1. 1. QUESTION

   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 Diabetic Center) ). 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 highlevel 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. 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.
   PROPOSAL OUTLINE:
   . Introduction: (Identify areas of concern) a) Capital Budget Item b) Strategic Goals

   2. Proposal: a) Financial Research b) Organizational Resources (Identify processes and equipment- identify solutions that are part of their proposal) c) Communication

   3. Budget: a) Financial Information

   4. Impacts and Justification: a) Short-term impact b) Long-term impact c) Strategic Planning (Implementation of the capital item) d) Conflicts
   BUDGET OUTINE;
   BUDGET SAMPLE

   Current Year New Budget Comments
   GROSS REVENUE
   Outpatient Revenue
   Office visits 1,000,000
   Immunizations 500,000
   Well Child Exams 500,000
   Pregnancy Care 300,000
   Diabetes education 150,000
   Mammography 2,500,000
   MRI 5,000,000
   Total Gross Patient Services Revenue 9,950,000

   EXPENSES
   Salaries
   MD $2,500,000 MD salaries combined
   RN $800,000 RN salaries combined
   LPN $350,000 Nursing staff salaries combined
   Other Staff $180,000 Admin staff salaries combined
   Admin 766,000 20% estimate of total salary expense
   Total Salary Expense $4,596,000
   SUPPLIES
   Medical Supplies 485,000 What is needed for the clinic to operate?
   Office Supplies 265,000 What is needed for the clinic to operate?
   Total Supplies 750,000
   OTHER EXPENSES
   Equipment $250,000.00 Additional equipment needed?
   Legal Fees $108,786
   Professional Fees 152,288
   Utilities 497,694
   Repairs and Maintenance 506,984
   Equipment Lease 183,509 Is your capital budget item a lease?
   Insurance 154,996 What insurance is required for the practice?
   Miscellaneous Expense 15,000 Unknown expenses that come up
   Bad Debt Expense 80,000 Uncollectable accounts
   TOTAL OTHER EXPENSES $1,949,257

   Total All Expenses $7,295,257

   Excess (Deficit) Revenues over Expenses $2,654,743

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