Reference no: EM132092011
No business, either commercial or healthcare and run efficiently without having some sort of budgeting process. When looking specifically at the healthcare industry, and how these various entities are funded, budgeting is of the utmost importance.
Without a doubt federal funding for Medicare and Medicaid are at the forefront with congress looking to cut funding across the board. GRAHAM-CASSIDY-HELLER-JOHNSON BILL congress wants to cut funding by 215 billion between years 2020-2026. (NCSL, 2018 website).
When looking at those numbers, healthcare facilities across the board will need to make drastic changes to their operating budgets to account for the loss in funding and will have to also consider the aging population as well as the costs that come with that population.
A budget is vital to a large healthcare facility like a regional medical center whether it is for profit or not with all of the diverse services that are rendered without an operating budget and a financial budget there would be no way to reconcile and correct revenue estimates and cost estimates with out them.
Budgeting for a government facility like the VA is vital due to their main source is the federal funding they receive each fiscal year. If there are cut backs it can dramatically decrease the services it provides to our veterans.
The same would hold true for a state-run clinic which would depend solely on the state funding for its operations.