MHA FPX 5006 Assessment 4 It is necessary for almost all health institutions to prepare an operating budget plan to predict both income and expenses. This process ensures that the health organization can achieve its medical goals by realizing the expected profitability. In addition, it is important to assess environmental factors that can influence the budget proposal for efficiency (Savian et al., 2018). There is a comprehensive operating budget proposal for a health organization presented here, including expenses for purchasing a invoicing system and MRI equipment to increase operations.
Environmental Factors Affecting the Operational Budget
Many environmental factors directly or indirectly affect the annual budget of a health organization. Internal strategic factors such as employee, organizational structure, finance and value affect the organization’s budget ideas. Effective management, economic stability and workforce are necessary to achieve organizational goals (Crustnov et al., 2019). In addition, changes in laws and regulations, as mentioned in cheap care law, may affect the economic approach to health organizations (Chen and Grabowski, 2019).
Proposed Organizational Budget for Improvement
The proposed budget includes expenses for purchasing a billing system and MRI equipment to increase organizational functions. The MRI machine aims to improve the patient’s care by reducing the wrong diagnosis through accurate imaging. In addition, being the owner of an MRI machine may attract more patients in the hospital, which can increase revenues (Faria et al., 2018). The invoicing system is expected to streamline invoicing processes, reduce documentation and increase customer service (Rosenback et al., 2017).
Budget Alignment with Organizational Target Profit Margin
The budget is in line with the goals of increasing the income of the organization and improving patient care. In order to achieve these goals, investments in MRI equipment and invoicing system are required. Additional funds are allocated training and equipment management to ensure that new purchases effectively contribute to the organizational goals (Adhikara et al., 2022).
Measurement of Financial Performance
MHA FPX 5006 Assessment 4 It is important to use the results measurement equipment to evaluate the hospital’s financial success. By monitoring both qualitative and quantitative matrix, the organization can assess its financial status and make the necessary adjustments to improve financial results (Wang et al., 2018). Regular cost-benefit analysis helps to monitor monthly changes and contributes to the overall financial stability (Lim et al, 2018) in the organization, and establishes income goals.
Conclusion
A comprehensive operating budget should consider all environmental factors affecting the organization and providing mechanisms for assessing financial results. By analyzing various economic sectors and using long -term budget strategies, health organizations can navigate economic uncertainties and ensure permanent growth (Saviano et al., 2018).
References
Adhira, M. A., Diana, N., and Basjir, M. (2022). Organizational results in environmental uncertainty about Indonesian health care: A track analysis. Academic Journal of Interdisciplinary Studies, 11 (2), 365–365. Al Ahababi, A. R., and Nonne, H. (2019). Concept for permanent economic management and permanent economic development. SSRN is available on 3472313. Bervik, D. M., and Gilfilan, R. (2021). To release the Center for Medicare and Medicade Innovation. Jama, 325 (13), 1247–1248. Brux-Lasyor, C., Fauler, E., Sihamani, M., and Tsai, D. (2021). Innovation at the Center for Medicare and Medicade Services:
