As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Last year’s budget is attached. 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:
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- 15% increase in outpatient revenue
- 5% increase in pharmacy revenue
- 15% increase in home health and hospital revenue
- 10% increase in payroll and benefits
Note: The budget should be formatted to reflect the percentage increase or decrease from last year’s budget.
Additionally, provide discussion on the following:
- How might you increase revenue 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 need to increase payroll, particularly nurses’ salaries?
- Provide an explanation as to how the Krona Community Hospital may be able to achieve an increase in the revenue areas that the chief executive officer (CEO) wishes you to address.
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