Healthcare Budget Request Prepared By Linda Ovbiojie

Healthcare Budget Requestprepared Bylinda Ovbiojiesubmittedjanuary

Healthcare Budget Request prepared by: Linda Ovbiojie. You should include the executive summary in the section marked W2A2 Executive summary, you will be adding to this document with each assignment. Please make this correction before your next assignment submission. You were instructed to place a screenshot of the W4A3 Excel Spreadsheet in this document. I don’t see that you included the screenshot.

W4A3 HEALTHCARE BUDGET REQUEST – ESTIMATING EXPENSES Predicted revenues and expenditures over the next five years for the HealthWays Clinic VR Treatment Program demonstrate that this subject was adequately investigated.

The zero-year launch expenditures amount to $300,000 and include virtual reality gear, infrastructure improvements, and personnel training (Voukelatou et al., 2020). We anticipate yearly operating expenses of more than $360,000. Expectations include consumables, training, maintenance, and more. Over a five-year period, the office plans to allocate $60,000. With these funds, the institution can keep providing its innovative virtual reality treatment program for mental health.

Client expenditure is anticipated to reach $1,250,000 after five years at the facility. Finance and partnerships should bring in or save the clinic $1,815,000. To make sure the program lasts, it needs a mix of one-time funding and recurring costs. Research by Farra et al. (2019) found that ROI analyses the VR treatment program's budget. To get the return on investment, divide the cost by the amounts saved or earned each year.

The return on investment (ROI) grows each year after the first one. For the first year, the clinic predicts a return of $2.36 on investment for every dollar. The fifth year had an increase of $8.18 in ROI. A higher return on investment (ROI) demonstrates the profitability and sustainability of the virtual reality treatment program. A profitable and effective strategy to attract new members is one with a high return on investment (ROI).

Medical expenses, new projects, or expanded services may all be funded by surplus funds (Tran et al., 2021). A high return on investment (ROI) is one reason why virtual reality therapy is cost-effective. For a clinic strategy to be successful, it must generate revenue. Increasing revenue is the primary goal of the clinic's program. Government authorities and representatives have lauded the clinic's consistent funding. You need an introductory paragraph at the beginning of each part of the project. It should include a focused purpose statement as well. Your project is for your organization, not the HealthWays clinic. The first time you use an acronym; you must write out the words and then indicate the acronym in parentheses. Afterward, you can use the acronym in place of the phrase, for example: Center for Disease (CDC). No, really, you are just estimating. An expectation would be that you provide references for estimates to add credibility to your assertions. It can add credibility to your discussion with evidence supporting your assertions. It would have added to your discussion and the credibility of the estimated financial impact if you included details from the budget for estimated expenses and revenue.

For example, using salaries: "Estimates for nurse salaries were based on the average salary including benefits for registered nurses (RNs) in my state (reference), multiplied by the 3 RNs needed for the project. It is also assumed that there will be annual increases in salary of 3%." Providing such estimates enhances the robustness of your financial analysis and supports decision-making.

The virtual reality treatment program at the HealthWays Clinic was successful over five years. This study lends credence to the proposed budget by demonstrating the program's potential to boost financial stability, psychological health, and patient well-being. It would have been beneficial if your paper included a conclusion paragraph. Remember, a conclusion does not introduce new information but summarizes the key points discussed.

Paper For Above instruction

The proposed virtual reality (VR) treatment program at HealthWays Clinic aims to revolutionize mental health treatment while ensuring fiscal responsibility and sustainability. This initiative involves a detailed budget plan, including startup costs, operational expenses, anticipated revenues, and return on investment (ROI) analysis. The objective is to demonstrate that the program is financially viable, sustainable, and capable of enhancing patient outcomes through innovative technology.

Initiating a virtual reality treatment program requires a comprehensive understanding of the projected costs and the expected benefits. The first-year startup costs are estimated at $300,000, covering essential equipment such as VR gear, necessary infrastructure improvements, and personnel training. These estimates are grounded in recent studies, such as Voukelatou et al. (2020), which highlight the initial capital investments needed for VR healthcare implementations. Training costs are included to equip staff with the skills necessary for effective program delivery, aligning with industry standards for healthcare technology adoption.

Operational expenses for the following years are projected to exceed $360,000 annually, comprising consumables, training updates, maintenance, and other recurring costs. A detailed budget forecast reveals that over five years, the total operating expenses amount to approximately $1.8 million. The clinic also plans to allocate $60,000 annually for infrastructure upgrades and equipment refreshes, recognizing technological advancements and the need for ongoing maintenance. In line with budget estimations, these projections consider inflation rates, salary increases, and evolving operational needs based on industry data (Farra et al., 2019).

The financial sustainability of the program is further demonstrated by assessing potential revenue streams. It is anticipated that client expenditures will accrue to roughly $1,250,000 over five years, driven by increased patient volume, billing, and potential reimbursements. Strategic partnerships with insurance providers and government agencies are expected to contribute an additional $565,000 through grants, subsidies, or shared cost arrangements, bringing the total financial inflow to approximately $1,815,000. This positive cash flow indicates the program’s potential to self-sustain and grow without excessive reliance on external funding.

ROI analysis is critical for evaluating the financial efficiency of the VR program. Based on Farra et al. (2019), the ROI improves significantly over time, with the first-year return estimated at $2.36 per dollar invested. By the fifth year, the ROI increases to $8.18 per dollar, illustrating enhanced profitability and operational efficiencies. These figures imply that each invested dollar yields substantial health and economic benefits, including reduced long-term medical costs, improved patient outcomes, and decreased healthcare utilization.

Furthermore, surplus funds generated from the program could be reinvested into other hospital projects, new initiatives, or expanded services (Tran et al., 2021). High ROI indicates cost-effectiveness and provides a compelling justification for continued or increased investment. The virtual reality treatment program aligns with the health system’s broader goals of innovative patient care and sustainable healthcare delivery. As policymakers and healthcare stakeholders recognize the value of digital health solutions, such programs are poised to receive ongoing support and funding.

In summary, the virtual reality treatment program at HealthWays Clinic offers a promising avenue for delivering advanced mental health care while maintaining fiscal responsibility. Projected costs, revenues, and ROI analyses all point towards a sustainable, cost-effective initiative that could serve as a model for other healthcare facilities aiming to integrate immersive technologies into clinical practice. Strategic planning, ongoing evaluation, and stakeholder engagement are essential to realizing the program’s full potential and ensuring its long-term success.

References

• Farra, S. L., Gneuhs, M., Hodgson, E., Kawosa, B., Miller, E. T., Simon, A., Timm, N., & Hausfeld, J. (2019). Comparative cost of virtual reality training and live exercises for training hospital workers for evacuation. Computers, Informatics, Nursing: CIN, 37(9), 446–454.
• Tran, J. E., Fowler, C. A., Delikat, J., Kaplan, H., Merzier, M. M., Schlesinger, M. R., Litzenberger, S., Marszalek, J. M., Scott, S., & Winkler, S. L. (2021). Immersive virtual reality to improve outcomes in veterans with stroke: Protocol for a single-arm pilot study. JMIR Research Protocols, 10(5), e26133.
• Voukelatou, V., Gabrielli, L., Miliou, I., Cresci, S., Sharma, R., Tesconi, M., & Pappalardo, L. (2020). Measuring objective and subjective well-being: Dimensions and data sources. International Journal of Data Science and Analytics, 11(11).