Budgeting




A budget is a formalised planning tool used by management to compare expected revenues with expected expenses for the year. The objective of budgeting is to maximise organisational resources to meet short-term and long-term goals. A budget is therefore a written financial plan that aims to control resources.

The preparation of a budget ensures that managers plan ahead and forecast the future -- anticipating changes that will affect the organisation so that action plans can be formulated accordingly. For example, a decreasing birthrate is likely to lead to an overall decrease in patient days in the maternity wards. A budget can (and should) be used by managers to motivate themselves and their staff to work positively meeting their organisation’s goals.


Contents include

  • Budgeting concepts in health care
  • Types of budgets
    • Capital budgets
    • Operating budgets
    • Personnel budgets
  • The budget process
  • Variance analysis
  • Current issues and future directions
Previous Chapter | Next Chapter


Comments
Click to Refresh
Add new comment

Author / Editor Biographies

RN, MasterD (Nursing - Education), Deg (Psychology)
Rita Gan obtained a master's degree in nursing (specialising in education) from the University of Glasgow, Scotland, and a degree in psychology from the University of Southern Queensland, Australia. Rita has had extensive experience at Parkway Health (Singapore) as a registered nurse, registered midwife and nurse educator. As head of education and training, she has had a leadership role at Parkway Health for more than 15 years, and in 2000 Singapore's National Training Award was conferred on a Parkway hospital in recognition of best practices in people development and training. Her passion for...

Other eChapters from the eBook

Related Resources