Problem:
Verybest Hospital is a sub-acute facility outside of Santa Rosa, New Mexico. The hospital operates an emergency room and has 75 beds that are generally at full capacity. Up until two years ago, the hospital was consistently profitable. Since then, profit margins have declined.
Verybest's Board of Directors' future vision is to raise the target profit, expand the facility size, and increase the amount of beds and emergency room spaces offered by the hospital. You are a staff member in the Finance Department, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
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Healthcare organizations obtain revenues through multiple funding sources. Unlike consumer products, healthcare organizations do not rely on the consumers of their services as the primary sources of revenue.
Identify two sources of revenue that may assist you in the financial forecasting for the organization. In addition, explain the grant-writing process and list two grant resources that can be included as additional revenue to ensure the success of Verybest Hospital's financial future.
Objective: Identify sources of funding for health care organizations and the role of the grant-writing process.