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Miranda Achu
Baker College of Allen Park
Health System Finance
Final Exam
Bammel Health System consist of two branches, the Bammel Memorial Hospital (BMH)
which is the center piece with 10 primary care centers, 4corrections Health Services
clinics, multiple school-based clinics serving many elementary, middle and high schools,
a network of mental health facilities, 2 long-term care nursing facilities and another
Looking all these numerous affiliations, one would immediately assume that, Bammel
Health System is doing really well or at least in good standing. But for the years 2002-
2005, Bammel Health System has had deficit of 7.4million, 47.4million, 85.2million, and
116million respectively.
M* = Million(s)
From the decreases in deficit over these years, it is clear that, someone is trying to do
something to bring the budget back. I will suggest that they keep doing whatever that
they are doing to reduce the deficit, and at the same time incorporate more way to contain
Looking at the 2005 fact sheet, it is clear that, Bammel Health System is working into a
deficit. The fact that, their revenue alone is lower than their expenses, is already a
problem, especially when it is not the first year if business or the second. If they keep on
aspect to it, and increase the premiums a little higher than what was added, that way,
people do not really notice the increase, they still enjoy the same benefits, but maybe at a
little more higher cost. Any form of wasteful spending should be eliminated. Be it general
supplies, office supplies, provisions, even the kitchen budget should be watched closely,
Organizing a fundraiser is also a very good idea. And maybe asking or requesting a little
more support from the county tax support is not a bad idea, given the fact that Bammel’s
doors are open to any one and their mission is to offer high-quality of care to any
Another idea will be not to do any more investments or expansions until when the
Bammel’s Health System is at a break-even point or when they must have cleared all
their deficits and start making gain again. Decreasing length of stay at the hospital and
even during emergency visits. People should be referred to see their primary care
physicians, so there is no resources spent on doing extra test or diagnostic testing while
making sure that, patients do get the best possible care and avoiding lawsuits of any kind.
This way the expenses on doubtful accounts will be minimal. There should also be an
With all of that in place, the proposed budget or fact sheet for the nest fiscal year could
Notice a difference in $10,600,000 in expenses when provisions for doubtful accounts are
lower paying rate and getting rid of any excess staffing and not having too many contract
allocate monthly allowance or weekly allowances if need be for each department and
making the department heads aware of the budget deficit, so that way, they know the
severity of the situation, and handle the budget with more efficiency and rid of wasteful
spending. An increase of $115 in the budget too could go a long way of getting rid of
loans, deficits and some other liabilities, like account payables and even go for some
Baker and Baker in Health Care Finance stated in a case study of Metropolis Health
System in chapter 25, that one of the ways that Metropolis could raise money was to rent
television and vending gifts and other items at the hospital as auxiliary funds (Baker &
Baker, 2011). They may sound minute and trivial but could add up over time. Say the
television renting brings in $1000 a month multiplied by 12 months, will be $12,000, and
that is just an estimate. The actual revenue could be a lot more considering that BMH has
an average of 1,756 beds in use and admissions are about 51,139 excluding BMCH.
And also increasing affiliations with more medical schools or opening up more positions
for medical residency students, that could bring in revenue from tuition and fees paid by
the students. With all these Bammel’s Health System could very well be on their way not
only to a break-even point, but also to making profits and even expanding in the near
future. As long as there is a close watch on the budget and some policing agents to make
Make better use of volunteer workers, and reduce number of employees. I am sure there
are always people willing to volunteer for educational purposes, like medical school
applicants, Physician assistants, nurses etc. Improve volunteer policies to attract more
volunteers, by not just writing that they volunteered, but maybe writing referral letters,
and maybe include small stipend for scholarship. These will attract more volunteers and
But if average volunteer hours is increased to 12 hours a month which is 4 hours a week,
That should be able to cover the 120 employees laid off and even more. Expenses will go
down and if this trend continues and more volunteers are added as time goes on and the
volunteer policy gets better, even more income will be saved, as well as bringing
Reference:
Baker, J. J. & Baker, R. W. (2011). Health care finance: basic tools for nonfinancial
Baker College. (2010, Fall). HSC403R Health System Finance [Final Exam]. Available
9558.001/content/_8026859_1/HSC%20403R%20Case%20study%20-%20Final
%20exam.pdf?
bsession=69421025&bsession_str=session_id=69421025,user_id_pk1=234071,user_id_s
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Miranda Achu (December, 2010) Based on Personal Assumptions, Prediction, Skills and
Knowledge.