Capital Budget Addendum

Organization Wide Operating Budget

The operating budget of an organization encompasses the expenses and revenues that are expected from one or more financial years. Normally, the operating budget of an organization is formulated by the management at the beginning of every fiscal year. It shows the activities that are expected to take place during that particular financial year. These budgets can be supported by a number of subsidiary schedules that contain more detailed information. For instance, they may separate supporting budgets regarding inventory, the cost of goods, or even the payroll. The actual results of expenses and revenues are then compared to the operating budget in order to note any variances that may have occurred. After the variances have been noted down, the management can then take the necessary actions that are needed to bring actual results into line with the estimated operating budget.

The organization chosen for the purpose of this task is known as Star Medical Center (SMC). This organization is located at Dallas, TX. SMC is one of the largest medical health facilities in the world. It has some of the greatest minds in the field of medicine. The organization nurtures creativity, institutional collaboration, and innovation because it appreciates the fact that when people stand together, they can push the limits to what is possible. SMC operates more than 50 hospitals and approximately 400 other healthcare facilities that include surgical hospitals, ambulance surgery services, urgent care centers, surgical hospitals, and clinics. The organization was founded in the year 1980. SMC is in the business of providing outpatient and acute care services. Some of the services that the organization provides are emergency medical care services, inpatient care, radiology services, and cardiac care. The company also operates CRX Health Solutions, a subsidiary company that provides revenue management services and patient communications services.

The mission of SMC is to provide quality healthcare services and compassionate care in the communities that the organization operates in. the vision of the company is to ensure that is quality healthcare has been delivered at the right time and at the right place (Sperling, 2015). The goal of the organization is to show compassion and respect to all stakeholders and portray the highest levels of integrity, ethical conduct, and inclusivity in all the societies that the organization operates in.

The required number of employees for SMC health facility is 1300. Human resources is one of the core elements of health system inputs. In the healthcare industry, human resource entails different kinds of clinical and non-clinical staff that are responsible for both the health of the public and individuals. The delivery of the organization depends on the skills, knowledge, and motivation of the individuals who are responsible for delivering health care services (Dropkin, Halpin & LaTouche, 2007). Further, SMC ensures that they have achieved a proper balance between physical and human resources. This is crucial for ensuring that there is a proper balance between caregivers and health promoters which is necessary for the success of the healthcare system.

SMC healthcare facility serves all types of client groups. This involves patients of all ages, ranging from kids to adults. the patients that are served in the facility use several methods of payment. These methods include Medicare A&B, Medicare PFFS plans, AARP, ACS, and Accredo. This depends on the method of payment that each specific patient prefers.

SMC healthcare organization has a number of facilities that enable it to provide quality healthcare to its customers. Before acquiring these facilities or equipment, the organization came up with a strategic hospital facility plan that took into consideration financial feasibility, operational overview, and market analysis (Nowicki, 2018). The organization considered the facilities that would be needed to accommodate the projected demand, the services areas that had increasing or decreasing demand, and the demographic elements of the target clientele.

The facility has adequate premises that cater for the most crucial needs of target customers. This equipment enables the professionals to assess the medical conditions of patients in the most effective way. The different types of equipment and facilities available in the organization serve different purposes to ensure that patients are handled in the most appropriate manner.

Some of the equipment that the organization has includes diagnostic equipment, durable medical equipment, life support equipment, treatment equipment, and medical laboratory equipment.

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