Budgeting in Health Care Organizations

Budgeting in Health Care Organizations Essay example
Ph.D.
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
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)…

Introduction

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. ...
Download paper
Not exactly what you need?

Related papers

Critically discuss the role of budgeting in the current economic climate, taking into consideration what is often referred to as
It acts as a management tool by which the financial health of the company can be controlled (Banovic, 2005, p. 3). The benefits of budgeting include that of forecasting the future performance of an organization, addressing its developmental issues, promoting cohesion amongst the different departments and also predict any possibility of unforeseen expenses (The limitations of Budgeting, 2006).…
Budgeting
Budgeting can be described as the careful planning of an organization’s funds based on the various costs and expenditures that a business faces and the means in which these funds will be distributed amongst them (Lasher, 2010). A simpler and straight forward explanation would be that budgeting is simply the development of a budget. A budget can be defined as an economic plan for a certain period…
planning and budgeting
First, the key factors to consider when making pricing and service decision are considered to include the cost of production, profit mark-up and external factors including prices of competitors. Once the right prices and services are rendered, the facility is sure to have a very firm basis for financial performance. Again, there is consideration on the actual financial planning process, where it…
relationship between finance and accounting, and how they operate to determine financial viability within a health care organiza
On the other hand, there are linking elements of the two functions that create a difficulty in distinguishing between them that shall be highlighted in this paper. Consequently, the analysis will involve the role of finance and accounting; and how they operate to determine financial viability within a health care organization. To begin, it is important to understand the definition of the two…
Budgeting
Budgets can set aims for attaining a certain level of profits and also maintaining expenses. “Budgeting can help a company use its limited financial and human resources in a manner which best exploit existing business opportunities” (Budgeting 2013). I will agree the statement of “management of any business will be ineffective without the preparation and use of budgets”. Following are some…
budgeting
Initially, traditional budgeting acted as the only alternative for budgeting. But, in the recent phenomenon, budgeting has come up with several alternatives. It can be affirmed in this regard that traditional budgeting is often criticized as sufficient enough to support global companies in attaining their desired targets. In this regard, several budgeting processes, with new innovative ideas and…
Managing Financial Resources in Health and Social Care
Be very precise and detailed on the demands you want from each stakeholder, link stakeholders’ interest with your aims, and prioritize. In the BUPA report, they work with the government and other organization to aid in aligning the agenda and long-term policies. BUPA Company should involve all the stakeholders for the proper costing to be enhanced. (Baker 2007,pg.125).   The principle of…