13 May HOW CAN INTERNAL BENCHMARKS BE USED TO HELP IDENTIFY BEST PRACTICES WITHIN AN ORGANIZATION?
Effective management of health care requires competence in health care finance. Successful health care executives not only understand operating, capital, and revenue budgets, they also understand why each of these budgets is important to an organization and which groups of stakeholders need to remain apprised of the status.
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community.
• How can internal benchmarks be used to help identify best practices within an organization?
• How might an organization use external benchmarks to measure and monitor performance?
• What is a scorecard, and how is it used to track financial performance?
• Required Resources
The following resources are required to complete the assessment.
• Sample Operating Budget [XLSX].
This resource provides step-by-step guidelines for developing a budget, including a multiple-tab spreadsheet for a multi-year generic hospital budget.
• Parkland Hospital. (n.d.). Developing a budget. Retrieved from https://www.parklandhospital.com/phhs/developing-a-budget.aspx
Show Less
Suggested Resources
The resources provided here are optional and support the assessment. They provide helpful information about the topics. You may use other resources of your choice to prepare for this assessment; however, you will need to ensure that they are appropriate, credible, and valid. MHA-FP5006: Health Care Finance and Reimbursement Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the left navigation menu in your courseroom, provide additional resources to help support you.
This article discusses opportunities for finding savings in the budget process and the need for a multi-year approach and contains helpful links to the American Hospital Association and other resources.
• Becker’s Hospital CFO Report. (2014). CFO perspective: Finding savings in the annual operating budget. Retrieved from https://www.beckershospitalreview.com/finance/cfo-perspective-finding-savings-in-the-annual-operating-budget.html
Additional Resources for Further Exploration
This article discusses benchmarking and identifying costs.
• Silber, J. H., Rosenbaum, P. R., Ross, R. N., Ludwig, J. M., Wang, W., Niknam, B. A., . . . Fleisher, L. A. (2014). A hospital-specific template for benchmarking its cost and quality. Health Services Research, 49(5), 1475–1497.
This textbook chapter discusses budgets and the process of developing different types of budgets.
• Harrison, C., & Harrison, W. P. (2013). Introduction to health care finance and accounting. Clifton Park, NY: Cengage Learning/Delmar. Available from the bookstore.
o Chapter 8, “Budgets,” pages 127–152.
These textbook chapters discuss the management control process, cost variance analysis, working capital, cash management, and developing a cash budget.
• Cleverley, W. O., Cleverley, J. O., & Song, P. H. (2011). Essentials of health care finance (7th ed.). Sudbury, MA: Jones & Bartlett Learning. Available from the bookstore.
o Chapter 16, “Management Control Process,” pages 355–378.
o Chapter 17, “Cost Variance Analysis,” pages 379–395.
o Chapter 22, “Working Capital and Cash Management,” pages 489–504.
o Chapter 23, “Developing the Cash Budget,” pages 505–514.
• Assessment Instructions
Preparation
Use the Sample Operating Budget located in the Required Resources section to help you complete this assessment. The information represents the clinic’s operating budget for 2015 and 2016.
You have been asked to prepare a budget proposal for 2017 for the group of physicians who own the clinic. Because you know the clinic needs new billing software and there is a request for a new MRI machine, you will need to factor these expenses into your proposal. You will also need to explain environmental forces that may affect the budget and how your proposal addresses those forces.
There is no specific format you must follow for this assessment. This is a budget proposal and should be organized in a clear and logical manner. Support your work with references to at least two professional resources, and follow the APA guidelines for in-text citations and references.
Requirements
Complete the sample operating budget by filling in the 2017 column. Include this information as a table inserted into your budget proposal, or attach separately in the assessment submission area.
In your proposal, be sure you do the following:
• Describe the environmental forces that will affect or are likely to affect the budget for the next year. (Consider things such as compliance changes, changes in how insurance claims are processed, changes in laws and regulations, and so on.)
• Complete a 2017 operating budget that includes the purchase of new billing software and a new MRI machine. (This is where you use the sample operating budget.) Keep in mind that there will be costs beyond the purchase price, such as training for staff, the addition of more staff, and maintenance. You may want to refer to Assessment 3 and the cost-benefit analysis you completed.
• Explain how this proposed budget aligns with the target profit margin.
• Explain the measures you will implement to track financial performance over the next year. How will you evaluate financial performance?
Additional Requirements
• Include a title page and reference page.
• Number of pages: 4–5 pages, not including the title page or reference page.
• At least two current scholarly or professional resources.
• APA format for in-text citations and references.
• Times New Roman font, 12 point.
• Double-spaced.
Operating Budget Proposal Scoring Guide
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.