HSA5400-Deliverable 6 – Preparing an Operating Budget-Memo and Excel Spreadsheet

HSA5400-Deliverable 6 – Preparing an Operating Budget-Memo and Excel Spreadsheet

CompetencyPrepare a financial budget that supports improved business and patient outcomes.ScenarioOne year ago, Metropolitan Memorial expanded its operations into a rural community located approximated a hundred miles from its main facility. The clinic offers a wide array of outpatient services. As the Senior Accountant, you are reviewing the clinic’soperating budgetfrom the previous year. You have been asked by the hospital’s chief administrator to create a new six-month operations budget for the clinic.InstructionsUsing 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.ResourcesYou can find Excel resources at thislink.Thislinkhas information about writing a memo.Grading Rubric:1. Memo includes a complete and thorough review of the year’s budget with multiple examples or supporting details.2. 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 contractexpense cost increase of 1.5%new roof for facility at $50,0003. 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.4. Excel spreadsheet of six-month budget for the clinic with revenue and expense projections has no significant errors.