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8/10/2019 Preparing a Budget for the Small Hospital
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Prepar ing
a Budget fo r
t h e
Smal l
Hosp i t a l
Prepared
f o r
U ON
499
Honors Thes i s
by
J an i c e L uerger
Col lege
o f
Advanced
Techn ica l Stud ies
Southern
I l l i n o i s Unive r s i t y
25 March 1991
\
\
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Pr e pa r i ng a Budget f o r t he
Small
Hosp i t a l
Execut ive
Summary
Team
work
shou ld be u t i l i z e d in
deve lop ing
an
annual
f i n a n c i a l
budge t .
The
p r o J e c t i o n o f
t he
f i n a n c i a l
ou t look
f o r
each
depar tmen t
can
u s u a l l y be made
by
depar tmen t
heads
s i n c e
t he y a r e
r e s p o n s i b l e fo r the d a i l y
o p e ra t io n
o f t h e i r u n i t .
Thei r involvement normal ly produces
l e s s
v ar i an ces from t h e bUdget
These
fo r e c a s t s ,
a f t e r i npu t
and
c a r e f u l s c r u t i n y
by
t h e
a d m i n i s t r a t i o n ,
can
provide
impor tan t i n f o r m a t ion in
deve lop ing
an
o v e r a l l f i n a n c i a l
budget
f o r t he
h o s p i t a l .
budget
s
a
formal
w r i t t en s t a t ement o f a
h o s p i t a l s
p la n
f o r t he
fu t u r e . The f i n a n c i a l
budget
i s
a management
c o n t r o l
to o l normal ly c ove r ing
a one year
p er io d . The
e s s e n t i a l s
o f budge t ing a r e to s e t s p e c i f i c
goa l s f o r
f u t u r e
o p e r a t i o n s and
to
have a p e r i o d i c compar ison o f
a c t u a l
r e s u l t s
wi th
t he
f i n a n c i a l
goa l s e s t a b l i s h e d .
Many
t ype s
o f budge ts
can be
used , bu t
t h r e e which a r e
impor tan t
to
any h o s p i t a l a r e t he o p era t in g budge t , c a p i t a l
budget
and t h e
cash budge t .
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CKNOWLEDGEMENT
I want
to
thank Mr. J e r ry
Hickam
a
h ea l th
ca re
p ro fe s s i o n a l f o r
t e a c h i ng
me
h i s
methods i n p r e pa r i ng a budge t .
e has
t au g h t
me t h a t e x c e l l e n t
r e s u l t s
can
i ndeed be
ach ieved
by
t h e pr ude n t and c o n s i s t e n t m oni to r ing
o f
t h e budge t .
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TABLE OF CONTENTS
PREPARING A BUDGET FOR THE SMALL HOSPITAL
INTRODUCTION
STATISTICAL BUDGET 2
EXAMPLES
EXPENSE
BUDGET
3
REVENUE
BUDGET
4
OPERATING BUDGET 6
CAPITAL
BUDGET
6
CASH
BUDGET
8
FINANCIAL
STATEMENTS
9
CONCLUSION
10
FLOW
CHART
12
DEPARTMENTAL HISTORY SHEET 13
SALARY
BUDGET
WORKSHEETS
14
SALARY
SUMMARY
BUDGET
WORKSHEETS
16
SUPPLIES &
EXPENSE AND
TOTAL
EXPENSE WORKSHEET
18
STATEMENT OF REVENUES AND EXPENSES 19
THREE YEAR
CAPITAL BUDGET
20
BLANCE
SHEET 21
REFERENCES 22
http:///reader/full/%E5%AE%AE...%E5%AE%95........%E5%AE%AE%E5%AE%AE....%E5%AE%AE%E5%80%80http:///reader/full/%E5%AE%AE...............%E5%80%80http:///reader/full/%E5%AE%AE............................%E5%80%80http:///reader/full/%E5%AE%AE...%E5%AE%95........%E5%AE%AE%E5%AE%AE....%E5%AE%AE%E5%80%80http:///reader/full/%E5%AE%AE...............%E5%80%80http:///reader/full/%E5%AE%AE............................%E5%80%808/10/2019 Preparing a Budget for the Small Hospital
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P r e pa r ing
BUdget
f o r
t h e
Small
Hospi t a l
I n t r o d u c t i o n
The
a b i l i t y o f smal l
h o s p i t a l s t o
su rv iv e l a r g e l y
depends
on
e x t e r n a l
f a c t o r s such
a s s t a t e and f ed e ra l
h e a l t h c a r e l e g i s l a t i o n and
i n t e rn a l
f a c t o r s such
a s
t h e
p r e p a r a t i o n o f su cces s fu l f i n a n c i a l
budge t
The
f oc us
o
t h i s
r e p o r t
i s
t he
p r e p a r a t i o n
o f
t h e
smal l
h o s p i t a l
f i n a n c i a l budge t
Develop ing f i n a n c i a l budge t i s pr oc e ss t h a t shou ld
use team work to
plan
and implement if
it
i s to
be
e f f e c t i v e
The
budget s e t s pe r i m e t e r s f o r management to
fo l low
th r oughou t
t h e
ye a r
a l l owing t h e managers to r e p o r t v ar i an ces whi le
prov id ing guidance s o v a r i a n c e s are
ma in ta in e d
a t
a
minimum and a dJus t e d when
p o s s i b l e
By
us ing
ll depar tmen t
managers in t h e
planning
pr oc e ss
of
t h e
budge t
t h e
ad mi n i s t r a t o r is
a b l e
to deve lop
e f f e c t i v e
s t r a t e g i e s
because a l l
depar tments
a r e i n v es t ed in t h e g o a l s This
e l i mi n a t e s
many
prob lems
a s s o c i a t e d wi th t h e
budget
and
i d e n t i f i e s a r e a s t h a t need improvement
As r e s u l t of c om pe t i t i on d e c l i n i n g marg ins and
o t h e r
economic
p r e s s u r e s , a d m i n i s t r a t o r s
are
t a k i n g
se v e r a l s t ep s t o contro l c o s t s and
i n c r e a s e revenues .
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The
budget
pr oc e ss
i s one
of t he
b e s t
t o o l s
known
to
do
J u s t
t h a t . The
o b Jec t iv es o f
a
budget
a r e :
to
provide
w ri t t en t e rms o f
t he h o s p i t a l
goa l s
* to
prov ide a
b a s i s f o r
t h e
ev a lu a t io n of
f i n a n c i a l
per formance
accord ing
to t h e p l a ns
*To
provide
a t o o l to c o n t r o l c o s t s
*To c r e a t e c o s t awareness h o sp i t a l wide
S t a t i s t i c a l Budget
The first s t e p i n p r e pa r i ng an
ope r a t i ng
budget
i s
to
pr e pa r e
t he statistical
budge t .
The
obJe c t i ve
is
to
pr ov ide a measure of a c t i v i t y in
each
depar tmen t f o r
t he
upcoming
budget
pe r i od .
D i a g n o s t i c departments measure
how
many
procedures
w i l l be prov ided f o r t he upcoming ye a r ,
whi le nur s ing e s t i m a t e s
t he
number o f p a t i e n t
days
a n t i c i p a t e d .
Knowlege
of
t he
p a s t
per formance
o f a f a c i l i t y is
use f u l
in t h e
fo recas t i n g .
The l a s t f r i v e
ye a r s
is an a p p r o p r i a t e
amount
of h i s t o r y
to
keep on file This e na b l e s
management
to
p la n fo r f u t u r e o p e r a t i o n s . Compar isons of p a s t
per formance
with
c u r r e n t o p e ra t io n s
may
i n d i c a t e
f a vo r a b l e
and
unfavorab le t r en d s .
For
example ,
it
i s
very h e lp fu l
to rev iew t he p a s t
h i s t o r y
o f f u l l
t ime eq u iv e l en t s FTEs)
f o r each depar tmen t
in a
h o s p i t a l .
This e na b l e s management
8/10/2019 Preparing a Budget for the Small Hospital
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to
s e t
g o a l s
to
lower
o v e r t i m e ,
s i c k
t ime ,
e t c .
t e na b l e s
management
to m a in t a in FTEs to wi th in t h e budget .
Depar tments should be
r e que s t e d to e s t i m a t e t h e
volume o f t h e i r a c t i v i ty bu t t h e
f i n a n c i a l managers
shou ld
have
t h e
f i n a l
c o n t ro l .
T hi s i s impor tan t because
depar tment
managers may t e nd t o o v e r s t a t e
volume
and t h i s c ou ld be
d e v a s t a t i n g
when t h e budge t is no t met.
However, t h e
depar tments should be i nvo lve d because
t op
management
t ends
to be t o o c o n se r v a t i v e .
Each
depar tment has
t h e i r own s e t o f v a r i a b l e s
to
examine
p r i o r
t o f o r e c a s t i n g . Kay
v a r i a b l e s
t o examine a r e
p a t i e n t days
and o u t p a t i e n t
v i s i t s . Managers
should
look
a t
t h e census per month ove r t h e
p a s t few ye a r s
t o
p r o J e c t
t h e
number o f p s t i e n t
~ y
expec ted
i n t h e fu t u r e .
Equal
visits
o v e r
t w e l v e months
cannot be assumed.
S e a s o n a l ,
weekly and d a i l y p a t t e r n s
should
be
r ev iewed .
For example ,
Chr is tmas i s u su a l ly a s low
t ime
o f
t h e
ye a r
so you
would
probably budget
fewer p a t i e n t days in December
t ha n in
maybe J une .
Other
a r e a s o f concern may i nvo lve
a
phys i c i a n
p la nn ing
to
r e t i r e
which would
a f f e c t
a dm is s ions
and
p a t i e n t volume.
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4
Expense Budget
This
is
t h e second s t e p in pr e pa r ing an ope r a t i ng
budge t .
Af t e r
t h e
statistical budge t
is
pr e pa r e d ,
each
depar tmen t
can
then
p r e pa r e
t h e i r
expense
budge t . The
expense budget is t h e
amount
of money
each
depar tmen t
e xpe c t s to p a y o u t .
These e x p e n s e s inc lude s a l a r i e s ,
s u p p l i e s ,
and o t h e r
va r i ous expenses . These
a r e t he
d o l l a r s
t he
d e p a r t me n t s
must
s t a y
wi t h i n .
* S a l a r i e s
t
i s
a good
idea
to
g i v e
each
depar tmen t
manager
a
wor kshee t
wi th each o f t h e i r employees
l i s t e d
with
t h e i r
a nn i ve r sa r y d a t e ,
p r e s e n t
hour ly
pay
and number of
hours
s c h e d u l e d to work. The depar tmen t manager can t hen make
c o r r e c t i o n s
a s n e c e s s a r y . They can
a l s o
look a t a pay
s c a l e and
de c ide
what i n c reases t he employee w i l l
g e t
a t
t h e i r
a nn i ve r sa r y d a t e .
This is a l so
a good t ime to budge t
f o r va c a nc i e s and make all c o r r e c t i o n s .
Suppl ies
Input f rom t h e depar tmen t heads a r e ne c e s s a r y if t h e r e
w i l l
be
p r i c e i n c r e a s e s
f rom
t he
vendors
and what
pe r c e n t a ge
the
p r i c e s w i l l i n c r e a se . f expenses go up
t he
r evenue
budge t
shou ld
i n c r e a s e p r o p o r t i o n a t e l y .
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5
Revenue Budget
The
r evenue
budge t
is
a o r e c a s t
o t h e income
a
h o s p i t a l ex p ec t s
to r ece iv e or
t h e
budge t
p er i o d .
The
n o t - o r p r o i t n a t u r e o t h e h ea l t h
ca re
i n d u s t r y demands
t h a t r evenue be r e l a t e d
to
budge ted ex p en ses .
(C lever l ey ,
1986,
p . 2 6 3 ) .
The
p rep a ra t i o n
o
t h e
r evenue budge t
e n t a i l s t h e
p ro J ec t i o n o p a t i e n t s e r v i c e revenues ,
o t h e r o p e r a t i n g
r e v e n u e s
8nd non-operat ing revenues . T o t a l
p a t i e n t
s e r v i c e
r evenues a re c a l c u l a t e d
by
mu l t i p l y i n g t h e
expec ted
s e r v i c e volume
in
each r evenue c e n t e r by t h e charge
per
u n i t
o f
s e r v i c e .
(Ci rn
G e l l a t l y ,
1988 p .
101) .
You
w i l l need to d e c i d e
what
p er cen t ag e
o p r i c e
in c reas e w i l l
be needed to
produce
t h e
bot tom l i n e
you d e s i r e .
t i s
a
good i dea to
p r i n t
what
t h e r e s u l t s
would be a t
each
p er cen t ag e
to
g e t a
t r u e p i c t u r e . The p e rc e n t a g e l e v e l
dec ided upon needs to be enorced on all charges . For
example , i X-Ray 's
t o t a l a n c i l l a r y
c h a rg e s
or
every
procedure
oered eq u a l s 5550 ,000 and you d e c i d e on
a
1 ~
cha rge
i n c r e a s e ,
t h e n
t h e
5500 ,000
w i l l
have
to
i n c rea s e
to
5550 ,000 .
You
can
e i t h e r i n c rea s e each procedure by 1 ~
o r i n c r e a s e some and
d e c r e a s e o t h e r s .
J u s t
be
s u re t h e
bot tom
l i n e
i s i n c r eased
by 1 ~ Thi s is impor tan t
t h a t
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6
Other
o p e r a t i n g
revenue
p ro Jec t io n s shou ld be c ons i de r e d .
Examples
a r e , d i e t a r y s a l e s
f rom
lunches so ld to employees
and
s i l v e r s a l e s from o l d x - r a y f i lms .
Non-opera t ing r evenues would i nc lude co n t r i b u t i o n s and
i n t e r e s t from i nves tment s . C ontr ibut ions
are
somet imes
d i f f i c u l t to
p r o J e c t whi le i n t e r e s t on
inves tments a r e
an
im por t a n t p a r t
o f t h e
non- ope r a t i ng r e ve nue s .
Opera t ing Budget
The
o p era t in g budget is composed of t he expense
budge t and r evenue
budge t .
It lists, fo r t he upcoming
f i s c a l
ye a r ,
a n t i c i p a t e d
income by sou r c e , and
a n t i c i p a t e d
expenses by
na
t u r a l
c l a s s i i c a t i o n ....
such
a s
s a l a r i e s ,
s u p p l i e s ,
and
utilities.
Adm i n i s t r a t i on
should
a lways
pur sue a l a r g e r revenue budget than expense budge t ,
t h e r e f o r e
p ro Jec t in g a p r o f i t on
t h e
bottom
l i n e .
The
p r o f i t
is used
to
f i na nc e t h e c a p i t a l
budge t .
Cap i t a l Budget
The
c a p i t a l budget
summarizes f u t u r e plans f o r
a c q u i s i t i o n s o f p l a n t facilities and eqUipment .
'The
average
U.S. h o s p i t a l i n c r e a s e s
its inves tment
in n e t
pr ope r t y by 9.3%
per y ea r .
CBKD 1990, p.ll. A h o s p i t a l
must de te rmine how much
o f its
c a p i t a l
p lan
to devote to
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7
r e n o v a t i o n s
and expansion p ro Jec t s .
(Bent ivegna &
Calwe l l ,
1990,
p .
44-50) .
Management a l s o
has to
examine
t h e h o s p i t a l ' s o p e r a t i n g per formance and
c u r r e n t f i n a n c i a l
s t a t u s
to
se e whe the r
fu tu re
f i n a n c i n g
s
needed .
* I d e n t i f y your c a p i t a l
needs .
Each
depar tment shou ld be g iven
a
c a p i t a l budget worksheet
and
g u i d e l i n e s
to l st t h e i r
c a p i t a l
budge t
i t ems .
A
500
minimum
d o l l a r
amount
per
i t em
o r
1000
pe r
group
o f
i t ems
is
r e a s o n a b l e . Othe r wise you
w i l l c l u t t e r your f i x ed
equipment a p p r a i s a l r e p o r t .
*R egard ing
f i n a n c i a l
a l l o c a t i o n s , p r i o r i t i z e
t h e
equipment
d e s i r e d based upon
need
and money a v a i l a b l e f o r
purchas ing
o r
l e a s i n g .
L i s t URGENT,
ESSENTIAL,
ECONOMICALLY
DESIRABLE,
and
GENERALLY
DESIRABLE.
*Managing c a p i t a l needs .
The equipment
can
be purchased only a f t e r approva l o f
t h e
budge t ,
bu t no t
a l l
a t
one
t ime . For
example ,
you
cou ld
rev iew
t h e c a p i t a l budge t
on a q u a r t e r l y
b a s i s
and compare
cash
f low
s t a t em en t s t o your c a p i t a l budge t . Only
spend
on
a
q u a r t e r l y b a s i s , so you have an even spend ing fo r
p u r c h a s e s .
*Example:
A
f a c i l i t y has
a
200,000 c a p i t a l budge t :
200,000
d i v i d e d
by
4
q u a r t e r s
=
$50,000
e x p e n d i t u r e s
per
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8
q u a r t e r . I you need a p iece o equipment t h a t
c o s t s
S75,OOO
t h e purchase cou ld be made, but dur ing t h e
ne x t
q u a r t e r
t h e t o t a l
e xpe nd i t u r e s
a l lowed
would
only
be
S25,OOO.
Cash Budget
Without
cash
a
h o s p i t a l
c a nno t s u rv i v e . This s t h e
pr imary r eason or a cash budge t . Because
o
t h e
many
changing re imbursement
r a t e s
rom
Medicare ,
Medicaid
and
He a l th Maintenance
Or ga n i z a t i ons
HMOs), p r e d i c t i n g
cash
low
r e q u i r e s a l o t
o
t hough t and
p l a nn i ng .
Cash
low
should be
r ev iewed
on
a
monthly b a s i s
to
e na b l e
ad mi n i s t r a t i o n to
or e se e cash sh o r t ag es and
s e e k p o s s i b l e ina nc ing i
n e c e s s a r y . The
cash
low s t a t e m e n t s
b a s i c a l l y i n d i c a t e the
d ie r e nc e in
t h e
ba l a nc e
s h e e t
a c c oun t s .
The
r e a d e r
s hou ld
ocus on how
t h e
de b t s be ing
used. For
example,
i
t h e
h o s p i t a l
shows
operat ing
l o s s e s ,
working c a p i t a l i n c r e a s e s ,
and
i n c r e a s e s
in
c a p i t a l
ex p en d i tu re s . t h e unds w i l l
pr oba b ly have been ge ne r a t e d by
long- te rm
o r s h o r t - t e r m
bor rowing . The cash
low
s t a t emen t
he l p s
de t e r m ine
how
de b t s
being used by
t h e h o s p i t a l .
Fin an c ia l managers should make s u r e they
do
n o t
spend
t oo
much
t ime
on de c i d i ng how
to g e t caah
r a t h e r
t ha n
how
to i n v e s t and
manage
what t he y have . Higher
i n t e r e s t
r a t e s w i l l
a l s o
g e n e r a t e e x t r a unds .
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9
F i n a n c i a l
Sta tementa
F i n a n c i a l
s t a t e m e n t s a r e
a
summary o f
f i n a n c i a l
r e s u l t s . The
f i n a n c i a l
s t a t e m e n t s pr e pa r e d a t t h e end o f
each month a re :
*Sta temen t o f
r evenues and expenses
budgeted and a c t u a l
*Balance s h ee t
The
s t a t e m e n t o f r evenues
and
e xpe nd i t u r e s
-
budgeted and a c t u a l , shows t h e r evenue r ecognized dur ing
t h e
pe r i od
and t h e expenses
i nc u r r e d
dur ing
t h e
p e r io d .
Each r evenue
and expense
s hou ld be
compared
to t h e
pr oJe c t e d
budge t . Th is
r e p o r t shows t h e r e s u l t s o f t h e h o s p i t a l
o p era t io n by r e f l e c t i n g a p r o f i t or l o s s on t h e
bottom
l i n e .
This
i s a l s o known as t h e Income s t a t emen t .
The ba l a nc e sh ee t
i n d i c a t e s
t h e h o s p i ta l s
f i n a n c i a l
p o s i t i o n . The a s s e t s ,
liabilities
and
c a p i t a l o f
th e
f a c i l i t y is
r e p o r t e d .
The
e qua t i on
is a s fo l lows: Asse ts
=
L i a b i l i t i e s + C a p i t a l . The
a s s e t s
a r e
l i s t e d
as c u r r e n t
and
non- c u r r e n t
in
t h e or de r o f
t h e i r
l i q u i d i t y .
Current
a s s e t s
are expected to be consumed in one year and n o n - c u r r e n t o v e r
a l onge r t i me p er io d .
The
liabilities
a re a l s o l i s t e d as
c u r r e n t
and non-current . The c a p i t a l s ec t i o n
w i l l be
l ab e l ed fund ba lance
in
t h e c a s e o f a n o t - f o r p r o f i t
o r g a n i z a t i o n .
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10
Conclus ion
The
f o r m u la t i on of
a
re listic
budge t
is
a
key
to
t he
e f f i c i e n t
o p e r a t i o n o f any
h o s p i t a l
and is e s p e c i a l l y
critic l
to t h e s u r v i v a l of t he smal l
h o s p i t a l .
S t a f f
e f f i c i e n c y r e s u l t s
in
a l e v e l o f high q u a l i t y c a r e
which
in
r e t u r n r e s u l t s in f i n a n c i a l suc c e s s f o r t h e h o s p i t a l .
Budgets
he lp accompl i sh
t h i s because t h e budge t
pr oc e s s
and
f i n a n c i a l s t a t e m e n t s i d e n t i f y pr ob lems
d e f i n e
a r e a s f o r
improvement ,
and
c onc u r r e n t l y a l low a d m i n i s t r a t o r s and
s u p e r v i s o r s
to
ma in ta in
and r e i n f o r c e e x c e l l e n c e . Recogn i t ion
and
r e i n f o r c e m e n t shou ld be g iven to depar tmen t employees f o r
ou t s t a nd i ng pe r f o r mance in
pr ov id ing q u a l i t y
s e r v i c e
and
in
s t a y i ng wi t h i n
t h e i r
f o r e c a s t e d budge t .
Without
a
teamwork
approach t h e a d m i n i s t ra t o r
may
f i n d t h e g u i d e l i n e s w i l l n o t
be met because t h e depar tmen t s a r e
not
i nve s t e d i n
s t a y i n g
wi th in
t h e i r
bUdget . Consequen t ly t h e a d m i n i s t r a t o r may
be
l ook ing f o r a no t he r Job .
Plann ing and t im e ly p r e p a r a t i o n a r e
a l s o key components .
o
no t
wa i t
u n t i l two weeks
be f o r e a
budge t
is
due to
pr e pa r e one.
Minimal ly a coup le o f months
a r e
needed . As
depar tmen t
heads
ga in
budge t ing e xpe r i e nc e
t hey shou ld
be
mot iva ted
to
make
bUdgeta ry
p lann ing
an
ongoing
fu n c t io n .
T h i s w i l l
r e i n f o r c e
t he
impor t ance
o f t h e i r r o l e
in
p r o v i d i n g t i m e l y i n f o r m a t ion to
t he
a d m i n i s t r a t i o n
and
t h e i r s u b o r d i n a t e s .
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11
The u l t i m a t e
r e s p o n s i b i l i t y
o f f o r e c a s t i n g re listic
budge t
r e s t s
wi th
t he
h o s p i t a l a d m i n i s t r a t i o n .
Sound
a c c oun t ing p r a c t i c e s knowledge o f s e r v i c e s prov ided by
o t h e r
a r e a
h o s p i t a l s
and t he
impac t o f c o n t i n u a l l y
chang ing
l e g i s l a t i o n r g ~ r i n g mandated s e r v i c e s . are i mp e r a t i v e
f a c t o r s in
p ro Jec t in g budge t .
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12
Prepar ing
a Budget
fo r
t h e
Small Hosp i t a l
Flow Char t
"
1
Expense
Budget
S t a t i s t i c a l
Budget
Revenue
,
Budg
e t
Cap i t a l
Budget
_ o.
Opera t ing
r
Budget
Cash
Budget
L.--J-- - - - r: .
Financ i a l
S ta temen
t s '
, -
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13
HOSPITAL
DEPARTMENTAL HISTORY SHEET
DEPT
RADIOLOGY
DEPT
*I
===============================================================
DESCRIPTION
1988A 1989A
l '390P 19918
======================================================
SERVICE
STATISTICS:
IY lpat ieYl ts 3 4 5 0 3243
341'+
3550
UltrasolJ,Yld Inpt
45
89
158 215
CT ScaYls
Il".pt
70
155
170
OlJtpat
i e n t s
5350
5874 5594
5700
U trasollYld Ollt pt 240 250
2 8 3
300
CT Scar,s
OlJtpt 82
171
1
Mamfl1og'r 'aphy 154 2 7 3
275
TOTAL
9085
9752 10158
10400
======================================================
RATIO INCR
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HOSPITAL
14
DE
PT. RAD I OLOGY
NO
62E,
SALARY
BUDGET WORKSHEET
========================================================================
DATE ADJUSTED
NX
SCH CURRENT MONTHLY
DIFF.
EMPLOYEE
NAME
HIRE DATE H
REVIEW
HRL Y R
HRS. RATE
========================================================================
SECRETARY APR
1
81
6.
12
1
EA
TECH
OCT
12 85
7
.- e::.-
C-..J
4
TECH APR
10 84
7
- , e
:: ..J
lEA
TECH ADE
FEB
2
76 7.01
164
DI RECTOR
JUN
'.
74 1 0 . 2 0 174
TOTAL
HRS
670
==========
F T E 3 . 8 5
=========
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15
HOSPITAL
DEPT. RADIOLOGY
NO
525
VAC.
DIFF O T AND
STAND-BY
BUDGET WORKSHEET
=============================================
VAC
=============================================
J TITLE
NO
PEa
NO
WKS
WK
RATE
AN
COST
o
o
o
TOTAL
o
=========
STAND
BY
====================================
NO.PEO. NO WKS WK
RATE AN
COST
====================================
o
o
o
TOTAL
18000
=========
DIFF
====================================
BI-WK. HRHR RATE BI-WK CSTAN. COST
=========::::==========================
o
(>
o
o
o
o
o
o
TOTAL
o
(I
o
TOH lL
==::::::::::::::::=::::::::::
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---------------------------------------------------------------------------------------------------------------------
HOSPITAL
DEPT
RADIOLOGY
ND
626
SALARY
S U ~ R Y BUDGET
WORKSHEET
============= ==============================================================================================================
~ P O Y
JULY
AUG SEPT
OCT
NOV
DEC
JAN
FEB
MARCH
APRIL
MAY
JUNE
TOTA
========= ====== ===========================================================================================================
SECRETARY 1010 1010
1010
1010 1010
1010
1010
1010 1010 1050
1050
1050
1224
TECH 30
30
30
32 32
32
32
32 32
32 32
32
37
TECH 1302 1302
1302
1302
1302
1302 1302
1302
1302 1366 1366
1366
1581
TECH ADE
1159 1159
1159
1159
1159 1159 1159 1210 1210
1210
1210
1210
1416
DIRECTOR
1917 1917 1917
1917
1917 1917
1917
1917
1917 1917 1917
2045
2313
TOTAL
5419 36 5419 36 5419 36 5421 12 5421 12 5421 12 5421 12 5471 96 5471 96 5575 28 5575 28 5702 3065739 34
=====================================================================================================================
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HOSPITAL
7
DEPT RADIOLOGY
NO
626
SALARY
S U ~ ~ A R Y BUDGET WORKSHEET
========================================================================================================= ====================
DESCRIPTION
JULY
AUG
SEPT
OCT
NOV
DEC
JAN
FEB
APRIL
MAY
JUNE
========= ===== ================= ====== =============================== ====================================================
OTHER 5419 3 5419 36 5419 36 5421 12 5421 12 5421 12 5421 12 5471 96 5471 96
5575 28
5575 28 5702 306
CALL BACH
1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00
VAG
DIFF
D
T
52 00 52 00 52 00 52 00 52 00
52 00
52 00
52 00 52 00 52 00
52 00
57 00
TOTALS
6971 36 6971 36 6971 36 6973 12 6973 12
6973 12
6973 12 7023 96 7023 96
7127 28
7127 28 7259 308
=============================================================================================================
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--------------------------------------------------------------------------------------------------------------
HOSPITAL
DEPT.
RADIOLOGY
NO.
626
SUPPLIES &EXPENSE
AND
TOTAL EXPENSE BUDGET
WORKSHEET
=======================================================
ITEM NO 3 4
5 6
7 8 9 10
11
12 13 14
DESCR
I
PTI
ACCT
JULY
AUG
SEPT
OCT
NOV
DEC
JAN
FEB
MARCH
APRIL
MAY
JUNE
T
================================================================================================================================
SCANS 626.80
7500.00 7500.00
7500.00
9145.00 9145.00
9145.00 9145.00
9145.00
9145.00
9145.00 9145.00
9HO.00
1
SALARIES-
626.01
6971.36
6971.36
6971.36
6973.12 6973.
12
6973.12
6973. 12 7023.
7023.%
7127.28 7127.28
7259.308
NUCL MED 626.60 950.00 950.00
950.00
950.00 950.00 950.00 950.00 950.00 950.00
950.00
950.00
950.00
1
FILM 626.50
2500.00
2500.00
2500.00 2500.00
2500.00 2500.00 2500.00
2500.00
2500.00
2500.00
2500.00
2500.00 3
MAMMOGRA 626.30
1333.00 1333.00
1333.00
1333.00 1333.00
1333.00
1333.00
1333.00 1333.00 1333.00 1333.00 1337.00 1
SPECIALIS 626. 10 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00
300.00
300.00
300.00
SUPPLIES
626.20 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00
2250.00 2250.00 2250.00 2
TRAVEL & 626.40
100.00
100.00
100.00 100.00 100.00
100.00 100.00
100.00 100.00
100.00
100.00
100.00
EQUIP LEA
626. 70 1658.00 1658.00 1658.00
1658.00
1658.00
1658.00
1658.00
1658.00 1658.00
1658.00
1658.00
1662.00 1
TOTALS
23562.3623562.3623562.3625209.1225209.12
25209.12
25209.12 25259.96
25259.96 25363.28 25363.28
25498.30 2
================================================================================ ============================
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---------------------------------
---------------------------------
---------------------------------
---------------------------------
---------------------------------
---------------------------------
---------------------------------
---------------------------------
19
HOSPITAL
STATEMENT OF
REVENUES
AND
EXPENSES
PERIOD
JULV
I, 1991 THRU
JUNE 30, 1992
CONSOLIDATED
Hmaud
ited)
Beneral
.atient
days
S.ecial
care
patient days
Total
Nursing Home
Patient
Days
Operating revenues:
Nursing dietary and room services
Ancillary
inpatient services
Ancillary
outpatient services
Clinical services
Bross
patient
revenues
Less:
r ~ o l l e c t i l e
accounts
Contractural
differentials
Clinical .riteoffs
Total deductions from revenue
Net patient
service revenues
Ooerating expenses:
Nursing services
Ancillary
services
General
services
Clinical services
Total exoenses
Total profit
or
loss
Other revenues and expenses:
Contributions
Other
revenues
Deoreciation expense
Total
other
Net
profit
or
-loss
Projected
Increase
Current Vear
Budget Decrease Ratio
6,963
6,963 o
0.00
577
577
o
0.00
6,726
6,726 o
0.00
========================
20,940
20,940 o
0.00
=== ======================================
2,498,865 2,613,345
114480
3,015,478
3,209,818
194340
2,376,223
2,622,024
245801
355,951 214,500 -141451
8,246,517
8,659,687
413170
184,824 195,000 1 m
2,376,118 2,668,200 292082
100,996 77,200
-23796
2,661,938
2,940,400 278462
5,584,579 5,719,287
134708
1,714,435
1,803,796
89361
1,263,198
1,349,561
86363
2,200,093 2,271,418
71325
218,233
149,169
-129064
5,455,959 5,573,944
117985
128,620 145,343 16723
439,765
461,000
21235
200,236
199,450 -7&6
277,400
279,600
2200
362,601 380,850
18249
491 221
526,
193
34972
4.58
6.44
10.34
-39.
74
5.01
5.51
12.29
-23.56
10.46
2.41
5.21
6.
B
3.24
-46.39
2.16
13.00
4,83
-0.39
0.79
5.03
7.12
=====;:===========;:=========;:===========
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20
HOSPITAL
THREE
YEAR
CAPITAL
BUDGET
FISCAL
YEARS ENDING JUNE 30 1991-1993
DEPARTMENT
Nurs ing s e r v i c e
m e d i c a l / s u r g i c a l
S o e c i a l
c a r e u n i t
Emer 'geY'lcy roorn
Operat ing room, r e c o v e r y room,
and
8Ylest hes i a
Labo
a to y
R a d i o l o g y
Pharmacy
P h y s i c a l t h e r a o y
Med
i
ca 1
ecor
ds
Di e t a , y
Operat ion o f
plant
and maintenance
Housekeep ing and laundry
Busi r ,ess
O f f i c e
A d m i n i s t r a t i o n
and
Data P r o c e s s i n g
TOTAL
SOURCE OF FUNDS:
Deorec ia t ion expense
L e ss : P r i n c i p a l payments
WOt kiY lg
c a p i t a l
P r e - f i t s
TOTAL
1991
1992
1 9 ~ 3
::::::=======
======== ========
11
150
4
6 5 0
I)
1 , 0 0 0 8
0 0 0
3 ,
000 3
000
0
7 ,500 2 ,
500 2 , 8 0 0
3 9 , 9 4 5
20 000
( I
920
0
0
40 500 0
0
3 35 ,000
3 0 , 0 0 0
2 0 , 0 0 0
700 i ~ O O
3 0 , 0 0 0
5 5 0
0
0
5 , 9 0 0
14 ,300
5 ,785
155 877
4 5 , 0 0 0
780
.
u
180
7 4 2 , 2 8 7
========
279 500
110 ,000
159 500
tOO,OOO
4 0 0 , 0 0 0
(>
0
(>
(>
875 0
7,400
2 2 , 8 0 0
(>
0
200
500
1 ,0 0 0
1 , 0 0 0
1 5 0 , 0 0 0 1 5 0 , 0 0 0
2 2 7 ,9 2 5 2 2 7 , 1 0 0
========
279 500 27 3 ,600
lI tO
0 0 0
150 ,000
13'3,500 129, E,OO
2 3 0 ,0 0 0 i ~ 3 0 000
2 3 0 ,0 0 0 2 3 0 , 0 0 0
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rlOSPITAL
BALANCE SHEET
JANUARY
31
(UNAUDITED)
Cw't 'ent a s s e t s :
Cash and
I r ,vestmeYlt
s
P a t i e n t s
a c c o u n t s r e c e i v a b l e - n e t
Due
frc1fll gC1ver Y1rneY 1t ageY'lc i es
IYlventot ies
Pt 'eoa i d ex per-,ses
Other
r e c e i vab l e s
Tota l current
a s s e t s
D e p r e c i a t i o n
funds
Es t a t e fUl' ,ds
B()Y'ld
f l lY lds
BOYld
c o s t S - Y l e t
Property , p l a n t and equipment-
net o f accumulated
d e p r e c i a t i o n
TOTAL ASSETS
Curren t liabilities
Accounts
o a y a b le
Accrued p a y r o l l
t a x e s
Acct'ued
payt 'o
11
Acct 'ued v a ca t iDYl
Current o o r t i o n
long- term
d eb t
Othet ' acc t 'ua l s
Accrued
i n t e r e s t
payab le
Due to governmenta l a g e n c i e s
T o t a l c u r r e n t liabilities
Long-term
d e b t - n e t o f
current
p o r t i o n
FUYld ba 1
aY'lee:
Beg i rn d ng
3 , 480 , 4 ~ ~ ~
F i s c a l
y e a r - t o - d a t e
p r o f i t or
126 ,534
T r a n s f e r to o r from r e s t r i c t e d
fUY lds
TOTAL
LIABILITIES
AND
FUND
BALANCE
2
1991
210,071
8 8 7 , 3 5 2
7 ,175
1 2 4 , 5 0 9
1 3 6 , 2 9 6
1 , 5 0 0
1 ,356 ,904
179 ,394
711 ,222
480 ,297
19,355
3 , 5 7 4 , 3 1 2
5 3 3 ~ 4 9 5
========::::
1 1 3 , 7 2 1
50 ,460
2 7 , 9 0 3
l5E 7E i=:
2 0 6 , 5 1 5
81 ,218
15 ,577
5 0 , 2 6 5
702 ,521
2 , 0 2 1 , 9 4 8
3 , 5 0 7 , 0 2 6
6 , 3 3 1 , 4 9 5
===.======
1990
5 9 1 , 8 9 3
9 2 5 , 2 3 8
15,011
2 9 ~ 5 8 2
155 ,755
424
1 ,828 ,914
125 ,115
714 ,588
/,/,4,
189
21 ,150
5 , 585 , 932
=::::======::::
4 ~ : ; : 9 5
4 2 , 4 3 8
.99,85' ,
149,8'31
~ : : : 6 3 6 3
i 3 5 ~ 7 9 6
14,587
4 1 , 7 5 5
815 ,089
2 , 2 E ~ 2
~ = :
3 ,548 ,
115
6 , 6 8 5 , 9 3 c
::::=::::::::::::::::::::=:::::
8/10/2019 Preparing a Budget for the Small Hospital
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22
R e f e r e n c e s
Anderson ,
H. J .
1990) . Repor t : h o sp i t a l s need
more
s o p h i s t i c a t e d p lann ing e f f o r t s . Hoap i t a l s ,
64,
50-51 .
S t a f f .
1990 ,
September ) . S ta tement o f cash f lows as a
f i n a n c i a l management t o o l .
Hea l th
Care
News,
8 3 ) , - 4 .
Bent ivegna ,
P.
I . , & Colwel l ,
T.
G.
1990 ) .
Master p l an
l a y s foundat ion for f a c i l i t y inves tmen ts .
H ea l t h ca r e
Financ ia l
Management , 44, 44-50 .
Charny,
R.
M
& Kazemek,
E. A. 1990) . Improving
depar tment
q u a l i t y .
Hea l th ca re
Financ ia l
Management,
44,
94.
C i rn , J . G e l l a t l y ,
D. L.
1988) . Financ ia l management.
In J . A.
M il le r e d . ) ,
NAB Study Guide .
pp.
99-115) .
Washington DC:
N at i o n a l A sso c i a t i o n o f
Board o f Examiners
C lev e r ly , W
O.
1986) . E s s e n t i a l s
o f
Heal th Care
Finance
2nd
e d . ) .
Columbus: Un iv e r s i t y
o f
Ohio .
Hamil ton/KSA. 1990) . How h o s p i t a l ceos
p l an
to c o n t r o l
c o s t s .
H o s p i t a l s ,
64, 18 .
Jacobs ,
P.
1986) .
The
Economics
o f
Heal th
and
Medical
Care
2nd e d . ) .
R o ck v i l l e ,
MD: Aspen.
Kahle r , R. D. 1990 , Spr ing) .
Fin an c i a l
management.
Aspec t s o f Hea l th F a c i l i t i e s ,
433-450.
Kistner , w. 1990) . Organ iz ing a p e r s o n a l f i n a n c i a l
p lan .
Hea l t h ca re F i n a n c i a l
Management, 44,
94.
P a l l a r i t o , K.
1990) .
Hosp i t a l s may be over look ing
o p p o r t u n i t i e s t o make t h e most o f
t h e i r
cash ,
expe r t s say . Modern Hea l th ca re ,
20,
41 .