Established in 1977, Krona Community Hospital is a
60-bed, acute care hospital located in the heart of Banconota County. With a
staff of nearly 100 physicians and specialists, 400 employees, and 75
volunteers, they offer a full range of health care services. They are
accredited by The Joint Commission.
Nouveau Health, a private, not-for-profit health care
chain, took over the management of Krona Hospital. Last year, state officials
began to discuss Nouveau’s proposal to build a new, replacement hospital in
Banconota County. The new facility would have 74 acute care beds, four
observation rooms, four surgical operating rooms, one c-section room, a 24-hour
emergency department, a maternity center, an intensive care unit, and extensive
support services, including physical therapy and cardiac rehabilitation. All
patient rooms would be private.
You are a staff member in the finance department at
Nouveau Health, whose sole responsibility is to advance the success of the
organization through assisting in planning, forecasting, and finance
management.
Your Key Assignment Draft is designed to help you prepare
for the presentation in Phase 5. The chief executive officer (CEO) of Krona has
asked that you complete the following:
·
Prepare next year’s financial plan and operational
budget.
o
Note:Keep in mind that the budget you created for your Phase 2 Individual
Project did not take into account the growth of the new facility. The CEO has
asked that you expand that budget and provide a finalized budget that will take
into account the new services offered. The CEO has stated that there is $3
million that you can incorporate into the budget for additional staffing,
services, maintenance, and so forth.
·
Make sure the budget reflects the following:
o
Increase in revenue reimbursement
o
Allocation for the proposed improvements
o
Increase in salaries
Be sure to discuss the following areas:
·
Funding sources
·
Your methodology in revenue forecasting
·
How the new services will impact revenue
·
Fixed and variable costs
·
Project inpatient and outpatient visits based on
current trends
