The net patient service revenue and the total operating revenue for the hospital cardiology department were $2 million in 2020 and $1,850,000 in the year 2019. The cardiology department projects a growth of the revenue to $2.15 million in 2021. The operating expenses include medical and surgical services, office procedures, professional services, support services, general services, depreciation, and accrued total interests. The total net operating expenses for the department is projected to $1,984,205. This paper suggests the amendments that can be done to the budget, the strategic goals and objectives of the department as far as the budget is concerned, and the strategic implementation framework for the proposed amendments to the budget.
Amendments to the Current Budget
This paper proposes two amendments to the proposed budget. The first amendment is the need to acquire new extra radiology equipment. The flow of customers has, and the demand for the radiology service has grown tremendously over the past three years. Therefore, the department needs to get additional machines to serve the growing number of customers effectively and enhance service delivery through shorter service times ( Kenno et al., 2020 ). The second proposed amendment to the budget is recruiting additional staff to improve the patient-to-staff ratio within the department. The increase in staff will oversee faster and efficient service delivery hence improved revenues within the department.
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Strategic Goals and Objectives
This paper presents six strategic objectives as far as the budget is concerned. The first strategic goal is to embrace financial stewardship to deliver an adequate surplus to ensure the department's feasibility. The department will focus on growing the revenue by at least 25% and achieving a cost to revenue ratio of 85% to achieve the first objective. The next objective for the department would be to improve the delivery of a superior customer experience. This objective would be achieved through the introduction of staff learning programs and patient care strategies. Some of the criteria used in the analysis improved service delivery and patient care, excellent quality care perception, delightful customer experience, affordability, honesty, and short waiting times. The next objective would be to achieve operational excellence through speedy and effective service delivery. The department will also aim to develop a highly-skilled workforce to deliver the institution's mission. Efficient and timely human resources, improved departmental leadership, and improved staff welfare is key factors to leverage to achieve the institution's mission. The last strategic objective would be to improve the department's leadership through improved staff training and focused capacity-building programs.
Strategy Framework Implementation
The department aims to grow the revenue over the next year to $2.15 million. More finances will be required for staff recruitment and other strategy expenses. In addition, the department needs to invest in quality staff training which will be measured through accreditation, certification, and pass rate. The in-office procedures for verifying the quality of staff training and other procedures are projected to a total of $914,000. Staff training will be done twice every year to improve professionalism within the department and a projected budget of $625,200 in the year 2021. The department also aims to provide specialized medical services and develop a fully functioning radiology department unit ( Kenno et al., 2020 ). The unit will require at least six months to install and test to become fully operational. Customer ratings will be used to measure the level of customer experience and delightfulness ( Hermanto et al., 2021 ). The department will contract a brand equity tracker to manage the reviews overseen by the department quality assurance manager bring a total of the support services to $228,000 for the year 2021.
Conclusion
The hospital saw a growth in revenue over the last two years. The radiology department projects a growth in the number of patients to be served by the unit in the coming year. This paper has developed the strategic objectives that justify the amendment of the budget. The department also projects growth in revenue over the next year.
References
Kenno, S., Lau, M., Sainty, B., & Boles, B. (2020). Budgeting, strategic planning and institutional diversity in higher education. Studies in Higher Education , 1-15.
Hermanto, H., Kusnadi, K., Panjaitan, E., & Arafah, W. (2021). The Effect of Strategic Service Quality Management and Strategic Human Resources Planning & Budgeting on the Effectiveness of Organizational Performance Mediated by Work Climate at the Main Base of the Indonesian Navy III Jakarta. Business and Entrepreneurial Review , 21 (1), 47-60.
