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Budget Development Examples Excel

Budget Development Examples Excel

Operating Budget Development Example: Stanford Healthcare

The organization of interest in this assignment is Stanford Medicine that comprises Stanford Children’s Health, Healthcare, and University School of Medicine. The organization has grown to the biomedical revolution ushering the Precision Health era with the application of high-touch and high-tech approaches. The department of focus is Stanford Healthcare, which is leading in the academic system in the delivery of clinical innovation in inpatient services, health plan, virtual care offering, physician offices, and specialty programs.

BUDGET DEVELOPMENT: STANFORD HEALTH CARE OPERATING BUDGET SUMMARY FISCAL YEAR: 2020

 2020 BUDGET SUMMARY
OPERATING REVENUE $ 5,567,576
OPERATING EXPENSES $ 5,546,532
OPERATING SURPLUS $ 21,044

The objective of Stanford Healthcare includes the provision of healing with the application of both compassion and science on a patient-to-patient basis. The healthcare organization is value-based and its goals involve enhancing a value culture into practice. Just like other departments under Stanford Medicine, Stanford Healthcare is both a non-profit organization and a private institution that relies on government programs, direct patient payments, and commercial insurance pad patient revenue (Stanford Health Care, 2021).

This facilitates the delivery of its mandate which involves the delivery of value in the making of highly personalized, high-quality, and cost-effective in the provision of healthcare services available to people from various communities.

Budget Development

The operating budget consists of the revenues and expenses accrued by an organization over a given period and is usually prepared in advance as a plan for the activities that the organization is expected to engage in that year. In the case of non-profit organizations, like Stanford Healthcare the operating budget is broken down into the revenues and expenses that are projected over a given period with funds delivered from various sources.

The operating budget approach chosen in this is activity-based budgeting which provides transparency in the process of budgeting (Mayla & Shauki, 2019). The income-earning activities under this approach in the activities undertaken in the achievement of the organization’s aim which is the provision of high-quality and affordable healthcare services.

EXPENSES2020 BUDGET
Salaries and benefits $ 2,548,259
Professional services $ 38,463
Supplies $ 820,403
Purchased services $ 1,458,959
Depreciation and amortization $ 257,725
Interest $ 68,019
Other $ 460,483
Expense recoveries from related parties $ (105,779)
TOTAL YEARLY EXPENSES $ 5,546,532

Having considered the various revenue sources and expresses in the preparation of the Stanford Health Care operating the budget fiscal year 2020, it was found that operating revenues were $5,567,576, the operating expenses were $5,546,532 and the operating surplus added up to $21,044 (PricewaterhouseCoopers LLP, 2020).

Budget Development example

References

REVENUE2020 BUDGET
Net patient service revenue5,140,938
Premium revenue116,971
Grants - COVID-19124,551
Other revenue174,293
Net assets released from restrictions used for operations10,823
TOTAL YEARLY REVENUE5,567,576

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