Financial Management In Healthcare

/in /by

Financial Management In Healthcare

As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Click here for last year’s budget. After reviewing specific data, internal input, and external input from various sources, you find that the executive management team would like the budget to reflect the following:

ORDER NOW FOR CUSTOMIZED SOLUTION PAPERS

  • 10% increase in inpatient revenue
  • 15% increase in outpatient revenue
  • 5% increase in pharmacy revenue
  • 15% increase in home health and hospital revenue
  • 10% increase in payroll and benefits

Additionally, provide discussion on the following:

  • How do you think that revenue would increase in each of the areas? Think outside of the box, and perform research to determine current trends in those areas.
  • Why would there be a forecasted need to increase payroll and benefits?
  • Explain the role of key leadership in the budgeting process, from the chief executive officer down through to the staff level of a financial analyst. Financial Management In Healthcare

(2-3 Pages)

  • attachment 

    HCM410_Budget_Template_Phase_2_IP1.xlsx

    20XX

    KRONA HOSPITAL OPERATING BUDGET FOR 20XX
    Revenues
    Inpatient $ 27,500,000
    Outpatient 17,250,000
    Emergency Room 10,000,000
    Laboratory 5,000,000
    Pharmacy 1,575,000
    Home Health and Hospice. Financial Management In Healthcare 1,725,000
    Ambulance Services 950,000
    Substance Abuse 250,000
    Other 850,000
    Subtotal $ 65,100,000
    Less Chartiy Care 18,000,000
    Net Revenues $ 47,100,000
    Expenses
    Payroll (including nursing salaries) $ 13,750,000
    Benefits 3,300,000
    Contract Labor 100,000
    Insurance 300,000
    General Services (laundary, security, etc) 3,000,000
    Depreciation 1,500,000
    Interest Expense 300,000
    Professional Services 10,000,000
    Total Operating Expenses $ 32,250,000
    Net Income $ 14,850,000