Part 1: Medical-Surgical Department Operating Budget

Relevant scoring guide criteria:

Provide this year’s correct revenue, expenses, and net revenue/expense.
Estimate the correct revenue, expenses, and net revenue/expenses for the next fiscal year.
For Part 1 of this assignment, you will use the information presented in the attached excel file as context to create your operating budget. Using the data provided in the first three (3) columns, you will be developing an operating budget for the medical-surgical department at the St. Anthony Medical Center for the next fiscal year, as well as estimating the revenue and expenses for the remainder of the current fiscal year. (Assume that next year’s revenue will be unchanged from the current year’s revenue; however, the department will need to cut operating expenses by 5 percent for next fiscal year.)

Part 2: Types of Budgets and Their Importance

In the second part of the assignment, you will demonstrate your understanding of the importance of budgets within the context of financial and strategic planning for health care organizations. A “comprehensive analysis,” in the financial world, refers to the complete analysis of every relevant aspect of a company’s financial operations. The goal of such analysis is to provide a complete picture of the financial status of a company both in the current time and projected into the future. What is your interpretation of the numbers? What are the numbers telling you?

 

• Explain why budgets are an important part of the planning process.
• Explain the difference between operating, project, and capital budgets.
• Analyze the impact of the budget on the operations of the organization