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
