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    How to build a Healthcare Budget and control

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    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:
    •payer mix
    •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

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    Solution Preview

    Below is a point form guide on Healthcare budgeting and controlling or your use to prepare a narrative to address the questions raised.
    An example spreadsheet with an example to illustrate a typical hospital budget is attached for your ease of reference.
    Please go through and feel free to come back if you need any clarification.

    If you are satisfied, please remember to give a rating example 5
    Thank you for using BrainMass

    Healthcare Budgeting and Controlling
    What is a budget?
    It is a process for developing an operational plan, expressing it in financial terms and detailing resources that are required to achieve objectives. The following are some of the objectives of a budget:
    • To define and agree on the hospital goals
    • To create a tool for evaluation of financial performance against the set plans
    • To develop a tool for cost control
    • Serves as a medium for creating cost awareness in the hospital
    Budget types:
    Standard budget types include the following:
    • Statistical budget: used to give workload assumptions- A measure of activity in each department for the upcoming budget period
    • Revenue Budget: Is a forecast of the income a hospital expects to receive £or the budget period used
    • Expense budget: gives the cost associated with providing the service i.e. the amount of money each department expects to pay-out
    • Operating Budget :-Combines revenue and expense and It lists, for the upcoming fiscal year, anticipated income by source
    • Cash budget-Gives the cash on hand for day to day running of the hospital
    • Capital budget- summarizes future plans for acquisitions of plant facilities and equipment.
    The Balanced Budget Act (BBA) of 1997, states were authorized to establish a
    Flex Program in which certain Medicare participating facilities can become Critical Access Hospitals (CAHs). (DHHS)

    1. 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.
    1.1. Government programme requirements are that a hospital that seeks CAH status must meet the following criteria:
    1.1.1. Maintain no more than 25 inpatient beds that may also be used for swing bed services (a ...

    Solution Summary

    Healthcare budget preparation is a rigorous and iterative process which requires that management must involve all department heads in a facility.
    Government programmes such as Medicaid and Medicare have strict rules governing the criteria for reimbursement.The facilities must make adjustments in order to remain profitable.
    A healthcare facility Officer in Charge must benchmark with other facilities of similar standing to perfect the budget and control exercise that meet minimum standards.
    This solution provides a guide for the development of a budget and control system, as well point to sources of information for benchmarking.