develop a yearly budget for a healthcare organization. You will be given the required elements to include, but you can also include additional elements as you see fit. Develop your annual budget from the information in Chapter 16 using the elements from table 16-6. Will need to include all the budget categories in table 16-6. You may not use the financial information in table 16-6. (1,200,000)

Section 1

1. Introductory paragraph will require the following elements

a. Type of organization (e.g., hospital, medical practice, medical supply company, etc.)

b. The organizations primary consumers c. Major sources of revenue (medicare, medicaid, private insurance, etc.) d. State if you conducted an interview or used the case example in the textbook

d. If you conducted an interview, what position did your interviewee hold and name if they are willing to share. e. The name of the organization, which can be a pretend name if you are developing your project from the textbook or changed if the interviewee requests.

Section 2

The next section will be the financial budgeting information. This section must include at least the following elements:

1. All the rows in table 16-6 (financial categories to be listed) 2. All the columns in table 16-6 (first 3 months of the year, followed by quarterly for the remaining) 3. If you conducted an interview and an element is not included in their budget, still include it on your table, but plan to explain why it is not used in section 3 of this project 4. Generate your own financial figures or use information from your interview process 5. The financial figures must be explainable in section 3, and correspond to concepts and theories outlined in our text. Some budget figures influence and correspond to others in a budget. Do not just plug in figures without being able to explain them in section 3. 6. Your budget should show fluctuations and changes for appropriate categories, some may not, but be ready to explain why. Budgets always change and fluctuate. 7. No credit will be awarded for financial figures unless they are fully explained in section 3.

Section 3

This section will require students to explain each element of the annual budget in detail. The instructions for section 3 include:

1. Each row or category must be explained fully. For example, what makes up the category and the importance of the category in the budget? Explain expected changes, fluctuations or figures that will remain the same. If you conducted an interview, explain in detail why the organization does not include it in their budgeting process.

2. Each row in the budget may contain several itemized elements that make up the total figure. Insert a table (with the same columns required from section 2 for the major categories that have itemized components. For example, explain what elements make up the total figure for the Receipts from Operations, and so on in the rest of the categories as necessary. This must be done for each month and column in your table. Your itemized elements must be financially sound and correspond to the listed total figure for its respective month or time period from section 2.

Section 4

In this section, you will provide a narrative conclusion on the overall financial project for the year. This portion for the project is very important. Financial data is only useful if healthcare managers understand what they mean, and explain them clearly and make operational recommendations for continued success. Your conclusion should include the following elements:

1. Your final conclusion should provide a narrative explanation of strategies for the next year based on your budget. In your narrative make sure to address how the total figures for each major category are influenced by the itemized figures, and what operational strategies need to continue or change to assure success.

2. If your organization is financially stable or growing, make strategic recommendations for continued success. For example, if you organization is doing financially well, list several ways you would recommend using the additional income to improve services, expand investment income, or expand services.

3. If your organization is not financially stable or has items that need improvement financially, make strategic recommendations that will attempt to remedy the financial dilemma.

4. Your last item to include is to identify potential risks, barriers, or changes that will influence your organization's financial health.

Table 16-6
		1st quarter
	January	February	March	2nd Quarter	3rd Quarter	4th Quarter
Receipts from operations	$300,000	$310,000	$320,000	$1,000,000	$1,100,000	$1,100,000
Disbursements from opreations	280,000	280,000	300,000	940,000	1,000,000	1,000,000
Cash available from operations	$20,000	$30,000	$20,000	$60,000	$100,000	$100,000
Other receipts
Increase in mortage payable				500,000
Sale of fixed assets		20,000
Unrestricted income			40,000	40,000	40,000	40,000
endowment
Total other receipts	$0	20,000	$40,000	$540,000	$40,000	$40,000
Other disbursements
Mortgage payments			150,000		150,000
Fixed-asset purchase				480,000
Funded depreciation			30,000	130,000	30,000	30,000
Total other disbusrsements	$0	$0	$180,000	$610,000	$180,000	$30,000
Net cash gain (loss)	20,000	50,000	120,000	10,000	40,000	110,000
Beginning cash balance	100,00	120,000	170,000	50,000	40,000	0
Cumulative cash	$120,000	$170,000	$50,000	$40,000	$0	$110,000
Desired level of cash	100,000	100,000	100,000	100,000	100,000	100,000
Cash above minimum needs	$20,000	70,000	$50,000	$60,000	100,000	$10,000
(financing needs)