Healthcare Budget And Analysis Assignment

Healthcare Budget And Analysis Assignment

The net operational surplus is determined by subtracting the expenditures from the revenues for the five years. In our case study, total income is more than total expenses, resulting in an operational surplus. A hospital or clinical facility’s budget approximates its revenue and expenses for a certain period. Through the budgeting procedure, health systems establish how much money must be set aside for specific categories, such as operating expenses and capital assets. A health system could entail skilled nursing institutions, hospitals, physician teams, home care solutions, foundations, and other businesses. Throughout the budgetary process, healthcare leaders should understand crucial planning factors, such as volume growth predictions, feedback and involvement from critical stakeholders, and the capacity to adapt to changing inputs and scenarios (Warrick, 2017)Healthcare Budget And Analysis Assignment. A well-planned budget permits the health system to make appropriate plans to provide high care.

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Healthcare institutions use a variety of budgeting methods. There are several planning and budgeting techniques in healthcare: In the healthcare business, operational budgeting refers to determining the finances allotted for facility operating costs and personnel expenses, such as staffing and training (Zamri et al., 2018). Usually, the largest expense in an operational budget for healthcare is labor, which includes fixed expenses such as pay and variable costs such as overtime hours and possible overstaffing. Utilizing an industry-wide operational budget, health facilities, and healthcare systems entails monitoring and balancing revenue and expenditures Healthcare Budget And Analysis Assignment.

Capital budgeting in the healthcare business is setting some funds to acquire fixed assets or the startup expenses such as Codman Limitorr CSF System (2%), purchasing of the cart (1%), Cranial Access Kit (9%), Codman Limitorr CSF disposable (1%), Consumables (8%), and Codman CereLINK ICP Monitors (79%) (Siziba & Hall, 2021). The health organization’s capital budget is significant because the expenditures from this pool of cash may directly impact a health organization system’s capacity to offer quality care to clients. In the healthcare business, the main strategic purpose of the specific hospital is often tied to capital budgeting. When evaluating operating and capital budgets, it is essential to bear in mind that, despite their independence, they have mutual effects. Capital expenditures such as new buildings or enhanced technologies may influence future personnel and operational costs. However, utilizing the operating budget to pay for these acquisitions may be necessary. When developing hospital budgets, leaders must weigh the consequences of the two budgets.

Healthcare leaders may adjust their financial projections weekly or quarterly using rolling forecasting. Using historical data, the short- and long-term projections are routinely updated by this method. With frequent updates, leaders may alter their plans as circumstances change. By using rolling forecasting, organizations in the healthcare industry may plan more efficiently and make timely choices based on data.

Nursing care’s contribution to the planned healthcare products or service’s income and expenditures. As new patient needs, therapies, and technologies are produced, the healthcare industry is experiencing a dramatic shift and requires ongoing adaptation. With a thorough budgeting process for healthcare, leaders may establish objectives for care and clinical departments and plan for the future (Penner, 2016)Healthcare Budget And Analysis Assignment. A healthcare budget is essential for identifying the optimum use and distributing funds among departments and activities. This enables healthcare organizations to give patients superior care more rapidly and efficiently.

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Best budgeting techniques for healthcare. By adhering to the following recommendations, healthcare organizations may expedite the planning process and avoid common budgetary issues: Create a budget schedule outlining the major tasks, individuals responsible, and timeframes that must be completed throughout the process. Setting appropriate due dates. Continuously strive for improvement while documenting new ideas and enhancements that may be utilized in the following planning process. Develop a timely monthly variance analysis method. Keeping reporting seamless for novel users by beginning with a limited number of essential reports and introducing additional choices as your leaders’ comfort level increases (Cross, 2019). Provide advanced users with department-specific data on total revenue, operating income, expenses, salaries, and supplies for the monthly and yearly reports. Maintaining an up-to-date automated planning system will grant users access to recent dashboards, capabilities, and innovations.

The case study analysis has showcased the progress of the healthcare budget over five years. First, Return on Investment has jumped from 833% to 1390.16%, displaying positive progress for healthcare investments. Second, net cash flow has steadily grown from a negative value to 1.5 million USD. It is evident that health care has cleared its debts and gained funds each year for the five years. Over the five years, some operational expenses like Codman LimiTorr CSF disposable & Replacement bag, Cranial Access Kit, Minor Consumables (Sterile & non-sterile)Healthcare Budget And Analysis Assignment, Consumables (Bactiseal + Cerebroflo+Accudrain+Drainage bag) have not shown a significant change in cost. At the same time, the other operational expenses like Centrelink ICP Kit/Sensor have been increasing steadily over the five years.

Regarding revenue and savings, the health care facility has seen an increase. With ICP doubled its revenue and savings for the five years from 149,910 USD to 310 853 USD. Additionally, RVD has also had a double increment over the five years. Lumbar Drain has shown a slow increase for the five years.

Budgeting’s function in healthcare organizations (Johnston, 2017). Healthcare budgeting is crucial for decision-making across health systems and enterprises. Leaders in the healthcare business can: Align operational strategy with financial management objectives. The second step is to plan capital expenditures following strategic goals. Third, effectively manage cash flow and capital expenditures. Increase your knowledge of how money is allocated to different programs, projects, and clinical departments. Also, minimize purchasing errors.

A budget acts as the road map for your business. It allows you to effectively run your firm, discover functional areas that need improvement, and anticipate cash flow. Successful firms invest a great deal of time and effort in generating good budgets since they are an ideal tool for measuring how close the company is to achieving its goals. Due to the lack of historical data to guide their budget predictions, developing a budget for a new firm might be a little intimidating. Nevertheless, with some predictions based on the performance of rivals and an understanding of the budget’s elements, one could complete their first budget and have a solid road map for future budgets. From the health care facility budget analysis, it is evident that there is positive economic progress.

References

Cross, V. (2019). The role of variance analysis in businesses. http://smallbusiness.chron.com/role-variance-analysis-businesses-22641.html

Johnston, J. (2017, January 6). With so much uncertainty, how do you build your hospital’s budget? https://www.hfma.org/Content.aspx?id=51828

Penner, A. S. H. (2016). Economics and financial management for nurses and nurse leaders (3rd Ed.). Springer Publishing. Chapter 4, “Measuring Nurse Care” (pp. 85–110) Healthcare Budget And Analysis Assignment

Siziba, S., & Hall, J. H. (2021). The evolution of the application of capital budgeting techniques in enterprises. Global Finance Journal, 47, 100504.

Warrick, D. D. (2017). What leaders need to know about organizational culture. Business Horizons, 60(3), 395-404.

Zamri, N., Mansor, N. A., & Ab Rahman, L. (2018). Systematic operational budgeting: the preliminary study on perception of SMEs entrepreneurs. ASEAN Entrepreneurship Journal (AEJ), 4(1), 100-108.

I attached the info in a word document with a screen shot of my excel table and graphs/tables. Please see detail of assignment stuff below and in the attached word document. Please use rubric. Thank you.
ASSIGNMENT
Remember the rubric calls for an introduction, purpose statement & conclusion. Use a title that tells the reader that this will analyze the budget and subheadings to reflect the expectations of the assignment: Subheading’s examples, Surplus, Budget Percentages, Risks and Strategies, and Budget Fit in Organization.
Create a brief (1- to 2-page) description in Healthcare Budget Request Template Word document of your budget and analysis. Your description should clearly describe the budget and address the following:
Using the Healthcare Budget Request Template, create a brief (1- to 2-page) description of your budget and analysis that clearly describes the budget.
1. Over the course of 5 years, is there an estimated surplus or deficit?
2. What percentages of the budget are dedicated to various categories you have defined, such as startup costs, etc.?
3. How does nursing care contribute to both the revenues and expenses for the proposed healthcare product or service?
4. What does this budget mean for your organization? Healthcare Budget And Analysis Assignment

Use 6 references:
3 from list below and 3 references found on your own *must be within the last 5 years

Investopedia (2019, March 31). What is a budget? https://www.investopedia.com/terms/b/budget.asp

Johnston, K. (n.d.). How to develop a budget for a new product or service. https://smallbusiness.chron.com/develop-budget-new-product-service-38629.html

Abyssal Spark. (2013, December 30). How to make a budget in Excel – Part 1 [Video]. https://www.youtube.com/watch?v=AZbWLu5zzAo

Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). Springer Publishing.
• Chapter 5, “Reporting and Managing Budgets” (pp. 111–136)
• Chapter 6, “Budget Planning” (pp. 141–161)
• Chapter 7, “Special Purpose, Capital, and Other Budgets” (pp. 163–186)

Cross, V. (2019). The role of variance analysis in businesses. http://smallbusiness.chron.com/role-variance-analysis-businesses-22641.html
Garcia, M. (n.d.). What does an unfavorable variance indicate? http://smallbusiness.chron.com/unfavorable-variance-indicate-81570.html

Johnston, J. (2017, January 6). With so much uncertainty, how do you build your hospital’s budget? https://www.hfma.org/Content.aspx?id=51828

Woodruff, J. (2019). What is budget variance analysis? http://smallbusiness.chron.com/budget-variance-analysis-60250.html

Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). Springer Publishing. Chapter 4, “Measuring Nurse Care” (pp. 85–110)

Kowalski, S. L., Burson, R., Webber, E., & Freundl, M. (2018). Budgeting for a video monitoring system to reduce patient falls and sitter costs: A quality improvement project. Nursing Economics, 36(6), 291–295.

Lockhart, L. (2018). A pay for performance primer. Nursing Made Incredibly Easy, 16(3), 55. doi:10.1097/01.NME.0000531880.09273.3 Healthcare Budget And Analysis Assignment

Cash Flow & Net Cash Flow (Five Year)

 ASSIGNMENT –RUBRIC attached at the end of this document.

Remember the rubric calls for an introduction, purpose statement & conclusion. Use a title that tells the reader that this will analyze the budget and subheadings to reflect the expectations of the assignment: Subheading’s examples, Surplus, Budget Percentages, Risks and Strategies, and Budget Fit in Organization.

Create a brief (1- to 2-page) description in Healthcare Budget Request Template  Word document of your budget and analysis. Your description should clearly describe the budget and address the following:

Using the Healthcare Budget Request Template, create a brief (1- to 2-page) description of your budget and analysis that clearly describes the budget.

1. Over the course of 5 years, is there an estimated surplus or deficit?
2. What percentages of the budget are dedicated to various categories you have defined, such as startup costs, etc.?
3. How does nursing care contribute to both the revenues and expenses for the proposed healthcare product or service?
4. What does this budget mean for your organization?

Use 6 references: Healthcare Budget And Analysis Assignment

3 from list below and 3 references found on your own *must be within the last 5 years

Investopedia (2019, March 31). What is a budget? https://www.investopedia.com/terms/b/budget.asp

Johnston, K. (n.d.). How to develop a budget for a new product or service. https://smallbusiness.chron.com/develop-budget-new-product-service-38629.html

Abyssal Spark. (2013, December 30). How to make a budget in Excel – Part 1 [Video]. https://www.youtube.com/watch?v=AZbWLu5zzAo

Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). Springer Publishing.

• Chapter 5, “Reporting and Managing Budgets” (pp. 111–136)
• Chapter 6, “Budget Planning” (pp. 141–161)
• Chapter 7, “Special Purpose, Capital, and Other Budgets” (pp. 163–186)

Cross, V. (2019). The role of variance analysis in businesses. http://smallbusiness.chron.com/role-variance-analysis-businesses-22641.html

Garcia, M. (n.d.). What does an unfavorable variance indicate? http://smallbusiness.chron.com/unfavorable-variance-indicate-81570.html

Johnston, J. (2017, January 6). With so much uncertainty, how do you build your hospital’s budget? https://www.hfma.org/Content.aspx?id=51828

Woodruff, J. (2019). What is budget variance analysis? http://smallbusiness.chron.com/budget-variance-analysis-60250.html Healthcare Budget And Analysis Assignment

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Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). Springer Publishing. Chapter 4, “Measuring Nurse Care” (pp. 85–110)

Kowalski, S. L., Burson, R., Webber, E., & Freundl, M. (2018). Budgeting for a video monitoring system to reduce patient falls and sitter costs: A quality improvement project. Nursing Economics, 36(6), 291–295.

Lockhart, L. (2018). A pay for performance primer. Nursing Made Incredibly Easy, 16(3), 55. doi:10.1097/01.NME.0000531880.09273.3 Healthcare Budget And Analysis Assignment