ESSAY : Health Care Business Analysis

Resources: Budgets under Chief Financial Officer in the Patton-Fuller Community Hospital Virtual Organization and the Health Care Budget assignment from Week Five
https://ecampus.phoenix.edu/secure/aapd/cist/vop/index.html
Part 1: 2010 Operating Budget
Review the 2009 Budget Issues – Nurses file in the Patton-Fuller Community Hospital Virtual Organization. This document can be found on the Chief Financial Officer\’s web page under Special Projects.

Decide which of the two highlighted options you will implement from the Nursing Statistics memo of the 2009 Budget Issues – Nurses document.

Discuss decision-making processes in creating a budget.

Create a new 2010 Operating Budget based on the labor decision you select from the Nursing Statistics memo. Use your Week 5 Health Care Budget assignment as the foundation to develop your new projected budget.

Part 2: Analysis Paper
Write a 1,050- to 1,400-word paper. Your paper should:

Discuss decision-making processes in creating a budget.
Explain the role of variance analysis in maintaining an operating budget.
Differentiate between managerial accounting and financial management.
Explain generally accepted accounting principles applied to the health care industry and how they are applied to your Operating Budget Projection.
Discuss the decision between the two labor alternatives facing the management of PFCH and the annual cost increase of each.
Make a recommendation about which labor alternative should be chosen.
Justify and analyze the labor decision that you recommend. Your justification should present numbers related to fiscal management including how each decision affects the 2010 Budget Projection.
Analyze the effect of your decision on the operating budget, including:
The opportunity cost of your recommendation
How your recommendation affects employee satisfaction
How your recommendation affects patient care and patient satisfaction

SAMPLE SOLUTION

Health Care Business Analysis
A healthcare budget is an important tool which helps to understand which areas require significant financial allocation to achieve the set healthcare goals. Through a healthcare budget, healthcare organizations can be more efficient in providing effective as well as efficient patient care. For an organization that is for profit, a budget can be used to estimate the revenues and expenses over a specific time period (Gapenski, 2012). Besides, the budget-making process allows managers to make better informed decisions through a proper definition of the expected outcomes. CEOs and CFOs can use the budgeting process to make decisions that are aligned to attaining both the short-term and long-term goals. The purpose of this task is to provide an in-depth evaluation of the role of the budget and financial management in healthcare practice. Furthermore, the task will…