Hospital Budget
Patton-Fuller Community Hospital Budget
Over the years financial management has been a concept that is flourishing in the world of health care. “Until the 1960s, financial management in all industries was generally viewed as descriptive in nature, with its primary role being to secure the financing needed to meet a business’s operating objectives” (Gapenski, 2008, pg.26). However, today, financial management holds a more significant role in the management of businesses overall. “Now, the primary role of financial management is to plan for, acquire, and utilize funds (capital) to maximize the efficiency and value of the enterprise” (Gapenski, 2008, pg.26). Similar too many happenings in health care, the specific goals of a business’s management financially is highly dependent on the nature of each particular business. Overall, financial management is a practice that will provide the theories, tools, and concepts needed in order for a company to make better decisions. The Patton-Fuller Community Hospital is one of these companies that take advantage of the financial management practices in order to make better decisions. Recently, a 2010 budget was developed using the 2009 projections, assumptions, and figures. The purpose of this paper is to analyze that budget and discuss which financial management practices will be most effective for this organization as well as which practices will be the least effective.
The 2010 budget developed for the Patton-Fuller Community hospital projects that there will be a slight increase in total revenue, total expenses, and net income that will allow the organization to continue to make its turnaround in the following year. There are several financial management practices that will be helpful for the Patton-Fuller Community Hospital. The first financial management practice that will be effective for this hospital is evaluating and planning. This involves evaluating current operations of the organization and evaluating their
Over the years financial management has been a concept that is flourishing in the world of health care. “Until the 1960s, financial management in all industries was generally viewed as descriptive in nature, with its primary role being to secure the financing needed to meet a business’s operating objectives” (Gapenski, 2008, pg.26). However, today, financial management holds a more significant role in the management of businesses overall. “Now, the primary role of financial management is to plan for, acquire, and utilize funds (capital) to maximize the efficiency and value of the enterprise” (Gapenski, 2008, pg.26). Similar too many happenings in health care, the specific goals of a business’s management financially is highly dependent on the nature of each particular business. Overall, financial management is a practice that will provide the theories, tools, and concepts needed in order for a company to make better decisions. The Patton-Fuller Community Hospital is one of these companies that take advantage of the financial management practices in order to make better decisions. Recently, a 2010 budget was developed using the 2009 projections, assumptions, and figures. The purpose of this paper is to analyze that budget and discuss which financial management practices will be most effective for this organization as well as which practices will be the least effective.
The 2010 budget developed for the Patton-Fuller Community hospital projects that there will be a slight increase in total revenue, total expenses, and net income that will allow the organization to continue to make its turnaround in the following year. There are several financial management practices that will be helpful for the Patton-Fuller Community Hospital. The first financial management practice that will be effective for this hospital is evaluating and planning. This involves evaluating current operations of the organization and evaluating their
References: Gapenski, L. (2008). Understanding Healthcare Financial Management (5th ed.). Chicago, IL: Bookcomp. Health Care Finance. (2012). Hospitals move to cash investments. Retrieved from http://www.healthcarefinancenews.com/news/hospitals-move-cash-investments-short-term-pressures-mount