1 / 17

Health Care Finance & Budgeting

Health Care Finance & Budgeting. Pharmacy 483 March 2, 2004 Dennis Stillman Department of Health Services. Accountants. Conservative Consistent. Budgeting.

berget
Download Presentation

Health Care Finance & Budgeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Health Care Finance & Budgeting Pharmacy 483 March 2, 2004 Dennis Stillman Department of Health Services

  2. Accountants Conservative Consistent

  3. Budgeting A BUDGET isa quantitative statement of the organization’s expressed operating intentions and it translates these intentions into numbers and dollar signs.

  4. Budgeting • Total Financial Requirements • Cost of Doing Business • Cost of Staying in Business • Cost of Changing the Business • Return to the Suppliers of Capital

  5. Budgets • Planning Tool • Expresses management's plans • Control Tool • Benchmark to compare results

  6. Strategic Long term 5-10 years Broad Operational Short-term 1-3 years Objectives of Strategic Plan Strategic or Operational Planning

  7. Budgeting • Operational Plan • Materials & Forms • Projections • Operational Strategies • Calendar • Targets

  8. Budgeting • Workloads & volumes • Projects / Programs • Equipment / Buildings • Revenues • Expense • Cash flows

  9. Budgets • Operating • statistics, revenue and expense • Capital • construction, equipment • Cash • sources, uses and timing

  10. Statistical Budget • How do you estimate activity? • History • Trends • Known changes • Ask providers • Demographics • Optimism & Pessimism

  11. Statistical Budget • Begin with the global measures • Then project support volumes

  12. Revenue Budget • Volumes • Pricing • Payments /Contractual Allowances • Other

  13. Expense Budget • Attempts to account for costs of operations for each department individually and for the institution as a whole. • Attempts to match costswith services and revenuesgenerated. • Fixed and Variable.

  14. Expense Budgeting • Labor - wages + benefits • Supplies - Rx, OR, other • Purchased services • Interest • Depreciation

  15. Operating Budget Volumes + Net Revenues - Labor, supplies - Other Costs - Capital Costs = N I / Profit /Bottom Line/ PCSC

  16. Capital Budget • Short and long term • Requests generally exceed funds available • Prioritization • Ability to buy • Capital is driven by the operating budget & LRFP

  17. Cash Budget • Generally prepared last • Projects cash--in and out • Timing and amounts are both critical • Impacts capital budget and operating budget

More Related