In Unit 9, Your Assignment Is To Prepare An Operating Budget Proposal For A Medical

In Unit 9, your assignment is to prepare an operating budget proposal for a medical clinic
You will need to prepare a spreadsheet and a narrative report that explains the numbers contained in the spreadsheet
To successfully complete this assignment, you will want to begin reviewing the assignment instructions, scoring guide, and sample operating budget in Unit 9
As a best practice begin work on completing the sample operating budget
Then you can focus your efforts on completing the narrative report to accompany the spreadsheet in Units 8 and 9
  Operating Budget Proposal Introduction For the purpose of this assignment, you are continuing on in your role as an office manager for a group of physicians who own a specialty clinic
The clinics senior leaders have asked you to prepare a budget proposal for the clinic for 2020
From your time at the clinic, you know the clinic needs new billing software and there is a request for a new MRI machine
You plan to factor these known expenses into your proposal
You will also need to explain environmental forces that may affect the budget and how your proposal addresses those forces
Instructions This operating budget proposal assignment consists of two parts
Part 1 Use the Sample Operating Budget template located in the Resources to complete this assignment
The information represents the clinic’s operating budget for 2018 and 2019
You will fill in the 2020 column
Remember to account for the new billing software and MRI machine in your proposed numbers
Also keep in mind those costs beyond the purchase price, such as staff training, staff additions, and maintenance
You may find it helpful to refer to the cost-benefit analysis assignment you completed in Unit 6
You may insert your 2020 proposed budget numbers as a table into your operating budget proposal
Alternatively, you may attach the sample operating budget separately in the assignment submission area
Part 2 Based on your 2020 proposed budget, write a 4-5-page, double-spaced operating budget proposal that explains and justifies your proposed numbers
Include all of the following headings and address all of the bullets underneath each heading: Explanation of 2020 Budget Numbers What are the highlights of the proposed 2020 budget numbers that you want the clinic’s senior leaders to be aware of? What areas of concern do you want to bring to senior leaders’ attention? What assumptions did you make as you prepared these numbers? Note: Be sure to consider the environmental forces that are likely to affect the 2020 budget
Consider such environmental forces as: compliance changes, changes in insurance claims processing, changes in laws and regulations, and so on
What variances exist between the 2020 proposed numbers and the 2018 and 2019 numbers? Note: If you plan to insert the 2020 numbers as a table into your proposal, insert them here
Otherwise, you may include them as a separate attachment
Proposed 2020 Budget’s Alignment With Target Profit Margins How closely does this budget align with the clinic’s target profit margins? What variances, if any, require explanation? Financial Performance Tracking How will you evaluate financial performance? What measures will you use to track actual financial performance against projected financial performance over the next year? How frequently will you report on financial performance? How will you communicate financial performance to the clinic’s senior leaders? Addendum: 10% Budget Reductions As you are putting the finishing touches on your operating budget proposal, your boss stops by your desk
You have been keeping her informed about the information included in the proposal
She indicates that the 2019 financials are falling 10% short of projections
As a result, she has asked you to add a final section to your proposal labeled Addendum: 10% Budget Reductions
She informs you that you don’t have to recalculate the numbers, but she wants you to develop a strategy to reduce the overall budget by 10%
In the narrative, she asks you to explain how you would approach such a request from senior leaders: Would you reduce each line item by 10%? Why is this the best approach? Also, how do you intend to handle fixed costs with this approach? Would you select specific line items to reduce by 10%? Why is this the best approach? If so, how would you pinpoint which line items to reduce? Would you put a freeze on all hiring, training, travel, and purchasing? Why is this the best approach? Be sure to include references to at least two scholarly and/or authoritative sources in your operating budget proposal
Follow APA guidelines for in-text citations and references
 Your final submission needs to include Parts 1 and 2
You may insert Part 1 as a table into Part 2, or you may include Part 1 as a separate attachment
Submission Requirements Part 1 Format: Use the Sample Operating Budget template provided in the Resources to complete the 2020 column
Insert your 2020 proposed budget numbers as a table into your operating budget proposal (Part 2), or you may submit it separately in the assignment submission area
Part 2 Written communication: Be sure that the narrative portion of your operating budget proposal is clear, logical, and succinct
It also needs to be free of errors that detract from the overall message
Length: 4-5 typed double-spaced content pages, not including the title and reference pages
Font and font size: Use Times New Roman, 12-point type
Title page: Include a title page in APA format as part of your operating budget proposal
Citations and references: Include references to a minimum of two current scholarly and/or authoritative sources
Current means no more than five years old
APA format: Use APA format for the title page, proposal, citations, and references
For an APA refresher, consult the APA Style and Format page on Campus
Scoring Guide: Review this assignments scoring guide so that you understand how your instructor is going to evaluate your work
Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing
In the tool, click the linked resources for helpful writing information
Resources Operating Budget Proposal Scoring Guide
Sample Operating Budget [XLSX]
APA Style and Format
Writing Feedback Tool
Toggle Drawer[u09d1] Unit 9 Discussion 1Budget Types Explain at least two different types of budgets (operating, capital, revenue, et cetera) health care organizations use
Why is each budget important to the organization, and which stakeholders would be interested in each? Discussion Guidelines Discussion posts should address the question, be succinct, be substantive, provide new insight, and incorporate scholarly literature
  Response Guidelines Provide substantive comments to your peers according to the Faculty Expectations Message discussion response guidelines, comparing their perspectives to yours
Ask questions to better understand their perspectives and expand the discussion
Resources Discussion Participation Scoring Guide
APA Style and Format
Toggle DrawerUpdates and Handouts cf_sample_operating_budget
xlsx