MHA FPX 5006 Assessment 4 Operating Budget Proposal
Phillip May 16, 2024 No Comments

MHA FPX 5006 Assessment 4 Operating Budget Proposal

MHA FPX 5006 Assessment 4 Operating Budget Proposal

Name

Capella university

MHA-FPX 5006 Health Care Finance and Reimbursement

Prof. Name

Date

Operating Budget Proposal

It is imperative for nearly all healthcare institutions to formulate an operational budget plan to forecast both revenues and expenditures accurately. This process ensures that the healthcare organization can achieve its medical objectives while realizing anticipated profitability. Moreover, considering environmental factors that may influence the budget proposal is crucial for its effectiveness (Saviano et al., 2018). Presented here is a comprehensive operating budget proposal for a healthcare organization, including expenses for purchasing a billing system and MRI equipment to enhance operations.

Environmental Factors Affecting the Operational Budget

Numerous environmental factors impact a healthcare organization’s yearly budget, either directly or indirectly. Internal strategic factors such as employees, organizational structure, finances, and values significantly influence the organization’s budgetary considerations. Effective governance, financial stability, and workforce competence are essential for achieving organizational goals (Krastanov et al., 2019). Additionally, changes in laws and regulations, such as those outlined in the Affordable Care Act, can significantly affect healthcare organizations’ financial outlook (Chen & Grabowski, 2019).

Proposed Organizational Budget for Improvement

The proposed budget includes expenses for purchasing a billing system and MRI equipment to enhance organizational operations. The MRI machine aims to improve patient care by reducing misdiagnoses through precise imaging. Furthermore, owning an MRI machine can attract more patients to the hospital, thereby increasing revenue (Faria et al., 2018). The billing system is expected to streamline billing processes, reduce documentation, and enhance customer service (Rosenbach et al., 2017).

Budget Alignment with Organizational Target Profit Margin

The budget aligns with the organization’s goals of increasing revenue and improving patient care. Investments in MRI equipment and billing systems are essential for achieving these objectives. Additional funds are allocated for training and equipment management to ensure that new purchases contribute effectively to organizational goals (Adhikara et al., 2022).

Measurement of Financial Performance

Implementing performance measurement tools is crucial for evaluating the hospital’s financial success. By tracking both qualitative and quantitative metrics, the organization can assess its economic position and make necessary adjustments to improve financial performance (Wang et al., 2018). Regular cost-benefit analyses help monitor monthly changes and establish revenue targets, contributing to the organization’s overall financial stability (Lim et al., 2018).

Conclusion

A comprehensive operating budget must consider all environmental factors affecting the organization and provide mechanisms for assessing financial performance. By analyzing various financial sectors and adopting long-term budgeting strategies, healthcare organizations can navigate economic uncertainties and ensure sustainable growth (Saviano et al., 2018).

References

Adhikara, M. A., Diana, N., & Basjir, M. (2022). Organizational Performance in Environmental Uncertainty on the Indonesian Healthcare Industry: A Path Analysis. Academic Journal of Interdisciplinary Studies, 11(2), 365-365.

Al Ahbabi, A. R., & Nonane, H. (2019). Conceptual building of sustainable financial management & sustainable financial growth. Available at SSRN 3472313.

Berwick, D. M., & Gilfillan, R. (2021). Reinventing the Center for Medicare and Medicaid Innovation. JAMA, 325(13), 1247–1248.

Brooks-LaSure, C., Fowler, E., Sihamoni, M., & Tsai, D. (2021). Innovation at the Centers for Medicare and Medicaid Services: a vision for the next 10 years. Health Affairs Blog. August, 12.

Cascardo D. (2017). Preparing to Meet the New CMS Emergency Preparedness Rule. The Journal of Medical Practice Management: MPM, 32(5), 301–303.

Chen, M., & Grabowski, D. C. (2019). Hospital Readmissions Reduction Program: Intended and Unintended Effects. Medical Care Research and Review: MCRR, 76(5), 643–660.

Faria, R., Soares, M. O., Spackman, E., Ahmed, H. U., Brown, L. C., Kaplan, R., Emberton, M., & Sculpher, M. J. (2018). Optimizing the Diagnosis of Prostate Cancer in the Era of Multiparametric Magnetic Resonance Imaging: A Cost-effectiveness Analysis Based on the Prostate MR Imaging Study (PROMIS). European Urology, 73(1), 23–30.

MHA FPX 5006 Assessment 4 Operating Budget Proposal

Gai, Y., & Pachamanova, D. (2019). Impact of the Medicare hospital readmissions reduction program on vulnerable populations. BMC Health Services Research, 19(1), 837.

Krastanov, A., Lăzăroiu, G., Vaganova, L., Kolesnikova, J., Danilova, M., & Malavika, D. (2019). The Effectiveness of Marketing Communication and Importance of Its Evaluation in an Online Environment. Sustainability, 11(24), 7016.

Lim, J., Lim, K., Heinrichs, J., Al-Aali, K., Aamir, A., & Qureshi, M. (2018). The role of hospital service quality in developing the satisfaction of the patients and hospital performance. Management Science Letters, 8(12), 1353-1362.

Rosenbach, N., Koller, J. M., Earl, E. A., Miranda-Dominguez, O., Klein, R. L., Van, A. N., Snyder, A. Z., Nagel, B. J., Nigg, J. T., Nguyen, A. L., Lesnevich, V., Greene, D. J., & Fair, D. A. (2017). Real-time motion analytics during brain MRI improve data quality and reduce costs. Neuroimage, 161, 80–93.

Saviano, M., Bassano, C., Picacho, P., Di Nauta, P., & Lettieri, M. (2018). Monitoring Viability and Sustainability in Healthcare Organizations. Sustainability, 10(10), 3548.

MHA FPX 5006 Assessment 4 Operating Budget Proposal

Wang, T., Wang, Y., & McLeod, A. (2018). Do health information technology investments impact hospital financial performance and productivity? International Journal of Accounting Information Systems, 28, 1-13.