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Preparing an Operating Budget

Preparing an Operating Budget

Preparing an Operating Budget

Instructions (See that attached file)

You have been asked by the hospital’s chief administrator to create a new six-month operations budget for the clinic. Using an Excel spreadsheet, create a new six-month budget for the clinic that includes the following revenue and expense projections:

  • The clinic’s revenue is projected to grow by approximately 3% as a result of a new managed care contract.
  • The cost of expenses is expected to increase to 1.5%.
  • The clinic will also be adding a new roof to the facility at a projected cost of $50,000.

Then prepare a memo for the chief administrator. The memo should include a review of the previous year’s budget, an analysis of the upcoming changes (figures above), and a discussion about the impacts that these changes will have on the budget for the upcoming year.

Please see rubric below: 

A – 4 – Mastery

Memo includes a complete and thorough review of the year’s budget with multiple examples or supporting details.

A – 4 – Mastery

Memo includes a comprehensive analysis of the proposed changes, incorporating the following figures: clinic revenue growth of approximately 3%, a result of the new managed care contract, expense cost increase of 1.5%, new roof for facility at $50,000

A – 4 – Mastery

Memo includes a clear and thorough discussion on the impacts that the changes will have on the budget for the upcoming year. Includes multiple examples or supporting details.

A – 4 – Mastery

Excel spreadsheet of six-month budget for the clinic with revenue and expense projections has no significant errors.


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