2 X-ray technicians to staff the mobile unit
Lease a vehicle and have it customized with the necessary
equipment. Up-front this would be a lower-cost item, but most
leases do not cover any customization of a vehicle. Hiring of 2

radiology technicians will still be necessary to cover the
operation of the unit
Purchase a used vehicle is an option but can come with many
issues such as previous wear/tear, cost for repairs/adjustments
or modifications and hiring 2 radiology technicians
Options continued…
Based upon Odulair website their customization process takes
26 weeks from start to finish which would provide ample time
to retrieve the funds for purchase. The cost range depends upon
the options selected but general cost is between $200,000-
$350,000. Hiring 2 radiology technicians will ensure proper
staffing of the unit at $99,000 per year.
9
Purchase, installation/customization takes minimum 26 weeks
for completion
Cost ranges between $200,000-350,000 depending on the
specific equipment, features/options.

Hiring 2 Radiology technicians: approximately $99,000/year on
average.
Leasing is possible but includes additional fees and possible end
of lease fees
Purchase of used vehicle possible with potential additional fees
applied to modifications, unknown wear/tear on the vehicle
Financial Research
Mobile Unit vehicles can be purchased or leased. Purchasing is
the best option. Cost is variable depending on the vehicle
chosen and customization
Access for the community to early testing improves diagnosis
and treatment time.
Access for early testing is vital for not only the low-income
population, but for those homebound who are unable to have
needed follow-up testing
Unnecessary ER visits can be reduced through sharing the
services between the Street Medicine Program and a Mobile
Radiology Unit
Mobile services are influential in cost saving measures and
improving health and wellness within the community

Mobile units are available for both purchasing or leasing but
customization makes leasing the least feasible option. Many
companies are available to assist in choosing and modifying the
vehicle one site available included Odulair. Costs are variable
depending on the options chosen but are within $200,000-
350,000 range with varying sizes available.
“Higher demands are being placed on vehicles used for mobile
medical needs…looking to outreach vehicles as a permanent
part of their culture…requires that the vehicles last longer,
making structural integrity and high-quality electrical systems
imperative” (Blanchet 2008). Reliability is needed with the
vehicle to withstand the demanding schedules needed to provide
services within the community.
10
Available Organizational Resources
Project Implementation would include:
Chief Financial Officer
Financial Manager
Department Heads
Human Resources
Street Medicine (director/staff)
IT department
Supply Director
Radiology Department
Additional resources include vehicle dealers, city clerk,
department of motor vehicle, community supporters, and
volunteers.
In addition to the finance department including the CFO and
finance managers it will be necessary to have all department
heads including the Street Medicine director involved as this
proposal will be an expansion of the current services provided.
Human resources will be needed for the creation of the job

postings/listings. The radiology department at the clinic will be
needed for a smooth transition within the program and
connecting the mobile unit with the radiologists. IT department
is needed for the computer connections and EHR maintenance
and the central supply controller will be needed for any supplies
necessary for operating the mobile unit. Additional resources
as listed above include city workers, department of motor
vehicles for registering/insuring the vehicle and involving our
current volunteers and supporters to promote the program.
11
Communication
Utilizing the current email program by sending newsletters
notifying each location of the upcoming program addition
Following up upon the email/newsletter set up departmental
team meetings
Incorporate Street Medicine Department for finalization of the
process and routine monitoring
Weekly meetings either in-person or via skype to guarantee the
process is on track until go-live-date. Prior to the go-live date
VFC will need to ensure that proper training on the use of the
unit and ensure the new hires are familiar with the computer
system
With the speed of technology these days using emails as a first
line of communication seems reasonable. Using routine
staff/department meetings to further the communication process
will ensure that everyone is on board with the program. The
Street Medicine program is needed for finalization and
monitoring of the program release and continuation. Weekly
meetings will be vital in the set-up and organization of the
program prior to the go-live-date and may be needed following
to acquire necessary feedback.

12
Statements
2018 annual report the current assets total $24,286,070 and
current liabilities total $1,101,514 for a net increase of 22.05%.
2017 financials showed assets of $18,078,363 with liabilities of
$1,210,695 for a net increase of 14.93%.
2018 annual report & Education & Outreach program would
include the Street Medicine program. Expanding to include
radiological services through a mobile unit would give
improved comprehensive medical care to the community
Statement show confirmed financial stability of VFC and
improved growth
These statements were used to show whether or not it would be
financially feasible to support such a project. The statements
show the current assets ad liabilities. Over the past few years
the clinic’s financial stability has been growing.
13
Reasoning
Purchase of the vehicle (van/bus) would need to come from an
asset account as a large sum up front would be needed
Financing is an option, but outlying fees would add up (i.e.
interest)
Purchasing a used vehicle is an option, but the outlying fees
associated with modifications and possible wear/tear on the

vehicle can become unreasonable
The mobile radiology unit can be equipped using current
disbursement accounts already used by VFC such as the Street
Medicine program, radiology department, and current supply
vendors. Purchasing the vehicle is the best option paying cash
upfront rather than leasing which could lead to outlying fees
such as interest and end of lease fees.
14
Budgeted Accounts
Recognized accounts affected by proposal
Salaries/benefits
Insurance
Equipment
Medical supplies/waste
Office supplies
Repairs/Maintenance
Technology expenses
Telephone & travel workshops
Net asset account (purchase of vehicle)
As listed above the accounts utilized will include those accounts
already in use therefore adding additional costs would not be
necessary. Many supplies can be added through the current
supply chains while others would require individual purchase
for outfitting the vehicle. Medical supplies/waste can be funded
through the clinics in addition to the office supplies.
Repairs/maintenance can be funneled into the current
maintenance department utilized for the clinics. The one large
purchase of the vehicle will need to be taken from a separate
asset account due to the customization/outfitting of the
equipment.
15

Expenses
Purchase or lease of van/bus for mobile radiology unit w/
customization
2 new hires (radiology technicians)
Purchase of medical supplies and equipment for outfitting
vehicle
IT department for remote access, hotspot, and WIFI services for
clinic communication
Education & Outreach program and Personnel departments
expenses would be impacted
As discussed in the previous slide regarding the accounts being
impacted I touched upon where many items can be added to
many existing budgets including the wage/salary, medical
supplies/waste, office supplies, and the IT department to
mention a few. The largest impact would be to the Education &
Outreach program and the Street Medicine program due to the
proposed expansion of the services provided through the mobile
radiology vehicle.
16
Ratios
Feasibility of proposal using:
Return on Investment = Investment revenue – investment cost ÷
investment cost
Present Value = PV = FV/[1+ i]ⁿ
Payback Period Analysis = year before recovery + unrecovered

cost @ beginning of year ÷ cash flow during year
PPA provides the time-frame before VFC will see a profit on
the investment.
PV (present value) is the current value of a future sum of
money/cash flow at a pre-determined rate a return.
ROI is the ratio between net profit and cost of the investment.
The mobile radiology unit is an investment in the expansion of
services provided by the Street Medicine program providing
care to the low-income and homebound community.
17
Ratio Calculations
As seen with the above numbers if VFC can pay off $75,000 per
year on the investment they will see a return on their investment
before 6 years. Additionally they have a positive net value
which means they are able to pay off their investments and are
able to operate in the “black”.
18
Cost Benefit
Utilizing the current outreach programs to provide additional
resources to the community
Homeless population are at risk for multiple health concerns
that include chronic health conditions and the effects of the
environment
Extension to the Street Medicine program utilizing a mobile
radiology unit allows VFC to reach more individuals and
provide necessary treatments
Decreasing the risk of health complications for the homeless

and poor communities can impact the health issues for society.
Maintaining the quality care and increasing community
education can impact the future success and longevity of VFC.
Reducing re-admissions impacting reimbursement rates for
those individuals that need closer follow-up services to stay out
of the hospital.
Providing safe, effective, and quality care to the impoverished
and/or homeless population has a two-fold effect on the
community. The homeless population are at risk for multiple
health concerns that includes chronic health conditions and the
effects of the environment. Living outside in elements can
increase the risk of dangerous health concerns just from
exposure to the hot/cold elements and poor hygiene. Decreasing
the risk of health complications for the homeless and poor
communities can impact the health issues for society.
19
Strategic Planning
Reduction in unnecessary ER visits and improved preventative
measures for chronic health concerns.
One large cash expense for the vehicle and additional cash flow
from current department budgets (i.e. medical supplies, office
supplies, radiology department).
With the implementation of the mobile radiology unit there will
be no profit for at least 6 years in addition to no additional
shortages
A reduction in unnecessary ER visits will allow for improved
preventative measures for chronic health conditions,

particularly in the low-income population. Purchase and
customization of the vehicle will take 26 weeks from start to
finish with variable costs depending on the various options
available and outfitting the vehicle to meet the projected needs.
The computer system will be integrated with the existing
program through VFC and having the IT department set-up the
hotspot/WIFI will maintain connection with the clinic and
access to the patient medical records. Medical and office
supplies can be accessed through the central supply department
budget. Understanding that there will be no profit for about 6
years, but the expansion of the Street Medicine program through
the mobile radiology unit will increase the reach of the program
within the community.
20
Short-Term Impact
Improved efficiency in patient care and compliance in treatment
plans.
Low-income population most often delays treatment due to lack
of finances/resources.
Improved patient compliance impacts readmission rates and
reimbursement rates.
Reduction in readmissions influences the percentage of
reimbursement rates and impact revenue.
The value in purchasing a mobile radiology unit is the improved
efficiency of patient care and compliance with treatment plans.
Caring for the homeless and low-income population requires
additional planning to provide safe and effective care. Low-
income populations often have a delay in treatments due to lack
of resources, transportation, and finances, but if we as a local
community center can provide access to necessary treatments

within the community for those who lack the ability of
transportation we can improve the health of this population and
increase patient compliance. Improved patient compliance
impacts the re-admission rates and in turn the reimbursement
rates regarding specific diagnosis related groups (DRGs). A
reduction in re-admissions influences the percentage of
reimbursement rates, therefore any impact on re-admission rates
will affect revenue.
21
Long-Term Impact
Reduction in contractual fees associated with using outside
referral sources for radiology testing
Residual fees in turn can impact patient out-.of-pocket expenses
for the clientele
Reduction in time and efficiency for the claim process which
impacts the re-imbursement rates
Reduction in delay in treatment, improve patient care, and
improve patient loyalty
Profitability is impacted by patient retention.
The mobile radiology unit ca reduce the expense of contractual
fees when using outsourcing our testing and procedures. These
residual fees eventually add up over time and can in turn impact
our patients and their out-of-pocket expenses. Improving time
and efficiency between testing time, diagnosis, and treatment
will influence the claim process which impacts the
reimbursement rates. Adding the mobile radiology unit to the
existing Street Medicine program will reduce the delay in
treatments, improve patient care within the community and
improve patient loyalty. Our profits are impacted by patient
retention and must be addressed and monitored for longevity.

“Since acquiring a new patient is six to seven times costlier
than retaining an existing one, practitioners must provide
experiences that will translate into revenue and profits for
practices” (Parker 2018)
22
Conflicts
Implementation of the Mobile Radiology unit does not conflict
with the current mission/values of VFC.
Education and training can be a concern associated with
working with the low-income population and the multiple
chronic health concerns.
Area of concern can be location for parking the vehicle.
Unsafe locale and safety of the staff/patients
Where will the vehicle be housed when not in use?
VFC currently provides care and services to the homeless and
low-income community and utilizing a mobile radiology
unit/vehicle can continue this process without the added cost on
the patient. Additional out-of-pocket expenses of having
radiology testing at a contracted or affiliated facility is felt by
the patient with a small fee for VFC.
Providing necessary training for the personnel will be needed
especially when caring for this population. Dealing with the
homeless population can lead to some unsavory clientele (i.e.
mentally ill and addiction). One area that will need further
addressing would be where to house the unit when not in use.
23
References
Blanchet, K.D. (2008). Mobile Health Clinics and Telemedicine.
Telemedicine and e-Health 14(5) pp. 407.

http://doi.org/10.1089/tmj.2008.9969
Guide to Buying a Mobile Clinic - Getting Started. (n.d.).
Retrieved from https://www.odulair.com/how-to-buy-mobile-
clinic-medical-vehicle.html
Nowicki, M. (2018). Introduction to the financial management
of healthcare organizations. Chicago, IL: HAP/AUPHA, Health
Administration Press.
Parker, S.M. (2018). 5 Ways to Improve Your Medical
Practice’s Profitability. Practice Builders Retrieved from
https://www.practicebuilders.com/blog/5-ways-to-improve-
your-medical-practices-profitability/
Rosenbaum, S., Paradise, J., Markus, A., Sharac, J., Tran, C.,
Reynolds, D. & Shin, P. (2017). Community Health Centers:
Recent Growth and the Role of the ACA , The Henry J. Kaiser
Family Foundation, January 2017. Retrieved from
http://kff.org/medicaid/issue-brief/community-health-centers-
recent-growth-and-the-role-of-the-aca/.
Venice Family Clinic (VFC) (2018). Annual Report. Retrieved
from
Venice Family Clinic (VFC (2018). Consolidated Financial
Statements. Retrieved from
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