In 3-4 pages, describe the environmental forces that affect health care organization budgets. Propose a budget that includes organizational improvements. Explain how the budget aligns with the target profit margin and how financial performance will be measured.
• 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?
Sample Solution
