- Reflect on the healthcare product or service solution you have proposed for your healthcare organization. Consider expenses (including start-up expenses and any capital expenditures) that will be required to implement your product or service.
- Reflect on the estimated revenues (if any) that your proposed solution will generate. If your project does not generate a direct revenue source, consider cost avoidance, or cost savings as an alternate potential revenue source.
- Reflect on the need for financing to meet the estimated expenses associated with your idea.
- For each of the above, consult with your internal financial counselor as needed.
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Conduct an analysis of estimated expenses and revenues associated with your product or service idea by completing the following:
Part 1: Expense/Revenue/ROI Analysis:
Open your Excel Assignment Workbook and navigate to the “W4A3 Estimated Expenses” worksheet. Using the Healthcare Budget Request Guide for guidance, create a worksheet that records the following:
- Each of the estimated expenses associated with your proposed idea, including startup expenses. Be sure to label each appropriately, with enough description to make it clear what the item is and what the estimated cost involves.
- Each of the estimated revenues associated with your proposed idea. 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).
- Calculate the total estimated expenses and revenues for the next 5-year period.
- Calculate the Return on Investment (ROI) for your proposed idea.
- Create a brief (1- to 2-page) description of your analysis that clearly describes the estimated financial impact of your proposed idea. Interpret the results by explaining what your ROI calculation means to the organization. Place your analysis on the Healthcare Budget Request Template under the section titled W4A3 Projected Expenses and Revenues (Five Year).
: W4A3 Projected Expenses and Revenues (Five Year) Summary of Analysis and Interpretation of Results
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