case study:Fiscal Concerns in the Healthcare Setting
With current constraints on healthcare budgets in hospitals, medical centers, and long term care facilities, administration may call for tighter control as noted in this case study. Follow the assignment guidelines and analyze the situation to answer the questions posed at the end of the assignment paragraph.
Assignment due: Sunday 9 p.m. of Week 6 of the course
Guidelines for writing the paper:
• Use references for assistance in completing the assignment.
• Use your text readings for support.
• Do not include the case study scenario paragraphs in your paper.
• The questions are to be answered in a narrative text using APA (5th edition) guidelines for both the text and the references.
• The maximum number of pages is six double-spaced, excluding the title page and reference page.
You are the manager of a medical- surgical unit. Today is April 1st, and the fiscal year began on July 1st. You work with a variable budget and have the opportunity to make changes to the current budget based on variance. You cannot go over the total budgeted amount assigned to you. Your budget is presented below.
Annual Budget Expended in March Expended Year to Date Amount Remaining
Personnel 500,000 25,000 375,000 125,000
Overtime 50,000 20, 000 40,000 10,000
Supplies 18,000 1,800 16,500 1,500
Travel 1,000 0 300 700
Equipment 5,000 0 5,000 0
Staff education 1,000 200 600 400
Several factors that you must consider include:
1. You have been told to decrease your overtime expenditure.
2. Your unit has been designated as the unit to accept nursing home patients which will increase the cost of supplies
3. Your full-time night nurse has resigned and needs to be replaced
4. You would like two nurses to attend a train the trainer workshop for a cost of $1000 each
Case Study Questions:
In a paper format determine the following:
1. How you will address these requests based on the budget print out.
2. What expenses can be deferred to the new fiscal year.
• What budgeting area was your previous projections most accurate.
• What budgeting area was your previous projections most inaccurate.
• Year to date variance for each category.
• Factors that may have contributed to situations of being over budget as determined by variance.
• Steps that could be taken in the 4th quarter to adjust the budget.
Grading criteria for Assignment 2 Fiscal Concerns in the Health Care Setting
Answer the above questions by writing a narrative. The following points are awarded for these areas:
Addressing requests 20
Deferred expenses 20
Accuracy of projections and rationale 20
Calculating variance 10
Adjusting the budget 10
APA format; minimum of two professional references 10
Mentor’s tips: There may be several plausible explanations or answers. The most important thing is that your answers are consistent within your paper, and that your numbers add up. Tables may be helpful in this paper.