HSA 1012 Study Guide - Final Guide: Capital Budgeting, Chief Financial Officer, Organizational Culture

• School: St. John's University
• Department: HSA - HEALTH SERVICES ADMINISTRATION
• Course: HSA 1012
• Professor: Mitchell Defrin

Document Summary

In the zero-base hospital, m. w. person emphasizes the need for budget skills for every management position in the healthcare organization: To function effectively in the healthcare industry in the foreseeable future, managers will need to develop specific financial skills. They will need to acquire an appreciation of volume, expense, and revenue relationships. They will need to become familiar with cost-containment strategies for their particular corner of the market. In short, healthcare managers must learn how to budget. Considering that most managers in healthcare organizations are specialists in fields other than financial management and that, as specialists, they have little or no formal education in budgeting, their records of accomplishment to date have been commendable. Budgeting is the process of converting the operating plan (discussed in chapter 13) into monetary terms. In addition to converting the operating plan into monetary terms for planning purposes, budgeting is an important way for managers to exert control.