The project presented in this report concerns the financing hearing test system for children. As outlined in the case study and project proposal, this project outlines the implementation of the Realistic Speech Perception Device (RSPD) in Boulevard’s NTE Department. Implementation of the system will be performed via a computerized module. This project, therefore, aims to introduce early intervention procedures, especially for the children. This Realistic Speech Perception Device, (RSPD) will be introduced to the hospital NTE Department. This system will be realized through computerization. It will enable the clinical technicians to accurately analyze the results and help the child recognize sounds early enough. It will cost the hospital about $ 10,000 to install the support system as well as the devices. Furthermore, purchase of 1000 devices for the entire Department (capital equipment costs). This cost is proposed to be covered by the government`s Medical Improvement Grants (MIG). There is need for this project as it will assist in early intervention on hearing problems.
Executive Summary
The project highlighted in this report is referred to as the Financing Hearing Test System for Children. The project focuses on implementing the Realistic Speech Perception Device (RSPD) system to offer professional and effective services to Boulevard’s NTE department. The current project highlighted the comprehensive business plan fundamentals concerning the projection of financial statements, specification of business needs, and the implications of the devices after implementation by NTE’s department. The business plan description and purpose relate to Boulevard’s need to establish a system that will ensure prompt interventions of hearing issues concerning children in the hospital. The budget plan entails a comprehensive income statement projection for three years ending 2021. According to the reports, the operating revenues will decrease in the second year of doing business. Because of the operating activities costs, however, operating revenues will increase in the second year of operations after the business attains a robust stance in the market. Operating revenue of the entire report is enlisted as $169,000 in the financial year 2019, $187,980 in 2020, and $189,907 in 2021, respectively. The figures highlighted above indicate that the translation will increase by about six, five, seven, and 7.2 for the operational years highlighted in the case above ( Aggelopoulos, 2016) .
Delegate your assignment to our experts and they will do the rest.
Project Purpose and Description
The purpose of this project is to determine a comprehensive way through which hospitals (Boulevard Hospital and its subsidiaries) will implement interventions regarding provision of child services before serious cases are directed to NTE’s prevention or intervention divisions. The mission of Boulevard Hospital regarding early interventions in child hearing limitations is to establish an intervention framework that will address the needs of child clients in all facilities in the United States. Budget reports indicate the need for considering the case of adult patients in the intervention approaches focused on in this study. However, specific cost measures should determine the implementation details of the project when stakeholders believe in the reports delivered by the key parties in the administrative framework.
Financial Projection for 3-years
|
Income Statement Projection |
|||
|
For the Years Ending [2019 to Dec 31,2021] |
|||
|
2019 |
2020 |
2021 |
|
| Operating revenues | |||
| Patient service revenue |
$ 169,000.00 |
$ 187,980.00 |
$ 189,907.00 |
| Less: Provision for bad debts |
$2,500.00 |
$1,889.00 |
$2,389.00 |
| Net patient service revvenue |
$ 166,500.00 |
$ 186,091.00 |
$ 187,518.00 |
| Premium revenue |
$25,889.00 |
$19,765.00 |
$23,908.00 |
| Other revenue |
$4,986.00 |
$3,421.00 |
$6,543.00 |
| Net operating revenues |
$ 197,375.00 |
$ 209,277.00 |
$ 217,969.00 |
| Expenses | |||
| Salaries and benefits |
$ 125,097.00 |
$ 109,567.00 |
$ 126,899.00 |
| Supplies |
$23,890.00 |
$45,689.00 |
$19,876.00 |
| Insurance |
$5,469.00 |
$4,903.00 |
$4,359.00 |
| Lease |
$3,459.00 |
$4,037.00 |
$4,097.00 |
| Depreciation |
$5,690.00 |
$6,093.00 |
$6,129.00 |
| Interest |
$5,389.00 |
$6,032.00 |
$3,468.00 |
| Total expenses |
$ 168,994.00 |
$ 176,321.00 |
$ 164,828.00 |
| Operating income |
$ 28,381.00 |
$ 32,956.00 |
$ 53,141.00 |
| Nonoperating income | |||
| Contributions | $ 245.00 |
$ 189.00 |
$ 345.00 |
| Investment income | $ 3,980.00 |
$ 4,590.00 |
$ 4,093.00 |
| Total nonoperating income |
$ 4,225.00 |
$ 4,779.00 |
$ 4,438.00 |
| Excess of revenues over expenses (net income) |
$ 32,606.00 |
$ 37,735.00 |
$ 57,579.00 |
From the financial performance analysis highlighting operating income, expenses, non-operating income, and net income, the financial projection of the organization is feasible. Issues emerging from the comprehensive statement of income relate to discrepancies in net patient service revenue (premium services and other revenue), and limited accounting frameworks or models regarding depreciation (without considering property leases, rent, and warehousing). Following the expenses category framework, non-recurrent costs will continue to influence the outcomes of financial 2022 because of expected rise in leasing, depreciation, and salaries/benefits.
Proposed Procedures and Services
Regarding the principal need of this project, health facilities such as Boulevard Hospital should acknowledge patient complaints about hearing loss and extensions of hearing aids for prolonged durations among patients aged 50 years and over. Earlier intervention techniques should emphasize the introduction of intervention procedures that will assist children in undergoing computerized assessment in determining the actual needs of hearing aids. Boulevard Hospital, along with its associated premises, should consider the data related to interventions of hearing loss in the facilities it operates. Sound application of hearing aids after comprehensive patient assessment requires recognition of support systems that fail to foster patient comfort during healthcare delivery or home support services.
Lack of comprehensive measures to address hearing problems among young clients in various clinical contexts has highlighted the need for surveying hearing-aids devices. The organization focused on the current has identified the need for early intervention of hearing assistance among children patients. Detailed research evidence demonstrates that hearing aids have enhanced the performance of clinicians and other healthcare professionals. Advanced clinical tests should be performed by healthcare experts to determine the occurrence or prevalence of hearing loss among the research demography.
Funding Description
The available funding options for the organization are federal funding by the government of the United States and venture capitalists, especially from the established economies such as the European Union and United States. Regarding the funding and market entry concern highlight in this analysis, venture capitalism and federal funding offer the best capital alternative and capital structure for the potential investor ( Aggelopoulos, 2016) . Regarding the need for early interventions focusing on hearing loss among children in the United States, the federal government should act as the first investor in the measures focusing on the welfare of the people. Often, the outcomes of speech perception assessments (SPTs) correlate to the results of hearing technologies available for the individuals otherwise overlooked by the available modules. The existing hearing technologies available for every-day use encompass bone conduction implants, cochlear implants, and hearing aids.
For the project of installing a Realistic Speech Perception Device, this paper picks on the venture capital. Abbreviated as VC, venture capital would be a great funding option for the project. This is because the project may not be able to raise money in conventional ways such as taking bank loans. Ideally, the investors usually take the risk of loss in return for the high potential of future growth as well as control over the decisions made by the company and part of the ownership of the company ( Reiter & Song, 2018) . The founders of the project will first start by seeding money around. The entrepreneur should be able to convince the capitalist about the vision of the business. The Venture capital firm looks for different qualities such as good business plan, management team which is effective potential of business growth as well as high return (Kortum & Lerner, 2001) . The VC firm would then examine the economic feasibility and technical ability of the presented idea. If the investor sees the potential, the investor may decide to seed money for further examination. The VC firm would then give capital to the project for product development and marketing. After that, the project would come up with organization or leadership systems that help in propelling the project forward.
It is in the interest of the venture capitalist to nurture the project. This would help in increasing the likelihood of the project reaching an IPO stage when the project gives high returns. Thus apart from the initial financial funding, the VC Company would give expertise, time and business connections that may be valuable to the project (Manigart & Sapienza, 2017) . As the investment is illiquid and needs about 6 years to get full benefit, the VC firm would carry out due diligence and conduct detailed investigations into the company before the investment.
Market Size and Description
Historically, the adoption of data concerning hearing aids has relied on the rates of hearing welfare for the participants involved in the existing kinds of research. Data existing about the concerned participants is limited but the expectations of hearing aids have been reported to assist numerous individuals across the globe. Metrics such as the use of age demographic has highlighted that individuals aged 50 and 60 years have low rated of adoption, although numerous marketing metrics have captured their demography.
Market insights indicate that the United States market has been at the forefront of hearing aids products globally. Several of the top-notch companies offering hearing aids products have extensive product portfolio dealing with technologies such as AutoSense OS, Baseo™ Q, Bolero ™, Virto ™, Phonak Naida ™, Phonak Sky ™, CROS B, and Audeo™. Most of the existing hearing aids assistances have relied on the integration of mobile phone applications with the available devices in the market. Major industry players in the United States market, for instance, Starkey, have operated in the hearing aids sector for decades. Companies such as Starkey have produced hearing aids equipment in the United States via Muse™, Halo 2™, and other related hearing aid programs. Most of the companies have been listed as suitable hearing solutions offering aesthetic needs of patients.
Market and Sales
Historical standards and industry trends indicate that the adoption of hearing impairment aids for individuals has been low over the years. Regarding ager groups, individuals aged between 60 and 50 years have been among the lowest people accepting technologies that enhance hearing aids for every patient. The current market sales are characterized by more than 3.6 million items sold in the past three-quarters of the transactions. In the hearing aids market, several attempts have captured the unique demographics affecting patient moderations to hearing loss. Many people having hearing problems normally use hearing aids or undergo surgery for implants to assist in voice reception. The reality is that many patients experience a lot of difficulties in hearing without the aids ( Wahlen, Baginski, & Bradshaw, 2014) . This could be probably due to incorrect setting by the clinical technicians. Therefore, speech therapists need to advance in the hearing test that can predict quickly and accurately how well people with hearing aids and implants to enable them hear in the actual world of excess noise. This type of advanced test is critical and important for children for timely intervention before the hearing problem impedes their learning process.
From research, it has been established that if children with hearing problems are not treated or the situation is not intervened on time, to administer special education for such a child would be expensive compared to when the intervention is put in place on time. These costs have been estimated at over $500, 000 on a lifetime basis per child. For the adults’ category, it has been documented that loss in hearing begins at age of about 50 years which can lead to emotional stresses as well as job loss (Mallik, Chowdhury, & Chttopadhyay, 2019) . Also loss of hearing ability can reduce one`s life expectancy.
This project, therefore, aims to introduce early intervention procedures, especially for the children. This Realistic Speech Perception Device, (RSPD) will be introduced to the hospital NTE Department. This system will be realized through computerization (Henry, Frederick, Sell, Griest, & Abrams, 2015) . This will enable the clinical technicians to accurately analyze the results and help the child recognize sounds early enough. This will cost the hospital about $ 10,000 to install the support system as well as the devices. This will purchase 1000 devices for the entire Department (capital equipment costs). This cost is proposed to be covered by the government`s Medical Improvement Grants (MIG). There is need for this project as it will assist in early intervention on hearing problems.
Conclusions
Summarization of the projected financial performance is $169,000, $189,980, and $189,907 in the financial years 2019, 2020, and 2021, respectively. Many people having hearing problems normally use hearing aids or undergo surgery for implants to assist in voice reception. The reality is that many patients experience a lot of difficulties in hearing without aids. This could be probably due to incorrect settings by the clinical technicians. Therefore, speech therapists need to advance in the hearing test that can predict quickly and accurately how well people with hearing aids and implants to enable them hear in the actual world of excess noise. This type of advanced test is critical and important for children for timely intervention before the hearing problem impedes their learning process.
From research, it has been established that if children with hearing problems are not treated or the situation is not intervened on time, to administer special education for such a child would be expensive compared to when the intervention is put in place on time. These costs have been estimated at over $500 000 on lifetime basis per child. For the adults’ category, it has been documented that loss in hearing begins at age of about 50 years which can lead to emotional stresses as well as job loss. Also loss of hearing ability can reduce one`s life expectancy.
References
Kortum, S., & Lerner, J. (2001). Does venture capital spur innovation?. In Entrepreneurial inputs and outcomes: New studies of entrepreneurship in the United States (pp. 1-44). Emerald Group Publishing Limited.
Manigart, S., & Sapienza, H. (2017). Venture capital and growth. The Blackwell handbook of entrepreneurship , 240-258.
Henry, J., Frederick, M., Sell, S., Griest, S., & Abrams, H. (2015). Validation of a anovel combination hearing aid and tinnitus therapy device. Ear and Hearing, 36 (1), 42-52.
Mallik, S., Chowdhury, D., & Chttopadhyay, M. (2019). Development and performance analysis of a low-cost MEMS microphone-based hearing aid with three different audio amplifiers. Innovations in System and Software Engineering, 15 (1), 17-25.
Aggelopoulos, E. (2016). Understanding bank valuation: An application of the equity cash flow
and the residual income approach in bank financial accounting statements. Open Journal of Accounting , 6 , 1-10.
Reiter, K., & Song, P. (2018). Gapenski's fundamentals of healthcare finance. Chicago, Illinois:
Association of University Programs in Health Administration. ISBN 9781567939750
Wahlen, J. M., Baginski, S. P., & Bradshaw, M. (2014). Financial reporting, financial statement
analysis and valuation . Nelson Education.
