Running
head: UNIT VI PROJECT
Unit VI Project
Research Paper Topic, Budget Information and Resources
The health facility chosen for this assignment is Sunrise Health Center. The hospital is located in Dallas Texas, and operates as an inpatient and outpatient facility for the patients. Established in 2010, the medical facility has a total of 69 health practitioners that comprises physicians, nurses, radiologists, oncologists, pediatricians, gynecologists, clinical officers, hospital clerks and other hospital officers. The health facility has a bed capacity of 300 and serves both local and international patients. Sunrise Health Center is currently enjoying a stable financial situation, which ensures the facility sustains its operations with minimum dependence of external funding.
Sunrise Health Center, like any other hospitals and health centers requires the management to oversee its day-to-day operations. Financial management is the most important department in healthcare set up. It forms the most integral decision-making, a route that comprises the use of theories, information and expertise to come up with the best financial decisions (Cole, Yan, & Hemley, 2015). The main role of financial management is to utilize the available funds appropriately, while managing risks to achieve set financial goals. This is achieved by setting the right financial incentives to providers, to ensure that all individuals have access to both public health and personal healthcare.
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Sunrise Health Center Budget 2018 |
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Cost Category |
Budget Estimate |
Actual Expense |
|
Personnel Costs |
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|
Salaries |
$ 6,900,000.00 |
$ 6,900,000.00 |
|
Fringe Benefits |
$ 2,000,000.00 |
$ 1,800,000. 00 |
|
Total by Category |
$ 8,900,000.00 |
$ 8,700,000.00 |
|
Other Direct Costs |
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|
Consultant Costs |
$ 870,000.00 |
$ 770,000.00 |
|
Equipment |
$ 4,000,000.00 |
$ 4,100,000.00 |
|
Supplies |
$ 2,500,000.00 |
$ 2,650,000.00 |
|
Travel |
$ 250,000.00 |
$ 250,000.00 |
|
Other Expenses |
$ 180,000.00 |
$ 140,000.00 |
|
Consortium/Contractual- up to 25K |
$ 21,000.00 |
$ 21,000.00 |
|
Consortium/Contractual- over 25K |
$ 75,000.00 |
$ 56,000.00 |
|
Total by Category |
$ 7,896,000.00 |
$ 7,987,000.00 |
|
SUBTOTAL DIRECT COSTS |
$ 16,796,000.00 |
$ 16,687,000.00 |
|
Indirect Costs |
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|
Modified Total Direct Costs for Calculation |
$ 16,796,000.00 |
$ 16,687,000.00 |
|
Percent |
21.70% |
21.70% |
|
Indirect Costs |
$ 3,478,772.00 |
$ 3,454,209 |
|
Total |
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|
Total |
$ 13,319,228.00 |
$ 13,232,791 |
According to the budget information for 2018, it is evident that Sunrise Health Center is thriving financially. The actual expenditure was less than the budget for 2018. The hospital management is making the best investment ventures, that result in good returns. The hospital finance department advises the management on ways to maintain financial stability and economic growth. Accurate fund allocation and safeguard of finances also helps the organization to minimize unnecessary losses. Financial management is a fundamental skill for healthcare executives (Liaropoulos & Goranitis, 2015). Healthcare operations such as procurement, planning and evaluation, management of working capital, financing and the making of investment decision require adequate financial management skills for those holding office. For example, in the case of planning and evaluation, the financial management may discover that it is experiencing revenue declines due to inadequate staffing, which results in losing patients to a neighboring facility with better staffing. In response, the management has to hire more staffs to counter for the shortage.
The three main pain points experienced by chief financial officers at Sunrise Health Center include stiff competition for brand and convenience. This refers to competition from other hospitals to provide most efficient patient care service (Chang et al, 2015). A liability paradigm shift from providers to patients is another pain point, as healthcare providers strain to find how to come up with affordable rates for patients, while patients are left with the struggle to figure out ways to afford the set rates. Lastly, there is the challenge arising from revenue cycle inadequacy, where available revenue becomes outsourced, completely crippling the system. Effectively, financial management is of significance to leaders, in the sense that it points out the positive values of convenient care in satisfying consumer needs and demands. Also, it provides a significant set of services for a particular segment in the healthcare field (Chang et al., 2015). This will enable competence through which financial viability will eventually be achieved.
References
Chang, J. E., Brundage, S. C., Burke, G. C., & Chokshi, D. A. (2015). Convenient care: Retail
clinics and urgent care centers in New York State. New York NY: United Hospital Fund. Retrieved from: https://nyshealthfoundation.org/uploads/resources/united-hospital-fund-convenient-care-report.pdf
Cole, C; Yan, Y; Hemley, D. (2015). Does Capital Structure Impact Firm Performance: An
Empirical Study of Three U.S . Sectors. Journal of Accounting and Finance; West Palm Beach , 15(6), 57-65. Retrieved from: https://proxygw.wrlc.org/login?url=https://search.proquest.com/openview/78f51a3ad97c9141e3263ea89f85bc30/1.pdf?pq-origsite=gscholar&cbl=766330
Liaropoulos, L., Goranitis, L (2015). Healthcare financing and the sustainability of health
systems . International Journal for Equity in Capital Budgeting . Retrieved from: https :// equityhealthj.biomedcentral.com/articles/10.1186/s12939-015-0208-5
