[Solved] Law Week 9 Assignment- Healthcare Finance

Assignment Prompt & Instructions

**files (5)**

– ## Week9AssignmentLearningResources-HealthcareFinance.docx

– ## Week9Assignmentversion2.pdf

– ## Week9AssignmentInstructions-HealthcareFinance.docx

– ## USW1_MMHA_6400_Week09_budgetAndVarianceTemplate.xlsx

– Chapter09UHFM8thEdPPT-1.pptx

**## Week9AssignmentLearningResources-HealthcareFinance.docx**

**Week 9 Assignment Learning Resources**

**Healthcare Finance**

**Required Reading**

· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.

· Chapter 5, “Financial Risk and Required Return” (pp. 147–189)

· Review: Chapter 11, “Capital Budgeting” (pp. 407–457)

· Chapter 14, “Financial Forecasting” (pp. 549–587)

**Note:** For this Assignment, review Chapter 11, which was assigned previously in this week’s Discussion.

·
**Document:** [Week 9 Assignment Budget and Variance Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19546951?wrap=1)

**Required Media**

· Walden University, LLC. (2024). Preparing a performance report (flexible budget) [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)

·

**## Week9Assignmentversion2.pdf**

Healthcare Financial Management and Economics

Week 9 Assignment – Budgeting

Instructions:

The following are budgeted and actual revenues and expenses for a hospital.

\_\_\____________________________________________________________________________

Budgeted Actual

Revenues

Surgical Volume 2,500 2800

Gift Shop Revenues $19,500 $22,200

Surgery Revenues $590,500 $850,000

Parking Revenues $18,500 $21,800

Expenses

Patients Days 28,000 26,000

Pharmacy $123,000 $155,000

Misc Supplies $695,000 $790,000

Fixed Overhead Costs $840,000 $875,000

Using an Excel spreadsheet to show your calculations:

1. Determine the total variance between the planned and actual budgets for Surgical Volume.
Is the variance favorable or unfavorable?

2. Determine the total variance between the planned and actual budgets for Patient Days. Is
the variance favorable or unfavorable?

3. Determine the service-related variance for Surgical Volume.
4. Determine the service-related variance for Patient Days.
5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Surgical Revenues.
6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Patient Expenses.
7. Determine what variances are due to change in volume and what variances are due to

change in rates.

**## Week9AssignmentInstructions-HealthcareFinance.docx**

**Week 9 Assignment**

**Healthcare Finance**

**Budgeting and Variance Analysis**

Budgeting is an important activity within every healthcare organization. The particular challenges encountered, however, can vary depending on the type of organization. A state or federally funded organization, for example, will likely have a budget that is allocated to it, and it needs to follow specific guidelines on how the money can be used. A for-profit organization, by contrast, will typically have more influence and flexibility in setting up its budget and making choices on matters such as how much to spend on marketing, patient care, or incentives for employees.

In addition to preparing budgets, as a healthcare administrator, you must also be able to evaluate whether or not you have achieved your budget using variance analysis. This is important because variance analysis measures the differences between the budget and actual results and provides administrators with a starting point for correcting financial performance. For this Assignment, you conduct a variance analysis for a healthcare organization.

**To prepare for this Assignment:**

· Review the Week 9 Assignment document provided to you by the Instructor. Examine the budgeted and actual revenues and expenses for a hospital. Reflect on concepts of budgeting and variance.

· Review Chapter 5, Chapter 11, and Chapter 14 of Gapinski’s
_Understanding Healthcare Financial Management_.

**Submit** your “Week 9 Assignment Budget and Variance Excel Template,” to address the following:

· Determine the total variance between the planned and actual budgets for
**Surgical Volume**. Is the variance favorable or unfavorable?

· Determine the total variance between the planned and actual budgets for
**Patient Days**. Is the variance favorable or unfavorable?

· Determine the service-related variance for
**Surgical Volume**.

· Determine the service-related variance for
**Patient Days**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Surgical Revenues**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Patient Expenses**.

· Determine what variances are due to change in volume and what variances are due to change in rates.

**## USW1_MMHA_6400_Week09_budgetAndVarianceTemplate.xlsx**

## Week 9 Assignment Template

| | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |

| | Revenues | | | | | | | | | | Expenses |

| | | Givens: | Budgeted | | Actual | | | | | | | Givens: | Budgeted | | Actual |
| | [A] | Surgical volume | | | | | | | | | [A] | Patient days |
| | [B] | Gift shop revenues | | | | | | | | | [B] | Pharmacy |
| | [C] | Surgery revenues | | | | | | | | | [C] | Miscellaneous supplies |
| | [D] | Parking revenues | | | | | | | | | [D] | Fixed overhead costs |

| | 1. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable? | | | | | | | | | | 2. Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable? |
| | | | Budgeted | | Actual | | Variance | | | | | | | | | | Variance |
| | [E] | Surgical volume [A] | | | | | | | | | [E] | Patient days [A] |
| | [F] | Gift shop revenues [B] | | | | | | | | | [F] | Pharmacy [B] |
| | [G] | Surgery revenues [C] | | | | | | | | | [G] | Miscellaneous supplies [C] |
| | [H] | Parking revenues [D] | | | | | | | | | [H] | Fixed overhead costs [D] |
| | [I] | Total variance [E] | | | | | | | | | [I] | Total variance |

| | 3. Determine the service related variance for Surgical Volume. | | | | | | | | | | 4. Determine the service related variance for Patient Days. |
| | | | | | | | Variance | | | | | | | | | | Variance |
| | [J] | Total variance [I] | | | | | | | | | [J] | Total variance [I] |
| | [K] | Gift shop revenue variance [F] | | | | | | | | | [K] | Amt. explained by fixed overhead [H] |
| | [L] | Parking revenue variance [H] | | | | | | | | | [L] | Other fixed expenses |
| | [M] | Service-related variance [J-K-L] | | | | | | | | | [M] | Service-related variance [J-K-L] |

| | 5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual surgical revenues. | | | | | | | | | | 6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual patient expenses. |
| | | | Budgeted | | Flexible | | Actual | | | | | | Budgeted | | Flexible | | Actual |
| | [N] | Surgical volume [A] | | | | | | | | | [N] | Patient days [A] |
| | [O] | Surgical revenue per unit [C / A] | | | | | | | | | [O] | Cost per patient day (Pharm + Misc) [B+C]/[A] |
| | [P] | Surgical revenue [C] | | | | | | | | | [P] | Total cost (Pharm+Misc) [N x O] |

| | 7. Determine what variances are due to change in volume and what variances are due to change in rates. |
| | | | Budgeted | | Flexible | | Actual | | Variance |
| | [Q] | Budgeted surgical revenue [P] |
| | [R] | Flexible surgical revenue [P] |
| | [S] | Actual surgical revenue [P] |
| | [T] | Volume variance [R – Q] |
| | [U] | Rate variance [S – R] |

**Chapter09UHFM8thEdPPT-1.pptx**

This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter09uhfm8thedppt-1-pptx)

**Chapter09UHFM8thEdPPT-1.pptx**

This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter09uhfm8thedppt-1-pptx)

**## Week9AssignmentLearningResources-HealthcareFinance.docx**

**Week 9 Assignment Learning Resources**

**Healthcare Finance**

**Required Reading**

· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.

· Chapter 5, “Financial Risk and Required Return” (pp. 147–189)

· Review: Chapter 11, “Capital Budgeting” (pp. 407–457)

· Chapter 14, “Financial Forecasting” (pp. 549–587)

**Note:** For this Assignment, review Chapter 11, which was assigned previously in this week’s Discussion.

·
**Document:** [Week 9 Assignment Budget and Variance Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19546951?wrap=1)

**Required Media**

· Walden University, LLC. (2024). Preparing a performance report (flexible budget) [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)

·

**## Week9Assignmentversion2.pdf**

Healthcare Financial Management and Economics

Week 9 Assignment – Budgeting

Instructions:

The following are budgeted and actual revenues and expenses for a hospital.

\_\_\____________________________________________________________________________

Budgeted Actual

Revenues

Surgical Volume 2,500 2800

Gift Shop Revenues $19,500 $22,200

Surgery Revenues $590,500 $850,000

Parking Revenues $18,500 $21,800

Expenses

Patients Days 28,000 26,000

Pharmacy $123,000 $155,000

Misc Supplies $695,000 $790,000

Fixed Overhead Costs $840,000 $875,000

Using an Excel spreadsheet to show your calculations:

1. Determine the total variance between the planned and actual budgets for Surgical Volume.
Is the variance favorable or unfavorable?

2. Determine the total variance between the planned and actual budgets for Patient Days. Is
the variance favorable or unfavorable?

3. Determine the service-related variance for Surgical Volume.
4. Determine the service-related variance for Patient Days.
5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Surgical Revenues.
6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Patient Expenses.
7. Determine what variances are due to change in volume and what variances are due to

change in rates.

**## Week9AssignmentInstructions-HealthcareFinance.docx**

**Week 9 Assignment**

**Healthcare Finance**

**Budgeting and Variance Analysis**

Budgeting is an important activity within every healthcare organization. The particular challenges encountered, however, can vary depending on the type of organization. A state or federally funded organization, for example, will likely have a budget that is allocated to it, and it needs to follow specific guidelines on how the money can be used. A for-profit organization, by contrast, will typically have more influence and flexibility in setting up its budget and making choices on matters such as how much to spend on marketing, patient care, or incentives for employees.

In addition to preparing budgets, as a healthcare administrator, you must also be able to evaluate whether or not you have achieved your budget using variance analysis. This is important because variance analysis measures the differences between the budget and actual results and provides administrators with a starting point for correcting financial performance. For this Assignment, you conduct a variance analysis for a healthcare organization.

**To prepare for this Assignment:**

· Review the Week 9 Assignment document provided to you by the Instructor. Examine the budgeted and actual revenues and expenses for a hospital. Reflect on concepts of budgeting and variance.

· Review Chapter 5, Chapter 11, and Chapter 14 of Gapinski’s
_Understanding Healthcare Financial Management_.

**Submit** your “Week 9 Assignment Budget and Variance Excel Template,” to address the following:

· Determine the total variance between the planned and actual budgets for
**Surgical Volume**. Is the variance favorable or unfavorable?

· Determine the total variance between the planned and actual budgets for
**Patient Days**. Is the variance favorable or unfavorable?

· Determine the service-related variance for
**Surgical Volume**.

· Determine the service-related variance for
**Patient Days**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Surgical Revenues**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Patient Expenses**.

· Determine what variances are due to change in volume and what variances are due to change in rates.

**## USW1_MMHA_6400_Week09_budgetAndVarianceTemplate.xlsx**

## Week 9 Assignment Template

| | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |

| | Revenues | | | | | | | | | | Expenses |

| | | Givens: | Budgeted | | Actual | | | | | | | Givens: | Budgeted | | Actual |
| | [A] | Surgical volume | | | | | | | | | [A] | Patient days |
| | [B] | Gift shop revenues | | | | | | | | | [B] | Pharmacy |
| | [C] | Surgery revenues | | | | | | | | | [C] | Miscellaneous supplies |
| | [D] | Parking revenues | | | | | | | | | [D] | Fixed overhead costs |

| | 1. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable? | | | | | | | | | | 2. Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable? |
| | | | Budgeted | | Actual | | Variance | | | | | | | | | | Variance |
| | [E] | Surgical volume [A] | | | | | | | | | [E] | Patient days [A] |
| | [F] | Gift shop revenues [B] | | | | | | | | | [F] | Pharmacy [B] |
| | [G] | Surgery revenues [C] | | | | | | | | | [G] | Miscellaneous supplies [C] |
| | [H] | Parking revenues [D] | | | | | | | | | [H] | Fixed overhead costs [D] |
| | [I] | Total variance [E] | | | | | | | | | [I] | Total variance |

| | 3. Determine the service related variance for Surgical Volume. | | | | | | | | | | 4. Determine the service related variance for Patient Days. |
| | | | | | | | Variance | | | | | | | | | | Variance |
| | [J] | Total variance [I] | | | | | | | | | [J] | Total variance [I] |
| | [K] | Gift shop revenue variance [F] | | | | | | | | | [K] | Amt. explained by fixed overhead [H] |
| | [L] | Parking revenue variance [H] | | | | | | | | | [L] | Other fixed expenses |
| | [M] | Service-related variance [J-K-L] | | | | | | | | | [M] | Service-related variance [J-K-L] |

| | 5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual surgical revenues. | | | | | | | | | | 6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual patient expenses. |
| | | | Budgeted | | Flexible | | Actual | | | | | | Budgeted | | Flexible | | Actual |
| | [N] | Surgical volume [A] | | | | | | | | | [N] | Patient days [A] |
| | [O] | Surgical revenue per unit [C / A] | | | | | | | | | [O] | Cost per patient day (Pharm + Misc) [B+C]/[A] |
| | [P] | Surgical revenue [C] | | | | | | | | | [P] | Total cost (Pharm+Misc) [N x O] |

| | 7. Determine what variances are due to change in volume and what variances are due to change in rates. |
| | | | Budgeted | | Flexible | | Actual | | Variance |
| | [Q] | Budgeted surgical revenue [P] |
| | [R] | Flexible surgical revenue [P] |
| | [S] | Actual surgical revenue [P] |
| | [T] | Volume variance [R – Q] |
| | [U] | Rate variance [S – R] |

**Chapter09UHFM8thEdPPT-1.pptx**

This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter09uhfm8thedppt-1-pptx)

**## Week9AssignmentLearningResources-HealthcareFinance.docx**

**Week 9 Assignment Learning Resources**

**Healthcare Finance**

**Required Reading**

· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.

· Chapter 5, “Financial Risk and Required Return” (pp. 147–189)

· Review: Chapter 11, “Capital Budgeting” (pp. 407–457)

· Chapter 14, “Financial Forecasting” (pp. 549–587)

**Note:** For this Assignment, review Chapter 11, which was assigned previously in this week’s Discussion.

·
**Document:** [Week 9 Assignment Budget and Variance Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19546951?wrap=1)

**Required Media**

· Walden University, LLC. (2024). Preparing a performance report (flexible budget) [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)

·

**## Week9Assignmentversion2.pdf**

Healthcare Financial Management and Economics

Week 9 Assignment – Budgeting

Instructions:

The following are budgeted and actual revenues and expenses for a hospital.

\_\_\____________________________________________________________________________

Budgeted Actual

Revenues

Surgical Volume 2,500 2800

Gift Shop Revenues $19,500 $22,200

Surgery Revenues $590,500 $850,000

Parking Revenues $18,500 $21,800

Expenses

Patients Days 28,000 26,000

Pharmacy $123,000 $155,000

Misc Supplies $695,000 $790,000

Fixed Overhead Costs $840,000 $875,000

Using an Excel spreadsheet to show your calculations:

1. Determine the total variance between the planned and actual budgets for Surgical Volume.
Is the variance favorable or unfavorable?

2. Determine the total variance between the planned and actual budgets for Patient Days. Is
the variance favorable or unfavorable?

3. Determine the service-related variance for Surgical Volume.
4. Determine the service-related variance for Patient Days.
5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Surgical Revenues.
6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate,

and the actual Patient Expenses.
7. Determine what variances are due to change in volume and what variances are due to

change in rates.

**## Week9AssignmentInstructions-HealthcareFinance.docx**

**Week 9 Assignment**

**Healthcare Finance**

**Budgeting and Variance Analysis**

Budgeting is an important activity within every healthcare organization. The particular challenges encountered, however, can vary depending on the type of organization. A state or federally funded organization, for example, will likely have a budget that is allocated to it, and it needs to follow specific guidelines on how the money can be used. A for-profit organization, by contrast, will typically have more influence and flexibility in setting up its budget and making choices on matters such as how much to spend on marketing, patient care, or incentives for employees.

In addition to preparing budgets, as a healthcare administrator, you must also be able to evaluate whether or not you have achieved your budget using variance analysis. This is important because variance analysis measures the differences between the budget and actual results and provides administrators with a starting point for correcting financial performance. For this Assignment, you conduct a variance analysis for a healthcare organization.

**To prepare for this Assignment:**

· Review the Week 9 Assignment document provided to you by the Instructor. Examine the budgeted and actual revenues and expenses for a hospital. Reflect on concepts of budgeting and variance.

· Review Chapter 5, Chapter 11, and Chapter 14 of Gapinski’s
_Understanding Healthcare Financial Management_.

**Submit** your “Week 9 Assignment Budget and Variance Excel Template,” to address the following:

· Determine the total variance between the planned and actual budgets for
**Surgical Volume**. Is the variance favorable or unfavorable?

· Determine the total variance between the planned and actual budgets for
**Patient Days**. Is the variance favorable or unfavorable?

· Determine the service-related variance for
**Surgical Volume**.

· Determine the service-related variance for
**Patient Days**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Surgical Revenues**.

· Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual
**Patient Expenses**.

· Determine what variances are due to change in volume and what variances are due to change in rates.

**## USW1_MMHA_6400_Week09_budgetAndVarianceTemplate.xlsx**

## Week 9 Assignment Template

| | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |

| | Revenues | | | | | | | | | | Expenses |

| | | Givens: | Budgeted | | Actual | | | | | | | Givens: | Budgeted | | Actual |
| | [A] | Surgical volume | | | | | | | | | [A] | Patient days |
| | [B] | Gift shop revenues | | | | | | | | | [B] | Pharmacy |
| | [C] | Surgery revenues | | | | | | | | | [C] | Miscellaneous supplies |
| | [D] | Parking revenues | | | | | | | | | [D] | Fixed overhead costs |

| | 1. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable? | | | | | | | | | | 2. Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable? |
| | | | Budgeted | | Actual | | Variance | | | | | | | | | | Variance |
| | [E] | Surgical volume [A] | | | | | | | | | [E] | Patient days [A] |
| | [F] | Gift shop revenues [B] | | | | | | | | | [F] | Pharmacy [B] |
| | [G] | Surgery revenues [C] | | | | | | | | | [G] | Miscellaneous supplies [C] |
| | [H] | Parking revenues [D] | | | | | | | | | [H] | Fixed overhead costs [D] |
| | [I] | Total variance [E] | | | | | | | | | [I] | Total variance |

| | 3. Determine the service related variance for Surgical Volume. | | | | | | | | | | 4. Determine the service related variance for Patient Days. |
| | | | | | | | Variance | | | | | | | | | | Variance |
| | [J] | Total variance [I] | | | | | | | | | [J] | Total variance [I] |
| | [K] | Gift shop revenue variance [F] | | | | | | | | | [K] | Amt. explained by fixed overhead [H] |
| | [L] | Parking revenue variance [H] | | | | | | | | | [L] | Other fixed expenses |
| | [M] | Service-related variance [J-K-L] | | | | | | | | | [M] | Service-related variance [J-K-L] |

| | 5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual surgical revenues. | | | | | | | | | | 6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual patient expenses. |
| | | | Budgeted | | Flexible | | Actual | | | | | | Budgeted | | Flexible | | Actual |
| | [N] | Surgical volume [A] | | | | | | | | | [N] | Patient days [A] |
| | [O] | Surgical revenue per unit [C / A] | | | | | | | | | [O] | Cost per patient day (Pharm + Misc) [B+C]/[A] |
| | [P] | Surgical revenue [C] | | | | | | | | | [P] | Total cost (Pharm+Misc) [N x O] |

| | 7. Determine what variances are due to change in volume and what variances are due to change in rates. |
| | | | Budgeted | | Flexible | | Actual | | Variance |
| | [Q] | Budgeted surgical revenue [P] |
| | [R] | Flexible surgical revenue [P] |
| | [S] | Actual surgical revenue [P] |
| | [T] | Volume variance [R – Q] |
| | [U] | Rate variance [S – R] |

**Chapter09UHFM8thEdPPT-1.pptx**

This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter09uhfm8thedppt-1-pptx)