Budget Narrative - QMPA CARE Project

Queens Medical Professional Association: Budget Narrative

QMPA has estimated the cost of the two-year value based health care program to be $834,240. This cost is gathered from annual salary, fringe benefits and organizational expenses and multiplying that total, $417,120 by two to get $834,240. A further breakdown of the individual portions of the total annual cost is available below.

Type of Expense	Cost
Personnel	$375,204.00
Other Than Personnel Expense	$41,916.00
	$417,120.00
Two year cost expense	$834,240.00

Table 1: Annual QMPA Expenses

Salary is broken down for the seven staff on hand. All annual salary calculations are based off a calculation of weekly hours multiplied by hourly salary, multiplied 52 weeks a year. The president’s salary is not included on this list as the organization already provides him with significant perks and benefits. The executive assistant is given $37,440. While the price is low for an executive level assistant, additional benefits are provided through the organization to compensate. The EHR specialist is given $54,600 for their technical computer software expertise. Their skills and knowledge will be actively applied to maintain the program schedule. The IT assistant has a low salary of $31,200. The hope is to hire a student graduate of computer science searching for experience for later career advancement. Each project manager has a salary of $49,400 each for a total of $148,200 for the three of them. Since they will perform the brunt of the on the ground activities, they will be granted the most leeway in terms of flexible time schedules. Additional project managers may be sought if the patient care workload and time constraints prove to be too taxing.

Title	#	Hourly	Hours	FTE	Weekly Salary	Annual Salary	Annual Cost
President	1	$-	-	0.00	$-	$-	$-
Administrative Assistant	1	$18.00	40.00	1.00	$720.00	$37,440.00	$37,440.00
EHR Specialist	1	$21.00	50.00	1.25	$1,050.00	$54,600.00	$54,600.00
IT Assistant	1	$15.00	40.00	1.00	$600.00	$31,200.00	$31,200.00
Project Manager	3	$19.00	50.00	1.25	$950.00	$49,400.00	$148,200.00
	7	$73.00	180.00		$3,320.00	$172,640.00	$271,440.00

Table 2: Salary breakdown of staff

Fringe benefits include a health savings account, a free monthly metro card, and childcare. Together the programs are 38% of the original salary provided. The health savings account will be a portion of a group health insurance program. The monthly amount of $500 multiplied by 12 for the annual cost, times seven staff members add up to a total annual cost of $42,000. Health expenses from medication to copay will be considered a valid expenditure of an employee’s health benefits. For transportation, each staff member receives a monthly-unlimited MTA metro card at the price of $121 per person for a total of $10,164. Substantial traffic as well as difficulties with parking has lead to the use of the metro card instead of a shared organization car. A childcare fund of $1,000 monthly is available for those with children under 21. The childcare fund can be used for anything child related from babysitting to healthy food. Both the health savings account and the childcare fund roll over and do not expire.  

Type of Benefit	#	Monthly/Person	Annual Cost/Person	Cost to Organization	% Salary Cost
Health Savings Account	7	$400.00	$4,800.00	$33,600.00	12.38%
Child Care	5	$1,000.00	$12,000.00	$60,000.00	22.10%
Transportation	7	$121.00	$1,452.00	$10,164.00	3.74%
	19	$1,521.00	$18,252.00	$103,764.00	38.23%

Table 3: Fringe Benefits

Organizational expenses are building related costs, meeting/conference costs, consultation, training, insurance and food. The rent for the association’s headquarters is provided at discount cost. The utilities, including water, electricity, phone, and heat, are compounded together, also at discount cost, for $60 a month. The meeting fees and travel expenses are allocated to long distance travel to conferences and meetings with other professionals involved with healthcare technology and organization. Training expenses will fund the weekly workshops held at the association, while the consultation costs will be contractual depending on the stage of the program. Insurance costs are geared towards coverage of the activities held by the association. Any missing gaps in insurance coverage will be geared towards an umbrella insurance policy. Food costs will be geared towards catering during workshops and to feed staff. Lunch is covered, but dinner is not.

Expense	Monthly	Annual Cost
Rent	800.00	9,600.00
Utilities	60.00	720.00
Food	300.00	3,600.00
Meeting Fees	83.00	996.00
Insurance Coverage	83.00	996.00
Travel	83.00	996.00
Structure & Payment Consult	84.00	1,008.00
Training Class	2,000.00	24,000.00
	3,493.00	41,916.00

Table 4: Organizational Expenses

Thank to donations provided by our participating providers as well as our individual community members we have already been provided a significant amount of our office supplies. Supplementing the office supplies are the food and drinks provided courtesy of our local convenience stores. These in kind donations provide a savings cost of $17,960.

Type of Donation	Quantity	Cost Per	Total
Laptop Computers	10	$1,500.00	$15,000.00
Toner Ink (Boxes)	10	$100.00	$1,000.00
Printer All in One	1	$300.00	$300.00
Writing Utensils	30	$10.00	$300.00
Clips, Staples, Holders	30	$7.00	$210.00
Filing cabinet	4	$50.00	$200.00
Paper (5000sheets)	3	$60.00	$180.00
Tables (Portable)	5	$40.00	$200.00
Chairs (Portable)	20	$15.00	$300.00
Food (Canned Goods)	40	$3.00	$120.00
Drinks (24-Packs)	5	$30.00	$150.00
		2,115.00	17,960.00

Table 5: In kind Donations

The program hopes to achieve savings by increasing the efficiency of primary care practices with their electronic health record. The better utilization of the health records will allow allied health staff to better aid the physician. Having the numbers and the documents on file will also allow consultants and third party services to get into the organization of staff. The table below illustrates possible savings that can be achieved with better training of electronic health records.

Type of Benefit	Quantity	Money Opp Cost	Number of Patients	Gross Savings
Cost Performance	30	$170.00	1,500.00	$7,650,000.00
Physician Coordination	30	$10.00	1,500.00	$450,000.00
Preventative Health	30	$50.00	1,500.00	$2,250,000.00
				$10,350,000.00

Table 6: Possible Health Savings

However in the complex adaptive system of healthcare, there are bound to be multiple factors that could negate any possible expected benefits. Very easily the addition elements of electronic health records could add to the physicians workload. The new technology could become a gimmick, used only to please the government regulators. Another mound of regulations would then be stacked on top of the already large regulations for healthcare.

In spite of this all, determined and organized efforts towards a solution will prove vital in paving a new road for healthcare.

Overall Total Project Budget for Electronic Healthcare Initiative

RFP, Project Budget (Required)
Robert Wood Johnson Foundation	Queens Medical Professional Association
Expenses	Total Project Expenses	Amount Requested from Funder
Salary and Benefits	$375,204.00	$375,204.00
Contract Services (consulting, professional, fundraising)	$1,008.00	$1,008.00
Occupancy (rent, utilities, maintenance)	$10,320.00	$10,320.00
Training & Professional Development	$24,000.00	$24,000
Insurance	$996.00	$-
Travel	$996.00	$-
Supplies	$17,960.00	$-
Evaluation	$5,000.00	$5,000
Conferences, meetings, etc.	$996.00	$996
TOTAL EXPENSES	$536,840	$416,528
Revenues	Committed	Pending
Contributions, Gifts, Grants, & Earned Revenue
Local Government	$-	$50,000
State Government	$100,000	$-
Federal Government	$-	$-
Individuals	$5,000	$-
*Corporation-Jones Surgical Instruments	$1,000	$-
Membership Income	$3,000	$1,500
Fundraising Events (net)	$500	$-
Investment Income	$10,000	$-
In-Kind Support	$17,690	$-
TOTAL REVENUES	$137,190.00	$51,500.00