Financial Management in Healthcare

Running head: FINANCIAL MANAGEMENT IN HEALTHCARE
Financial Management in Healthcare
Name of the Student:
Name of the University:
Author’s Note:
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1FINANCIAL MANAGEMENT IN HEALTHCARE
Table of Contents
Answer to Question 1:.....................................................................................................................2
Requirement a:.............................................................................................................................2
Requirement b:.............................................................................................................................4
Requirement c:.............................................................................................................................6
Answer to Question 2:.....................................................................................................................6
Requirement a:.............................................................................................................................6
Requirement b:...........................................................................................................................10
Requirement c:...........................................................................................................................10
Requirement d:...........................................................................................................................12

2FINANCIAL MANAGEMENT IN HEALTHCARE
Answer to Question 1:
Requirement a:
Preparation of monthly budget:
Particulars Details Normal Scenario 10% Increase
Donations:
Donations received for food A $ 2,925,000 $ 3,217,500
Pledge donation B $ 100,000 $ 100,000
Total donations C=A+B $ 3,025,000 $ 3,317,500
Expenses:
Direct cost D $ 2,700,000 $ 2,970,000
Salaries expense E $ 21,500 $ 21,500
Health and insurance expense F $ 2,875 $ 2,875
Fuel and maintenance
expense G $ 4,600 $ 4,600
Total expenses H=D+E+F+G $ 2,728,975 $ 2,998,975
Net surplus/(deficit) I=C-H $ 296,025 $ 318,525
Workings:
Particulars Details Normal Scenario 10% Increase
Donations:
Number of children A 15,000 16,500
Agreed payment for each day for a B $ 6.50 $ 6.50

3FINANCIAL MANAGEMENT IN HEALTHCARE
child
Agreed payment for a year C=AxBx360 $ 35,100,000 $ 38,610,000
Total donations received for a
month D=C/12 $ 2,925,000 $ 3,217,500
Salaries:
Director of operations per year E $ 60,000 $ 60,000
Director of operations per month F=E/12 $ 5,000 $ 5,000
Security guard per year G $ 42,000 $ 42,000
Security guard per month H=G/12 $ 3,500 $ 3,500
Truck supervisor per year I $ 36,000 $ 36,000
Truck supervisor per month J=I/12 $ 3,000 $ 3,000
Own salary per year K $ 120,000 $ 120,000
Own salary per month L=K/12 $ 10,000 $ 10,000
Total salaries per month M=F+H+J+L $ 21,500 $ 21,500
Health and insurance retirement
benefits N=(F+H+J)*25% $ 2,875 $ 2,875
Fuel and maintenance expense O $ 4,600 $ 4,600
Direct cost:
Food cost per day P $ 6 $ 6
Total food cost for each month Q=(AxPx30) $ 2,700,000 $ 2,970,000
From the above table, it can be said that the revenues are deducted from the expenses and
finally analysed that the due to huge donation there is a surplus in case of normal scenario. In