How Do You Make A Hospital Budget?
Making a hospital budget is only second to medical delivery systems in for a hospital. In fact, if a budget is not properly written, the hospital may be unable to deliver medical services at all. So many expenses and sources of revenue must be taken into consideration, so the budget process takes an expert to get through it successfully. Let’s find out how to start. Step 1 Determine hospital revenue. Revenue can come from patient payments, tax dollars, donations, insurance credits. Be sure to deduct a percentage of the patient bills that will remain uncollected, the charity work expected by the hospital and the pro bono work it does. Step 2 Figure out expenses. Start with the physical facility. How much does it cost to keep up the building or buildings. What is the maintenance cost of each department, engineering, air-conditioning, heat, water, other utilities. Know what equipment costs, how much must be replaced per patient day, and if any can be recycled. Include the non-medical cost
