Research Paper

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2

Budgeting

Student’s Name

University

Course

Professor

Date

Budgeting

Part A

The unit name of the medical facility is Mount Sinai Health System. It was formed from a combination of Continuum Health Partners and Mount Sinai Medical Centre in July 2013. The hospital features an integrated health care structure offering special medical care to both local and international facilities. Further, Mount Sinai Health System runs a medical school known as the Icahn School of Medicine with campuses in eight regions of the New York metropolitan location. It acts as a center of research and assists in offering services across various specialties.

The health facility is designed to surge economies of scale and effectiveness to enhance outcomes and quality and enlarge access to progressive ambulatory and specialty services throughout an extensive clinical network. It has over 7,000 doctors, entailing specialists and practitioners. The hospital has state-of-the-art care to respond to the health-related needs of various populations. Mount Sinai Health System is a profit-making firm with a turnover of $14,000,000 in the year 2017. It has a Year-Over-Year (YOY) profit expansion of 60%.

Part B

Cost Type	$
Direct Cost	850,000
Indirect Cost	350,000
Total Cost 1,200,000 Proposed Profit - 40% of Total Expenditure Projected Revenue for 2018 - $1,680,000 Cost Budget 2018

	Expenditure	Cost	Profit
Budget	1,680,000	1,200,000	40%
Actual	1,570,000	1,255,000	25%
Variance	-110,000	55,000	-15%
Budget vs. Actual ($)

The budget represents the monetary value that the hospital is projected to hit throughout a year. The numbers entail expenses, return, and cash flow. The actual entails the real numbers that a company achieves. However, the company may fail to meet the projected budget due to calamities such as Covid-19. Sometimes the actual can differ with the budget resulting in a variance. The Actual vs. Budget Analysis shows the profit at 25%, lower than 40%, due to lower returns and surge expenditure base.

Part C

Anderson, D. M., Cronk, R., Best, L., Radin, M., Schram, H., Tracy, J. W., & Bartram, J. (2020). Budgeting for environmental health services in healthcare facilities: a ten-step model for planning and costing. International journal of environmental research and public health, 17(6), 2075.

The first source is an international journal explaining the process of budgeting in healthcare facilities. It offers discrete budgeting processes such as planning, data gathering, and synthesis. The approach assists stakeholders in calculating expenditures and propagating findings to select suitable costing methods and recognize data gaps.

Ho, A. T. K. (2018). From performance budgeting to performance budget management: theory and practice. Public Administration Review, 78(5), 748-758.

The article explored challenges associated with performance budgeting in a diverse nation and their linked challenges from a profound institutional structure. Budgeting is used in all types of companies to assist in planning. The topic has numerous advantages and disadvantages that Mount Sinai Health System can utilize to ensure the success of its organization. Therefore, there are more minor disparities between actual and budgeted. The paper recommends various strategies to address organizational and institutional barriers through stakeholder engagement, policy planning, and performance audits.

Taha, A., & Rodríguez-Vega, G. (2020). Planning and Budgeting. Springer, Cham. In Critical Care Administration (pp. 21-41).

The book explains budgeting in the critical care unit. Hospitals allocate vast resources to the ICU while only a few patients receive the care. It is hard to calculate the return of investment for a particular ICU intervention. The source offers the use of IT as a possible way of influencing the budgeting of an ICU.

References

Anderson, D. M., Cronk, R., Best, L., Radin, M., Schram, H., Tracy, J. W., & Bartram, J. (2020). Budgeting for environmental health services in healthcare facilities: a ten-step model for planning and costing. International journal of environmental research and public health, 17(6), 2075.

Ho, A. T. K. (2018). From performance budgeting to performance budget management: theory and practice. Public Administration Review, 78(5), 748-758.

Taha, A., & Rodríguez-Vega, G. (2020). Planning and Budgeting. Springer, Cham. In Critical Care Administration (pp. 21-41).