In March 2006, Nouveau Health, a private, not-for-profit health care chain, took over management of the 60-bed Krona Hospital. In May 2007, state officials began to discuss Nouveau's proposal to build a new, replacement hospital in Banconota County. The new facility would have 74 acute care beds, four observation rooms, four surgical operating rooms, one c-section room, 24-hour emergency department, maternity center, intensive care unit and extensive support services, including physical therapy and cardiac rehabilitation. All patient rooms would be private.
You are a staff member in the Finance Department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
• Your task is to prepare next year's financial plan and organizational budget, using at least three types of budgets. Address the possible issues surrounding next year's forecasting. Make sure the budget reflects the following:
• increase in revenue reimbursement
• allocation for the proposed improvements
• increase in nurses' salaries