Venice Family Clinic

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
Most current Annual Report and Financial Statements

Organization #2: Joslin Diabetes Center Financial Statements
Through this resource, you are able to review previous financial statements for the Joslin Diabetes Center. If you choose this healthcare organization, review the two most current available audit statements to support your work.

Specifically, the following critical elements must be addressed; however, the following order is not necessarily the order in which you will present:

Introduction
Financial Condition: Describe the overall financial condition of the organization based on financial statements and explain your reasoning.
Healthcare Trends: Describe what current healthcare trends influenced your proposal. Could any of these trends impact the organization financially?
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.
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.
Proposal
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.
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.
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).
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.
Budget
Statements: What statements were utilized for formulating your proposal? Why? Select the appropriate statements for analysis and defend your choices.
Expenses: What major expenses are associated with your proposal items and what budgetary accounts are impacted?
Reasoning: Based on the previous year’s budget data, why did you select these budget items for adjustment over other options?
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.
Ratio Calculations: Using budget statements, formulate calculations that support each recommendation.
Projected Departmental Budget: Create a projected departmental budget for the upcoming year that incorporates the costs of the proposed changes.
Impacts and Justification
Short-Term Impact: What short-term impact will this request have on the overall financial statements used for decision making and on financial planning?
Long-Term Impact: What long-term impact will this request have on the overall financial statements used for decision making and on financial planning?

Accompanying Projected Departmental Budget (Chronic Disease Management)

This projected budget is speculative and demonstrates the incorporation of the proposed capital and operating costs into the Chronic Disease Management Department (CDMD) budget.

Account Type	Previous Year Budget Data (Speculative)	Proposed Budget Adjustment	Projected Next Year Budget	Reasoning for Adjustment
Revenue: Grants/Fee-for-Service	$4,000,000	+ $300,000	$4,300,000	Projected increase in grant funding and MCO reimbursement for $\text{RPM}$ services.
REVENUE SUBTOTAL	$4,000,000	$300,000	$4,300,000
Personnel (Salaries & Benefits)	$2,500,000	+ $100,000	$2,600,000	Need for one $\text{RPM}$ Nurse Coordinator (Operating Expense).
Operating Expenses (Consumables)	$150,000	+ $10,000	$160,000	Increased supplies for device cleaning/maintenance.
IT/Software Licenses (Operating)	$50,000	+ $60,000	$110,000	Annual subscription fees for HIPAA-compliant $\text{RPM}$ platform and telehealth licenses.
CAPITAL EXPENSES	$0	+$150,000	$150,000	Purchase of 500 RPM blood pressure cuffs, glucometers, and weight scales (Capital Expense).
EXPENSE SUBTOTAL	$2,700,000	$320,000	$3,020,000
NET INCOME (SURPLUS)	$1,300,000	-$20,000	$1,280,000	Initial net loss due to one-time capital outlay, rapidly offset by revenue gain.

Critical Elements Analysis

Financial Condition (Inferred)

Based on $\text{VFC}$'s status as a major $\text{FQHC}$ that provides comprehensive services, its financial condition is likely stable but reliant on external funding. The $\text{Statement of Activities}$ (or Income Statement) would show significant revenue from contributions, grants (federal/state), and program service fees (Medicaid/Medi-Cal). Liquidity is generally adequate to cover short-term liabilities, but a large portion of funds is typically restricted for specific programs, limiting discretionary capital spending. The need for a $\text{FQHC}$ to continually seek capital funding implies that it operates with a thin operational margin relative to its service volume.

Healthcare Trends Influencing Proposal

The proposal is directly influenced by three major trends:

Telehealth and Digital Health Adoption: Accelerated by the pandemic, this trend makes remote care mandatory for continuity and access, particularly for underserved populations who face transportation barriers.

Health Equity and Access: $\text{FQHCs}$ like $\text{VFC}$ are strategic leaders in equity. Telehealth and $\text{RPM}$ directly address disparities by bringing care to patients who cannot easily access a physical clinic, a key $\text{VFC}$ mission.

Chronic Disease Management: With chronic conditions (diabetes, hypertension) prevalent in underserved communities, $\text{RPM}$ is essential for proactive management, reducing expensive emergency room visits and hospitalizations.

Financial Impact: These trends impact $\text{VFC}$ positively by increasing grant opportunities (funding is often tied to equity and digital transformation) and improving reimbursement potential from MCOs/Medicaid for $\text{RPM}$ services. However, the initial capital outlay for equipment and IT infrastructure represents a significant short-term financial burden.

Sample Answer

Capital Budget Proposal: Enhancing Digital Access at Venice Family Clinic

Target Organization: Venice Family Clinic (VFC)

Proposal Focus: Telehealth Infrastructure and Remote Patient Monitoring (RPM) System

Department: Primary Care/Chronic Disease Management

Presentation Outline (15 Slides)

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