As a member of the finance team, you have been asked to forecast the upcoming year's operational budget for Krona Community Hospital. Click here for last year's budget.

After reviewing specific data, internal input, and external input from various sources, you find that the executive management team would like the budget to reflect the following:

10% increase in inpatient revenue 15% increase in outpatient revenue 5% increase in pharmacy revenue 15% increase in home health and hospital revenue 10% increase in payroll and benefits.


Additionally, provide discussion on the following:
1) How do you think that revenue would increase in each of the areas? Think outside of the box, and perform research to determine current trends in those areas. Why would there be a forecasted need to increase payroll and benefits? Explain the role of key leadership in the budgeting process, from the chief executive officer down through to the staff level of a financial analyst. 

Transcribed Image Text:

. : = - = 6 7 3 I : = - = = 7 = . A Revenues Subtotal B E KKUNA HOSPITAL C Inpatient Outpatient Emergency Room Laboratory Pharmacy Net Revenues Expenses Home Health and Hospice Ambulance Services Substance Abuse Other Less Chartiy Care OPERATING BUDGET FOR 20XX Net Income D Payroll (including nursing salaries) Benefits Contract Labor Insurance General Services (laundary, security, etc) Depreciation Interest Expense Professional Services Total Operating Expenses F $ $ G $ H 25,000,000 15,000,000 10,000,000 5,000,000 1,500,000 1,500,000 950,000 250,000 850,000 60,050,000 18,000,000 42,050,000 $ $ 12,500,000 3,000,000 100,000 300,000 3,000,000 1,500,000 300,000 10,000,000 30,700,000 11,350,000 . : = - = 6 7 3 I : = - = = 7 = . A Revenues Subtotal B E KKUNA HOSPITAL C Inpatient Outpatient Emergency Room Laboratory Pharmacy Net Revenues Expenses Home Health and Hospice Ambulance Services Substance Abuse Other Less Chartiy Care OPERATING BUDGET FOR 20XX Net Income D Payroll (including nursing salaries) Benefits Contract Labor Insurance General Services (laundary, security, etc) Depreciation Interest Expense Professional Services Total Operating Expenses F $ $ G $ H 25,000,000 15,000,000 10,000,000 5,000,000 1,500,000 1,500,000 950,000 250,000 850,000 60,050,000 18,000,000 42,050,000 $ $ 12,500,000 3,000,000 100,000 300,000 3,000,000 1,500,000 300,000 10,000,000 30,700,000 11,350,000

Answer rating: 100% (QA)

Upcoming years budget should incorporate the following A 10 increase in inpatient revenue A 15 incre... View the full answer