Assignment: W6A4 Healthcare Budget Request – Budget Development
Part 1: Develop the Budget Worksheet
For Part 1 of this Assignment, you will develop a sample budget for the healthcare product or service you have proposed. You will also apply ratios to analyze the budget and provide information that can guide choices. To do this:
- Review the Learning Resources, particularly those on creating budgets.
- Open the W4A3_last name_firstname.xlsx file you created in the previous Assignment.
- Navigate to the W6A4 Budget Development
- Create a 5-year budget for the healthcare product or service that records the projected expenses and revenues associated with the healthcare product or service you have proposed. Be sure to include startup and operating expenses in your budget. *You are moving the same data from Week 4 to this worksheet. Be sure to correct any errors your instructor feedback provided in your week 4 work.
- Develop or re-enter formulas or functions that calculate the following:
- The total estimated startup expenses (those occurring in year 0) for your product or service. Be sure to label each appropriately, with enough description to make it clear what the item is and any necessary details regarding sources of revenues (including reimbursements).
- The total estimated expenses and costs per year and for the five-year period for your product or service
Note: After any corrections based on instructor feedback the “Total estimated expenses” should match those you presented on the W4A3 Estimated Expenses worksheet (from the previous Assignment).
- The payback period for your product or service idea
Note: After any corrections based on instructor feedback the values used for this calculation – including estimated revenues, should match those you presented on the W4A3 Estimated Expenses worksheet (from the previous Assignment).
Begin by calculating the Cash Flow line:
Calculating net cash flow starts with the year 0 cash flow.
- Year 0 net cash flow equals Year 0 cash flow.
- Add year 1 cash flow to the year 0 net cash flow.
- Repeat for all 5 years.
- The following might help you visualize this formula.
- Include any other ratios or other analyzes that you believe will strengthen your business case or help inform the decision-making process.
- Save the workbook as W6A4_last name_+firstname.xlsx and submit the workbook to the appropriate week 6 assignment link by the due date specified in the classroom.
- Copy and paste the work (screenshot) onto the Healthcare Budget Request Template above Part 2.
Part 2: W6A4 Projected Budget (Five Year)
Summary of Analysis and Interpretation of Results
For Part 2 of this Assignment, you will describe your budget and analysis. To do this:
- Create a brief (1- to 2-page) description in Healthcare Budget Request Template Word document of your budget and analysis. Your description should clearly describe the budget and address the following:
- During the course of five years, is there an estimated surplus or deficit?
- What percentages of the budget are dedicated to various categories you have defined, such as startup costs, etc.?
- What are some risks that could create budget variances over the five-year period of your analysis? Are there any strategies that can help mitigate the risk of unfavorable variances?
- What does this budget mean for your organization?
Save and submit the document and your updated Excel Assignment Workbook and the Healthcare Budget Request Template to the appropriate Week 6 Assignment submission link by the due date specified in the classroom.
*Attach both files before submitting.
Note: You have completed Week 6 Assignment 4.
Assignment: W8A5 Healthcare Budget Request – Ratio Analysis