| Course | HCS 503 Principles of Operations Management in Health Care Simulation |
|---|---|
| Module | Module 4 |
| Paper type | Budget paper |
| Length | About 533 words, 4 pages |
| Format | APA 7 student paper |
| School | Arizona State University |
| Program | Graduate Certificate in Health Care Simulation |
| Updated | October 2026 |
Free sample paper for HCS 503 Module 4
What It Costs to Practice Safely: A Five-Year Budget for a Hospital Simulation Center
Student Name
Graduate Certificate in Health Care Simulation, Arizona State University
HCS 503: Principles of Operations Management in Health Care Simulation
Instructor Name
Month Day, Year
What It Costs to Practice Safely: A Five-Year Budget for a Hospital Simulation Center
Introduction
Simulation programs often fail financially because their full costs are not counted. A systematic review of 967 comparative studies of simulation-based education found that only 59 (6.1%) reported any cost information, most often the price of the simulator (Zendejas et al., 2013). This paper prepares a complete five-year budget for the hypothetical simulation center described in earlier assignments, separating capital costs from operating costs. All prices are hypothetical planning estimates.
Capital Inventory
Capital items are one-time purchases expected to last several years.
| Capital item | Estimated cost | Linked need |
|---|---|---|
| Renovation of 3,200 square feet | $380,000 | Two simulation rooms, control room, two debriefing rooms, skills lab |
| Two high-fidelity adult manikins | $170,000 | Deterioration and resuscitation scenarios |
| Task trainers: airway, intravenous, central line, wound | $45,000 | Deliberate practice of procedures |
| Audio-video capture and playback in four rooms | $140,000 | Debriefing and rater review |
| Beds, headwalls, monitors, medication cabinet, furniture | $85,000 | Realistic clinical environment |
| Total capital | $820,000 |
Operating Budget: Staff
Staff are the largest recurring cost and the most important resource. The simulation educator is a registered nurse with training in debriefing. Using the national median annual wage for registered nurses of $97,550 (U.S. Bureau of Labor Statistics, 2026) and a 30% allowance for benefits, the position costs about $126,815 a year. A simulation operations specialist, who programs manikins, runs the audio-video system and maintains equipment, is budgeted at a hypothetical $72,000 plus benefits, or $93,600. A physician medical director at 0.1 full-time equivalent receives a $30,000 stipend to lead interprofessional scenarios and review content. The job descriptions reviewed this week show that operations specialists are often missing from early budgets, leaving educators to run technology during sessions.
Operating Budget: Supplies and Technology
Consumables rise with use, so the estimate assumes about 960 session-hours a year. Service contracts protect the manikins, which are complex devices, and facilitator training addresses the weakness identified in the SWOT analysis.
| Operating item | Annual cost |
|---|---|
| Simulation educator, 1.0 FTE with benefits | $126,815 |
| Operations specialist, 1.0 FTE with benefits | $93,600 |
| Medical director stipend, 0.1 FTE | $30,000 |
| Consumable supplies: IV kits, moulage, gloves, expired medications for training | $28,000 |
| Service contracts and software licenses | $34,000 |
| Facilitator training and professional memberships | $12,000 |
| Total annual operating | $324,415 |
Five-Year View
Over five years the center costs $820,000 in capital plus five years of operating costs of $1,622,075, a total of $2,442,075. Spreading capital evenly over five years gives an annualized cost of $488,415. For comparison, the simulation-based central line program studied by Cohen and colleagues cost about $112,000 a year, and it produced net annual savings greater than $700,000 from prevented infections (Cohen et al., 2010). A whole center costs more than one course, but the comparison shows how a single high-value program can carry much of the cost.
Funding Sources
The plan proposes asking the hospital foundation to fund the capital, with the operating budget carried by the education department and offset by rental income from partner nursing schools.
Conclusion
A credible budget counts people, supplies and maintenance, not just manikins. The center needs $820,000 to open and $324,415 a year to run, and the Week 6 pitch will weigh those costs against expected savings.
References
Cohen, E. R., Feinglass, J., Barsuk, J. H., Barnard, C., O'Donnell, A., McGaghie, W. C., & Wayne, D. B. (2010). Cost savings from reduced catheter-related bloodstream infection after simulation-based education for residents in a medical intensive care unit. Simulation in Healthcare, 5(2), 98-102. https://doi.org/10.1097/SIH.0b013e3181bc8304
U.S. Bureau of Labor Statistics. (2026, August 27). Registered nurses. In Occupational outlook handbook. U.S. Department of Labor. https://www.bls.gov/ooh/healthcare/registered-nurses.htm
Zendejas, B., Wang, A. T., Brydges, R., Hamstra, S. J., & Cook, D. A. (2013). Cost: The missing outcome in simulation-based medical education research: A systematic review. Surgery, 153(2), 160-176. https://doi.org/10.1016/j.surg.2012.06.025
HCS 503 Module 4 instructions, in plain terms
Paper 2 of HCS 503, also worth 15 points, closes Week 4, whose topics are capital inventory, fiscal planning and job description review. Create a hypothetical budget for the simulation center you have planned since Week 2. Think about supplies, staff and technology, and separate one-time capital purchases from recurring operating costs. Explain the reasoning for each major line, label estimates as hypothetical and, where you can, base staff costs on a published wage source. The budget feeds directly into the Week 6 pitch, so keep your figures in a spreadsheet you can update. Show the arithmetic behind staff costs so a reader can follow it.
How this HCS 503 Module 4 example is built
The sample opens with evidence that simulation costs are rarely reported in full, which justifies a complete budget. Capital and operating costs appear in separate tables, and every capital line names the need it serves. Staff costs are built transparently from a national wage benchmark and a stated benefits rate. The paper explains why an operations specialist matters and ties facilitator training back to the SWOT. A five-year view gives the total and annualized cost, compared with a published program's cost and savings. A short funding section names realistic sources, and all prices are labeled hypothetical. Margin notes point to where the budget links to the needs assessment and sets up the ROI figure for the pitch.
Reading the HCS 503 Module 4 grading rubric
To earn the 15 points, the budget should separate capital from operating costs, cover supplies, staff and technology and explain the reasoning behind major items. Strong papers show their calculations, use credible benchmarks for wages and connect costs to the needs assessment. Budgets lose points when staff are omitted or underestimated, when maintenance and service contracts are missing, when figures appear without explanation or when estimates are presented as quotes. Arithmetic errors also cost marks, so check totals carefully. A multi-year view and a brief funding plan show the operational thinking the course is building toward. Graders also reward budgets that name a realistic funding source for capital and explain how operating costs will be sustained.
HCS 503 Module 4 help: mistakes that cost marks
Start from your needs assessment and list every space, item and role it implies. Separate one-time purchases from yearly costs. Build staff costs from a published wage and a benefits rate. Include service contracts, software and consumables. Show your arithmetic in a table and check every total twice. Calculate a five-year total and an annualized cost. Label all prices as estimates. If spreadsheets feel daunting, the desk can help you set one up. Note possible funding sources. Keep the numbers ready for your Week 6 pitch. Ask your organization's finance or education department how they budget for benefits and equipment depreciation, and use their approach if you can.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Arizona State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
More HCS 503 and Graduate Certificate in Health Care Simulation sample papers
- HCS 503 Module 2: Week 2 Paper: Needs Assessment for a Hospital Simulation Center
- HCS 503 Module 3: Week 3 SWOT Analysis: A Community Hospital Simulation Center
- HCS 503 Module 6: Week 6 Presentation: Strategic Plan and Return-on-Investment Pitch
- HCS 502 Module 3: Week 3 Presentation: Validity, Reliability and Bias in Simulation Assessment
- HCS 501 Module 4: Week 4 Paper: Learning Outcomes, Activities and Modality for a Sepsis Scenario
HCS 503 Module 4 questions, answered
Where can I find a free HCS 503 Module 4 sample paper?
The full capital and operating budget for a hospital simulation center is on this page.
What does the HCS 503 budget paper cover?
A hypothetical budget for your simulation center, covering supplies, staff and technology.
What is the difference between capital and operating costs?
Capital costs are one-time purchases; operating costs recur every year, such as salaries and supplies.
What is the largest recurring cost of a simulation center?
Staff, including educators and operations specialists.
How often do simulation studies report costs?
One review found only 6.1% of comparative studies reported any cost information.