healthcare financing 8

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  • Read Chapter 22, “Working Capital and Cash Management,” pages 489–504.
  • Read Chapter 23, “Developing the Cash Budget,” pages 505–514.

Use your Introduction to Health Care Finance and Accounting to read Chapter 8, “Budgets,” pages 127–152.

Review the sample department operating budget in Figure 8-2 on page 132 of your Introduction to Health Care Finance and Accounting text. Prepare a PowerPoint presentation for the CFO of your organization to explain and justify your 2010 and 2011 prepared budget. Include the following points in your presentation, and record your presentation using Kaltura or another software of your choice:

  • Provide an executive overview of the budget, and discuss trends, variances, and potential areas of concern.
  • Explain whether the 2010 prepared budget is reasonable, based on 2008 and 2009 actual data. Explain your rationale. If you do not feel the budget was appropriate, what would you do differently, if you were the manager of this department?
  • Complete the following:
    • The 2010 projected column based on the 6-month 2010 actual data.
    • The 2011 budget column as if you were the manager of this department. (You may wish to prepare this in Excel, and then, insert this as a table into your PowerPoint presentation.) In your speaking notes and in your audio recording, explain how you arrived at these figures and discuss the assumptions that were made.
  • Add slides that address the following scenario to the same presentation. After preparing the budget, the CFO tells you that you still need to reduce expenses by 10 percent for 2011. It is up to you to decide where you will reduce expenses. Revise your 2011 budget figures to meet the CFO’s requirements and provide rationale for your decision

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