A budget is a planning and control tool of the financial capital. It is a numerical roadmap for your future action plan, presented in a given timeframe. A budget does not have to be complicated. However, it should support the strategic plan of the organization. We need an operational budget that demonstrates what Baptist Healthcare Services (BHS) Inc. ambitions and objectives are. The operating budget shows the company’s projected revenues and related expenses for the coming period, usually the next year. (BHS, 2018).
The annual operating budget includes all primary areas where Baptist Health has financial obligations. This spreadsheet is rendered on the basis of the technique applied; only because of overstocking, a large amount of cash is flushed down the drain. In a medical sector, most of the materials are perishable, meaning that, unlike in the textile or automobile industry, the quantities here after a certain time are not appropriate for human use. Hospitals and clinics do not store medicine after expiry dates when slight negligence can be deadly to anyone. Ultimately, overloading means that if products are purchased and saved more than required, they inevitably have to go to the bin and cost the organization, thousands of dollars (Alnahas, Yeboah, Fliedel, Abdin, & Alhareth, 2020).
Drug prices are the primary reason that the budget for drugs and supplies is relatively small, which does not mean that the company can reduce the quantity. Everything you need is readily available around the clock. Over the last few years, an analysis of the hospital’s numerous figures has created the operating budget; after cash is spent as a source of recycled supplies, unused supplies are cut. These, in turn, will be the source of profit maximization for the organization. (Alnahas et al., 2020). The overall revenues from the organization include the treatment of patients, the use of services and other items such as the rental of a patient’s private room and the appointment of a separate caregiver.
Rather than that, the wages, contract labor and purchased services will see a significant rise. There are two reasons why this is so. The first is plain to see. The goal for every hospital or clinic to thrive is to attract highly skilled physicians, nurses, and other staff by paying them well. In order to attract a skilled team, you must be willing to pay them decent salaries in order to minimize the overall turnover and maximize employee satisfaction. (Chang, Cohen, Koethe, Smith, & Bir, 2017). One reason for this is the recent increase in the development of a separate neurology department which outsources many services. Because for now, this increase will appear drastic, but once this new department starts functioning, it will certainly raise revenue by a significant amount.
The decision to build this department was that of the superior management, and it was decided after years of planning. Another explanation for this investment is the small window of opportunity, as the company now has enough resources to build the project because of last year’s improved customer response.
Baptist Health believes they have specific skills to develop or strengthen and establish a more effective, sustainable health system that can withstand anything. In addition, the development of a new Baptist Health Strategic Plan (2020) helps us to reassess organizational objectives including:
• Quality: Continue enhancing the clinical treatment we give patients.
• Service: Providing healthcare facilities in a Spiritual and caring atmosphere that meets patient standards.
• Community: We want to be even more thoughtful on how we do more in the communities that we serve through trust, health planning and health education.
• Value: Focus on generating greater value for patients seeking safer care with superior clinical quality, increasing the reliability of the health system by minimizing costs and duplication, and providing improved results at a lower price for payers and government.
Use the facets of the new Strategic Plan for Baptist Health 2020; there are examples of how to accomplish downplayed areas.
This is not just about the physical location when we talk about accessibility. We are about the access to what, where, how and when services are available to patients. This is where our telemedicine and virtual health research becomes much more critical and our urgent health centers offer a more strategic scope (Baptist Health. 2020):
Population health means identifying a specific group of people and then taking a more active role in maintaining health in different settings. Thus, more of a treatment based on a relationship or a transaction is obtained. It typically needs a health program which is more cost- and quality-responsible. This may involve drawing up plans for Medicare or Medicaid populations or directly working with a company to create creative healthcare programs for their employees (Baptist Health. 2020).
The goal here is to create a service with higher reliability. This includes finding new ways to create a healthier atmosphere for patients and improving the overall experience of patients. This also means that we need to continue to devise solutions to raising the clinical quality variability. We have made enormous strides in terms of efficiency, but we still need to find s to improve.
We understand that the sustained growth of our current and future workforce will be important for the sustainability of the health system. If our Baptist Health College is growing or creating training programs for our workers, this ongoing development is preparing people to succeed in our future health care system.
We acknowledged that collaboration with partners gives us a better chance of achieving big goals, such as improving the health of Arkansans. And you will continue to see more and more Baptist Health finding partners in the state and country to help us achieve our future vision (Baptist Health. 2020).
As we learn to take on greater risks and strengthen the welfare of individuals and the environment, the health system must continue to be improved. This growth may come from new or expanded programs, geographic development, or strategies for excellence. We must take account and recognize that all the work that we plan to do in the next few years will concentrate on our mission, vision, values, principles, and confidence.
Committed to Faith-Based Values
When Baptist Health celebrates 100 years, they strive to uphold the founders’ values who believe in the cost of genuine health care and in serving people in the entire world. Equally committed to developing the healthcare system to fulfill the changing needs of those they serve (Baptist Health. 2020). As important as knowing what is going to be different in future Baptist Health, it is equally important to recognize what will be the same. A commitment to treat and provide faith-based treatment will help to differentiate Baptist Health from the rest.
According to O’Connell (2019) the purchase of new equipment, the renovation and replacement of current company structures and new buildings, construction upgrades and rehabilitation acquisitions, the development of a separate neurology department is one capital project that uses capital budgeting principles, the capital budgeting provides Baptist Health with a valuable financial weighing tool that introduces more costly capital expenditure.
Basically, from a financial point of view, this entire strategy encompasses every essential part of the organization. In terms of care, using the facilities and other things like renting a private room for the patient and hiring a separate nurse for aid, etc., the net profits are the sum of what the agency can receive from patients. A budget is an instrument used to plan your financial resources and to control them. It will be accurate if everything goes through higher management according to the current plan.
Alnahas, F., Yeboah, P., Fliedel, L., Abdin, A. Y., & Alhareth, K. (2020). Expired Medication: Societal, Regulatory and Ethical Aspects of a Wasted Opportunity. Retrieved May 27, 2020, from file:///C:/Users/Dell/Downloads/ijerph-17-00787-v2.pdf
Baptist Healthcare System, Inc. (2017-2018). Deliberative, Consultative, and Advisory
Proposed FY 2018 Operating Budget. (June 27, 2017). Retrieved May 23, 2020, from
Baptist Health. (2020). Baptist Health 2020 Strategic Plan Guides the Course for System’s
Future. Retrieved May 24, 2020, from https://www.baptist-health.com/baptist-health2020 strategic-plan-guides-the-course-for-systems-future/
Chang, E., Cohen, J., Koethe, B., Smith, K., & Bir, A. (2017). Measuring job satisfaction among a highly useful financial assessment tool for companies, and it comes with multiple uses. Retrieved May 29, 2020, from https://www.thestreet.com/personal-finance/what-is-capital-budgeting-14964656
Baptist Health Financial Statements Link: https://emma.msrb.org/ER1174893-ER918358-.pdf
Baptist Health 2020 Strategic Plan. (January 18, 2017) Retrieved May 28, 2020, from https://youtu.be/9XcLcqN_v6I