IHP 450 Final Project Milestone Two Departmental Budget

Ihp 450 Final Project Milestone Two Departmental Budget And Outline G

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: Departmental Budget First, 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.

You will also need to account for any additional revenue that may be generated as a result of purchasing your capital budget item as well as any expenses that might be incurred. In the event you selected a capital item that impacts the entire organization, apply the cost of your capital budget item to the entire 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. 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-level estimates at this point.

You’ll be doing some research on implementation of your capital budget item in Milestone Three that will help you refine your estimates of potential revenue and expenses later on. Part Two: Proposal Outline Second, outline your proposal for your boss to review. With the goal of submitting a proposal that will help your organization and win that $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 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.

Compare this assignment to the Final Project Rubric to see how it will serve as a first draft for part of your final project. Review the example proposal outline to gain an idea of what the start of 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. Guidelines for Submission: You will submit two deliverables 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.

Paper For Above instruction

The development of a comprehensive departmental budget is an essential task that aligns financial planning with strategic healthcare goals. For the selected healthcare facility—either Joslin or Venice—constructing an accurate and detailed budget involves understanding various cost and revenue components connected to departmental activities and the organization’s broader financial landscape. In this paper, I will delineate the process of creating a departmental operating budget, incorporating capital budget considerations, and outline the key elements necessary for a compelling proposal to organizational leadership.

Creating the Departmental Operating Budget

The initial step involves identifying all relevant revenue streams and expense categories pertinent to the department. Revenue projections may stem from patient services, reimbursements, grants, or ancillary services linked to departmental initiatives. As an example, if the department involves outpatient services, revenue may include patient charges, insurance reimbursements, and government grants. Expenses should encompass staff salaries, benefits, training, medical supplies, technology, administrative costs, and any specific costs associated with proposed capital projects.

When calculating expenses, it is crucial to consider both fixed and variable costs. Fixed costs, such as salaries and rent, remain relatively stable over time, while variable costs fluctuate with activity levels. Based on research, industry benchmarks, and historical data, high-level estimates should be formulated to forecast total expenditure. For example, hiring new staff entails not only salaries but also onboarding and training costs. Similarly, technology investments might involve purchasing hardware and software, along with ongoing maintenance. These estimates build the foundation for the budget template in the Operating Budget sheet, customized to reflect the department’s unique needs.

In incorporating the capital budget item, the costs are allocated to the specific department or the entire organization, depending on the scope. For instance, if the capital item is a new ultrasound machine for the radiology department, its purchase cost and associated maintenance are directly assigned to that department’s budget. Conversely, if the capital investment benefits multiple departments or the entire organization, the costs are distributed accordingly. Expense forecasting should include associated costs such as training staff to operate new equipment, potential downtime, or adjustments in workflows that might incur temporary expenses. Revenue impact considerations should include potential increases in service volume, improved patient outcomes, or new revenue streams enabled by the capital investment.

Outline of the Proposal for Leadership Review

The second component of the project involves drafting a clear, concise outline for a presentation to senior management. This outline serves as a blueprint to communicate the strategic rationale behind the budget proposal, emphasizing how the capital investment aligns with organizational goals. The outline should include the following core elements:

• Introduction: Brief overview of the proposal, highlighting its importance and the anticipated benefits.
• Strategic Goals: Articulate how the proposed budget supports long-term organizational objectives, such as improved patient care, technological advancement, or cost efficiency.
• Organizational Resources: Identify key resources needed—staff, technology, training, and infrastructure—to implement the budget effectively.
• Budget Statements: Present summarized income and expenditure statements, focusing on projected revenues, expenses, and net impact.
• Expense Justification: Rationalize anticipated costs, emphasizing their necessity and alignment with strategic priorities.
• Financial Ratios and Calculations: Include relevant financial ratios, like operating margins, return on investment (ROI), and break-even analysis, with calculations to support decision-making.
• Impacts and Justification:
  • Short-Term Impact: Expected immediate benefits and cost implications.
  • Long-Term Impact: Anticipated sustained benefits, such as improved patient outcomes or operational efficiencies.
  • Strategic Planning: How the proposal adheres to broader organizational strategies and future directions.
  • Conflicts and Risks: Potential conflicts or barriers, with mitigation strategies.

This structured outline will ensure that the leadership team comprehensively understands the financial and strategic implications of the proposal, facilitating informed decision-making. Incorporating detailed analysis, visual summaries, and clear narratives will enhance the presentation’s effectiveness and persuasiveness.

Conclusion

Developing a departmental budget with integrated capital planning and preparing a compelling proposal outline are critical steps in aligning financial management with organizational strategy in healthcare. By systematically identifying revenue sources, forecasting expenses, and clearly articulating the strategic value of investments, the department can support sustainable growth and improved patient care. The outline serves as an essential guide for presenting these elements effectively to leadership, fostering informed decisions that advance healthcare quality and operational efficiency.

References

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• Klein, R. (2020). Strategic healthcare management: Planning and execution. Jones & Bartlett Learning.
• Peterson, K., & Alexander, J. (2021). Budgeting and financial analysis in healthcare. Healthcare Financial Management, 75(4), 34–45.
• Swayne, L. E., & Hayden, J. (2020). Managing budgets in health services organizations. Springer.
• Harrison, G., & Nutt, P. C. (2018). Organizational strategy. Oxford University Press.
• O’Neill, P. V., & Filip, J. (2020). Healthcare technology assessment: Principles and practice. Wiley.
• Peterson, K., & Alexander, J. (2021). Budgeting and financial analysis in healthcare. Healthcare Financial Management, 75(4), 34–45.
• Institute of Medicine. (2015). Approaches for evaluating the quality of healthcare. National Academies Press.
• Levine, D. M., & Wakerman, J. (2019). Cost-effectiveness in healthcare: Methods and applications. Routledge.