HIM410: Next Fiscal Year Budget for Doctor's Office/Hospital

This report presents a detailed budget for a doctor's office/hospital for the next fiscal year. The budget includes an itemized breakdown of income sources, such as Accountable Care Organizations (ACOs), bundled payments, and patient revenue, totaling $10,850,000. Expenses are categorized, including employee salaries, benefits, IT upgrades, and medical equipment, totaling $9,400,000. The analysis highlights the relationship between inflows and outflows, emphasizing the importance of higher inflows for profitability. The report also discusses the expected increase in dollar costs due to factors like increased patient volume and new projects. The budget is designed to achieve managerial objectives by considering various factors. The report also references relevant literature on cash flow and budgeting.

Running head: HIM410 1
HIM410
Student’s Name
Professor’s Name
Institutional Affiliation
Date

HIM410 2
An approximate budget for the Doctor's Office/Hospital for the next fiscal year
S/No. Income (Cash inflows)
Source of income Income
Expenses (Cash outflows)
Item/service Expense/Cost
1. Accountable Care
Organizations (ACOs)
$1,750,0000 Physicians and other
employees’ salaries
$3,000,000
2. Bundled Payments $1,500,000 Other benefits given
to the workers and
other people in the
hospital
$1,600,000
3. Medicare Shared Savings
Program (MSSP)
$1,600,000 Office space costs $50,000
4. Money from patients and other
customers
$2,250,000 The necessary
upgrades to IT and
infrastructures
$750,000
5. Government/sponsors/investors
and other well-wishers’
funding
$1,750,000 Medicine/medications
and equipment costs
$2,000,000
6. All the other unmentioned
sources of funds
$2,000,000 Transport costs $300,000
7. Meals and drinks
consumed in the
hospital
$450,000
8. Approximate costs of
all the other
unmentioned
expenses
$1,250,000
9. Totals $10,850,000 $9,400,000

HIM410 3
The proposed volume for the new budget period is $9,400,000, where this money is
expected to be spent on various projects of the hospital, as clearly stated in the budget above.
The inflow (revenues) of the Hospital for the considered period of one year is
$10,850,000, while the outflow (cost of services/items delivered) is $9,400,000. The appropriate
relationship between the inflow and the outflow is that the inflows are higher or more than the
outflows. Normally, for any medical organization or any other kind of organization to run
smoothly and profitably, the cash inflows must be higher than the cash outflows (Dickinson,
2011). This is the relationship between the inflows and the outflows in our hospital of
consideration, which shows the hospital is running profitably. If, by any chance this condition is
not met, where it happens that the outflows are less than the inflows, the organizations make
losses and end up collapsing and closing.
How the appropriate dollar cost will be
The appropriate dollar cost is likely to appreciate or increase with time for the considered
budget period. Firstly, considering the service-related workload, this workload is expected to
increase as the number of patients is expected to grow or increase in the considered budget
period. Also, the non-service workload is expected to increase in the considered budget time as
the hospital is growing and expanding with time. The hospital is also expected to undertake
many new projects in the next one year, and so, the special project workload is also expected to
increase in the budget period. In the next one year whose budget is presented, the proportionate
share of interdepartmental projects is expected to be increased as there will be many new
projects expected to be implemented to enhance the services and the overall performance of the
company. All these positive changes in the organization are likely to increase the appropriate
dollar cost.

HIM410 4
The many new projects to be implemented by the hospital require additional resources,
and it’s expected these resources will be available since the hospital will liaise with its
stakeholders, the government, different sponsors, and other well-wishers to get all the required
resources to accomplish all its projects and meet its other objectives. The proposed budget given
above will accomplish the appropriate managerial objectives for the organization/hospital. The
budget was prepared after considering all the major managerial objectives of the considered
organization/hospital, and so, it’s enough to accomplish all the objectives.

HIM410 5
References
Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The Accounting Review,
86(6), 1969-1994.
Wildavsky, A. (2017). Budgeting and governing. London: Routledge.