Describe the challenges of developing and operating the unit/agency budget based on institutional history.
The documents attached are for the purposes of extra credit. It is a culmination of a number of healthcare economic issues
we discussed in class. The objectives underlying this extra credit paper are the following:nn Describe the challenges of
developing and operating the unit/agency budget based on institutional history. Incorporate research finding where
applicable.nnUtilize various financial decision tools such as budget development and analysis, medical staff productivity,
expense variance analysis, and breakeven
calculations.nnCritique various management/financial models from the
perspective of mission, organizational culture and business strategy. nnThe paper is to be done individually. Please
answer the questions as indicated. The paper should be in APA style and cited as appropriate. There is a potential for 20
additional points added to your grade for complete and correct responses. Please pay close attention to the background
information as it will help you to answer the questions correctly.nThis will require you to use your analytical skills and apply
the concepts learned in class.nnThe paper is due on the last day of class.nCase StudynHealthcare BudgetingnnThe
Atlantic Medical Center is a 562 bed full service acute care hospital on the east coast of New Jersey. By full service, it
means that the hospital provides all services such as trauma, obstetrics, inpatient psychiatry, oncology services, operating
rooms, same day surgery, clinics, etc. In addition, they are a teaching hospital meaning that they are affiliated with Atlantic
Coast Medical School and University. Residents rotate through the organization as do nursing students, physical therapy
students, respiratory therapy students, etc. The occupancy of the hospital is 75% which has become a concern to the Board
of Trustees. They are looking at multiple mechanisms to increase volume in the hospital. nThe mission of the hospital is:
“To provide exceptional patient care and health education to consumers in the region.”nThe hospital has a vision
statement which reads:n“Atlantic Medical Center will be the hospital of choice on the eastern coast due to the high quality
of care, commitment to education of staff and exceptional working environment.”nThe values of the organization are:
patient safety, high quality patient care, efficiency, staff education, and patient centered care.n Some of the difficulties the
hospital is experiencing at present are:n?Decreased volume due to competition from other hospitalsn?Excessive staff
overtime n?Lack of educational inservices
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