Budget Analysis: Nurs330: Nursing Leadership And Management
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Budget Analysis
Samwel Rorya
Southwestern college professional studies
NURS330: Nursing Leadership and Management
Instructor: Rhnae Steddum
August 2, 2015 Budget Analysis
Budget is a plan where a business calculates its expenses versus the incoming revenue for a specific period of time. Sullivan (2013) defines budget as a quantitative statement, usually in monetary terms, of the plans and expectations of defined area over a specific period of time. Budget explains how a business is doing in terms of the money that is coming in and the money that is going out. It tells if a business is making a profit or operating a loss. It also helps the organization plan where to use the resources they have available and where to cut down on the resources…show more content… The total revenue for fiscal year 2014 for the average of 83 residents was $5,235,449. The company gets most of its revenue from the residents who are covered by Medicaid mix and from those residents who are covered by Medicare mix. Medicaid revenue is 83% of total incoming revenue, followed by Medicare which bring 9%. The rest of the revenue is from private pay which includes insurance companies which is at 6%, and the rest 2% is from other income. The biggest part of the operating revenue is from the residents who are receiving long term care who gets their payment made by Medicaid mix, and this was followed by the Medicare mix residents who are receiving skilled care. The rest of the operating income is divided among insurance reimbursement and private pay and other sources of…show more content… This is based by the data provided for this budget. They had negative variance of -28% on nursing department, this means that they spend less on this area than what they had budgeted for the nursing department. The budget also does show that the organization received most of its revenue from Medicaid and Medicare which are both government and State funded programs. According to Tutera (2013), the mission of the organization is to provide optimal senior living and health care options that are customized to the needs, goals and desires of our residents, patients and families. Their core values are accountability, integrity and commitment. I can say that the mission statement is somehow true, the organization does try to provide high quality of care. The organization budget do show that they do provided exceptional healthcare, by looking at the nursing department budget where the nursing budgeted spending were very higher compared to other departments although company did not spent more than they expected on this area. The organization most of the time they make sure that they have supplies needed and enough staff on the floor to deliver the best care to the patients. This shows that the organization do provided enough resources to be able to provide quality healthcare. The fact that the organization is willing to set the high budgeted spending in this area, which happens to be core area of their