Operating Budget of Patton Fuller Community Hospital, 2010

325 Words Feb 4th, 2018 1 Page
Upcoming Profit and Loss

Prepared for a Fiscal Year

Expected Financial Projections
Advantages of An Operating Budget
Keeps Organization on Track

Allows for Profit and Expense Tracking

Helps Business Growth

Developing a Budget
Objectivity

Realistic

Quantified and Clearly Stated

Management Support
Organizational Goals
Strategic and Long Range Plans

Must Coincide with Budgeting

Must Reflect any Changes to Operating Procedures

Why Budgets Fail
Inadequate Time

Inadequate Skills

Unrealistic

Budgeting from the Bottom Up
Budgets should not be a managers task only. The whole organization should be involved in the budgeting process.
Patient Statistics 2009 1st & 2nd Quarters
Patient Statistics 2009 3rd and 4th Quarters
Operational Dilemma
Should we change the nursing ratio to 4:1 nurses to patient or should we give nurses a raise to spur individual productivity?
Year End Costs of both Ideas

Much Cheaper to Give Raises
Raises were estimated to cost $630,720.01

Reducing the nursing ratio is projected to cost $4,730,400

2010 Budget Assumptions
1. The hospital will continue being in operation i.e. be a Going-concern.
2. The marketing plan to increase donations by 15% will work perfectly so that other expenses will decrease by 15%.
3. The current rise in cost of oil will decrease or increase any further and there will be a 100%…
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