NHS FPX 6008 Assessment 3 Developing an Implementation Plan

The above budget was created to exhibit projected revenue, expenses, and economic growth of the organization over five years from 2022 to 2025. The diabetes care unit was constructed on the organization owned land, but the building and equipment cost was $400 thousand. It was expected that it is difficult to exactly predict the cost and varying equipment cost (IQVIA, 2021). Hence, 5% increase in equipment cost and 3% possible losses due to delayed construction or increased pay or expenditure to finish the process within the time limit of one year was considered (Haque et al., 2021). As a result, $50000 was added as equipment costs in FY 2023. The unit is expected to finish by the beginning of FY 2022 and all equipment was procured within the first quarter. As it is expected that 1st year might not include high patient count, the revenue was limited to $3250 thousands considering 3 to 5% increase in health care costs from 2021 considering $100 as fees. It is also expected that the unit will be fully functional from the third quarter of FY 2022. 

Further, by considering diabetes prevalence rate, 5 to 10% increase in patient count and health care cost is considered (Sathe et al., 2016). Thus, the revenue increased in subsequent years. When it comes to the expenses, basic utilities are considered to vary slightly initially and use of energy efficient and sustainability systems will reduce the cost in the future. Thus, in FY 2025, the cost was $65000. The other operating expenses included marketing, sponsorship, and public awareness programs along with administrative expenses. The cost increased considerably from FY 2022 to 2024 as it is a new unit. However, a better reputation reduces operating cost, thus, the value stays the same at $400 thousands from 2024. 

NHS FPX 6008 Assessment 3 Developing an Implementation Plan

The insurance and staffing cost correlate as they both change with the number of patients and nurse staffing needed. Based on report by U.S. Bureau of Labor Statistics, indeed, Medscape, Glassdoor, Payscale, and other portals, the average salaries for full-time physician, nurse practitioner, medical assistant, receptionist, EHR nurse, and nurse specialist are $294,000, $124,000, $39,000, $35,000, $44,000, and $79,000 respectively (U.S. Bureau of Labor Statistics, 2021). The total salaries were calculated by considering nurse to patient ratio and 1.5% to 10% hike every year based on experience, performance, and salary growth rate (Moucheraud et al., 2019; NurseJournal, 2021). As the number of patients are expected to increase by 2024, more nurses will be recruited, which increases the cost. 

The loan repayment of $55.6 thousands is considered for the first three years to set the loan repayment of $50 thousands from 2024 onwards to reduce interest amount on loan from 2024. Thus, loan repayment value reduced significantly after three years. Based on all of the calculations, the unit showed excellent growth with an expected cash surplus of $8932.8 thousand after five years.