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company's ability to perform in the industry excellently. Financial management notates key concepts like capital structure planning, which interestingly contributes to the organization. These works of literature reviewed seek to explain how financial management practices, such as financial control, budgeting, and financial accountability as a way of improving the quality of healthcare delivery. There is, however, an insufficient study on how real-world practices of budgeting and financial management in healthcare organizations can best be implemented to impact on the company. Based on this literature, I will construct an analysis of budget/financial statements to make sense of Kaiser Permanente's finances and budgeting/financial management practices.
BUDGETING AND FINANCIAL MANAGEMENT IN HEALTHCARE ORGANIZATIONS11C. Budget/Financial Analysis 1. BudgetIn this section, we discuss the Kaiser Permanente budgeting and financial management process. In the next coming years, Kaiser plans to expand its operations using a well-drafted budget to estimate the revenue and expenses over the next years. The budget notates the projects,investments, equipment, personnel, and supplies that would work best to make the company efficient. Budgetary planning encompasses the decision about the organization’s strategic goals, reviewing possibilities, and selecting the most appropriate (Zelman, McCue, Millikan, & Glick, 2009). Healthcare organizations depend on financial planning for their longevity and heighteningpatient outcomes and experience. With the changing healthcare market, Kaiser Permanente budget must balance all its expenditures and resourcesTraditional healthcare budgeting practice recommends a hybrid technique to improve prospect financial forecasting precision (Gragg, 2018). Different healthcare providers apply the combined approach as an advanced statistical forecasting method amid the budgeting process. The forecasts in the projects are prima facie evidence of how the budgets will impact the hospitals and their subsidiaries' performance. The departmental units have to consider the forecast and using a budget for accounting for planning variables, and projections can best impact on new services and care delivery progress. In every planning and budgeting, the forecastis a key factor for maximizing decision-makers' interest, implying that a long-term outlook for the budget, financially justifiable decisions, and long-range forecasting could be critical.
BUDGETING AND FINANCIAL MANAGEMENT IN HEALTHCARE ORGANIZATIONS12Budget ItemsDescriptionTotal budget range(in millions)PersonnelConstantly employing experts and medical practitioners to fill in the positions of management and medical field. These will include salaries, wages and benefits that must be accounted for.100 - 250EquipmentThe company plans on purchasing new hospital equipment such as manual wheelchairs or electric wheelchairs, hospital beds, assistive mobility equipment, traction equipment, patient monitors, among other medical equipment. The budgets seek to provide adequate funds to purchase and use them for better care delivery. Maintenance fees for equipment