Fiscal Management in Healthcare Services-Healthcare Budgets and Management Structure

Fiscal Management in Healthcare Services-Healthcare Budgets and Management Structure

 

 

PowerPoint presentation of 10slides + speaker notes of 150 words per slide

 

As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Look below 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:

 

KRONA HOSPITAL                             OPERATING BUDGET FOR 20XX
Revenues
Inpatient  $      25,000,000
Outpatient 15,000,000
Emergency Room 10,000,000
Laboratory 5,000,000
Pharmacy 1,500,000
Home Health and Hospice 1,500,000
Ambulance Services 950,000
Substance Abuse 250,000
Other 850,000
Subtotal  $      60,050,000
Less Chartiy Care 18,000,000
Net Revenues  $      42,050,000
Expenses
Payroll (including nursing salaries)  $      12,500,000
Benefits 3,000,000
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  $      30,700,000
Net Income  $      11,350,000

 

 

 

 

 

  • 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

Note: The budget should be formatted to reflect the percentage increase or decrease from last year’s budget.

Additionally, provide discussion on the following:

 

  • How might you increase revenue 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 need to increase payroll, particularly nurses’ salaries?
  • Provide an explanation as to how the Krona Community Hospital may be able to achieve an increase in the revenue areas that the chief executive officer (CEO) wishes you to address.

 

  • Understand health care financial statements
  • Comprehend the principles of health care accounting.
  • Apply cost information

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