Description
- Note: This assessment uses Vila Health: Developing an Operating Budget as the context for developing your budget. Please make sure you have reviewed this media piece before you complete your assessment submission.Financial management is something that touches us all. We are each responsible for our own personal and family budgets, and many of us are also responsible for budgets at work. Regardless of your experience with financial management, it is a critical skill to have, and it will be necessary to master this skill as you move forward in your health care administration career. Almost all health care administrators will be responsible for a budget at some point in their careers. Administrators must also know how to read basic financial statements and reports to assess the performance of their organization, other organizations, or their department.Budgeting is an important consideration in strategic planning for any health care organization. The most basic definition of budget is a plan that identifies expected financial inputs and outputs. A budget should be closely aligned with a strategic plan, which is a strategy used by an organization to achieve its mission. Organizations may use different types of budgets, such as master budgets, operating budgets, revenue budgets, expense budgets, cash budgets, and capital budgets (Finkler, Smith, & Calabrese, 2020). We will explore each at a high level.For this assessment, you will be asked to consider the different types of budgets that are used in the health care field. By researching other organizations that use budgets, you will apply the course materials to a real-world situation. The assessment will further refine those skills as you navigate the St. Anthony Medical Center surgical department budget (from the Vila Health media piece). You will prepare a paper and a basic budget to demonstrate the knowledge that you acquired this week.Many learners enter the field with limited exposure to finances. Depending on your current knowledge and comfort level with the subject, it may be necessary to conduct additional research and spend extra time addressing some of the basics. In other words, the resources in this course will help to provide a foundation for you to complete the assessments, but it is possible that you will need to do your own research in the Capella University Library to fully address all scoring guide criteria.
Demonstration of Proficiency
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:- Competency 1: Explain the importance of reporting in health care.
- Explain why budgets are an important part of the planning process.
- Explain the difference between operating and capital budgets.
- Competency 2: Develop a departmental budget.
- Provide correct revenue and expenses through the current month of the current year.
- Estimate the correct revenue and expenses for the rest of the current fiscal year.
- Prepare a balanced budget for the next fiscal year.
- Competency 3: Communicate in a manner that is scholarly, professional, and respectful of the diversity, dignity, and integrity of others and consistent with the expectations for health care professionals.
- Communicate in a clear and logical manner and without grammatical errors, following APA standards.
Reference
Finkler, S. A., Smith, D. L., & Calabrese, T. D. (2020). Financial management for public, health, and not-for-profit organizations (6th ed.). Thousand Oaks, CA: CQ Press.Instructions
The assessment has two distinct parts:Part 1: Importance and Types of Budgets
Relevant scoring guide criteria:- Explain why budgets are an important part of the planning process.
- Explain the difference between operating and capital budgets.
- Communicate in a clear and logical manner and without grammatical errors, following APA standards.
Part 2: Vila Health Operating Budget
Relevant scoring guide criteria:- Provide correct revenue and expenses through the current month of the current year.
- Estimate the correct revenue and expenses for the rest of the current fiscal year.
- Note: Assume a 5 percent increase in revenue for the purposes of this course.
- Prepare a balanced budget for the next fiscal year.
- Communicate in a clear and logical manner and without grammatical errors, following APA standards.
Additional Submission Requirements
Your assessment should meet the following requirements:- Structure: Include a title page and reference page. You will submit two documents for your assessment:
- Word document (Part 1: Importance and Types of Budgets).
- Excel spreadsheet (Part 2: Vila Health Operating Budget).
- Length: Part 1 should be 2–4 double-spaced pages in length. There is no length requirement for Part 2.
- References: Cite at least four current scholarly or professional resources.
- Your textbook can be one of the four.
- Format: Use current APA style for references and citations.
- APA formatting: You may wish to refer to the following APA resources to help with your structure, formatting, and style:
- Font and font size: Times New Roman, 12 point, for narrative portions only.
- Competency 1: Explain the importance of reporting in health care.
SCORING GUIDE
Use the scoring guide to understand how your assessment will be evaluated.VIEW SCORING GUIDE- Explain why budgets are an important part of the planning process.Does not explain why budgets are an important part of the planning process.Explains budgets in general, but does not explain why they are an important part of the planning process.Explains why budgets are an important part of the planning process.Explains why budgets are an important part of the planning process and provides specific examples of how they are used.Explain the difference between operating and capital budgets.Does not explain the difference between operating and capital budgets.Explains operating and capital budgets in general, but not the differences between the two types of budgets.Explains the difference between operating and capital budgets.Explains the difference between operating and capital budgets and provides examples of each.Provide correct revenue and expenses through the current month of the current year.Does not provide the revenue and expenses through the current month of the current year.Provides the incorrect revenue and expenses through the current month of the current year.Provides correct revenue and expenses through the current month of the current year.Provides the correct revenue and expenses through the current month of the current year and provides a comprehensive analysis.Estimate the correct revenue and expenses for the rest of the current fiscal year.Does not estimate the revenue and expenses for the rest of the current fiscal year.Estimates the incorrect revenue and expenses for the rest of the current fiscal year.Estimates the correct revenue and expenses for the rest of the current fiscal year.Estimates the correct revenue and expenses for the rest of the current fiscal year and provides a comprehensive analysis.Prepare a balanced budget for the next fiscal year.Does not prepare a budget for the next fiscal year.Prepares an unbalanced budget for the next fiscal year.Prepares a balanced budget for the next fiscal year.Prepares a balanced budget for the next fiscal year and analyzes the impact on the operations of the organization.Communicate in a clear and logical manner and without grammatical errors, following APA standards.Communicates in an unclear and illogical manner and with several grammatical errors, and does not follow APA standards.Communicates in a manner that is not very clear and logical and with some grammatical errors, and incorrectly follows APA standards.Communicates in a clear and logical manner and without grammatical errors, following APA standards.Communicates exceptionally well in a clear and logical manner and without any grammatical errors, perfectly following APA standards.
Explanation & Answer
Please find answer.In case of any revision if required then let me know.Pleasure working with you.
1
Operating Budget for Villa Health
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor’s Name
Assignment Due Date
2
Operating Budget for Villa Health
Budgeting plays an integral part in planning operations for healthcare processes due to
helping understand priorities used in decision-making. In this regard, it helps in decision-making
for utilizing resources adequately. Budgeting frameworks also help in determining areas that
should be evaluated based on the existing financial goals. Decision-making using budgeting
metrics are accurate since it relies on real figures. Making better decisions ensures that outcomes
are less disastrous to the profitability and sustainability of an organization. Big data from
financial analytics helps healthcare entities navigate challenging economic events due to
estimations and computations' reliability. In doing so, healthcare organizations know how they
allocate resources to execute tasks within specific timelines. Healthcare organizations can
formulate activities using their budgeting plans by determining operational areas that need
money (Walsh, 2016). Alternately, healthcare management can assess areas where income
generation is possible. Thereby, resources are allocated to priority areas and cut where it is
unnecessary to optimize costs while improving profit margins.
Besides, budgets can help healthcare facilities in goal mapping since they enable the
setting of clear goals...