4-8 questions

trol cycle? 4. Strategic planning. Discuss the role of strategic planning in the budgeting process. How does it differ from short-term planning? 5. Participatory approach. What are the advantages and disadvantages of the participa tory approach to budgeting? 6. Budget types. What are the four major budgets of a health care organization? Briely discuss each 7. Budget detail. What are the differences among a line-item, a program, and a perfor mance budget? 8. Budget detail. Using Exhibit 10.6 as an example, construct line-item, program, and per- formance budgets for a service or program in a health care organization Hocat EXHIBIT 10.6 SUMMARY ZERO-BASED BUDGET Westover Crown Colony Family Practice Parkdand Affiliates Practice revenues intal services Folow-up services Total 558.625 201 000 259,625 $28,350 $36,800 91.350 115.200 119,700 152.000 Practice expenses Labor expenses 162,082 202,603 330563 Total 162,082 202,603 330563 Hospitalist practice net income (loss) (42,382) (50,603) 170,938) Hospital income Net inpatient revenues (loss) 189,000 235,750 385.000 Incremental financial impact of proposal $146,618 $185,147 5314,062 Performance measure: new admissions 900 1,750 Note: The budgets for each practice separately are considered line-item budgets. The three budgets presented Mogether or in other combinations constitute a program budget. Finally, when performance targets are added Walise-item budget, it becomes a performance budget. 1,150