HCM410-1301A-02 Fiscal Management in Healthcare Services

Established in 1977, Krona Community Hospital is an acute care hospital located in the heart of Banconota County. With a staff of nearly 100 physicians and specialists, 400 employees and 75 volunteers, they offer a full range of healthcare services. They are accredited by the Joint Commission on Accreditation of Healthcare Organizations.

In March 2006, Nouveau Health, a private, not-for-profit health care chain, took over management of the 60-bed Krona Hospital. In May 2007, state officials began to discuss Nouveau’s proposal to build a new, replacement hospital in Banconota County. The new facility would have 74 acute care beds, four observation rooms, four surgical operating rooms, one c-section room, 24-hour emergency department, maternity center, intensive care unit and extensive support services, including physical therapy and cardiac rehabilitation. All patient rooms would be private.

You are a staff member in the Finance Department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.

• YourKey Assignment Draft to help you prepare for the presentation inPhase 5as follows:
• Prepare next year’s financial plan and organizational budget, using at least three types of budgets. Address the possible issues surrounding next year’s forecasting.Make sure the budget reflects the following:
• increase in revenue reimbursement
• allocation for the proposed improvements
• increase in nurses’ salaries

Please be sure to discuss the following areas:

• Funding sources
• Management structure
• Relationships between departments
• Budget cycle
• Preferred budget type