The scenario is in an acute care hospital setting:
- What is an operating budget?
- What is a capital budget?
- Why is a capital budget developed separately from the operating budget?
- What is the definition of a capital budget item in a organization?
- An example of a possible capital request in an organization?
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What is an operating budget?
An operating budget defines a company's estimated revenues and expenses for a set time period, usually 1-year.
What is a capital budget?
A capital budget defines a company's ability to make a large purchase (i.e. property, plant and equipment initial purchase or upgrade). The ...
Solution is comprised of defining an operating budget and capital budget and answers the question why a capital budget is developed separate from an operating budget. Also defines what a capital budget item in an organization is and provides an example of a possible capital request in an organization.
How to build a Healthcare Budget and control
I have applied to take charge at 3 facilities (Nursing Home, Acute Care Hospital & Veteran's Hospital). I am currently being considered to take one of the positions. (Chose just 1)
I need help in preparing the following:
•Provide the role of government programs on any 1 of the chosen facility's number of beds, length of stay, and inpatient and outpatient or transitory status.
•Examine at least 3 government or non-government sources of information that I can use to compare with a current budget (e.g., benchmark information).
•Evaluate what adjustments that I can make based on the following considerations:
•And any others.
•Develop a final budget for the facility—based on the sources of information—to include at a minimum cost or 1 full year:
*Personnel costs and equipment costs
*Repair and maintenance costs
*Utilities and facility costs
*Administration costs, and so on