Operating BudgetBUDGET SAMPLECurrent YearNew Budget% DifferenceCommentsGROSS REVENUEOutpatient RevenueOffice visits1,000,000immunizations500,000Well Child Exams500,000Pregnancy Care300,000Diabetes education150,000Mammography2,500,000MRI5,000,000Total Gross Patient Services Revenue9,950,000EXPENSESSalariesMD$ 2,500,000MD salaries combinedRN$ 800,000RN salaries combinedLPN$ 350,000Nursing staff salaries combinedOther Staff$ 180,000Admin staff salaries combinedTotal Salary Expense$ 3,830,000SUPPLIESMedical Supplies485,000What is needed for the clinic to operate?Office Supplies265,000What is needed for the clinic to operate?Total Supplies750,000OTHER EXPENSESEquipment$ 250,000.00 Author: Author: Equipment is 'never' and expense; Fixed assets are to be depreciated over a period of time. For example, a building is a fixed assets; a vehicle is a fixed asset; a plane is a fixed asset; all of which are to be depreciated (Note: Chapter4 in Principles of Accounting I)Legal Fees$ 108,786Professional Fees152,288Utilities497,694Repairs and Maintenance506,984Equipment Lease183,509Is your capital budget item a lease?Insurance154,996What insurance is required for the practice?Bad Debt Expense80,000Uncollectable accountsTOTAL OTHER EXPENSES$ 1,934,257Total All Expenses$ 6,514,257Excess (Deficit) Revenues over Expenses$ 3,435,743 Capital BudgetCapital Budget SAMPLESpecific Department FY 20XXPROPOSED QUARTER OF PURCHASEITEM REQUESTEDPURPOSE / USEITEM COSTINSTALLATIONTOTAL COST1st2nd3rd4thExample:Floor ScrubberFacilities $ 6,000$ 1,000 Author: Author: This is funny. How do you install a floor scrubber? A floor Scrubber is not attached to real property; thus, the asset is not installed. Commercial floor scrubbers are just delivered with a set of instructions, just like one would buy a car.$ 7,000XFloor tile in EntryFacility upgrade$ 7,000$ 3,000$ 10,000XTOTALS$ 13,000$ - 0$ 4,000$ - 0$ 17,000Submitted by:Approved by:Date :Date : Submission Feedback: You have a good start here but significant improvement is needed. Please make sure you are reviewing all my materials and taking the time to watch my video and review the rubric. Please read the rubric description - several areas you included were not well defined and lacked context/detail related to the rubric description. Make sure you continue to make the connection between your project and the mission, vision, and values of the facility. This is very important when you approach your board – they want to know how it fits into the overall objectives of the organization. I have provided some detailed feedback above that I think your project could benefit from. Think about what questions an investor or board would ask from a financial and clinical perspective and then answer them. The key is to answer questions before they are asked. One of these questions is, "How long will it take to make my money back?" Please review each criteria needing revision Proposal: Or ...

1. Operating BudgetBUDGET SAMPLECurrent YearNew Budget%
DifferenceCommentsGROSS REVENUEOutpatient
RevenueOffice visits1,000,000immunizations500,000Well Child
Exams500,000Pregnancy Care300,000Diabetes
education150,000Mammography2,500,000MRI5,000,000Total
Gross Patient Services
Revenue9,950,000EXPENSESSalariesMD$ 2,500,000MD
salaries combinedRN$ 800,000RN salaries combinedLPN$
350,000Nursing staff salaries combinedOther Staff$
180,000Admin staff salaries combinedTotal Salary Expense$
3,830,000SUPPLIESMedical Supplies485,000What is needed
for the clinic to operate?Office Supplies265,000What is needed
for the clinic to operate?Total Supplies750,000OTHER
EXPENSESEquipment$ 250,000.00
Author: Author:
Equipment is 'never' and expense; Fixed assets are to be
depreciated over a period of time.
For example, a building is a fixed assets; a vehicle is a fixed
asset; a plane is a fixed asset; all of which are to be depreciated
(Note: Chapter4 in Principles of Accounting I)Legal Fees$
108,786Professional Fees152,288Utilities497,694Repairs and
Maintenance506,984Equipment Lease183,509Is your capital
budget item a lease?Insurance154,996What insurance is
required for the practice?Bad Debt Expense80,000Uncollectable
accountsTOTAL OTHER EXPENSES$ 1,934,257Total All
Expenses$ 6,514,257Excess (Deficit) Revenues over
Expenses$ 3,435,743
Capital BudgetCapital Budget SAMPLESpecific Department FY
20XXPROPOSED QUARTER OF PURCHASEITEM
REQUESTEDPURPOSE / USEITEM
COSTINSTALLATIONTOTAL
COST1st2nd3rd4thExample:Floor ScrubberFacilities $ 6,000$

2. 1,000
Author: Author:
This is funny.
How do you install a floor scrubber? A floor Scrubber is not
attached to real property; thus, the asset is not installed.
Commercial floor scrubbers are just delivered with a set of
instructions, just like one would buy a car.$ 7,000XFloor tile
in EntryFacility upgrade$ 7,000$ 3,000$ 10,000XTOTALS$
13,000$ - 0$ 4,000$ - 0$ 17,000Submitted by:Approved
by:Date :Date :
Submission Feedback:
You have a good start here but significant improvement is
needed. Please make sure you are reviewing all my materials
and taking the time to watch my video and review the rubric.
Please read the rubric description - several areas you included
were not well defined and lacked context/detail related to the
rubric description. Make sure you continue to make the
connection between your project and the mission, vision, and
values of the facility. This is very important when you approach
your board – they want to know how it fits into the overall
objectives of the organization. I have provided some detailed
feedback above that I think your project could benefit from.
Think about what questions an investor or board would ask from
a financial and clinical perspective and then answer them. The
key is to answer questions before they are asked. One of these
questions is, "How long will it take to make my money back?"
Please review each criteria needing revision
Proposal: Organizational Resources
· Identifies the organizational resources that will be needed for
proposal implementation, but lacks accuracy or clarity. This is
the existing staff and equipment you will need to get your
project off the ground.

3. Proposal: Communication
· 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. Much more detail is needed
here. How do you plan to deploy this project? What kind of
team do you need to create and who should be on it?
Budget: Statements
· Does not select and defend financial statements for use in the
proposal. What statements did you review in determining that
this project could be undertaken by your organization?
Essentially, what statements informed your decision-making?
Budget: Expenses
· Identifies the major expenses associated with the proposal and
the budgetary accounts that would be impacted, but
identification is not accurate. This should be a list of all items
associated with your project.
Budget: Budgetary Accounts
· Identifies what budgetary accounts are impacted but does not
state how they are impacted. What accounts will be impacted by
your project and how / why?
Budget: Reasoning
· Justifies why the selected budgetary accounts were chosen for
adjustment, but not based on previous year’s budget
Budget: Ratios
· Selects and justifies ratios to use for support of the proposal,
but does not select appropriate ratios or justification is not
logical. Good start here but you will need to use the current
ratio to describe the current financial condition of the
organization. Also, consider payback period and breakeven

4. point analysis - this will be very important for this type of
project.
Budget: Ratio Calculations
· Calculates the selected ratios, but not based on the budgetary
statement analysis
Budget: Projected Departmental Budget
· Does not create a departmental budget applying the proposed
changes to a specific department
· Please use the budget template sample included in the module
and rubric. Also, include the capital budget tab.
IHP-450 Select a Capital Budget Item
Wanting to surface as many good ideas as possible, your
organization has invited all employees to submit capital budget
proposals
that would help the organization respond to industry trends and
achieve its mission and strategic goals. Employees who submit a
proposal that is accepted for implementation will receive a
$2,500 bonus.
Review the website and financial statements from your
organization (the organization you have selected for your final
project—
Venice Family Clinic or Joslin Diabetes Center). Identify a
capital budget item that you will use as the basis of your capital
budget

5. proposal. 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.
Suggestion: The developer must stipulate a monetary limit and
or a financial denial list, such as: Your department will not be
permitted to BUILD A NEW BUILDING or purchase ‘Epic’ or
purchase a cell phone and app. for everyone in Boston,
Massachusetts
that has diabetes that is a patient for the clinic.
Instructions:
1. Identify a Capital Budget Asset or Expenditure that you will
use for your department’s proposal.
Examples:
A. Purchase of a vehicle to transport patients
B. Purchase and training of telemedicine alternatives for
patients and staff to communicate
C. Purchase of DCA Vantage Hemoglobin A1C Analyzer
D. Purchase of Accu-Chek Glucometer for patients
E. Purchasing mobile computer work stations
F. Purchase or lease a new computer system with hospital cost
accounting software that will tie in to all clinic locations
Not to be Considered:
1. Purchase of a new building for millions of dollars
http://www.venicefamilyclinic.org/
https://projects.propublica.org/nonprofits/display_audit/285420

6. 181
2. Purchase or lease of a new EMR system for hundreds of
thousands of dollars
3. Purchase of a helicopter
4. Construction of a new building for millions of dollars
5. Purchase of cell phones and diabetes app for everyone in the
greater Boston area that is a patient of the clinic
Running head: CAPITAL BUDGET 1
Capital Budget 2
Venice Family Clinic: Capital Budget Item
Capital Budgeting Proposal Venice Family Clinic
Financials
With regards to the clinic’s 2012 financial statement, the
institution was subject to a $1,814, 255 loss. Earnings had
reached $41,052,317 but expenditures amounted to $42,866,572,
thus resulting in a insufficiency of $1,814,255 for that financial
year. The ROI to expenses at 41:42 indicates that the institution
was subject to an annual loss. The clinics financial report
released on 2017 indicated that the institution earned
$47,573,854; $5,723,347 more than the previous year.

7. Considering the institution’s operating costs and expenditure of
$39,208,190, the institution made a profit of $8,365,664.
Proposal Item – Electronic Health Record (EHR) Systems
They are real-time, patient-oriented records that ensure
availability of information is instant and secure to authorized
users. HealthIT.Gov suggests that EHR systems could enhance
patient care, raise patient engagement, enhance care
coordination, and enhance diagnostics as well as patient results
and the practice efficiencies and general savings. EHRs and the
capability to transfer health information digitally is useful in
delivering higher quality and safer care to patients while
generating meaningful enhancements for the clinic. EHRs allow
providers to improve management of care for patient and deliver
enhanced health care through: giving precise, current, and
extensive information concerning patients at the point of care;
allow swift access to patient records for increasingly
coordinated and efficient care; transferring electronic
information in a secure manner to patients and other clinicians;
among other advantages.
Funding Model
Direct allocation is most appropriate for this non-profit
institution since this allocation procedure consists of a one-time
issuance of every cost from departments that have costs but
don’t initiate revenue, like the housekeeping department, to cost
centre of departments that indeed initiate revenue, like
laboratory; and this institution consists of both. It is also
important to use the traceability method to focus on primary
expenses and modify the budget appropriately.
Management of Cost
The system will help in increasing the daily aggregate of patient
attended to. Workflow and productivity result in raised revenue
for the clinic without compromising patient care. The systems
allows for a reduction in mistakes related to patient care costs
and they could minimize general operation costs, for instance in
transcription services and reducing overtime expenditures. The

8. system will enhance the general performance of the practice and
still improve the efficiency and precision of the patient billing
system. The system will result in a reduction in expenditures on
office supplies and storage spaces to keep years worth of hard
copy files. Acquiring the important equipment, employing staff
for implementing and to train staff on the EHR’s standard
operating systems could all be costly endeavors for the clinic. A
number of financial incentives are present to aid in the
recouping of these costs; particularly through CMS Medicare
and Medicaid assist eligible providers acquire incentives for
embracing and appropriately using EHR systems (H. Grain,
2014).
Cost Elements
· Purchasing activities
· Acquiring the necessary licenses,
· Interfaces and HIE,
· Obtaining hardware components,
· Auxiliary devices and equipment
Implementation Steps
The first step is to establish and employ an implementation unit
comprising of Lead Physician, Project Supervisor and lead
super user. The next step is to configure the software by
interacting with the present health IT vendor to guarantee the
systems is in accordance with every appropriate security
measures and carry out a HIPAA risk evaluation too. Next is to
realize VFC’s hardware needs then update the intended data to
the system. After following the next steps it is important to
train the staff effectively.
Other Expenses
Hardware, EHR software, Help, Training and Contingencies
Budget Reasoning
Approximately $162,000 will be needed for software, hardware,
implementation, and support and an additional $85,000 for
maintenance (Hoffman, 2016).
References

9. H. Grain, F. M.-S. (2014). nvesting in E-Health: People,
Knowledge and Technology for a Healthy Future: Selected
Papers from the 22nd Australian National Health Informatics
Conference (HIC 2014). IOS Press.
Hoffman, S. (2016). Electronic Health Records and Medical Big
Data. Cambridge University Press.
IHP-450 Proposal Outline Template
You may use this Proposal Outline template to help you with
structuring Part One of your Milestone Two
submission.
Proposal
A. Options: (Identify the options available for each item in your
budget proposal)
a) Option 1:
b) Option 2:
c) Option 3:
B. Financial Research (Describe the cost benefit of each option
based on relevant information and
research)
a) Cost Benefit for Option 1
b) Cost Benefit for Option 2
c) Cost Benefit for Option 3
C. Organizational Resources (Choose one of the options above

10. and discuss what resources would
be needed to implement that option)
a) Resources needed for Option __
D. Communication (Discuss communication methods for the
option discussed in section 3 above,
and be sure to justify the appropriateness of your chosen
methods and suggestions)
a) Discuss what method of communication would be used to
notify departments across the
organization
b) Discuss what methods would be used throughout proposal
implementations
Once you complete your outline (Part One) above, you will
create your budget (Part Two) and discuss
the following elements below:
Budget
A. Statements (What statements were utilized for formulating
your proposal and why? Select the
appropriate statements for analysis and defend your choices.)
B. Expenses (What major expenses are associated with your
proposal items?)
C. Budgetary Accounts (What budgetary accounts (i.e., salaries)
are impacted and in what way?)
D. Reasoning (Based on the previous year’s budget data, why
did you select these budget items for
adjustment over other options?)

11. E. 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.)
F. Ratio Calculations (Using budget statements, formulate
calculations that support each
recommendation.)
G. Projected Departmental Budget (This element is to be
submitted in a separate Excel
spreadsheet).
IHP 450 Final Project Milestone Two: Departmental Budget and
Outline Guidelines and Rubric
Prompt: Because you have done such a good job with the
consulting assignments, your boss has asked you to lead the
development of the department’s annual
operating budget for the healthcare facility you selected, (Joslin
or Venice). She has also offered to review an outline of your
capital budget proposal before you
submit it for consideration by the decision makers. There are
two parts to this assignment that you will submit together:
Part One: Proposal Outline
First, you will outline your proposal for your boss to review.
With the goal of submitting a proposal that will help your
organization and win a $2,500 bonus, you
will create a 1–3 page outline of your final project presentation
that identifies the key points you will use to address critical

12. elements of the final project,
providing sufficient detail to allow your boss to provide
constructive feedback on your proposal. Your outline should
incorporate, where applicable, the
knowledge, concepts, and principles that you have learned in
Modules One through Five. Review the Proposal Outline
Template to gain an idea of what your
outline may look like. The notes and ideas you generate in this
outline may inform the speaker notes, visuals, and text that you
will include in your final project
proposal presentation.
To complete this part of the assignment, the following items
must be addressed:
I. Proposal
A. Options: What various options are available for each item in
your budget proposal? Provide multiple options for your
supervisor or board to
consider based on 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 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
D. Communication: What method of communication would be
used to notify departments across the organization and what
methods would be

13. used throughout proposal implementation? Justify the
appropriateness of your suggestions.
Part Two: Departmental Budget
Second, create your annual departmental budget per your boss’
request. As part of your capital budget proposal, you will need
to apply the cost of your capital
budget item, and all associated costs, to a specific department
within the organization.
Using the budget sample as an example, create your own
departmental operating budget in the Operating Budget sheet.
Please note that this is just an example
provided to help you get started. You do not have to use all of
the budget items found in the budget sample if they do not
apply to your department. You may
find that additional items are appropriate to include for your
department beyond what is included in the sample. Use the
Capital Budget sheet to calculate the
costs of your capital budget item.
https://learn.snhu.edu/d2l/lor/viewer/view.d2l?ou=6606&loIdent
Id=23971
https://learn.snhu.edu/d2l/lor/viewer/view.d2l?ou=6606&loIdent
Id=21759
As you create your department’s budget, consider items such as
hiring new staff, training, technology, and any other related
costs. Also account for the potential
revenue generated as a result of implementing the capital budget
item as well as any potential expenses incurred by your
department. These should be high-

14. level estimates.
To complete this part of the assignment, the following items, as
well as those listed above, must be addressed:
I. Budget (Please Note: Respond to the following critical
elements in the proposal outline, with the exception of element
G below, which should be
submitted as an Excel spreadsheet)
A. Statements: What statements were utilized for formulating
your proposal and why? Select the appropriate statements for
analysis and defend
your choices.
B. Expenses: What major expenses are associated with your
proposal items?
C. Budgetary Accounts: What budgetary accounts (i.e.,
salaries) are impacted and in what way?
D. Reasoning: Based on the previous year’s budget data, why
did you select these budget items for adjustment over other
options?
E. 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.
F. Ratio Calculations: Using budget statements, formulate
calculations that support each recommendation.
G. Projected Departmental Budget: Create a projected
departmental budget for the upcoming year that incorporates the
costs of the proposed
changes. (This will be submitted as an Excel spreadsheet)
Guidelines for Submission: You will submit two deliverables

15. for this assignment. Your departmental budget must be
submitted as an Excel spreadsheet. Your
proposal outline must be submitted as a single document. It
should be 1–3 pages in length with double spacing, 12-point
Times New Roman font, one-inch
margins, and citations in APA style where applicable.
Critical Elements Proficient (100%) Needs Improvement (75%)
Not Evident (0%) Value
Proposal: Options
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
8.63
Proposal: Financial
Research
Describes the cost-benefit of the
listed options based on relevant
research and information
Describes the cost-benefit of the

16. listed options, but with gaps in
relevant research and
information
Does not describe the cost-
benefit of the listed options
8.63
Proposal:
Organizational
Resources
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
8.63
Proposal:

17. Communication
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
8.63
Budget: Statements Selects and comprehensively
defends the appropriate financial
statements for use in the
proposal
Selects and defends financial

18. 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
8.63
Budget: 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
8.63
Budget: Budgetary
Accounts
Identifies what budgetary
accounts are impacted and
clearly states how

19. Identifies what budgetary
accounts are impacted but does
not state how they are impacted
Does not identify which
budgetary accounts are impacted
or state how
8.63
Budget: Reasoning
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
8.63
Budget: Ratios
Selects appropriate ratios to use
for support of the proposal and
justifies logically

20. 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
8.63
Budget: Ratio
Calculations
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
8.63
Budget: Projected
Departmental Budget
Creates a projected budget that
applies the proposed changes to
the specific department
Creates a projected budget but is

21. missing key elements of a
departmental budget
Does not create a departmental
budget applying the proposed
changes to a specific department
8.63
Articulation of
Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
5.07
Earned Total 100%