Assignment – Finance and Budgeting


I have attached the last paper for guidance. I need an Executive Summary as well(no more than 200 words).


Module 3 – Assignment – Finance and Budgeting

  1. Based on your proposed organization and structure for the GAH and the Community Clinic, we will now focus on financing and budgeting issues.
  2. In order to do so, we will need to define the following requirements and assumptions:
    1. Cost of facility construction, initial medical equipment, and instrumentation, will not be calculated – as they will be fully paid by the state as a grant.
    2. All senior patients will be above the age of 65, and will have only the Federal Medicare health insurance. Research the major constructs of Medicare health coverage as defined by the “Medicare Prospective Payment System.”
    3. The hospital and clinic will be financially balanced, that is, income from Medicare payments will cover in full all operating costs.
  3. “Medicare Prospective Payment System”
    1. The hospital is reimbursed by the government per procedure and/or treatment by a predefined sum and not by the actual expenses performed for and on a particular patient.
    2. For example – a patient requiring open heart surgery will utilize the services of physicians, nurses, OR, laboratory, pharmacy, and occupies a hospital bed on average for six days. If a certain patient is discharged after four days, the hospital will still be paid the six-day amount. Hence, the incentive to operate efficiently and effectively, enabling the hospital to “save money.”
  4. Based on the services you have decided to provide – at least six, complete the table ():
    1. Input services/treatments in column A.
    2. Input estimated and rounded Medicare reimbursement to GAH (in thousands of dollars) for each treatment in column B (assign for each a figure between $10,000 to $60,000).
    3. Your instructor has inputted the projected number of procedures/treatments performed annually at GAH in column C.
    4. Calculate the total income for GAH by multiplying columns B*C in column D.
    5. Your instructor has inputted the GAH Projected Performance percentage, relative to the Federal standard (100%) in column E.
    6. Calculate the total GAH gain or loss by D-(D*E) in column F.
  5. Assume a $250,000 annual miscellaneous expense.
  6. Prepare (based on the table), a forecast of profit or loss for GAH for the first year of operation.
  7. Conclusions and Recommendations.
  8. Your instructor will comment on your table in his feedback to you, on the basis of which you will be able to further develop your project plan.Running head: GOLDEN AGE HOSPITAL 1


    Golden Age Hospital

    DeMario J. Stackhouse

    MHA – 599

    Dr. Tina Evans

    Trident University International

    Shared services and function shared between the GAH and the community clinic

    There are many health care services that the two facilities will provide in common. First, the facilities will provide essential health care services, such as outpatient services and in-patient services. These services are provided to all ages, regardless of social classes. Besides, the two facilities provide laboratory services such as x-ray, radiotherapy, and blood test, among other laboratory services (Burns & Muller, 2018).

    Organizational relationship between structure blocks

    The GAH will have a hierarchical organizational structure with different level of management. Each level within the organization will have a health professional who is mandated to assume their roles with professionalism to increase the standards of health care services offered to patients (Bieberstein, Bose, Walker & Lynch, 2015). As such, the top management will engage in strategic planning and creation of policies that will improve efficiency in the facility. Besides, there will be a division of tasks to help in the smooth running of activities at different levels within the facility. For instance, doctors, clinicians, and nurses will have distinct roles to promote efficiency and services delivery.

    Furthermore, the GAH will have a chart to clearly outline the organizational structure and roles of healthcare professionals to provide a road map for smooth running of activities (Burgess, Shaw & Kellas, 2011). The chart will also display horizontal linkages between health professionals between different levels in the organization to facilitate smooth coordination. On the other hand, delegation and execution of duties within the facility will be based on the ability to offer quality health care services to patients. However, a chain of command will have to prevail to ensure that all health care professional adhere to internal controls.

    Integration of services of physicians within the GAH

    Since the facility will mainly provide health care services to the aging population, it is necessary to integrate functions of physicians to help in providing quality services to the aging population to improve quality of life in the city. Integration of services will help to offer health care service to many patients within a short period.

    Management aspects

    Generally, the management aspect plays an essential role in enhancing the smooth flow of activities. Similarly, to help the GAH to achieve its goals and objectives, there is a need to borrow the ideas of management aspect to help running activities within the facilities (Burgess et al. 2011). As such, management theories will be adopted to create a clear channel on how to run the activities of the hospital. In doing so, specialization and division of labor will be encouraged to ensure health care professionals are assigned duties in their areas of expertise to improve efficiency.

    Organizational forms

    The GAH will have a conventional hierarchy organizational form. In this form, the division of labor and specialization will be encouraged to improve the quality health care services offered to patients (Burgess et al. 2011). The facility will comprise of the top management, which includes the Chief Executive Officer, Chief Administrative Officer, Human Resources Managers, and medical officers, among other health care professionals. In this organizational form, there will be specialization and division of labor amongst doctors, nurses, clinicians, and laboratory technicians.

    The mission statement of the GAH

    Typically, a mission statement plays an essential role in an organization by establishing objectives of an institution and how to achieve. Similarly, the Golden Age Hospital has a clear mission statement that will help it to achieve its goals. Since that facility seeks at solving a health problem in the city, it will concentrate on meeting the needs of the locals to improve the quality of life in the city. Below is the primary mission statement of the GAH:

    i. To meet all health care needs of the aging population by offering special considerations to treat diseases affecting the elderly.

    ii. To enhance the mental health of vulnerable people by creating easy access to health care services to all groups of people.

    iii. To provide access to all medical services by all patients regardless of social classes and level of income.

    iv. Reinforce health care projects and programs to help in help in empowering activities that aim at improving the quality of health care within the municipality.

    Recommended hospital size

    Currently, the rate of health care needs for the aging population is rising steadily. As such, the facility should be sized to accommodate all patients who will be visiting the facility to seek medical services. Therefore, the GAH should have a minimum number of 550 beds to accommodate many patients at once.

    The organizational structure of Mission Hospital


    Human Resources Manager

    Chief Medical Officer

    Chief Administrative Officer

    Lab technicians



    Proposed Organizational structure of the Golden Age Hospital

    Chief Executive Officer

    Human Resources Manager

    Chief Medical Officer

    Chief Administrative Officer

    Lab technicians



    The Golden Age Hospital will have the same organizational structure because it will be mainly constructed to provide supplementary services to the Mission hospital.

    Main services to offer at the Golden Age Hospital

    According to the finding from the survey, the aging population is affected most with health care conditions. As such some of primary treatment that will be offered include heart attack diseases, lungs problems, hormonal problems, cancer, diabetes, coronary ailments, kidney problems, bone marrow issue among other lifestyles diseases (Burgess et al. 2011). Besides, the facility will also offer out-patient services, in-patient services, and comprehensive medication treatment to patients.

    Physician-hospital integration

    Various activities will be performed in the facilities to provide quality health care services to patients. In doing so, some health care program will be installed to help in providing quality services. However, such services programs must conform to professional requirements to ensure that the quality of health care services offered to patients meets the minimum health standards (Burgess et al. 2011). The facility will set health targets to achieve through establishing social and health care frameworks to help in the provision of standard health services. Even though the facility aims at improving the quality of health care services, the cost of offering those services will be affordable to all classes of people to encourage more patient to access quality health services regardless of the income levels.

    For GAH to achieve this, the management will incorporate all functions of the facility to reduce operation cost to charge a reasonable price for their services.

    Conclusively, the GAH should appropriately work on its mission, objectives, and goals to ensure it provides quality health care services to patient particularly the aging population who are more in need to health services in the city. Doing so will help to improve the quality of life amongst different groups in the city.


    Bieberstein, N., Bose, S., Walker, L., & Lynch, A. (2015). Impact of service-oriented architecture on enterprise systems, organizational structures, and individuals. IBM systems journal44(4), 691-708.

    Burgess, C., Shaw, C. & Kellas, J. (2011). Health & social care. Harlow: Heinemann.

    Burns, L. R., & Muller, R. W. (2018). Hospital‐Physician Collaboration: Landscape of Economic Integration and Impact on Clinical Integration. Milbank Quarterly86(3), 375-434.