StudentShare solutions
Triangle menu

Budgeting in Health Care Organizations - Essay Example

Nobody downloaded yet

Extract of sample
Budgeting in Health Care Organizations

There are numerous other types of budgets such as annual statistics budget and revenue budget and they vary according to their purposes (Gapenski). These budgets can vary across different health care institutions. The reason for this is the diversity of the financial structures, organizational culture and reporting systems of organizations (Finkler and McHugh, 2008, p.171). The process by which health care organizations design and implement budget based on such organizational structure, culture and reporting system determines whether they will achieve budgeted operating margin targets. This is demonstrated in the experience of University of Utah Hospitals and Clinics (UUHC). It was found that the institution's personnel are not knowledgeable on budgeting and finance and that there is no organizational mechanism or aspect of the organizational culture that encourage the education of the staff. As a result, expenses always exceed the budget and what is worse, the extra expenditures are found to be unnecessary (Clark, 2005, p.79). Budgeting, or correct budgeting, is important because it supports the operation of the health care organization. ...
lth care institutions and it needs budgeting in order to maintain positive performance and deal with problems, such as "shrinking revenues and rising expenses" (Schwieters and Harper, p.76). The benefit of budgeting is aligned with the importance of cost information. As managers and hospital personnel are informed about budgeting and cost, a sound operating budgeting process can finally be implemented in order to achieve financial health. This point was explained by the intervention introduced at UUHC in 2004 to improve budgeting results. The organization pursued an aggressive education drive for its staff about budget and finance, "offering incentives to stay within budgets, holding budget variance meetings with managers, and requesting corrective action plans from managers". The result was improved budgeting performance. The intervention model highlighted by the case of UUHC included an important tool in budgeting: variance analysis. It is a method that focuses on comparisons of actual results and budgeted expectations for each line in the budget of each cost center in the health care organization (Finkler, Ward and Baker, 2007, p.200). The flexible budgeting variance analysis is one of its types that is widely used in health care organizations. The methodology follows a framework of gathering information the comprehensively cover the composition of departmental expenses. This could lead UUHC, for instance, to subdivide total variance (the difference between standard prices and quantities and actual prices and quantities) into three: price, quantity and volume (Baker, 1998, p.128). Baker explained these three in detail: Price variance pertains to the proportion of the overall variance caused by the differences between actual and expected price input; Quantity ...Show more


BUDGETING IN HEALTHCARE ORGANIZATIONS According to Penner (2004), budgets are descriptions of the amount and sources of volume, or the number of clients or units of a good or service representing outputs as well as the amount and sources of expenses otherwise known as inputs or costs incurred in the process by which the organization produces goods and services (p.65)…
Author : ykihn
Budgeting in Health Care Organizations essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Budgeting in Health Care Organizations"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Leadership & Communication in Health Care Service Organizations
This means that leadership has different level of implementation depending on a given situation. However, the most important point about it is its general importance in an organization. On the other hand, since an organization involves human beings, communication is definitely an integral part of every activity.
6 pages (1500 words) Essay
Health care organizations in the U.S
Private segment companies have developed key drivers of health structure transformation. They have attained this impact by varying their purchasing authority from compensating for flexible, free of charge service health insurance paybacks to purchasing health care, on a capitated grounds, from well-managed health care plans.
3 pages (750 words) Essay
Patients as Health Care Consumers
Health care consumer refers to any potential or actual recipient of health care and health services. This is more or less the same as the case of a consumer who is any individual who purchases products or services for the intent of personal use and not for resale or manufacture (Thorogood 1992:28).
12 pages (3000 words) Essay
The Effect of Budgeting on Nursing Care
In particular, budgeting is shown to be an integral component of nursing leadership as tantamount to changing nursing practice. On the other hand, budgeting could have either positive or negative impact on the actual quality of nursing care. After all, there is a potential association between changing nursing practice and nursing care, which means budgeting, could be integrated within the bound of nursing leadership, where the structure of control and high budget allocation for labor are incorporated.
4 pages (1000 words) Essay
Responsibilities of Nonprofit Health Care Organizations
The first are organizations that are populated by a general membership in a specific industry; a very good example of this is the American Medical Association. The second category comprises of those organizations that are mandated to provide services towards a specific therapeutic problem such as cancer, diabetes, among others; an example of this is the American Cancer Society.
3 pages (750 words) Essay
Strategic Management of Health Care Organizations
Unlike private health organizations, public and not-for-profit health organizations are mainly dependant on federal and state government for funding. While these organizations do not use adaptive strategies to increase profits; they can use them to insure and increase future funding, program effectiveness, and client satisfaction (McNamara, 2007).
3 pages (750 words) Essay
Strategic Management of health care organizations
At the same time, healthcare has become consumer-driven and patient satisfaction has moved to the forefront of medical care,
3 pages (750 words) Essay
Strategic Management of Health Care Organizations
Unlike private health organizations, public and not-for-profit health organizations are mainly dependant on federal and state government for funding. While these organizations
3 pages (750 words) Essay
Health care
The team of treating breast cancer patients has qualified professionals entailing, oncologist, surgeon, radiation oncologist and highly trained staff. Moreover, the team includes a skilled plastic surgeon for performing procedures of breast reconstruction, after
2 pages (500 words) Essay
Responsibilities of Nonprofit Health Care Organizations
But is the hospital or care center being aided by the hospital to continue providing the needs of the people? Is the tax exemption enough in helping these nonprofit organizations? Though the outpatient clinics are helping the Memorial
1 pages (250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment