Budget development. Health, Medicine, Nursing Essay (Essay Sample)

Assignment: Healthcare Budget Request – Budget Development
How do you make difficult decisions? Do you carefully consider the repercussions of each choice? Perhaps you discuss possible outcomes with others. Maybe you rely on tools for help, even if the tool is a coin that can help you reach a conclusion with a simple flip.
Healthcare organizations generally don't have an unlimited stack of coins, neither for flipping nor for spending. Therefore, they must be strategic in how they spend the resources they do have.
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Budgeting is a process by which they can decide which projects or purchases are worth the cost involved and whether they should expand their operations, invest in new equipment or services, or pursue other projects with the potential to bring in additional profits.
For this Assignment, you examine how budgets are developed. After developing a sample budget for a product or service, you also examine how ratios can be used to analyze the budget and provide information that can guide choices.
To Prepare
Reflect on the expenses and revenues you considered in the Week 4 Assignment.
Consider any other expenses that you have yet to account for in the development, launch, and implementation of the healthcare product or service you have proposed.
Consult with your internal finance counselor to help identify and estimate any hidden expenses that may not be obvious.
The Assignment: Budget Development
Develop and analyze a budget for your proposed healthcare product or service. To do this, complete the following:
Part 1: Develop the Budget Worksheet:
Open your Healthcare Budget Request workbook that you created in the previous Assignment, and navigate to the "A4 Budget Development" worksheet.
Using the Healthcare Budget Request Workbook Step-by-Step Guide for guidance, create a 5-year budget for the healthcare product or service that records the projected expenses and revenues associated with the healthcare product or service you have proposed. Be sure to include startup and operating expenses in your budget.
Calculate the budget ratios as directed in the Healthcare Budget Request Workbook Step-by-Step Guide.
NOTE: You will copy your worksheet and analysis onto the Healthcare Budget Request Template (Word document) for submission.
Part 2: Summary of Analysis and Interpretation of Results:
Create a brief (1- to 2-page) description of your budget and analysis that clearly describes the budget. Be sure to address the following:
During the course of 5 years, is there an estimated surplus or deficit?
What percentages of the budget are dedicated to various categories you have defined, such as startup costs, etc.?
What does this budget mean for your organization?