BUS-FPX3007 ASSESSMENT 2 INSTRUCTIONS: MISSION, VISION, AND ETHICS IN ORGANIZATIONS

[ORDER] You are the administrator of the medical – surgical department at UMGC Health.

You are the administrator of the medical – surgical department at UMGC Health. Review the transcripts from the budget meeting and recent voicemails from your CFO and, using the available information and resources, develop an operating budget for your department. Your budget should include a single page document explaining your logic along with an accompanying Excel spreadsheet (available in the course room) that:

Category:
Order This Paper

You are the administrator of the medical – surgical department at UMGC Health. Review the transcripts from the budget meeting and recent voicemails from your CFO and, using the available information and resources, develop an operating budget for your department. Your budget should include a single page document explaining your logic along with an accompanying Excel spreadsheet (available in the course room) that:

 

  • Estimates the revenue and expenses for the rest of the current fiscal year based on the assumptions provided in the transcript documents.
  • Prepares a budget for the next fiscal year.
  • While you are developing the budget and consider the next fiscal year changes, discuss the ethical and economic considerations related to profiting from health care delivery.

Transcript of the VOICEMAIL FROM George Costanza (CFO):

Hi, it’s George. I hear you’re working on a budget for the Med-Surg department for FY 20XX. I’d like you to come to the budget meeting this afternoon, because I’m going to be sharing some numbers that are likely to have an impact on your budget. I’ve sent you the year-to-date statements through December, the overall budget for the year, and the year-to-date budget variance for your department. Take a look at them and bring them with you to the meeting. See you later!

Transcript from BUDGET MEETING:

George C., CFO 
Hi, everyone. Thanks for coming. We’ve got some important numbers to go through and a big challenge to respond to, so I think we better get started.

Jerry, Vice President of Operations 
That sounds ominous.

Newman, Vice President of Medical Support 
Well, can we at least get an idea of how we’re doing year-to-date before you go to the 40,000-foot level?

George 
I think you might need to hear this first. Here’s the situation: The hospital must cut operating expenses by 5 percent for next fiscal year.

Kramer, Director of Clinical Operations 
I’m sorry, did you say 5 percent? Operating expenses?

George 
That’s right.

Jerry 
That’s a big ask. We’re already operating awfully lean.

George 
Agreed. But it’s the situation we’re in. I’ll get to the reasons, but based on what I’m going to go over, I just want everyone to keep in mind that we can’t make assumptions we were making before. So let me give you an overview of the budget and the year-to-date numbers, and I think you’ll see why we’re going to have to make those cuts.

Now, last year, for the entire hospital, we assumed that we would see $1.2 billion in total patient revenue. But as you can see, for half the year, we’ve only hit

Note: Full answer to this question is available after purchase.
just over $607 million. By this point in the year, we should be over $612 million. So already in terms of total patient revenue, we’ve got a deficit of nearly $5 million that we didn’t expect. The problem is made worse when we see that other operating revenue is also under budget by $1.5 million.

I believe that recent efforts in the billing department coupled with some of the solid work by the c-suite team on physician engagement and external marketing are going to have an impact on the revenue side of things. We’re also currently negotiating with a couple of our primary commercial payers, but those negotiations remain uncertain. All things considered; I’m hoping for about a 5% bump on the revenue side for FY 20XX. Our operating expenses are fairly close to target so far this year, but given the situation with uncertain revenue, we will need to try to find some additional cost-saving opportunities. I want to be reasonably conservative in case market conditions change or negotiations with our payers don’t go as expected.

Newman  
Wow. Well, okay, so that’s the reality. What’s the timeline? How long do we have to make these cuts?

George 
Well, implementation is obviously by June 30 since the next fiscal year starts July 1. The board will approve the new budget probably by mid-June, but all the negotiation at the unit and department level will be going on this month. Our first official budget committee meeting is in early May. So I’d suggest getting your ducks in a row within the next week or so.

In your proposal, think about the cuts that are being proposed. Do you simply want to take a ‘salami slice’ cut across all areas of expense? Or are there areas where it might make more sense to protect while others are more flexible? Since this is a simulation, you won’t know everything that you normally would about the organization, the people involved, etc. However, think through what the second and third order effects are of a budget cut and provide some commentary regarding what other issues might surface and/or may need to be addressed as a result. Prepare your analysis in a professional memo format suitable for presentation to an executive audience. Tables and charts should be included.

The Budget Analysis Memo is due no later than NLT 11:59 on Day 7.

RELATED: You are a nurse leader in a community that is prone to natural disasters (e.g. Oklahoma – ‘tornado alley’, the Gulf Coast – ‘hurricane hot spot’, California – ‘raging inferno’, etc.).

Order This Paper

Reviews

There are no reviews yet.

Be the first to review “[ORDER] You are the administrator of the medical – surgical department at UMGC Health.”

Your email address will not be published. Required fields are marked *

Related products

error: Content is protected !!