Develop and analyze a budget for your proposed healthcare product or service (VR treatment). To do this, complete the following: Part 1: Develop the Budget Worksheet

Week 1

Module 1

Spreadsheet Orientation (optional)

Spreadsheets like Excel are especially useful when performing financial calculations and analyses, such as those you will conduct in subsequent assignments in this course to analyze the financial impact of the initiative you propose. Spreadsheets enable the quick manipulation and calculation of large amounts of numeric data. When developed properly, they also help conduct “what-if” analyses, allowing users to change certain values to determine the impacts on results (such as profits).

The following material will guide you through completion of the Week 1 Assignment 1 “W1A1 HealthWays Budget” . To complete this assignment, you will need:

· This section of the Healthcare Budget Request Guide

· The Excel file “Excel Assignment Workbook”, located in the Learning Resources

The following is a practice exercise designed to introduce, or provide practice for, the following:

· Creation of worksheet tabs

· Navigation of a worksheet

· Management of various types of worksheet data

· Creation of Excel formulas and functions

This guided exercise is optional and will not be graded. If you are new to spreadsheets and/or Microsoft Excel, you are strongly encouraged to complete this exercise to familiarize yourself with important spreadsheet functionality that you will utilize throughout this course. If you are already familiar with these spreadsheet fundamentals, you may nevertheless benefit from this activity as a refresher. Depending on your comfort level with the material, you may choose to skip the practice exercise and proceed to the next section, titled W1A1 HealthWays Budget , to begin work on Assignment 1.

Practice Exercise (Optional): Spreadsheet Fundamental

The following exercise will help orient you to the basic functionality of Microsoft Excel in preparation of Assignment 1. To complete this optional exercise, you will need:

· This section of the Healthcare Budget Request Guide

· The Excel file Excel Assignment Workbook, located in the Learning Resources

1) Download and open the file Excel Assignment Workbook located in the Learning Resources.

Note : An open Excel file is also referred to as a workbook.

2) Spreadsheets organize screens of data by using columns and rows. Columns are labeled with letters and rows with numbers. The intersection of a row and column is referred to as a cell . Cell locations, or addresses , are identified based on the letter of the column and the number of the row. For example, the first cell in the spreadsheet is referred to as “A1”. Cell addresses are always shown in the Address box near the top of the screen.

3) Notice the tabs at the bottom of the screen; the first is titled W1A1HealthWaysBudget and the next is W2A2 Practice Design with additional tabs visible. When clicked, these tabs open separate worksheets (individual pages used to organize different categories of data within a workbook).

4) In Excel, you can create many different worksheets within a single workbook. For example, in this workbook the W1A1HealthWaysBudget worksheet presents a budget report for the organization, while the W10/11A6HealthwaysFinancials worksheet presents several financial statements for the organization.

Note : that the “W” represents the week the assignment is completed, and the “A” is the assignment number. Financial statements will be discussed in more detail later in the course.

5) Create a new tab in this workbook. To do so:

a. Click the New sheet (“+” symbol) at the bottom of the screen.

b. To name the worksheet, double-click the tab and type “Practice”.

Note : You can also rename the new tab by right-clicking the tab and selecting “Rename”.

c. Some tabs may not be visible on the screen. If you look to the left of the first tab, there are < > arrows. Click these to move the view of additional tabs into view. For example, in the following the W1A1 HealthWaysBudget tab is not visible.

Adjust the view of tabs by clicking the < arrow to see the following:

You may notice that the < is now shadowed. This indicates you are at the beginning of the tabs.

6) Note that there are various types of data used in Excel:

· Text is data that utilize letters. Numbers can also be used in text data. However, these numbers must be used in conjunction with letters, or must manually be set to text.

· Numerical data utilize numbers exclusively. Unlike text data which can use numbers, numerical data cannot contain letters.

· Currency/Accounting data utilize numbers in conjunction with a currency marker.

· Dates are pieces of data that denote a date and/or time. There are multiple formats for dates within Excel.

· Percentage data are a subset of numerical data that is converted into a percentage. Percentage data can be converted back into numeric, and vice versa. Converting to numeric from percentage will display the number as a decimal. For example, 89% would be converted to 0.89.

7) Enter the following text and numeric values on the Practice worksheet in the cell locations shown below:

8) Note that the text in columns H and I may be cut off as you type in adjacent columns. This is because the column is not currently wide enough to display the text without overlapping into the next column. To adjust column widths:

a. Place your mouse pointer between the two columns in the header area between any two columns that you wish to adjust; the column to be increased should be on the left. Double-click the mouse and the column will automatically adjust to the required size to display the results.

b. Using the same approach above, you can drag your mouse (instead of double-clicking) to manually adjust the column to your preferred width. Note that the precise size is displayed as you drag your mouse.

c. You can also click the entire column by clicking the column header. This highlights the entire column. From here you can then right-click anywhere in the column and choose “Column Width”, then replace the current value with a desired value.

Note : If a column is too narrow to display numeric values, a series of repeating “####” symbols will appear.

9) Save your work by clicking the SAVE icon in the title bar (or by choosing ‘File’ and ‘Save’).

Note : Be sure to save your work frequently.

10) Excel allows for most primary formatting of text and numeric data, such as typeface ( bold, underline, etc.), font size and color, cell color, etc. Most of these options are available in the menu ribbon on the top of the screen (much like MS Word). If you like, make various formatting changes, such as boldface for column headings.

11) One of the most important features of Excel is the ability to use formulas and functions. An Excel formula is a statement you enter in a cell to calculate a value or perform some similar action. Formulas contain a combination of operators and operands. In effect you write a formula to “teach” Excel how to calculate a value.

12) Functions are similar to formulas, but they are prewritten formulas that are “built into” Excel, via the function bar . You only need to populate certain elements of a function, such as the range of cells (typically a contiguous group of cells) needed to calculate the value.

13) Use the SUM function to calculate totals. To do this:

a. Navigate to cell C10.

b. Click the AutoSum button from the task bar

c. Drag your mouse pointer over the range of values to be summed (in this case, C4 through C8)

d. Hit the ENTER key. The result in cell C10 should be 1221, meaning 1,221 units were sold across all product lines in January.

Note : Excel contains the AutoSum key as a shortcut because the SUM function is used so frequently. You can also manually type the sum function as =SUM(C4:C8) , yielding the same results.

e. Calculate totals for February and March (cells D10 and E10). If you are successful, your results should be 1970 (for cell D10) and 894 (for cell E10).

f. Calculate total units sold of Product A for the quarter (cell F4). If you are successful, your result should be 2036.

Note : If you click cell F4 after you have entered your function, you will see the result. If you examine the formula bar near the top of the screen, you will see the actual contents of the cell, which is your function ( =SUM(B4:E4) ).

g. A powerful feature of Excel is the ability to copy formulas and functions. This enables you to create a formula or function once but use it many times without retyping. Using this you can copy your function from cell F4 and paste it in cells F5 through F8. To do this:

i. Click on cell F4.

ii. Hover the mouse pointer on F4 until you see a small square in the bottom right corner of the cell. This is referred to as the “fill handle”.

iii. Click and drag the fill handle (your mouse pointer will change to a crosshair “+” symbol) until you have highlighted Cells F5 through F8.

iv. Release the mouse button. The function will now be pasted in the highlighted cells.

Note : If you click cell on any cell in your pasted range, you will see the function displayed in the formula bar near the top of the screen.

h. Your worksheet should now look as follows:

14) SUM is just one of many Excel functions. Another in the AVERAGE function, which will calculate the average of a range. To calculate the average number of products across all product lines sold in January, do the following:

a. Navigate to cell C11.

b. Enter the following text:

=AVERAGE(

c. Highlight the range C4 through C8 (or type =AVERAGE(C4:C8) )

d. Hit ENTER

e. If you are successful, C11 should contain the value 244.2.

15) Using the AVERAGE function (or copying the function from cell C11), calculate averages for March and April in cells D11 and E11. Similarly calculate average units sold per product line by using or copying the AVERAGE function in cells G4 through G8. If you are successful, your worksheet should now look as follows:

16) You can also use the SUM function to calculate the total number of products sold in Q1. Use the SUM function in cell D13 to calculate this value by summing the values in C10 through E10. If you are successful, the result will be 4085.

17) You can write a formula to calculate revenue, which is price/unit times number of units sold, by using the asterisk “ *” symbol for multiplication. To do this:

a. Navigate to cell H4.

b. Enter the formula =B4*C4 and press ENTER

18) Copy or retype the formula to calculate appropriate revenue values for all product lines in all months in cells H5 through J8.

19) Lastly, navigate to cell D14 and calculate the total revenue in Q1 by using the SUM function to add all values between H4 through J8. If you are successful, your worksheet will look as follows:

Note : You have completed the practice exercise. Continue on when you are ready to begin work on Assignment 1.

Week 1

Module 1

Assignment 1: W1A1 HealthWays Budget

Spreadsheet software like Excel is widely used when making proposals like the one you are preparing for a new healthcare product or service. Spreadsheet skills are valuable whenever there is a need to develop, analyze, and/or present financial and other numeric information.

In Assignment 1: W1A1 HealthWays Budget , you will analyze data pertaining to a fictitious healthcare organization, HealthWays Clinic Inc. You will perform various calculations and analyze the results.

The following material will guide you through completion of the assignment. To proceed, you will need:

· This section of the Healthcare Budget Request Guide

· The Excel file “Excel Assignment Workbook.xlsx”, located in the Learning Resources

Assignment 1: Step-by-Step Guide

1) If you have not done so already, download and open the file “ Excel Assignment Workbook” located in the Learning Resources.

Note : Be sure to save the file to the location you typically save documents and resave after each step to avoid losing work.

2) Navigate to the worksheet tab labeled “W1A1HealthWaysBudget”

3) Develop formulas or functions that calculate totals for the budgeted and actual encounters for June 2018, May 2018, and 2018 Year-to-Date (YTD) in the appropriate shaded cells of row 12.

4) Develop formulas or functions that calculate the variance between June 2018 budgeted and actual amounts in the appropriate shaded cells in Column D.

a. DO NOT USE the Variance function in Excel as it is a statistical variance and different from our budget variance.

b. A budget variance is simply the difference between the budget of units, expense or revenue, and the actual amount. To calculate a budget variance, you are communicating if the variance is favorable or unfavorable. In Excel, a number in parenthesis represents a negative number. So, if you see a number in parenthesis in the budget variance column, it represents an unfavorable variance, whereas a number that is not in parenthesis, represents a favorable variance. If you look in the Penner textbook on page 127 there is a sample variance report. Using that sample, we will look at units, revenue, and expense and how the variance is calculated.

c. Units and revenues are calculated as “actual minus budget”, and expenses are calculated “budget minus actual.” Examples:

i. “Total encounters” is a unit measure. The budget planned 980 encounters and the actual number of encounters was 997. The formula will be actual minus budget and yields a positive number. This is a favorable budget variance.

ii. Under “Expense” set the formula to begin with the budgeted amount and subtract the actual amount. For example, the budget for “cost per patient” is $128 but the actual amount was $134 yielding a negative $17; this is an unfavorable variable.

5) Develop formulas or functions that calculate totals for personnel expenses and non-personnel expenses in the appropriate shaded cells in rows 17 and 24.

6) Develop formulas or functions that calculate totals for health center expenses and their variances in the shaded cells in B25 through G25.

7) On the W1A1Healthways Budget Worksheet, answer the following question related to the results of your calculations:

a. What interpretations can you make based on the data? What is happening in regard to such measurables for:

i. The full-time equivalents (FTE) for HealthWays employees

ii. The number of encounters, both new and established

iii. Non-personnel expenses

iv. Total expenses

b. If these trends continue, what could it mean for HealthWays? What strategies might they employ to address any issues your analysis suggests?

Note : You have completed Assignment 1.

Week 2

Module 1

Assignment 2: W2A2 Healthcare Budget Request and Workbook Template 

This assignment has two parts. Part 1 is the development of an executive summary. Part 2 is the development of an Excel workbook template to be used throughout the course as you analyze data related to your proposed healthcare product or service. Be sure to read the details and directions as presented in the Blackboard classroom for this week.

Part 1: Executive Summary

Your executive summary will be a critical first component of your formal healthcare budget request. It will be your first real opportunity to sell leadership and other stakeholders on the value of your proposed product or service. Hence it should be persuasive. It should also be informative without explaining every facet in more detail that anyone cares to read up front. It should outline why the organization should invest resources in your idea. It should be specific and focus on results.

Executive summaries are detailed descriptions of the process for implementing a new product or product line, project, unit, or service. An executive summary has a beginning and an end; it defines the specific market or community after completion of a formal needs’ assessment and gap analysis. It is an evidence-based proposal to support a change that includes metrics and measurement for establishing expected outcomes. Elements of an executive summary include the introduction, background, description with gap or opportunity analysis, proposal for the new service; research related to the gap or plan, and a detailed evaluation plan.

For the purposes of this Assignment, your executive summary should be 1-2 pages in length excluding the Reference page. No cover page or running head is needed; however general APA formatting is required. Be sure to review the Learning Resources and conduct your own research to review samples of executive summaries (many examples can be found online). Save your Executive Summary and place it on the Health Care Budget Request Template. Save the file as W2A2_lastname_firstname_.docx and attach it to the appropriate Assignment week 2 submission link by the due date specified in the classroom.

*Attach both parts 1 and 2 before submitting.

Part 2: Excel Assignment Workbook

As you progress through this course on the development of your Healthcare Budget Request, you will apply financial ratios and other calculations to make the business case for your idea. In this Part 2 of this Assignment, you will develop an Excel worksheet template that will be used in subsequent Assignments for use in your future analysis. To do this: 

1) Open the “Excel Assignment Workbook” and find the tab titled W2A2 Practice Design.

2) Save the file as W2A2_lastname_firstname_.xlsx and submit the workbook to the appropriate Assignment 2 submission link by the due date specified in the classroom.

*Attach both part 1 and 2 files before submitting.

Note : You have completed the Week 2 Assignment 2.

Week 3 Discussion assignment: The Nurse Leader as Economist

Module 2

Please refer to course directions for discussion assignments.

Assignment: W4A3 Healthcare Budget Request – Estimating Expenses

One aspect of your proposal that will be of particular interest to decision-makers is expense. New products and services come with a myriad of costs associated with development, launch, and implementation. These costs may include human resources/personnel, equipment and supplies, marketing, training, and many more. Leadership and other decision-makers must fully understand these costs to make informed decisions about which initiatives to pursue and what level of resources commit the provision of resources.

What is Return on Investment?

An estimation of expenses provides a significant component of potential return on investment. As discussed in the Learning Resources, return on investment (ROI) is a financial measure that attempts helps evaluate profitability of an investment or a project. ROI seeks to quantify the amount of return on a particular investment in light of the total cost (expense). ROI is calculated as:

ROI = (Value of the investment – cost of the investment) / Cost of the investment

The total value of the investment represents revenues and other quantifiable value and the total cost of the investment represents expenses. When working with a proposal, as yo