homework

Assignment instructions

                                  Healthcare Operating Budget

Imagine you are a clinical manager of a Health Care primary care services and in charge of developing a projected annual operating budget.

Your budgetary figures are as follows:

For fiscal year 2017 and 2018, your clinic received $3 million from the government as fee-for-services reimbursements, as well as $1.1 million from private payers. The clinic has an annual fund-raiser that historically brings in $180,000 and a grants department that brings in $1.2 million annually.

Your chief financial officer (CFO) has provided you with the following annual expenses:

Health Care Annual Expenses: Annual salaries - $1.5 million Annual benefits - $ 240,000 Annual rent - $ 960,000 Annual insurance - $ 45,000 Annual depreciation - $ 780,000 Annual overhead - $ 180,000 Annual supplies - $60,000  

Using the Health Care Operating Budget template, complete a 12-month operating budget in which you include the net profit (loss)- See attached Template

Write a 2 pages executive summary that explains to the board of directors how you developed the budget and its importance.

Include the following in your summary:

· Explain the process for creating an operating budget and its importance.

· Explain how revenues and expenses are grouped for planning and control in the financial statements.

· Explain the differences between cash and accrual financial systems.