HA499 Unit 6 Discussion
On 400 words discuss the follow:
You have been tasked as the health care administrator of a major hospital to create a financial plan for your organization. What would you include in your financial plan? Compare an operating budget versus a capital budget? Include examples of each budget in a hypothetical department or unit of a hospital. Cite and reference your resources.
In two separate paragraph give your personal opinion to Samantha Taylor and Dina Alani
A financial plan includes all aspects of financial stability and growth of the organization. Business plan for a major hospital may consist of:-Its estimated Income related to hospital charges for admission of patients, Income on account of Government grants.
Income on account of fees from medical college interns. Fixed cost related to hospital staff estimated the stock requirement of medicines.cost for prices of a doctor. Administration cost
Estimated capital expenditure on purchase of testing machines and other monitoring equipment. Let us form the capital budget and revenue budget for the Intensive Care Unit (ICU). Revenue budget or Operating budget consists of incomes and expenses which are recurring in nature, whereas the capital budget includes receipts and payment, which are nonrecurring or one time in life. In the case of ICU
The capital budget will include:-
A testing machine, Monitoring equipment
Beds, Medicine and test sample storage units
Revenue budget will consist of:-Staff Salary, Medicinal expense
Doctor fees, Patient receipts for admission
Utility payments, Admin expenses.
Being a health care administrator of a major hospital hospital includes many responsibilities but most importantly, financial planning. There are many different ways to go about financial planning and knowing how to create the right financial plan helps with success of the organization or facility.
A financial plan should include:
- Profit and loss statement
- Cash flow statement
- Balance sheet
- Sales forecast
- Personnel plan
- Business ratios or a break-even analysis is optional
A profit and loss statement are an explanation of how the organization has made profit or a loss over a period of time. There are net profit, loss, and revenue listed in the type of statement.
A cash flow statement is “an explanation of how much cash your business brought in, how much cash it paid out, and what is ending cash balance was, typically per-month,” (Betenson, T).
Balance sheets consists of assets, liabilities, and equity. Overall a balance sheet shows the organizations financial position and how much cash is in the bank or what individuals owe.
Sales forecast is the projections, forecast, and what will be sold or cash made by a given period of time. Lenders and investors are involved at this point and becomes a part of the ongoing process.
- “Gross margin
- Return on sales
- Return on assets
- Return on investment
- Current ratio
- Working capital, “ (Betenson, T).
Break-even analysis is a calculation that shows how much has been made in order to “break-even (how much was made in order to help pay expenses).
An operating budget and a capital budget have different meanings. An operating budget is, “A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period (usually one year). It generally consists of several sub-budgets, the most important one being the sales budget, which is prepared first. Since an operating budget is a short-term budget, capital outlays are excluded because they are long-term costs,” (operating budget). Operating budgets include fixed costs, variable costs, interest and write-off/depreciation. Wages, rent, electricity, heat, water, cleaning, and any maintenance of the building is a major part in operating budgeting considerations. There is a variety of examples in regards to operating budgeting including; travel costs for employees or providers, telephones, mobile phones, internet connection, computer for employees and providers, maintenance costs, any lawyers the facility may need, and any unexpected costs. All of these fixest cost examples are important to consider in an operating budget and should be considered by the health care administrator manager.
A capital budge involves investment options regarding liquid assets, capital receipts and payments. Capital budgeting includes the receipts which are loans that are government from the public (market loans), any borrowing from the ban or other parties through sale of treasury bills, loans from the government or foreign bodies, and any recovery loans which are granted by the “Central government to state and Union Territory governments and other parties,” (The Economic Times- Capital budget). Computing equipment such as laptops, machines such as robots or power generators, software development, facilities such as the office building, land improvements such as any fences, gardens or land improvements, transport such as helicopters or vehicles, and any professional tools needed for an example, in a kitchen/cafeteria. For any health care facility, you must be able to understand the different departments and what each one consists of in order to operate efficiently and correctly. Understanding what equipment (CT machine, MRI, Ultrasound, or x-ray).Understand what nurses and doctors need to help take care of their patients in regards to their health, especially in Emergency Room or Urgent Care units.
(n.d.). What is operating budget? definition and meaning. Retrieved from http://www.businessdictionary.com/definition/operating-budget.html.
(n.d.). 9 Examples of Capital Budget. Retrieved from https://simplicable.com/new/capital-budget.
Betenson, T., Berry, T., Beesley, C., & Dave Cannon. (2019, August 15). The Key Elements of the Financial Plan -. Retrieved from https://articles.bplans.com/the-key-elements-of-the-financial-plan/
- Quality Assignments
- A+ Team_here
- Michel Owenns"
- Dr. Ameerah
- Jane the tutor
- Discount Assign
- PHD doctorate
- The quA+lity
- Essays Guru
- RESPECT WRITER
- Emily Blunt
- Asad Ullah
- Catherine Owens
- Jessica Luis
- Dr shamille Clara
- Dr R Judy Mark
- kim woods
- Rey writer
- brilliant answers
- Miss Lynn
- professor mitch
- Malik Tutor
- university work
- Terry Roberts
- Dr Candice_2547
- EXCELLENT GRADES
- Tiny Chris
- phyllis young
- Wendy Lewis
- Emily Clare
- Sara Waynes
- prof avril
- Certified Papers
- Quickly answer
- Ph.D A+ Grade
- work solutions
- Eva Green
- Harris Khan
- Michelle Lewis Phd
- Jenny Boom
- Dr. Elahi
- Addy Williams
- Saad Fahim
- Emily Michael
- Case Study 1: Revitalizing a Brand
- Mini-Project 3-2
- E-Learning in the Nigerian Financial Services Sector – A Critical Evaluation
- The last five are the articles that have to be summarized and the first one is the full instructions on the paper with exact details on how it is to be done.
- !!!!!!!POSTED FOR EXCEPTIONAL PROFF ONLY!!!!!!!!
- Supply chain management 304
- book review "Winning"-FOR TOM MUTUNGA
- Assignment 2: Benefit Plans for Different Generations
- Case Study
- 1.75 pages due in 3 hours!