Budget Check point 3

.docx

School

Oklahoma City Community College *

*We aren’t endorsed by this school

Course

2535

Subject

Medicine

Date

Feb 20, 2024

Type

docx

Pages

5

Uploaded by JusticeExplorationNightingale16

1 Budget The smooth operation and delivery of care at Baptist Village Community requires the prepared budget to contain various items. The budget line items address a variety of issues that are crucial to caring for the facility's occupants or patients. There are several common budget items in Baptist Village Community. Appendix 1 displays the Oklahoma City Village 2023 estimated budget and revenue. According to Chang et al. (2021), a medical facility require to be equipped with the necessary supplies and equipment to provide long-term care for all patients. Items, such as medicines, diagnostic equipment, and therapy instruments must be listed in the budget for both medical facilities. Finkler et al. (2022) indicate that basic utility items, including gas, electricity, water, and garbage collection should be covered in the budget. The facilities also require to be maintained and the two budgets must cover expenses for electrical and plumbing works, building maintenance, and landscaping. Furthermore, the medical facilities should have insurance cover for the assets and the personnel. The budget must cater for funds to cover the items and an important consideration is the claims that may be charged due to medical errors that may occur. The staff at the facilities as well as the patients require food and proper nutrition that must be covered within the budgets. The budgets must set aside funds for administrative expenses, including communication, office supplies, computer hardware and software, marketing, and other administrative necessities. According to Finkler et al. (2022), medical facilities require constant refreshing of knowledge and evaluation of the latest evidence-based practices. The facility have to budget for training and continuing education of the staff to regularly update their skills through workshops, seminars, in- services and conferences.
2 In addition, the budgets have to cater for necessary legal and regulatory fees and charges that the facilities have to pay. The local, state, and federal, state regulations require establishments to have licenses and permits. The facilities must facilitate independent inspections and audits to ensure that meet the prescribed regulatory compliance as stipulated. In some instances, the facilities have to serve the communities by providing medical camps. The spending to community support and recreational programs should be facilitated through the budget to support a healthier community. Ross (2021) argues that the budget items may not be the same across all locations and may reflect differences based on the size, location, and intensity of care offered at the facility. The budgets require to be reviewed and revised regularly to guarantee effective financial management of the facilities and the provision of high-quality and safe healthcare. Budget Variances, Reimbursement vs. Cost and Strategies Budget variances are bound to occur as the budget is merely based on projections. The actual spending can vary with the budgets amount leading to a variance. Common variances that may occur in Baptist Village facility touch on specific expense items. Chang et al. (2021) state that it is possible that there will be a variance on the staffing costs fueled by differences in the amounts estimated and spent for new recruitment of staff and payments for overtime. The facilities could as well be confronted with variances in spending on medical supplies and equipment (Ross, 2021). The variances can occur if there are unexpected changes in market prices and underutilization or over utilization of supplies and equipment than anticipated. Reimbursement and cost are critical considerations in the management of the facilities as they affect their financial sustainability. Philips et al. (2019) indicate that reimbursements are the payments made to a medical facility for delivering healthcare to patients. The payments are
3 commonly made from the individual patients, insurance companies, and the government through programs, such as Medicare and Medicaid. Costs cover the actual spending incurred by the medical facility in providing the services to patients. The two share a complex and dynamic relationship and the medical facilities should ensure the reimbursements should cover the costs incurred. However, variations and discrepancies can occur between reimbursement rates and actual costs. The main challenge occurs when the reimbursement falls short of all actual costs as it can impact on the delivery of quality care. Future Directions and Plans The process of preparing a healthcare budget at the facility can be based on two primary options. The traditional direction and plan entails using a computer software to work on the inputs, including historical data and assumptions to generate a plan. Philips et al. (2019) state that the budget that is generated is then reviewed by the management based on relevant data in the system generated from the facility. It is then updated and approved by all stakeholders and is prepared to last over a specified period. The other direction is to use rolling forecasting, which is flexible. It uses historical data to predict future performance based on the most recent data, such as data for previous week, month, or quarter. The rolling forecasts direction and plan allows for a quick adjustment of the strategies as financial conditions change based on the current trends and initiatives. Baptist Village has been serving to community for sixty-five years. To continue to provide affordable housing and services, statistical planning and budgeting is very vital. The facility strives to cutting expenses and reducing waste. Efforts are increased to avoid waste on food and groceries. It is also vital to frequently check supply to avoid duplicate and waste. Staff are enforced not to bring extra supply such as incontinent care, wound dressing, oral care, and hygiene care to resident/patient room. Also, we are encouraged to turn off televisions and lights
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