Budget Proposal for 2016

This budget proposal provides the necessary cost for the ambulatory
rehabilitation clinic 2016 total operational expense. Below is the itemized
budget proposal and justification.
Total Budget based on projected revenue: $1,275,000.00
Cost Element
Fixed Expenses
FTE (full time employees)
Clinicians: 5= $625,000.00
Technician: 1= $60,000.00
Admin/transcription: 1=$50,000.00
Insurance: $100,000.00
Office Rent cost: $90,000.00
Maintenance contract: $10,000.00
Variable Expenses
Part time employees
Technicians: 2= $60,000.00
Administration help: 2= $40,000.00
Medical Supplies: $50,000.00
Office Supplies: $30,000.00
Utilities: $10,000.00
Justification
The clinic sees 1.5 patients per hour in a 8 hour day 5 days a week schedule
requiring 5 full time clinicians, a full time technicians, and 2 part-time
technicians. For support and administrative functions, 1 full time
administrative secretary who also functions as a transcriber is necessary. Two
additional administration positions are required for scheduling and other
administrative responsibilities.
Maintenance contracts for medical and office equipments are negotiated on
a yearly basis. Insurance coverage is necessary to provide additional liability
coverage.
Clinic operation requires utilities, medical and office supplies.

Purchase order for additional equipment

Quantity
1
1

10

12
100

Item

Description

Elgin Hi-Lo TX
table
Intellect
ultrasound
device
2 round
Dura-stick
electrodes
Sani-cloth

2-section electric treatment

table
Transport combo with 5CM
applicator

Hammermill
multipurpose
paper

Premium multipurpose paper

81/2 x 11

Unit
Price
$1800.0
0
$2970.0
0

Premium electrodes with

$56.67.
stainless steel mesh and
00
blue gel
Germicidal disinfectant wipes $24.53
$54.29

Total
$1800.
00
$2970.
00
$566.7
0
$294.3
6
$5429.
00

Subtotal: $11,060.06

Rationale for equipment need and budget

The Elgin HI-Lo TX table has been an ergonomically proven equipment
that would eliminate possible safety issues such as patients falling from a
stool while getting onto the treatment table. This then will also help prevent
injuries and discomfort to the patient. The electric table can be lowered and
raised to the height of the patient and allows for an easier access to the
table. The table will also provide a better condition for the staff.
We are in desperate need of another ultrasound device. The one
device we currently have must be shared between all the clinicians and
technicians and it is over used. Another ultrasound will make the workflow
smoother and decreasing patient turnaround time. The Dura-stick electrodes
are higher quality stainless steel product that have a longer life and give
more efficient reading than the traditional plastic electrodes.
The germicidal Sani-cloth is all in one sanitizer product. This
eliminates the mixing of 10% bleach solution, storage and transport of the
concentrated bleach solution. Sani-cloth is also less expensive.

We need the premium Hammermill multipurpose paper that has been

known to be a better paper choice for busy offices according to APP Money
Journal. The paper is thicker and smoother reducing and eliminating the
jamming and tearing in the printing/copy machine.

Short in Budget by 15%

Since all the requested equipment were covered except the Elgin HiLo electric treatment table but have enough funds to purchase an adjustable
wood table at the cost $683.00. This would still suffice the need for
ergonomic equipment and reduces the cost of the requested equipment and
gain $976.00.
Difference between Zero based budget and over PPBES and other
budgets
Zero based budget is a need based financial planning using the
projected revenue for the year to justify and allocate the cost of goods and
overall operational expense for the organization or facility. Expense and
revenue will equal to zero. The budget from the previous year is not
considered. Budget is built around what is needed for the upcoming year. It
focuses on finding cost effective ways to improve the activities of the
organization, detects over budgeting, it is short term and it requires
justification for all expenses.
PPBES is similar to Zero based budget by the need to justify all the
expenses. This is a long term budget and goal based using an existing
budget from previous years.
The other budget plans and programs use the previous years budget
as their template. All expenses are placed into categories and the funds can
be used in any way within the category. These are the simplest type of
budgets and are most often used. There is no need for justification which
can present disproportionate funding. The existing budget is increased or
decreased each year and all categories are given the same funding.