Approaches to Budgeting in The Healthcare Industry Discussion
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Approaches to Budgeting in The Healthcare Industry Discussion
Reply:
Peer 1: Budgeting involves detailed plans, expressed in dollar terms, that specify how resources will be obtained and used during a specified future period of time (Kristin & Paula, 2021). Budgets are more important to line managers than to the financial staff because budgets provide the means to plan and communicate operational expectations within an organization.
There are five approaches to effective budgeting and forecasting in healthcare (Hall, n.d.). The approaches include;
Aligning rolling forecasts, multi-year plans and detailed budgets
Embracing statistically-driven approaches to enable efficient “what if” modeling
Incorporating service line analytics to refine projections
Providing cross-departmental initiative-based modeling
Promoting the feedback loop with management and executives via reporting
The approach that is most effective is incorporating service line analytics to refine projections. Many organizations are looking to incorporate patient-centric data into their planning models to drive more accurate volume and workload projections.
Resulting plans more accurately reflect and offer transparency to the impact a service line’s growth would have on department budgets and net revenue. Incorporating service line analytics to planning is important because they tend to integrate the volume of planning and the revenue planning. This ensures that future reimbursements rate can be modeled by the clinical population.
References
Hall, K., n.d. 5 Approaches to Effective Budgeting and Forecasting in Healthcare | Kaufman Hall. [online] Kaufmanhall.com. Available at: [Accessed 23 January 2022].
Kristin L. Reiter, & Paula H. Song. (2021). Gapenski’s Healthcare Finance: An Introduction to Accounting and Financial Management, Seventh Edition: Vol. Seventh edition. Health Administration Press.
Peer 2:
In any health organization, budgeting is an imperative consideration in their daily operation and strategic planning. (UMGC, HCAD 640) After reading Kaufman Hall “5 Approaches to Effective Budgeting and Forecasting in Healthcare”, each approach can help manage an organization’s budget effectively. The 5 approaches include:
Align rolling forecasts, multi-year plans, and detailed budgets.
Embrace statistically-driven approaches to enable efficient “what-if” modeling.
Incorporate Service Line Analytics to refine projections.
Provide cross-departmental initiative-based modeling.
Promote feedback loop with management and executives via reporting.
I believe the most effective budgeting approach is, “Incorporate Service Line Analytics to refine projections”. Organizations are seeking to incorporate patient-centric data into their planning models to drive more accurate volume and workload projections. (Kaufmanhall, n.d) Incorporating Service Line Analytics can allow organizations to improve and combined the other approaches by using this method.
According to Jay Spence, “Service lines are the most comprehensive way to understand operating results, and therefore they should form the basis for strategic planning, capital planning, annual budgeting and forecasting, and performance analyses”. (2015) This approach can result in errors if an organization is not consistent with fully incorporating Service Line Analytics.
In order to successfully incorporate Service Line Analytics, a system should be set in place with tools that are necessary to project assumptions and integrate specific plans. As well as a robust data store with significant capabilities for what-if modeling and plan consolidation. (Spence, 2015)
References
KaufmanHall (n.d.) 5 Approaches to Effective Budgeting and Forecasting in Healthcare. https://www.kaufmanhall.com/insights/ebook/5-approaches-effective-budgeting-and-forecasting-healthcare
Spence, J. (2015). New complexities require a new approach to budgeting and forecasting. Retrieved from https://www.healthcarefinancenews.com/blog/new-complexities-require-new-approach-budgeting-and-forecasting
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!