PREPRATION
***The following resources are required to complete the assessment***
Sample Operating Budget [XLSX].
This resource provides step-by-step guidelines for developing a budget, including a multiple-tab spreadsheet for a multi-year generic hospital budget.
Parkland Hospital. (n.d.). Developing a budget. https://www.parklandhospital.com/phhs/developing-a-budget.aspx
Use the Sample Operating Budget to help you complete this assessment. The information represents the clinic’s operating budget for 2015 and 2016.
You have been asked to prepare a budget proposal for 2017 for the group of physicians who own the clinic. Because you know the clinic needs new billing software and there is a request for a new MRI machine, you will need to factor these expenses into your proposal. You will also need to explain environmental forces that may affect the budget and how your proposal addresses those forces.
REQUIREMENTS
Complete the sample operating budget by filling in the 2017 column. Include this information as a table inserted into your budget proposal, or attach separately in the assessment submission area.
In your proposal, be sure you do the following:
Describe the environmental forces that will affect or are likely to affect the budget for the next year. (Consider things such as compliance changes, changes in how insurance claims are processed, changes in laws and regulations, and so on.)
Complete a 2017 operating budget that includes the purchase of new billing software and a new MRI machine. (This is where you use the sample operating budget.) Keep in mind that there will be costs beyond the purchase price, such as training for staff, the addition of more staff, and maintenance. You may want to refer to Assessment 3 and the cost-benefit analysis you completed.
Explain how this proposed budget aligns with the target profit margin.
Explain the measures you will implement to track financial performance over the next year. How will you evaluate financial performance?