Operating Budget of Patton Fuller Community Hospital, 2010

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Patton Fuller Community Hospital 2010 Operating Budget What is an Operating budget? 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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