Categories software maintenance and support hardware

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categories: Software maintenance and support, hardware maintenance and support, physician salary support, postproduction support salaries, travel training, and other. The following is a description of each of these operational cost items. Keep in mind that these operational costs may
reside in different organizational budget throughout the organization. Having said that, often senior leaders want to see all of the capital and operational costs associated with an HIT program in one place in order to manage these significant investments. Software maintenance support: The software that is being licensed in the capital area will need tobe supported on an ongoing basis. Often those support costs “kick in” after a license is paid and the software has been installed for a year. Solutions vary in how they are priced and sold to organizations. It is important for the organizational planner to understand when those software maintenance and support fees “kick in” in the lifecycle of a program. Hardware maintenance and support: Similar to software, when hardware is purchased whether it be servers running in a data center or desktop computers or printers, there are often support fees associated with keeping those hardware products up and running and supported on an ongoing basis. Sometimes organizations don’t even purchase hardware. They may “lease” hardware products such as desktops. If this were the case, then the estimated leasing fees for those desktops per year would be inserted in this partof the program pro forma. Physician salary support: Sometimes, but not always, organizations make a financial commitment to cover internal salary costs of physicians whenthey are working on significant program efforts. Organizations do this because they want to have the ability topull those physicians out of clinical service for a period of time and have them focus on an HIT program. If this is the case, this is the place where those salary estimates would be inserted. Keep in mind that any time you are estimating
salaries in a pro forma, whether it be capital or operating, you most likely will work with leadership to determine a “blended” salary rate for an average personnel cost and use that rate in your pro forma. Also, keep in mind that a typical salary year is budgeted at 2,080 hours per year per full-time individual. Support and postproduction salaries: Similarly, this line item is used to record any and all other salaries needed to support the program on an ongoing basis. This line item requires significant work in that one has to understand all of the different individuals, skill sets, and compensation levels of those individuals that go into supporting the technology that is being implemented. Sometimes individual efforts are budgeted at a full-time effort for an entire year; other times portions of people’s time is budgeted on these programs from a support perspective. Travel training: Accounting rules prevent two items—travel and training costs

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