Organizational budgeting of hospital



Organizational budgeting of Krona community hospital

Introduction

Krona community hospital was inaugurated on 1977 and as considered as the famous acute care hospital that is situated in the center of Banconota County. As of today, this hospital comprises of more than 575 employees that includes general and special physicians, administrative and ward staff and other employees.

This hospital is being provided regular funds by joint care of health care organization, and on March 2006, a private health care organization acquired more than 70 beds and other facilities of this healthcare organization. And further proposed to construct a healthcare organization in the center of Banconota County that will comprises of modern HealthCare facilities and thus will enable doctors to provide better treatment to all the patients of the country.

In year, 2011 hospital started its operation and within a few months, time was able to include well-known doctors and psychiatrist under the panel of his hospital and ultimately was able to increase the visits of patient in the hospital (Dietrich and Anderson, 2012).

Krona community hospital

Operating budget (2013-2013)

year 2013

year2012

percentage increase/decrease

prescription orders

inpatient

2000000

1500000

500000

Outpatient

3000000

2000000

1000000

Total

5000000

3500000

1500000

Revenues

inpatient

45000000

39000000

6000000

Outpatient

38500000

30000000

8500000

Total

83500000

69000000

14500000

Fixed Expenses

Management salaries

1000000

800000

200000

Staff salaries

500000

425000

75000

support staff salaries

225000

195000

30000

benefits of employees

350000

300000

50000

computer

300000

250000

50000

building rent

275000

225000

50000

equipment in lease

300000

325000

-25000

office expenses

500000

432000

68000

Total fixed expenses

3450000

2952000

498000

Variable Expense

Salaries of Pharmacists and technicians

6000000

4970000

1030000

benefits of employees

1750000

1200000

550000

Drugs

30000000

22500000

7500000

Intravenous supplies

500000

475000

25000

Blood products

4500000

3950000

550000

Medical supplies

400000

320000

80000

Miscellaneous expenses

700000

635000

65000

Total variable expenses

43850000

34050000

9800000

Total Expense

47300000

37002000

10298000

Surplus

36200000

31998000

4202000

Krona community hospital

Emergency ward budget (2013-2012)

year 2013

year2012

percentage increase/decrease

expense of machinery

1500000

1350000

150000

laboratory expense

300000

235250

64750

security guard exp

100000

95000

5000

software expense

500000

430000

70000

other expenses

90000

70000

20000

Total budget

2490000

2180250

309750

Krona community hospital

Intensive care unit budget (2013-2012)

year 2013

year2012

percentage increase/decrease

expense of machinery

45000000

33800000

11200000

laboratory expense

500000

325000

175000

security guard exp

100000

95000

5000

medical equipment expense

250000

175000

75000

other expenses

100000

70000

30000

Total budget

45950000

34465000

11485000

Krona community hospital

Pediatric unit budget (2013-2012)

year 2013

year2012

percentage increase/decrease

expense of machinery

45000000

33800000

11200000

laboratory expense

500000

325000

175000

security guard exp

100000

95000

5000

medical equipment expense

250000

175000

75000

therapist charges

350000

300000

50000

maintenance of beds

150000

95000

55000

Total budget

46350000

34790000

11505000

Analysis of Budget

Being the senior financial analyst the management of the hospital assigned me the task of formulating the project-operating budget for the next fiscal year. Hence, for this purpose after gathering the required information from inside and outside the organization the operating budget with respect to other departmental budget was formulated (Dredge, 2004).

According to the formulated budget, the hospital was manager to increase the visit of both inpatient and outpatient at their hospital mainly because of the presence of the experienced and qualified doctors of every aspect of human lives. Approximately the hospital management is expecting to witness the more than 150000 more patient coming to the hospital for their treatment that will indirectly increase our revenue and hospital is expecting to earn revenue of around 83500000 in year 2013and this expected to be 30 percent more than 2012.

Our hospital aims to provide excellent quality ...