Developing the Health Information Management Department

CASE STUDIES IN HEALTH INFORMATION MANAGEMENT . 353 CASE 6-27 EY Developing the Health Information Management Department Budget newelop a budget for the HIM department for the next FY at Sea Crest Healthcare Center. The FY begins on the next FY. july 1. Utilize spreadsheet software to develop the budget parts and then develop the department budget for There are three parts to the budget as follows: Personnel Isee Table 6-33] Operational (see Table 6-34] Capital equipment Isee Table 6-35, Figure 6-3, and Figure &-41 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. Arry 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. shenghist 09.090 03 Personnel Budget The FY personnel budget is indicated in Table 6-36. Remember that the salary raises will not go into ellect until October of the FY. co op Instructions: Calculate fringe benefits as 25% of monthly salary. A 5% raise will go into effect in October. Limitations: Overtime cannot exceed $4,000.00 for the year. No new employees. Use a spreadsheet to calculate and reflect the monthly personnel budget.

CASE STUDIES IN HEALTH INFORMATION MANAGEMENT – 355 O. Capital Equipment Budget Instructions: Complete the HIM department’s capital equipment budget for the FY. Mate: 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 4-35 Capital Equipment Information Capital Equipment Item: New Dictation System $65,000.00 Cost for system Annual income produced $20,000.00 Depreciation over five years

356 " Section # # LEADERSHIP BAE:-3 Intermation for Salary Budget Personnel Budget 20XX-20XX Salary Current Salary Position $82.000.00 Director $74.000.00 Assistant director $31,000.00 Receptionist/clerk $46.000,00 Analyst/coder/abstractor $48.500,00 Analyst/coder/abstractor $30.000.00 HIM clark $45,000.00 Transcriptionist $47.000.00 Transcriptionist Part-time HIM clerk $16,500.00 Line items total salaries Total salaries and fringe benefits Overtime CABLE d-34 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 TOTAL $5,000.00

A completed Capital Equipment Budget (Table 6-35)

The line item stating “Depreciation over five years” should actually only include ONE year of depreciation to show how much it will depreciate each year over the next five years.

A completed Personnel Budget (Table 6-33)

Follow the instructions on page 353 to calculate the new salary for each position. Ensure the raise that goes into effect in October is factored into the salaries. Since the fiscal year starts on July 1st, the raise itself would not be applied across the entire year, only from October – June.

Fringe benefits and overtime should be included at the bottom of the table, as indicated in the book. Note that the overtime total is for the entire department, not per individual.

 an Excel spreadsheet with separate tabs for each requirement.