Question

Discuss and define each entry in the budgeting process for a Healthcare organization. Discuss the possible reasons why the budget may be successful or failure is.

Discuss (describe and define) the principal element of a budgeting process for a Healthcare organization. Analyze the possible causes of why a budget plan may be successful or fail. Offer examples of success and failure.

Answer 1

Answer:

Budgets allow health managers to plan for and set expectations for the future, assess financial performance on a timely basis, and ensure that operations are carried out in a manner consistent with expectations.

Steps in budgeting-

· Set realistic goals

· Identify the income and expenses.

· Calculate the differences.

· Set separate needs and wants.

· Design the required budget.

· Put the plan into action.

· Review any excluding expenses that is to be included.

· Make it a habit and review it after every months.

Reasons why a budget may fail-

· Incomplete Requirements

· Unrealistic expectations

· Regualr changing requirements

· Spending too much too fast

· Not doing regular review.

· Improper planning

· Lack of user involvement.

Reasons behind success in budget

· User involvement

· Executive management support

· Clear statement of requirements

· Proper planning

· Realistic expectations.

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