Healthcare Budget Analysis

I really enjoyed this article, as it went into effective financial planning. The 2 major categories of cost are total charges (the patient's bill) and the cost of providing services. These 2 costs can be defined mathematically in the following indices: average revenue per patient day and the cost per patient day.

Statistical budget preparation is the first step in preparing the operating budget. The objective to measure the department’s activity in the incoming budget period such as the estimation of the number of procedures for the next year in diagnostic departments.

The budget process is a powerful planning tool for government to make important resource decisions. According the Carney and Schoenfeld‘s article on How to read a Budget, an operating budget is a reflection of government’s financial plans. When a budget is

There are different types of budgeting that businesses typically use and those include Operating budgets, Capital Budgets and there are many subtypes that exist because a budget can also be created for special events, the recruitment and retention of new staff, and to manage the advertising expenses and return on investments for a business (Demand Media, 1999-2012). According to Demand Media (1999-2012), "An operating budget outlines the total operating expenses and income for the organization, typically for the period of a fiscal year. Capital budgets evaluate the investments and assets of the business, and a cash budget shows the predicted cash flow in and out of the business over a period of time” (para.2 ). According to the Cost-Benefit Analysis (2012), “Capital budgeting has at its core the tool of cost-benefit analysis; it merely extends the basic form into a multi-period analysis, with consideration of the time value of money. In this context, a new product, venture, or investment is evaluated on a start-to-finish basis, with care taken to capture all the impacts on the company, both cost and benefits. When these inputs and outputs are quantified by year, they can then be discounted to present value to determine the net present value of the opportunity at the time of the decision” ("Cost-Benefit Analysis," 2012).

By creating a budget this facility will be better prepared in knowing how much money they spend and

Managers who are managing health care organizations must be attentive to the accounting practices and must obey and practice the financial management procedures to be able to solve any issues if any should arise. With the continuation of the high costs of health care managers as well as consumers must know how to budget carefully. According to All Business. (2010), the cost of providing health care services, patients way of payment for these services and the environment in which those patients reside and receive those services are important elements that affect the care this is or may not be

Financial management in healthcare is the class I am taking as part of my bachelor’s degree. I am required to write a report on the budget of the department I work at. Attached spreadsheet shows what information I need. I will be grateful, if you can provide some information about current budget. I understand you are very busy, whatever you can provide will be a big help.

The capital budgeting process of healthcare organizations: A review of surveys. Journal of Healthcare Management, 61(1), 58-77. This report reviewed past surveys to further explore four different stages of healthcare capital budgeting practices. The study found that physicians play a key role in the identification stage and healthcare organizations are increasingly conducting formal evaluations of capital budget proposals and the decision is made based on the impact to the organization’s mission.

The operating budget allows a company to set prices, project sales and estimate the profits. For several reasons costs and revenue can be

Both operational and capital budgets are made up by the CFO, Chief Financial Officer, and approved by the CEO, Chief Executive Officer, and the Board of Directors. (Operational Review of the Health Care Corporation of St Johns, 2002) The operational budget is based on projected costs, such as staff, supplies, administration, and technology costs, and projected revenue from patient services and investments. They are usually made up for the organization's fiscal year. The capital budget is a long term budget that is based on

This type of funding helps determine hospital budgets and hospital management allocate resources within organization.

The budget process may start with a sales forecast that describes "expected revenues from groups of products." (p. 485) Total revenues can be calculated based on a number of factors that include both the product markup as well as a fluctuating commodity price.

Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

Budget formulation and use are tools that guide many decision making strategies in business. The measures that are least effective could create an avalanche of catastrophic events that can negatively impact the decision making strategies. It is in the best interest of the pertinent parties to draft an operating budget based on a collective set of information relating to organizational vision and mission. Ineffective measures can be catastrophic based on the foundation for measures used in creating the budget. Among the many issues organizations face that relates to creating an effective operating budget results from poor

Lastly, the revenue budget is the final component of the operating budget which projects the income the organization will receive for providing care. Although nurse managers/leaders may not be involved in developing the revenue budget, having knowledge about it is essential for great decision-making.