Develop a budget for the HIM department for the next FY at Sea Crest Healthcare Center. The FY begins on July 1. Utilize spreadsheet software to develop the budget parts and then develop the department budget for the next FY. There are three parts to the budget as follows: Personnel (see Table 6-33) Operational (see Table 6-34) Capital equipment (see Table 6-35, Figure 6-3, and Figure 6-4) 1. Calculate the budget for each month and a total for the year. Line items to be included are identified in each of the three parts of the budget. Any limitations/instructions from administration are also provided. 2. Use the capital expenditure approval form (Figure 6-4) in completing and submitting a capital expenditure request for a new dictation system. Personnel Budget The FY personnel budget is indicated in Table 6-36. Remember that the salary raises will not go into effect until October of the FY. Instructions Limitations Calculate fringe benefits as 25% of monthly salary. A 5% raise witl go into effect in October. Overtime cannot exceed $4,000.00 for the year. No hew employees Use a spreadsheet to calculate and reflect the monthly personnel budget. 354 Section 6 LEADERSHIP O TABLE 6-33 Information for Salary Budget. Personnel Budget Position Current Salary 20XX-20XX Salary Director $82,000.00 Assistant director $74,000.00 Receptionist/clerk Analyst/coder/abstractor Analyst/coder/abstractor HIM clerk Transcriptionist $31,000.00 $46,000.00 $48,500.00 $30,000.00 $45,000.00 Transcriptionist Part-time HIM clerk $47,000.00 $16,500.00 Line items total salaries Total salaries and fringe benefits Overtime TABLE -4 Operational Budget Operational Budget Operation Budgeted Telephone $2,000.00 Supplies $1,050.00 Scanner $10,000.00 Equipment $22,000.00 Copy machine $5,000.00 Education $5,000.00 TOTAL ....** oo .......... Capital Equipment Budget Instructions: Complete the HIM department's capital equipment budget for the FY. Note: The only major equipment request is to replace your current dictation system. Administration has distributed budget requests to each department at General Hospital with a memo indicat- ing a due date of one month. Instructions state that the capital budget is "zero-based," requiring justification of any proposed capital expenditures. You have listed some justifications for a new digital dictation system for the upcoming year in Figure 6-3. You need to complete the capital expenditure approval form shown in Figure 6-4 and return it to administration with your budget. As the HIM director, you know that after administration's review of submitted department budgets, only those foreseen as most important will be approved and funded. For this exercise, include the dictation system in your capital budget as if it had been approved. TABLE -5 Capital Equipment Information Capital Equipment Item: New Dictation System Cost for system $65,000.00 Annual income produced $20,000.00 Depreciation over five years JUSTIFICATION FOR NEW TRANSCRIPTION SYSTEM The current dictation system is 15 years old. It requires service a couple of times per month. The downtime of the system averages 50 minutes each time the serviceman comes out to service it. The medical statt has complained of not being able to access the system due to getting busy signals. Dr. Delinco complains that his operative reports are taking 1 to 1% weeks to be typed. Dr. Smith has complained that the current system does not allow him to call in and listen to his dictations as an alternative when the report is not available on the patient chart. Prioritizing reports among the transcriptionists is not as automated as newer systems allow, therefore consuming transcribers' time and impacting production. FIOUNE Justification for New Transcription System CAPITAL EXPENDITURE APPROVAL FORM Description: Budget Year Type of Expenditure Briefly deline function of capital expenditure Budget Cost: $ New Replacement: Briefly describe why item is needed Justification for new transcription system is attached Isee Figure -31 F CtEapandtu A Form CASE STUDIES IN HEALTH INFORMATION MANAGEMENT Financial Analysis Annual Al Gross Revenue B) Less Depreciation Cl Gross Profit DI Asset Cost El Return on Asset F1 Payback Years Requested by: (Department Manager) Approved by: (Operations Manager) Date (Finance Managerl Date (Administrator Date. rO Capital Expenditure Approval Form leantinued Developing the Health Information Management Department Budget Develop a budget for the HIM department for the next FY at Sea Crest Healthcare Center. The FY begins on July 1. Utilize spreadsheet software to develop the budget parts and then deveiop the department budget for the next FY. There are three parts to the budget as follows: Personnel (see Table 6-33) Operational (see Table 6-34) Capital equipment (see Table 6-35, Figure 6-3, and Figure 6-4) 1. Calculate the budget for each month and a total for the year. Line items to be included are identified in each of the three parts of the budget. Any limitations/instructions from administration are also provided. 2. Use the capital expenditure approval form (Figure 6-4) in completing and submitting a capital expenditure request for a new dictation system. Personnel Budget The FY personnel budget is indicated in Table 6-36. Remember that the salary raises will not go into effect until October of the FY. Instructions: Calculate fringe benefits as 25% of monthly salary. A 5% raise will go into effect in October. Overtime cannot exceed $4,000.00 for the year. No new employees Limitations: Use a spreadsheet to calculate and reflect the monthly personnel budget.