Elizabeth Seton Pediatric Center Proposal

Introduction 

The healthcare system today has been impacted significantly by various forces. Medical practitioners are now mandated to offer high-quality care at low costs. Additionally, the healthcare industry has shifted from providing exclusive patient care to managing the whole community’s health. Moreover, internal healthcare processes have changed from manual to technology-based service provision. Elizabeth Seton Pediatric Center has experienced significant shifts that have influenced the hospital’s delivery of patient care. The facility’s clients expect high-quality services at low prices. The healthcare center has also adopted a new technology to enhance service delivery. Moreover, the hospital is under increasing pressure to provide services to individuals beyond the facility’s maximum hospital admission age-group. 

Implications of Forces 

Elizabeth Seton Pediatric Center‘s focus has shifted to providing high quality, technological-driven services to children with complex conditions. The healthcare facility has also innovated patient care to incorporate clinical care and rehabilitation to children in their homes. Moreover, the clinic has increased its patient care to children in the entire New York. The center’s analysis may be used to determine the available opportunities and their relation with the organization’s service delivery.  

Opportunities 

Elizabeth Seton Pediatric Center provides clinical care and rehabilitation services to incredibly vulnerable children. The center bases its care on creative solutions that focus on serving babies with challenging conditions that require delicate medical attention. The organization adopts a patient-and –family service approach as a measure of enhancing the quality of care within the organization ( Goodridge et al., 2018) . The hospital is aware that children who comprise a quarter of the United States’ population are incapable of initiating medical care. Hence, healthcare policymakers should incorporate their needs into designed strategies (Dziuban, 2017) . However, the healthcare sector has increasingly ignored the need to have child-based care policies. Consequently, there is a broad gap in the healthcare system that hurts child patients. Elizabeth Seton Pediatric Center aims to seal the gap by providing innovative rehabilitation services for children with chronic conditions. The center seeks to seal the opportunity for rehabilitative services to patients who graduate from the center after attaining the age of 21 years across the United States. Currently, the hospital only admits children who are below 21 years, which has resulted in increased mortality rates after patients, have been discharged from the facility for attaining the maximum allowed age of 21.  

Proposal 

Elizabeth Seton Pediatric Center seals the existing rehabilitation gap for children in the healthcare sector. However, the hospital faces various challenges that have impacted its service remarkably. First, the clinical facility lacks adequate funding and resources to expand patient care to individuals above 21 years. The facility is also unable to host a high number of patients because of limited bed space. Currently, the organization only has 169 beds, where 65 of them are allocated to children who require ventilator services. The physical facility space is also small and can only handle a limited number of patients. Elizabeth Seton Pediatric Care intends to construct a new facility that will also provide for adults with complex medical conditions that require rehabilitation services ( Pietrafesa 2019) . Moreover, the hospital aims to increase its bed capacity to accommodate more patients. The hospital hopes to raise funds from government assistance and charitable events to manage the increasing patient population in the United States. 

II. Financial and Budgetary Conditions 

Financial Statements 

Financial and budgetary conditions help a firm to increase its asset management accountability. Financial statements show an organization’s liabilities, assets, expenses, and income expenses (Henderson, Peirson, Herbohn & Howieson, 2015) . The financial statements of Elizabeth Seton Pediatric Center will adhere to the generally accepted accounting principles. The center’s most appropriate financial report will be an income statement that will show the facility’s expenses, revenues, and periodic profit and losses earned. The revenue of the Elizabeth Seton Pediatric Center will show the organization’s earnings from selling pharmaceutical products, medicine, and doctor’s services. The hospital’s revenue will also earns indicate income earned from selling bed spaces and specialized services, such as X-Ray and MRI. The hospital’s expenses will comprise aspects, such as employee salaries, rent, water, and electricity bills. The organization’s profit and losses will be determined by deducting expenses from revenues earned. Below is a representation of the organization’s potential income statement. 

Elizabeth Seton Pediatric Centre Income Statement
Details	Value is $
Operating Revenue
Net patient service revenue	525000
Other income	110000
Total operating Revenue	635000
Operating Expenses
Salaries	350,000
Bad debts written off	40000
Depreciation	8000
other expenses	95000
Total Operating Expenses	493,000
Net Profit/Loss	142,000

Proposal Impact 

Elizabeth Seton Pediatric Center’s’ proposal will impact the income statement significantly. The ideas presented in the plan will create an opportunity in the income statement to design creative revenue generation methods ( Jahmani et al., 2017) . Additionally, the proposal; will impact the firm’s expenses in the income statement. The organization will devise means to reduce costs to enhance the organization’s profitability. Finally, the proposal may be presented in bank institutions for loan borrowing purposes, besides enabling the organization to create strategies to increase its assets ( Adilli, 2020) . Therefore, the proposal will have positive consequences for Elizabeth Seton Pediatric Center’s income statement. 

Flexed vs. Fixed 

Flexible budgets may be used for diverse production levels, besides encompassing several activities. In contrast, fixed budgets may only be applied in unitary circumstances sets in the production process. Adopting a fixed budget would imply that the Elizabeth Seton Pediatric Center operations may only be confined to children’s treatment and hospital services ( Jahmani et al., 2017 . Consequently, the income statement would be limited to revenues and expenses that only show the hospital’s patient care finances. Having a flexible budget would be the best option for Elizabeth Seton Pediatric Center because the income statement will accommodate extra services from the hospital and taxes, besides adapting to seasonal changes. 

III. Proposal Justification 

Ratio Selection 

The return on investment (ROI) ratio is most suitable for the proposal. ROI determines an organization’s loss or profits generated from invested capital. A good ROI should be at a minimum of 15% as an indication that a project is viable ( Masters et al., 2017) . However, an organization may have to reevaluate the viability of a venture if its ROI is less than 15%. 

Ratio Results 

Elizabeth Seton Pediatric Center’s expected investment will be worth #350,000, which will cater to hiring additional hospital staff, constructing a new facility, and purchasing new beds. The hospital anticipates having a revenue income of $6350000 in the first fiscal year of its expansion.  Hence, the organization’s ROI will be as presented below. 

ROI= Current value of investment – Cost of investment 

Cost of investment 

ROI= 635000-350000 *100 

635000 

ROI= 44.88% 

Elizabeth Seton Pediatric Center’s proposal has ROI of 44.88% which is higher the required minimum of 15% to indicate that a project is viable. Therefore, the proposal is highly feasible. 

Short and Long-term Impact 

Elizabeth Seton Pediatric Center’s proposal will impact the organization uniquely in the long term and short term. In the short-term, the facility will experience an influx of clients and increased popularity for enhanced service delivery and patient care ( Masters et al., 2017) . Consequently, the hospital will have increased revenue. The facility will then have an increased need for new staff, technology, and equipment, which will result in increased expenses and costs. In the long term, the hospital will have increased revenue based on the predicted income statement and ROI of 44.88%.  

IV. Closing Statement/ Conclusion 

Added Value 

The proposal will impact the organization significantly. First, the firm will have sufficient funds to purchase state-of-the-art equipment that will enhance patient care significantly. The facility will also hire highly qualified staff to cater for the new patient population target. Further, the Elizabeth Seton Pediatric Center will serve more patients, which will reduce the current mortality rates experienced after patients are prematurely discharged for attaining the maximum hospital admission age. Therefore, the proposal will add value to the hospital.  

Justification of Proposal 

The proposal is highly viable based on the projections of the income statement and ROI. The revenues exceed the predicted expenses, which imply that the Elizabeth Seton Pediatric Center’s proposal is highly profitable. Moreover, the organization has a projected ROI of 44.88%. The ideal minimum ROI rate for any feasible venture is 15%. Therefore, the high ROI indicates that the proposal is viable and should receive funding.  

References 

Adilli, A. (2020). The Flexible Budget as a Development Tool: Evidence From the Personal Preparation Course.  Available at SSRN 3539720 . 

Dziuban, E. J., Peacock, G., & Frogel, M. (2017). A child's health is the public's health: Progress and gaps in addressing pediatric needs in public health emergencies. American Journal of Public Health, 107(S2), S134–S137. https://doi.org/10.2105/AJPH.2017.303950 

Goodridge, D., Henry, C., Watson, E., McDonald, M., New, L., Harrison, E. L., Scharf, M., Penz, E., Campbell, S., &Rotter, T. (2018). Structured approaches to promote patient and family engagement in treatment in acute care hospital settings: Protocol for a systematic scoping review. Systematic Reviews, 7(35), 1-7. https://doi.org/10.1186/s13643-018-0694-9 

Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2015).  Issues in financial accounting . Pearson Higher Education AU. 

Jahmani, Y., Choi, H. Y., Park, Y., & Jiayun Wu, G. (2017). The value relevance of other comprehensive income and its components.  Revista Internacional Administracion & Finanzas ,  9 (1), 1-11. 

Masters, R., Anwar, E., Collins, B., Cookson, R., & Capewell, S. (2017). Return on investment of public health interventions: a systematic review.  J Epidemiol Community Health ,  71 (8), 827-834. 

Pietrafesa, D. (2019, April 10). Elizabeth Seton Pediatric Center seeking expansion to care for residents over 21. Catholic New York. https://www.cny.org/stories/elizabeth-seton-pediatric-center-seeking-expansion-to-care-for-residents-over-21,18963