HS460 Unit 7 Budget Worksheet Example

Every Figure Names Its Source: A Unit 7 Budget Worksheet Pricing a Saturday Clinic Launch Package by Package

[Student Name]

Purdue University Global

HS460: Project Design and Management for Health Care

Unit 7 Budget Worksheet

[Instructor Name]

[Date]

Tillford Family Health, its prices, rates and every total are composite; the sources cited are real.

Structure

The worksheet has two tabs. The first lists one-time launch costs by package code. The second builds the cost of one Saturday from hours and rates and multiplies it across twelve Saturdays. Separating them answers two different questions: what it costs to open, and what each Saturday costs to run. Costs follow the breakdown's codes, so every line traces to a package and no package goes unpriced; packages with no direct cost, such as protocol writing done in salaried time, are listed with a zero and a note.

Tab 1: One-Time Launch Costs

1. 1.1 and 1.2 Weekend medical assistant recruitment: job board posting, 450 dollars, vendor price list; background check, 85 dollars, vendor rate; orientation, 16 hours at 27 dollars, 432 dollars. Subtotal 967.

2. 2.1 to 2.5 Clinical protocols: salaried time, 0 dollars, noted; physician review stipend, 4 partners at 150 dollars, 600 dollars, partners' agreed rate.

3. 3.2 Point-of-care tests: rapid strep, influenza and urine test kits and controls for twelve weeks, 1,740 dollars, distributor catalog.

4. 3.3 Wound care and dispensing supplies: 960 dollars, last year's weekday usage scaled to expected Saturday volume.

5. 3.4 Emergency cart restock and oxygen service: 420 dollars, supplier invoice from last year.

6. 3.1 Landlord setup fee for weekend access cards and thermostat programming: 300 dollars, landlord's letter.

7. 4.3 Mailed notices: 3,900 households at 60 cents each, 2,340 dollars, printer's quote including postage.

8. 4.4 Exterior signage: 1,450 dollars, sign company quote.

9. 4.2 Website update: 4 hours at 95 dollars, 380 dollars, web vendor rate.

10. Saturday cash drawer and card reader setup: 210 dollars, bank and vendor quotes.

11. Staff training for front desk and medical assistants: 12 staff for 2 hours at an average of 24 dollars, 576 dollars.

12. Project management: operations coordinator's time, salaried, 0 dollars, noted.

13. Contingency: 4,377 dollars, set to bring the one-time total to the planned figure, about 15 percent of all costs.

One-time total: 14,320 dollars.

Tab 2: The Cost of One Saturday

1. Nurse practitioner: 5.5 hours at 78 dollars, 429 dollars.

2. Medical assistant: 6 hours at 27 dollars, 162 dollars.

3. Front desk: 6 hours at 22 dollars, 132 dollars.

4. Saturday differential for three staff: 90 dollars, partners' approved rate.

5. Supplies and test kits used: 210 dollars, expected 19 patients at about 11 dollars each.

6. Heating and building access fee: 98 dollars, landlord's letter.

7. On-call physician stipend: 150 dollars.

One Saturday: 1,271 dollars. Twelve Saturdays: 15,252 dollars.

Totals

One-time launch costs, 14,320 dollars, plus twelve Saturdays, 15,252 dollars, equal 29,572 dollars, 2,428 dollars under the 32,000-dollar ceiling.

Building each Saturday from hours and rates lets the partners change one rate and watch exactly what happens to the total.

Expected Revenue, Kept Separate

Expected visit revenue is shown on its own line: 19 patients per Saturday at an average expected payment of 96 dollars across the payer mix, about 1,824 dollars per Saturday, or 21,888 dollars over twelve weeks. It is not subtracted from cost, because the charter's ceiling applies to spending, and because revenue estimates for a new service are uncertain. Showing both lets the partners see that each Saturday is expected to cover its running cost, while the launch costs are an investment recovered over time.

What the Partners Asked

At the partners' meeting, two questions came up. One partner asked why the contingency was so large; the answer is that two of the largest risks, a delayed hire and a locum nurse practitioner, would each add over a thousand dollars, and the contingency covers both. Another asked whether the mailing could be cut to save money; the answer is that the mailing is the main way older patients without portal accounts will learn of the session, and the risk register's low-turnout response relies on it.

Sensitivity

Two figures matter most. If turnout is 12 patients instead of 19, revenue falls to about 1,152 dollars per Saturday, slightly below running cost. If the nurse practitioner rate rises to the locum rate of 110 dollars an hour, a Saturday costs about 1,447 dollars and twelve cost 17,364, still within the ceiling because of the contingency. Health care financial management texts recommend testing the variables most likely to change before committing to a budget (Gapenski & Reiter, 2016).

Why the Basis Column Matters

Partners who were not involved in planning will ask where numbers came from. A basis column answers before they ask, and it shows which figures are firm quotes and which are estimates. Project cost guidance treats documented estimating bases as part of the cost baseline (Project Management Institute [PMI], 2021), and they make later variance explanations far easier, because a variance can be traced to the assumption that changed (Kerzner, 2017).

References

Gapenski, L. C., & Reiter, K. L. (2016). Healthcare finance: An introduction to accounting and financial management (6th ed.). Health Administration Press.

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Wiley.

Project Management Institute. (2021). A guide to the project management body of knowledge (PMBOK guide) (7th ed.). Project Management Institute.