Question

How does complexity influence budget strategies and their implementation? Give examples.

Answer 1

Answer-Healthcare finance leaders are under more pressure than ever to support their organizations by managing uncertainty, volatility, and risk.

For example--------if a hospital is developing a strategic plan to increase cancer services and eliminate pediatrics, the budget and forecast should reflect that change. In the absence of a service line approach, the departments would not adjust their forecasts appropriately, and resources would be ineffectively allocated based on historical data.

The hospital’s planning process, both long and short term, is greatly enhanced by being viewed through the lens of effective service lines.Although the transition to service-line planning may seem daunting, committing fully to that approach is imperative to truly achieve high performance.