Question: Learning Objectives: VI.G. Financial Management 1. Plan budgets (3) 3. Explain budget variances (2) Due to rising costs and reduced patient stays at Good Samaritan
Learning Objectives: VI.G. Financial Management 1. Plan budgets (3) 3. Explain budget variances (2) Due to rising costs and reduced patient stays at Good Samaritan Hospital, the hospitals president has announced that each department must eliminate one full-time equivalent (FTE) position and reduce other expenses by 5 percent. You are the manager of the HIM department. You must now deduce from the budget and actual figures in the budget on page 367 to propose a new budget for the year. How would you cut one FTE position and keep the department optimally functioning? How and where would you cut 5 percent of your other expenses? Use the sample budget provided in Example 12.6 on page 367 to answer this question. Submit in an Excel spreadsheet or Word table format, with textual description of your detailed scenario, as an attachment using the naming convention: lastname.firstname.Calculate FTEs Grading Guidance Responses to this question will vary based on your perspective. Provide a detailed scenario that explains how you would reduce staffing and cut budgetary expenses by 5 percent while keeping the department functioning at an optimal level.
| Explain your proposal to reduce staffing and cut budgetary expenses by 5 percent while keeping the department functioning at an optimal level: | |||||||||
| HIM Department Budget - April 2017 | |||||||||
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| Apr-17 |
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| YTD 2017 |
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| Proposed 2017 | Explain Your Reasoning for the Cut |
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| Budget | Actual | Difference | Budget | Actual | Difference | % Difference | New budget |
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| Revenue | 1000.00 | 2000.00 | 1000.00 | 4000.00 | 3753.00 | (247.00) | (1.1) |
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| Revenue Total | 1000.00 | 2000.00 | 1000.00 | 4000.00 | 3753.00 | (247.00) | (1.1) |
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| Payroll | 46800.00 | 47259.00 | (459.00) | 187200.00 | 179441.00 | 7759.00 | 1.1 |
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| Supplies | 8500.00 | 7949.00 | 551.00 | 34000.00 | 36254.00 | (2254.00) | (0.9) |
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| Contract Services | 12000.00 | 11087.00 | 913.00 | 48000.00 | 44348.00 | 3652.00 | 1.1 |
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| Software Licenses | 2300.00 | 2322.00 | (22.00) | 9200.00 | 9288.00 | (88.00) | (1.0) |
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| Minor Equipment | 100.00 | 259.00 | (159.00) | 400.00 | 534.27 | (134.27) | (0.75) |
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| Dues & Subs. | 50.00 | 0.00 | 50.00 | 200.00 | 50.00 | 150.00 | 4.0 |
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| Education | 185.00 | 50.00 | 135.00 | 740.00 | 125.00 | 615.00 | 6.0 |
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| Travel | 45.00 | 15.94 | 29.06 | 180.00 | 100.00 | 80.00 | 1.8 |
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| Postage | 25.00 | 32.00 | (7.00) | 100.00 | 102.00 | (2.00) | (0.9) |
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| Misc. | 125.00 | 72.12 | 52.88 | 500.00 | 326.00 | 174.00 | 1.5 |
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| Expenses Total | 70130.00 | 69046.06 | 1083.94 | 280520.00 | 270568.27 | 9951.73 | 1.04 |
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| Budget Total |
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| 2083.94 |
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| 9704.73 |
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