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:
Analyze healthcare trends to inform effective decision making and financial planning within healthcare management
Integrate effective communication and leadership principles into financial proposal presentations
Articulate the purpose and importance of financial statements and principles for healthcare decision making Create realistic departmental budgets based on financial statements, healthcare trends, and strategic plans
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.
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.
