W4A3 Projected Expenses and Revenues (Five Year)

Interpretation and analysis

The above budget produced is an estimate of a desired outcome and expenses while the aforementioned project of providing affordable health at home-based point shall be undertaken and, in this context, pertaining to inputs required like the mobile virtualized discharge unit and medical homes. The budget has mapped the estimated start up and operational expenses against the expected revenue from the project. The purchase of equipment required has been projected to be improving in value from the 1st to the 5th year and this is due to technological advancements in the short term and hence the steady rise in value through the years. According to Keehan et.al (2017), obsolete equipment in the healthcare sector imposes hazard to the consumers and hence it is advisable to use current and most advanced equipment available.

W4A3 Projected Expenses and Revenues

Availability of professional consultants is one issue that goes hand in hand with proper healthcare service delivery. As the years move by, there will be an increase in volume of patients as well as expansion in the healthcare organization that will require diligent skilled personnel. However, as the number of personnel increases, so will the amount of expenses incurred across the levels of the organization. Insurance cover in such a situation is very vital though should not get into the extremes of moral hazards and adverse selection that could end up burdening the insurance provider.

Equally important is record keeping that will require an inventory through the years. To create awareness, and reach a wider public, adverts are very crucial, but which will require significant expense value. Noteworthy is that all practices must be in line with the government regulations. There will be a one-time payment fee across the years and government revenue through taxation which the organization must as well budget for.

The expected returns as outlined in the above budget are expected to arise from payments from the patients for rendered services. Just from observation, the revenues levied from the patients increases steadily across the years and this is attributed to good foundation that the professional consultants are expected to create. Further, with improved patient service delivery, the organization is bound to record improved patient visits that in turn translate into improved revenues. Based on quality delivered and the population served, one can comfortably assume that at some point the government will begin subsidizing the cost of care at this facility. Such aid would come in the form of supply of different health factors such as medicine as well as smaller equipment to aid in service delivery.

The ROI

The returns on investments from the grand totals of the drawn budget comes out as a positive value of 8.6%. This estimation yields a positive net return because the total returns are greater than any associated costs. Therefore, the facility can comfortably employ the above estimated budget to ensure the provision of health services from a home-based aspect through mobile virtualized units.

References for W4A3 Projected Expenses and Revenues 

  • Keehan, S. P., Stone, D. A., Poisal, J. A., Cuckler, G. A., Sisko, A. M., Smith, S. D., Madison, A. J., Wolfe, C. J., & Lizonitz, J. M. (2017). National Health Expenditure Projections, 2016–25: Price Increases, Aging Push Sector To 20 Percent Of Economy. Health Affairs, 36(3), 553–563. doi:10.1377/hlthaff.2016.1627. ISSN 0278-2715. PMID 28202501. S2CID 4927588. https://pubmed.ncbi.nlm.nih.gov/28202501/