ALL UNITS HAVE TO BE COMPLETED, please put each unit on a separate word document
400-600 WORDS FOR EACH SUMMARY, APA FORMATTING
As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Click here for last year’s budget. After reviewing specific data, internal input, and external input from various sources, you find that the executive management team would like the budget to reflect the following:
- 10% increase in inpatient revenue
- 15% increase in outpatient revenue
- 5% increase in pharmacy revenue
- 15% increase in home health and hospital revenue
- 10% increase in payroll and benefits
Additionally, provide discussion on the following:
- How do you think that revenue would increase in each of the areas? Think outside of the box, and perform research to determine current trends in those areas.
- Why would there be a forecasted need to increase payroll and benefits?
- Explain the role of key leadership in the budgeting process, from the chief executive officer down through to the staff level of a financial analyst.
- Define value-based models of payment.
- Describe an accountable care organization payment system.
- Define bundled care.
how value-based, accountable care, and bundled payments will require
hospitals to manage the following post-acute care environments:
- Outpatient care (e.g., therapy, nursing, and physician)
- Home health
- Skilled nursing facility admission
You have been promoted to a member of the management team in Krona’s financial department. You have hired a new staff member who will assist you in preparing materials for the next Board of Directors meeting, in which the annual financial reports will be presented. Complete the following:
- Prepare an Executive Summary to the next Board of Director Meeting on one of the following topics:
Discuss why a service line of your choice should be discontinued due to reimbursement and current demographic trend in your area.
Discuss why a service line should be implemented to increase revenue based on reimbursement changes and current demographic trend in your area.
Discuss why expansion of outpatient services will improve revenue in the current Accountable Care Organization or Value Based Service models delineated by CMS.
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.
Complete the following:
- Prepare next year’s financial plan and operational budget.
- Note: Keep in mind that the budget you created for Unit 1 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 in to the budget for additional staffing, services, maintenance, and so forth.
- Provide a diagram, or list the major steps in the traditional revenue cycle.
- Discuss how primary payer, secondary payer, deductibles and co-pays affect what is billed.
- Discuss how bundled care will change the traditional billing cycle.