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Develop a budget for a department within a health care organization.

1. Assemble a budget team

2. Create a budget calendar

3. prepapre for bydget process

4. build the budget

5. monitor the budget

You are required to: ASSEMBLE THE BUDGET TEAM Based on the organizational structure, indicate who would be the persons on your budget team. Please state why they were chosen CREATE A BUDGET CALENDAR The Chief Financial Officer has initiated the budget process as at May 1, 2019. He has disseminated the budget template to you to consult with your team. The first draft of your budget must be submitted to the CFO by June 30, 2019. There will be one revision thereafter, where the revised version of your budget must be submitted to the Finance Department by August 15, 2019 Using the above dates, please outline the deadline dates that your team must meet to collate the information, review, agree upon and submit in a timely manner. BUILD THE BUDGET After analysis of the past performance of the Radiology Unit, the CFO has indicated that he expects to see a minimum growth of 13% in revenue. Based on this information, please estimate, for each of the services offered, the number of patients that you expect in 2020 and any recommended price increases to achieve this objective (Please use the attached Excel worksheet to complete the budget). PRESENTATION OF BUDGET TO APPROVING BODY You are required to present your budget to your department head for approval. Prepare a PowerPoint presentation to deliver your budget. Use this opportunity to explain your assumptions for arriving at your 2020 figures (both revenue and expenditure). Performance Targets - 2020 The following is the statistics on patient throughput and relevant pricing for services for the period 2017-2019 No. of patients Price per senior Total Cost of patient Pio per le Tale of prima perance Total Computed Tomas 1.00 $200.00 0.00 11.2000 2100.00 0.000000 1025800.00 Se..DO O.O.SS. 2112 S200.000 550.00 $422.000 DARBO SOOS 500S TOTAL S. 45.00 For 2020: Revenue is expected to grow by 13% Expenses will grow by 9% Net Profit is estimated to increase by 52% Net Profit Margin to be 13% Budget 2020 Statistics Sheet2 Acme Holistic Healthcare Facility Income statement for the periods ending December 31 Expressed in US Dollars 2017 2018 2019 2020 Revenue General x-rays Computerised Tomography (CT Scan) Magnetic Resonance Imaging (MRI) Ultrasound Radiation Oncology 181.200 208.800 456.000 422.400 442.800 195 600 223.200 534,000 448.800 457.200 202.800 249,600 546,000 463.200 484.200 Total Revenue 1.711.200 1.858.00 1.945,800 2.200,000 Expenses Salaries and wages Operating Expenses Administrative Expenses 1.283.400 107.865 71.910 1.431.276 1.574403.6 1,731,843.96 105.284.4 104.998 105.000 $0.988 81,543 82,000 Total Expenses 1.463.1751 1.617.548.41 1.760.944.6 1.918,843.96 Net Profil Loss) 248,025 241.251.6 184855.4 281.156.04 2018 2019 Ratios Growth in Revenue Growth in Expenses Growth (Decrease) in Net Profit Net Profit Margin (Net Profit/Total Revenue) 2017 0 0 0 14% 99 11% 5% 9% 2020 13% 99 5296 13% 13% 10% You are required to: ASSEMBLE THE BUDGET TEAM Based on the organizational structure, indicate who would be the persons on your budget team. Please state why they were chosen CREATE A BUDGET CALENDAR The Chief Financial Officer has initiated the budget process as at May 1, 2019. He has disseminated the budget template to you to consult with your team. The first draft of your budget must be submitted to the CFO by June 30, 2019. There will be one revision thereafter, where the revised version of your budget must be submitted to the Finance Department by August 15, 2019 Using the above dates, please outline the deadline dates that your team must meet to collate the information, review, agree upon and submit in a timely manner. BUILD THE BUDGET After analysis of the past performance of the Radiology Unit, the CFO has indicated that he expects to see a minimum growth of 13% in revenue. Based on this information, please estimate, for each of the services offered, the number of patients that you expect in 2020 and any recommended price increases to achieve this objective (Please use the attached Excel worksheet to complete the budget). PRESENTATION OF BUDGET TO APPROVING BODY You are required to present your budget to your department head for approval. Prepare a PowerPoint presentation to deliver your budget. Use this opportunity to explain your assumptions for arriving at your 2020 figures (both revenue and expenditure). Performance Targets - 2020 The following is the statistics on patient throughput and relevant pricing for services for the period 2017-2019 No. of patients Price per senior Total Cost of patient Pio per le Tale of prima perance Total Computed Tomas 1.00 $200.00 0.00 11.2000 2100.00 0.000000 1025800.00 Se..DO O.O.SS. 2112 S200.000 550.00 $422.000 DARBO SOOS 500S TOTAL S. 45.00 For 2020: Revenue is expected to grow by 13% Expenses will grow by 9% Net Profit is estimated to increase by 52% Net Profit Margin to be 13% Budget 2020 Statistics Sheet2 Acme Holistic Healthcare Facility Income statement for the periods ending December 31 Expressed in US Dollars 2017 2018 2019 2020 Revenue General x-rays Computerised Tomography (CT Scan) Magnetic Resonance Imaging (MRI) Ultrasound Radiation Oncology 181.200 208.800 456.000 422.400 442.800 195 600 223.200 534,000 448.800 457.200 202.800 249,600 546,000 463.200 484.200 Total Revenue 1.711.200 1.858.00 1.945,800 2.200,000 Expenses Salaries and wages Operating Expenses Administrative Expenses 1.283.400 107.865 71.910 1.431.276 1.574403.6 1,731,843.96 105.284.4 104.998 105.000 $0.988 81,543 82,000 Total Expenses 1.463.1751 1.617.548.41 1.760.944.6 1.918,843.96 Net Profil Loss) 248,025 241.251.6 184855.4 281.156.04 2018 2019 Ratios Growth in Revenue Growth in Expenses Growth (Decrease) in Net Profit Net Profit Margin (Net Profit/Total Revenue) 2017 0 0 0 14% 99 11% 5% 9% 2020 13% 99 5296 13% 13% 10%

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