Healthcare & HR Management Small Outpatient Clinic

Healthcare & HR Management Small Outpatient Clinic

You are the financial manager for a small outpatient clinic. Due to the passage of the Affordable Care Act, your organization was required to change insurance companies to meet the guidelines and expectations within the ACA. Salaries increased in FY 2017 due to hiring new personnel. Utilizing the attached balance sheet, create a memo to the Board of Directors regarding the budget proposal for next fiscal year.

• Using the provided balance sheet, identify three areas of budgetary concern.
• Create a memo that identifies the three major areas of concern over the past year. For each of the three areas of concern:
  • Use the memo template in Microsoft Word (or another template) to format the memo.
  • Summarize the current status in 75 words or less.
  • Recommend one possible solution for improvement or sustainability for the Board to consider when voting to approve next year’s budget.
  • Part 2
  • Cost behavior is the term used to summarize the impact of costs that are influenced by volume. On a financial statement, these costs are identified as variable costs. Understanding the role of both fixed and variable costs in a health care organization is key to targeting profitability centers.Assume the role of a financial consultant. You have been hired by a small non-profit hospital, struggling with profitability. You have been given full access to all financial and operational information to perform your research and analysis.
    • Create a one-page outline of the work you will be performing. This outline will be given to the CFO.
    • On a separate page, using fictional information, depict the hospital’s cost behavior.
      • You may include graphics, such as pie charts or graphs, to illustrate.
      • Cost drivers should be clearly defined
      • One-page in length
    • On a separate page, provide a recommendation summary for the CFO. This should include specific areas of concern to address, as well as areas of strength to continue supporting. Your wording should be professional and concise.
    • Include a minimum of three references in APA style on a separate page
    • Submit all four pages as part of one Word document