I just need to provide feed back to the peers discussion post
I need a discussion response to my peers discussion post. please see below
In the article I read about hospital budgets, it listed âBest practice budgeting includes, among other steps, setting accurate budgets, establishing accountability, monitoring variances, and managing expenses.â (Clark. 2005. p. 79). To me, all of those are important and if done correctly, minimize potential ethical issues. At a California hospital that I worked for, budgets were one of the main leaders in the strategic plan. Managers on up were responsible for creating and monitoring their budgets. Each month, we received an update version of our budgets and if you were above or below a 10% variance, you had to provide a reason why. We were given historical data from the prior year to use as guidance in preparing the next budget. Capital expenditures or other significant expenditures outside the strategic plan had to go before the budget committee for approval. Managing our budget, both revenue and expenses, was extremely important during the economic downturn. In the article, that point was made. â"You need to be very conservative in budget projections by not letting volumes run the budget. If you are trying to hit a 3 percent margin, you might say, 'We have to cut $1M to get it. However, others will ask, 'How many admissions is that?' It's easier for them to get to the 3 percent margin by adjusting the revenue side rather than the expense side. Many organizations are too optimistic on revenue or volume projections, and they balance the budget on the revenue side rather than on the expense side. When they get into a jam and have to cut expenses, they just increase the revenue projection." (Clark. 2005. p. 80 Sidebar). By focusing on revenue, expenses, quality and satisfaction, the budget process will lead the strategic plan and your organizationâs mission.
I just need to provide feed back to the peers discussion post
I need a discussion response to my peers discussion post. please see below
In the article I read about hospital budgets, it listed âBest practice budgeting includes, among other steps, setting accurate budgets, establishing accountability, monitoring variances, and managing expenses.â (Clark. 2005. p. 79). To me, all of those are important and if done correctly, minimize potential ethical issues. At a California hospital that I worked for, budgets were one of the main leaders in the strategic plan. Managers on up were responsible for creating and monitoring their budgets. Each month, we received an update version of our budgets and if you were above or below a 10% variance, you had to provide a reason why. We were given historical data from the prior year to use as guidance in preparing the next budget. Capital expenditures or other significant expenditures outside the strategic plan had to go before the budget committee for approval. Managing our budget, both revenue and expenses, was extremely important during the economic downturn. In the article, that point was made. â"You need to be very conservative in budget projections by not letting volumes run the budget. If you are trying to hit a 3 percent margin, you might say, 'We have to cut $1M to get it. However, others will ask, 'How many admissions is that?' It's easier for them to get to the 3 percent margin by adjusting the revenue side rather than the expense side. Many organizations are too optimistic on revenue or volume projections, and they balance the budget on the revenue side rather than on the expense side. When they get into a jam and have to cut expenses, they just increase the revenue projection." (Clark. 2005. p. 80 Sidebar). By focusing on revenue, expenses, quality and satisfaction, the budget process will lead the strategic plan and your organizationâs mission.
