Business Budget Case for Opening a Physiotherapy Rehabilitation Centre

This report provides a business budget case for opening a new Physiotherapy Rehabilitation Centre. It includes an outline, background, proposal, risks, process, resources, reporting of outcomes, and financial information. The report aims to detect the viability of the proposal by evaluating the relevant expenses and income. The proposal aims to provide continuous service to individuals suffering from unhealthy life style, obesity, and stress. The report also discusses the benefits, risks, and expected outcomes of the proposal.

Service Title
Business Budget Case
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Student Name
Student ID
2

Contents
Executive Summary....................................................................................................4
Outline........................................................................................................................ 5
Background................................................................................................................ 5
The Proposal.............................................................................................................. 6
Risks........................................................................................................................... 9
Process..................................................................................................................... 11
Resources................................................................................................................ 12
Reporting of outcomes..............................................................................................12
Financial Information................................................................................................13
References............................................................................................................... 15
Attachment 1............................................................................................................ 17
Attachment 2............................................................................................................ 18
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Executive Summary
The assessment mainly aims in detecting the revenues, cost, and risk
involved in opening a new Physiotherapy centre. In addition, different level of
costs, revenue and other operations of the centre is mainly disused, which
could help in detecting the viability of the proposal. However, after evaluating
all the relevant expenses and income it could be identified that the Health
care centre needs to open the Physiotherapy centre, as it might help in raising
the level of profits incurred by the company.
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Outline
The report mainly aims in detecting the overall proposal for a new
department, which could help in opening a Physiotherapy Rehabilitation
centre. Moreover, with the help of local support from health district adequate
measures could be conducted for opening the Physiotherapy Rehabilitation
centre, which could treat phycological treatments. The Physiotherapy
Rehabilitation centre will mainly help in preventing different types of diseases,
which could incur in all age groups. This type of business could eventually
help in minimising the excess cost incurred by the clients in paying for the
treatment. The physiotherapy treatment is different for individuals, which is
mainly detected from unhealthy life style, obesity and stress, The
Physiotherapy Rehabilitation centre will help in treating different physical
attributes of an individual and increase their current health condition.
Background
Individuals in the current era has physical problems, which could hinder
their possibility of living healthy life style. Physiotherapy directly allows
individuals to improve their current health conditions reduce their physical
weakness. Moreover, the number of obesity patients in the current era has
risen immensely, which is affecting their health negatively. In addition,
currently majority of the individuals work in office and have developed
different types of physical problems, which can be dealt with the help of
physiotherapy centres. Adequate specialist needs to be hired, which could
ensure that the patients receive timely treatment for their health condition.
Moreover, the centre needs expenses such as physiotherapist,
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Rheumatologists, Nurses, X-ray films, Splints, Diclofenac Gel, Gloves,
Electricity, Water, General wastage Disposal, Administrative Officer, and
Rent. After conducting the relevant expenses, the Physiotherapy
Rehabilitation centre can be opened. The impact of Physiotherapy
Rehabilitation centre will mainly be concentrated towards local levels and LHD
levels (Williams, 2016).
The Proposal
The proposal is mainly presented for opening a new Physiotherapy
Rehabilitation center, which could help in the health treatment of individual
suffering from physical problems. The relevant estimation of cost and other
attributes is being conducted in the proposal for implementing a cost-effective
Physiotherapy Rehabilitation center, which could help in the treatment of their
current disorders and physical problems. In addition, the proposals to make
income from the Physiotherapy Rehabilitation center, as maximum of the
individuals suffer from disorder of unhealthy life style, obesity, and stress.
Aims
The aim for opening the new Physiotherapy Rehabilitation centre is to
ensure a continuous service to the individuals suffering from unhealthy life
style, obesity, and stress. The proposal aims in supporting the hospital in
maximining their profits, while curing the individual from their current disorder
or problem. The new Physiotherapy Rehabilitation centre will mainly hold a
different department in the hospital, which will helps serve patients with
physical problems. The new Physiotherapy Rehabilitation centre will also
enable the hospital in improving the level of revenues, which could be
generated from operations. This increment in revenues will eventually improve
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the level of profits incurred from operations. However, the increment in profits
can be obtained from the high-quality services, which is provided from
Physiotherapy Rehabilitation centre in affordable and reasonable prices. The
other goals is to improve management, increase revenue, and improve
efficiency of the health centre (Hancock, 2016).
Benefits
 Efficiency gains
The increment in efficiency can be evaluated through the continuous
service that will be provided for the particular project. In addition, the
increment in quality of services would directly have an impact on the
operations of the company. Efficiency could also be increased when the
appropriate Physiotherapist will be transferred to the new Physiotherapy
centre, as it might help in improving efficiency in treatment of clients.
Furthermore, the overhead incurred by the department of Physiotherapy
centre will be considered, which might help in understanding the level of
efficiency associated with the treatment of new Physiotherapy patients
(Handmaker & Hart, 2015).
 Potential savings/increased costs
The proposal is mainly allowing the Health care centre for minimising any
kind of patient’s loss, which was previously conducted by the centre due to
the nonexistence of new Physiotherapy centre. However, the implementation
of the new Physiotherapy centre will incur additional machines and equipment
cost that will be incurred by the Heath care centre. This will mainly increase
the cost involved in operations for accommodating the new Physiotherapy
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centre. The increment cost of equipment, physiotherapist, Rheumatologists,
Nurses, X-ray films, Splints, Diclofenac Gel, Gloves, Electricity, Water,
General wastage Disposal, Administrative Officer, and Rent needs to be
conducted by the Health care centre (Head, 2015).
 What are the expected benefits of this proposal?
Factor Benefits
Patients The major benefit will be provided to the patients, as they will
get viable services from the Physiotherapy centre. The
patients were not able to get adequate therapy for their
problems due to the absence of Physiotherapy centre. The
problems related to unhealthy life style, obesity and stress is
mainly treated in the centre.
Facility The increment in the faciality provision of the Health centre
will immensely increase, as they will be able to provide
services regarding the problems of unhealthy life style, obesity
and stress. For completing the facility, the acquisition of
capital assets needs to be conducted by the Health Care
centre.
Clinicians Adequate benefits related to clinicians would be conducted, as
the doctors would entertain clients with different level of
diseases. This relevantly increases the efficiency of clinicians
treating in the Physiotherapy clients.
Other Other benefits can be provided from the Physiotherapy centre,
where the increment in patients visit can be conducted. The
increment in overall patients will increase revenue of the
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health centre and significantly improve its market presence.
This will eventually motive the management to increase the
number of new department in the health centre and maximise
their profitability from operations, as the centre will be able to
attract more patients.
Risks
Risk
Issue
Severity Impact Mitigation
Plan
Notes
Financial
risk
The high cost
incurred in
the treatment
of
Physiotherap
y can be
identified as
the highest
financial risk
involved in
new proposal.
The risk is
considered to
be severe.
This financial
risk will
directly have
negative
impact on
expansion
process of the
health care
centre.
For
minimising
the impact of
financial risk,
the hospital
needs to pay
off the
relevant
expenses on
the new
proposal, as it
will eventually
increase the
number of
patient vising
on daily basis
After
evaluation the
risk and
revenue from
the overall
project it
could be
identified that
the health
centre will
mainly have
high return
from
investment
after opening
the
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Risk
Issue
Severity Impact Mitigation
Plan
Notes
and increase
the overall
profitability.
Physiotherap
y centre.
Patients The number
of patients
using the
services of
the new
Physiotherap
y centre is
slim. Hence,
the risk is
considered to
be moderate.
The patients
visiting the
centre is
directly
proportionate
to the
revenue
generated by
the Health
care centre.
The risk can
be mitigated
of service of
the
Physiotherap
y centre is
high quality,
as it will
attract more
patients and
increase their
brand image
The
increment in
service users
is essential
for the
success of
the proposal,
as high
revenue is
needed to
support the
initial capital
expenses.
Insurance
s
High
insurance
expenditure
needs to be
conducted by
the Health
care centre,
The high
value
insurance
conducted by
the
individuals
will directly
The adequate
insurance
plan needs to
be maintained
by the health
care centre,
to mitigate the
Insurance is
considered to
be the most
viable
measure,
which
reduces the
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Risk
Issue
Severity Impact Mitigation
Plan
Notes
as high value
equipment’s
will be used
by the
Physiotherap
y centre
have impact
on expenses
of
Physiotherap
y centre.
risk of
penalties or
fines
risk of
operations
Process
 Action (insert as a flow chart as attachment 1)
Outline the action process, nominating the staff members responsible, actions
to be undertaken in relation to this proposal.
In order to determine the nominated members for this specific
proposal, attempts would be conducted for assuring that the qualification
reports of the doctors and the other available personnel associated with the
organisation is assessed from the objective viewpoint (Bao, 2018). Thus, the
members to be recruited for this proposal constitute of the doctors as well as
specialised practitioners in physiotherapy. Along with this, in order to ensure
the successful enforcement of the proposal, attempts would be made to
categorise the list initially to be spent and accordingly, the sources would be
fixed from which the arrangement of the requisite funds would be made.
In order to manage this plan effectively, it is necessary for the financial
advisor as well as the heads of the departments of the hospitals to formulate a
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committee. The committee would comprise of skilled practitioners and doctors
so that the proposal could be guaranteed with success and constant
monitoring and follow-up is needed as well (Cleverley, 2017).
Resources
The additional resource requirement could be described as follows:
Registered nurses:
The need for registered nurse is obvious to increase with the passage
of time, since they would be accountable for the treatment process and
medication that the doctors would prescribe.
Water, electricity and disposal of waste:
The above-stated items are extremely important at the time a new
department in a hospital is initiated (Osborne & Reeves, 2015).
Dieticians:
The field specialists would be needed so that the quality care delivery
could be assured while providing uninterrupted services to the patients in the
hospital without worrying about any sort of delays.
Disinfecting and sanitising products:
These products would be used in high quantities due to the reason that
additional patients and staffs would be present or recruited in the hospital
(Scott et al., 2016).
Reporting of outcomes
In order to monitor the costs estimated to be spent for this specific
proposal, it is necessary to appoint a group of cost specialists. They would be
accountable for reporting all detailed information about outcomes, savings
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and fall in the organisational costs to the hospital management. These reports
are needed to be prepared weekly and accordingly, they need to be
despatched to the hospital management (Stephens, 2017).
Financial Information
The financial considerations for this proposal will be required in detail (attach
the spreadsheet as Attachment 2).
There are certain line items that need to be used for developing zero-
based budgeting and they are elucidated briefly as follows:
 Registered nurses
 Receptionist
 Dieticians
 On-cost
 Costs of sanitising and disinfecting items
 Costs to buy glucometer strips
 Purchase of medical supplies
 Disposable glove acquisition
 Advertising expense
 Legal and professional services
 Insurance
In order to enforce the contingency plan, efforts are conducted
to formulate a new breakeven analysis. In this case, the cost of the
mentioned department has been minimised to $1,521,120. The
minimisation is possible due to the decline in expense like fall in
rent expense by shifting to a cheaper location, minimising the
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insurance amount along with reducing the working hours of the
staffs. Due to these minimisations, the profit is estimated to be
around $10,130.
In order to carry out the break-even analysis, adequate emphasis is
provided so that the different cost needs and the utilities of the new
department are taken into account. As stated above, the total amount to be
incurred for the physiotherapy centre is $1,521,120. On the other hand, the
estimated income is observed to be $1,531,250. When this amount is
deducted from the estimated income, a profit around $10,130 is expected to
be earned. This denotes that the hospital has managed to earn an amount,
which is higher than the break-even situation (Villani, Greco & Phillips, 2015).
Henceforth, it is possible to infer that the hospital could earn adequate profit
by including the physiotherapy centre as a separate department within the
same by providing quality services to the patients.
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References
Bao, C. S. (2018). Finance through the Buy-side Lens: Understanding the
Healthcare Industry.
Cashin, C., Bloom, D., Sparkes, S., Barroy, H., Kutzin, J., O'Dougherty, S., &
World Health Organization. (2017). Aligning public financial
management and health financing: sustaining progress toward
universal health coverage. World Health Organization.
Cashin, C., Bloom, D., Sparkes, S., Barroy, H., Kutzin, J., O'Dougherty, S., &
World Health Organization. (2017). Aligning public financial
management and health financing: sustaining progress toward
universal health coverage. World Health Organization.
Cleverley, W. O. (2017). Essentials of health care finance. Jones & Bartlett
Learning.England, K. (2016). 2016: A year of change for healthcare
finance. Health management technology, 37(3), 11-11.
Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016). Financial
management for public, health, and not-for-profit organizations. CQ
Press.
Guest, D., Campbell, D., Larch, S., & Williams, B. (2015). Taking smart steps
toward clinical integration. Healthcare financial management: journal of
the Healthcare Financial Management Association, 69(3), 56-64.
Hancock, M. S. (2016). Going beyond to manage change. Healthcare
Financial Management, 70(3), 28-29.
Handmaker, K., & Hart, J. (2015). 9 steps to effective population health
management. Healthcare financial management: journal of the
Healthcare Financial Management Association, 69(4), 70-76.
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Head, J. R. (2015). Confronting reluctance to seek a strategic partner: asking
the right questions can help independent hospitals face up to whether
they need a strategic partner to address capital or other
needs. Healthcare Financial Management, 69(6), 102-104.
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Osborne, B., & Reeves, K. (2015). Healthcare Collision Where Finance and
Quality Intersect. Arnold School of Public Health Centers for Health
Policies and Policy Research, 2010.
Scott, H., Fawkner, S., Oliver, C., & Murray, A. (2016). Why healthcare
professionals should know a little about infographics.
Stephens, J. H. (2017). HSPM 7137-Healthcare Finance and Payment
Systems.
Villani, E., Greco, L., & Phillips, N. (2015). Business Models and Institutional
Complexity: Understanding Value Creation in Healthcare Sector Public-
Private Partnerships.
Williams, R. (2016). Engaging patients to achieve the triple aim. Healthcare
Financial Management, 70(9), 72-79.
Attachment 1
Process flow chart for new service (use a spreadsheet as required outlining
each action and the steps required to complete the action)
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Attachment 2
Financial report – total life costs for the proposal (use a spreadsheet if
required)
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Formulation of the committee to initiate and implement the proposal
A team of specialised doctorrs, financial experts
and professionals would be appointed
The proposal success would rest on the
decisions of the committee
Realising the financing sources associated with the hospital
Combined effforts would be made to maintain
optimality in the hospital's capital structure
The funding sources have a variety of costs,
which would be taken into account
Determination of the associated costs
Expert advice would be sought Appropriate expenses are to be taken into
account for for making decisions

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