Unit 4 Individual Projectm
docx
keyboard_arrow_up
School
Kenyatta University *
*We aren’t endorsed by this school
Course
456
Subject
Health Science
Date
Nov 24, 2024
Type
docx
Pages
4
Uploaded by catenatalie65
1
Unit 4 Individual Project
Velma West
Colorado Technical University HCM410: Fiscal Management in Healthcare Services
Dr. Davis Ijewemen December 11, 2023
2
Unit 4 Individual Project
Budgeting is a critical aspect of any organization as it allows them to make good use of funds and make profits. Failure to do so may lead to mismanagement of money, which increases the risk of recording losses at the end of a financial period. A healthcare organization’s budget revolves around money for paying workers, purchasing of medication and medical equipment, equipment maintenance, etc. In light of the above, this paper prepares next year’s financial plan and operational budget for Nouveau Health. The hospital’s original budget was approximately $31 million and now $3 million has been added, making a total of about $34 million. Since the initial funds have already been budgeted for, the additional funds will be distributed to different areas that need more money. The priority of any healthcare organization in terms of budgeting is paying workers and purchasing new products, i.e. drug
(
Ross, 2022). s. Other areas that the hospital should allocate funds include new equipment purchases, maintenance, service allocation, and upgrading of old equipment. Paying workers should be done with a lot of care because of the risks of underpayment or overpayment, which may result in issues like uneven fund distribution or unsatisfied staff
(
Hirsch & Schumacher, 2012). Both issues can lead to undesirable impacts not only financially but also in terms of service delivery. Workers’ salaries and other associated funds such as leave amounts and advance payment
will be allocated $1 million, which is an addition to the funds previously allocated. The rationale for this allocation is because the organization is planning to recruit more staff and the amount will cater to the new staff’s salary. Besides, addition of more members of staff calls for purchasing of new equipment, and this will be allocated $0.5 million. These equipment includes work attire, office stationery, medical equipment, etc.
3
Purchasing, upgrading, and maintenance of equipment will be allocated $1 million whereby new equipment will be given $0.4 million. Hospital equipment is important as it ensures
patients are provided with as many procedures as possible while building trust with members of staff. It also ensures the hospital does not rely on old equipment that may put the lives of patients
at risk (Kim et al., 2015). Upgrading old equipment will be allocated $0.3 million. The rationale is that most equipment do not need frequent upgrades. Maintenance of equipment will be allocated $0.3 million; the funds are meant to ensure that the equipment lasts for many years and they work effectively and efficiently as possible. In the long run, this will ensure the hospital does not need new equipment because those that have been maintained will be in good condition.
The remaining $1 million will be allocated for drug purchase. The hospital requires enough drugs because most of its operations revolve around prescribing medication. While the cost of drugs is high, these funds will allow the hospital to buy enough drugs to keep its operations going. Conclusion
A reasonable budget is essential for any hospital to adequately run its operations. Effective budgeting means there is enough funds of salaries, equipment, and emergency. The budget above will allow Nouveau Health to run without hiccups as the most important areas are addressed.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
4
References
Hirsch, B. T., & Schumacher, E. J. (2012). Underpaid or overpaid? Wage analysis for nurses using job and worker attributes.
Southern Economic Journal
,
78
(4), 1096-1119.
Kim, F. J., da Silva, R. D., Gustafson, D., Nogueira, L., Harlin, T., & Paul, D. L. (2015). Current issues in patient safety in surgery: a review.
Patient Safety in Surgery
,
9
, 1-9.
Ross, T. K. (2022).
Baker's health care finance: Basic tools for nonfinancial managers
. Jones & Bartlett Learning.