Fiscal Management Services
A Financial Operating Plan is a financial plan that details the revenues and expenditures (Alesina et al., 2017). As one of the staff members entrusted with assisting in financial budgeting in the finance department at Nouveau Health center, the primary focus is to develop a budget that provides maximum assurance of effective handling of investments. The recent trends in service delivery and general cash flows in the population are critical to making realistic predictions for the expenditure and income for the next year’s budget. In last year’s budget, some crucial healthcare facilities were not considered in the previous account.
A financial operating plan uses past revenues, profits, and expenditures to predict what to expect in the years to come. It then integrates past and current developments into the preparation so that what is to come is more accurately expected (Jones et al., 2018). The goal is to expand on the budget to incorporate new features and services that will improve quality and safe care. The primary focus is to increase revenue, reduce individual administrative costs, and improve care while not compromising its services.
The table below shows last year’s financial budget plan and the upcoming year budget, which has an additional allocation of $3 million to cater for staffing, services, and maintenance.
Operational Budget for Nouveau Health
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Revenues Last Year’s Budget Next Year’s Budget
In-patient $25,000,000.00 $27,500,000.00 Out-patient $15,000,000.00 $17,250,000.00 Emergency Room $10,000,000.00 $10,000,000.00 Laboratory $5,000,000.00 $5,000,000.00 Pharmacy $1,500,000.00 $1,575,000.00 Home health and Hospice $1,500,000.00 $1,725,000.00 Ambulance services $950,000.00 $950,000.00 Substance Abuse $250,000.00 $250,000.00 Others $250,000.00 $250,000.00 Additional funding $3,000,000.00 $3,000,000.00 Subtotal $67,500,000.00 Less Charity care -$18,000,000.00 Net revenue $49,500,000.00
Expenditure Payroll $12,500,000.00 $13,750,000.00 Benefits $3,000,000.00 $3,300,000.00 Contract labor $100,000.00 $100,000.00 General services $300,000.00 $300,000.00 Depreciation $1,500,000.00 $1,500,000.00 Interest expenses $300,000.00 $300,000.00 Professional services $10,000,000.00 $10,000,000.00 New facility Expenditure $3,000,000.00 $3,000,000.00 Total expenditure $32,250,000.00
Net Income $17,250,000.00
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Reference
Alesina, A., Barbiero, O., Favero, C., Giavazzi, F., & Paradisi, M. (2017). The effects of fiscal consolidations: Theory and evidence (No. w23385). National Bureau of Economic Research.
Jones, C., Finkler, S. A., Kovner, C. T., & Mose, J. (2018). Financial Management for Nurse Managers and Executives-E-Book. Elsevier Health Sciences.