Analyzing finances in order to make recommendations is a basic accounting skill you should develop. In this assignment you will be asked to prepare a budget for a hypothetical health care organization and analyze the assumptions you make in preparing this budget.

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For this assignment read the Operating Budget Case Study and use this case study for analysis. You are asked to analyze the finances of the Major Health System in the study and put together a budget. This budget should address both operations and capital for the following year that will improve the operations and gain market share for the organization. The budget should utilize the resources most efficiently and set the course for the organizations long-term objectives of improving market share by 5% over the next 3 years and improving its outcomes for its community. In your assignment, be sure you articulate the assumptions you relied on in making your decisions. In other words, explain why you made your decisions.

EALTH CARE FINANCE Operating Budget Case Study Background The Major Health System is located in a major metropolitan area where there is significant competition in both the inpatient and outpatient settings. Physicians are dedicated to the health system and it includes a residency program in multiple specialties. The market share of the organization has been stagnant at best in the past three years, hovering around 35%, with significant pressures by managed care payors on the ambulatory or outpatient rates. The system is looking at several projects and would like to implement at least one of these over the next fiscal year with more upcoming: trauma program, skilled nursing facility, ambulatory surgery center, community wellness center with rehab, and open heart program. The health system employs approximately 20,000 people including 1,000 employed physicians in various inpatient and outpatient specialties. The statistics are included in the below table with market growth of 1% in the overall statistics for next year: EALTH CARE FINANCE Operating Budget Case Study Background The Major Health System is located in a major metropolitan area where there is significant competition in both the inpatient and outpatient settings. Physicians are dedicated to the health system and it includes a residency program in multiple specialties. The market share of the organization has been stagnant at best in the past three years, hovering around 35%, with significant pressures by managed care payors on the ambulatory or outpatient rates. The system is looking at several projects and would like to implement at least one of these over the next fiscal year with more upcoming: trauma program, skilled nursing facility, ambulatory surgery center, community wellness center with rehab, and open heart program. The health system employs approximately 20,000 people including 1,000 employed physicians in various inpatient and outpatient specialties. The statistics are included in the below table with market growth of 1% in the overall statistics for next year