Reference no: EM133894000

Complete a proposal for a scenario where you need to develop a strategy to reduce the overall budget by 10 percent.

In this assessment, you will put your newly acquired skills to work as you dissect an actual budget and make decisions on where cuts can and must be made. You will use the information that you've gathered over the previously to make informed and empathetic decisions about how your limited resources will be spent. You will take into account the information you have from your department heads as well as the information your gathered about current wage scales in your area in an attempt to bring your budget back into line while not sacrificing quality, regulatory compliance, or the welfare of your staff both personally and professionally. This will be a challenging assessment, but one that healthcare leaders are facing every day and one that you will no doubt face in your career. Try to be as realistic as possible in your recommendations, keeping in mind not only the well-being of your organization and customers, but also that most budget cuts in healthcare come from the payroll and there are real-life consequences in those decisions for everyone in your charge.

How can internal benchmarks be used to help identify best practices within an organization?
How might an organization use external benchmarks to measure and monitor performance?
What is a scorecard, and how is it used to track financial performance?
You will delve into the various financial reports that you might see in your work as a healthcare leader. You will take them apart and examine the different parts of each report and when and why it would be appropriate. You'll also look at the different types of financial ratios that you will work with and what important information is gleaned from those ratios as you make decisions about the operations and future of the organization that you are charged with leading.

Finally, you will wrap up this course with the opportunity to learn about investments and financing in healthcare. Oftentimes, healthcare operations are financed by outside entities as our revenue cycle can be very long and accounts payable are not usually collected within 30 days. As a result, we often need to look to outside financing for short-term cash needs. Additionally, our expenses, such as radiology equipment or upgrades to buildings and plant operations, can be much more than we can carry and outside financing is needed. You will have the opportunity for a high-level look at financing those endeavors through business loans and investments.

Address the following in the introductory page for this request:
Would you reduce each line item by 10 percent? Why is this the best approach? Also, how do you intend to handle fixed costs with this approach?
Would you select specific line items to reduce by 10 percent? Why is this the best approach? If so, how would you pinpoint which line items to reduce?
Would you put a freeze on all hiring, training, travel, and purchasing? Why is this the best approach?
What other ideas do you have to cut your overall budget by 10 percent without affecting the care that you provide?
Explain how the reduced operating budget aligns with an organization's target profit margin.
Offer at least one solution to reduce the budget by 10 percent.
These recommendations may include multiple line items and may overlap but should be a separate and distinct option for senior leadership to consider.
For example, in one recommendation, you suggest cutting department heads, reducing food costs, and eliminating bonuses to get you to the magic number. In a separate recommendation, you may suggest reducing overall staffing, eliminating bonuses, and reducing food costs.
Prior to making your recommendations, be sure to review the Staffing and Budgeting Dilemmas in Health Care media, introducing you to your department heads and what their specific needs and concerns are regarding the budget. This should influence your decision about priorities and what you may want to avoid when cutting back.
Do some research to see what the literature is suggesting to address this problem.
Be sure to include references to at least two scholarly and/or authoritative sources in your operating budget proposal. Follow current APA guidelines for in-text citations and references.

Competency 1: Develop financial strategies to address dynamic environmental forces.
Explain reducing each line item by 10 percent.
Explain selecting specific line items to reduce by 10 percent.
Recommend three strategies to reduce operating budget due to shortfalls in an organization's financial performance.
Competency 3: Develop a budget that integrates organizational improvements with sound financial analysis.
Explain putting a freeze on all hiring, training, travel, and purchasing.
Explain how the reduced operating budget aligns with an organization's target profit margin.
Competency 4: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration. Get online assignment help to achieve academic success!
Write a clear, logical, and succinct operating budget proposal that is free of errors in grammar, punctuation, and spelling.
Format citations and references using the APA style.