budget analysis 2

Kindly read the instruction of the assignment carefully. Please use the information provided by the assignment only. Do not use any foreign material.

You are the administrator of the medical – surgical department at UMUC Health. Review the transcripts from the budget meeting and recent voicemails from your CFO and, using the available information and resources, develop an operating budget for your department.

Your budget should include a 2-4 page document with an accompanying Excel spreadsheet that:

  • Provides the revenue and expenses through the current month of the current year.
  • Estimates the revenue and expenses for the rest of the current fiscal year based on the assumptions provided in the transcript documents.
  • Prepares a budget for the next fiscal year.

An important detail is to remember you are the Director of the Med-Surg Department, and your budgets should reflect only that Department, you do not need to develop a budget for the whole hospital. When considering the information provided in the budget meeting transcript, the projections are for the whole hospital, of which the med-surf department is only a part. When reviewing the assignment consider the following

  • Of the $1.2 billion in total hospital wide patient services revenue, approximately 57% of the total revenue is for in-patient care; the other 43% is for outpatient revenue
  • The Medical Surgical Budget reflects only in-patient revenue
  • Yearly budgeted Medical Surgical Dept. in-patient revenue: $50,000,000
  • As a percent of the total in-patient revenue, the Med-Surg Dept. represents: 7%
  • In-patient revenue for the Dept. in the first 6 months is below budget by approximately $1.9 million
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