This assignment will require students to apply what they learned in this unit related to identifying how the strategic plan is used in capital budgeting. Students will simulate the decision-making process by reviewing the case that each manager makes for their intervention and scoring each one based on specific strategic plan criteria. After reading the following, open the attached MS Word document to complete the assignment.

Scenario

George A. Santana Memorial Hospital

The strategic plan for this facility includes the following:

Mission Statement:

To build a healthier and safer community by connecting underserved people with the available resources they need. This mission is achieved through a variety of efforts including providing high-quality health care in a state-of-the-art, comprehensive medical center, and the utilization of local clinics and alternative healthcare settings to reach underserved populations.

Goals: This facility thrives to achieve its mission by fulfilling the following goals:

• Engaging the underserved population through education to empower recognition of health and social challenges.
• Using resources to help the underserved overcome barriers that adversely affect their individual health and social issues.
• Focusing on efficiency and improving outcomes by emphasizing preventative interventions.

Objectives:

1. Improve access to primary care to reduce emergency care and improve outcomes by providing prevention and illness management.
2. Reduce the patient to nurse ratio to improve retention and nurse satisfaction.
3. Increase cultural outreach to underserved community residents including non-English speakers and other historically excluded communities.
4. Collaborate with other non-profit, governmental, and non-governmental agencies to address social factors contributing to poor health outcomes.

• Long-term assets (also called fixed or capital assets) are those a business can expect to use, replace and/or convert to cash beyond the normal operating cycle of at least 12 months. Often, they are used for years. Some examples of long-term assets include:
  • Fixed assets like property, plant, and equipment, which can include land, machinery, buildings, fixtures, and vehicles.
  • Long-term investments such as stocks and bonds or real estate, or investments made in other companies.

Funding

• For this scenario you are a grant manager at the George Santana Memorial Hospital (GSMH). The facility has received a $1,000,000.00 from a wealthy donor to improve the quality of healthcare provided to the underserved community in the hospitals catchment area. The funds can only be used for capital expenses. Capital expenditures in the healthcare industry generally include buildings, medical equipment, computer technology, and office furnishings. Capital expenses are typically significant purchases that a healthcare practice makes as an investment in their future.

Scoring

• Each case will be scored based on a point system. The number of points you award depends on how much the intervention is consistent with the mission, goals, and objectives of the facility. You will use the last column to justify the score.

The following (in italics) is an example of how to complete this assignment based on the information provided. This assignment requires you to score the proposal and answer the following question based on the information provided about this scenario and the projected budget.

Question: Does this proposal describe a potential long-term asset? Explain your answer in five complete sentences?

Example: Early Access Maternity Care for Women At-Risk for Poor Maternal Outcomes

Gia Conner is a nurse manager and the program director of the obstetrics support program at GSMH. She works with three perinatologists to provide care for women who are at high risk for poor maternal and infant outcomes due to pre-existing conditions and histories of complications due to pregnancy. She has noted that many of the patients seen come to clinic very late in the pregnancy when there are fewer preventative options. She wants funding to develop a continuing education program for OB/GYNs and a local community education program to alert prospective mothers and pregnant women about warning signs for complications, and when and how, to access perinatologist care earlier in the pregnancy. Table 1 is the projected budget for this proposal. This intervention would not directly generate revenue; however, benefits include reimbursement for clinical care provided by the facility, reducing costs associated with high-risk pregnancies and premature births. Other benefits include supporting the facilities mission, improved community relationships and being the primary service provider for young families thereby establishing a loyal customer base.

Table 1 Projected Budget Early Access Maternity Care for Women At-Risk for Poor Maternal Outcomes

Capital Expenses	Projected Cost	Description
Facility Based Professional Development Classroom	$ 475,000	Construction, furniture, and equipment
Educational software	$ 300,000	Software and support
Simulation Lab	$ 200,000	Construction, hardware, and software
Community-based Workshop Sites (5)	$ 25,000	Rental space and refurbishment
Total	$ 1,000,000	All capital expenses

1. Score this proposal by completing Table 2

Table 2

Scoring Early Access Maternity Care for Women At-Risk for Poor Maternal Outcomes

Criteria	Points Awarded for Meeting Criteria				Score & Justification
	Meets All 10	Partially Meets (Strong) 5 - 9	Partially Meets (weak) 1 - 4	Does not Meet. 0	Summarize reasons for score
Complies with facility mission		8			The intervention will connect high risk patients to providers
Promotes community education	10				The intervention includes a local community education program
Promotes community & individual empowerment				0	Does not address
Directs or re-directs resources to improve efficiency or patient outcomes	10				Redirects funding for prevention
Increases access to primary and preventive care	10				Redirects funding for prevention
Improves personnel satisfaction or retention				0	Does not address
Improves access for underserved populations	10				Outreach to high-risk group and their providers
Improves or initiates collaboration among service providers			4		Some collaboration via training
TOTAL POINTS	40	8	4	0	52 Total of all columns

2. Does this proposal represent long-term capital investment?

This proposal could be a long-term asset because the computer equipment and dedicated classroom space can be used for other purposes such as training. The space could also be leased or rented to individuals or businesses. This could generate revenue for the facility. In addition, the space can be converted for non-educational purposes if needed, such as conferences. The community-based workshops would not represent a long-term asset because they would not be owned by the facility.