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Discuss the difference between an operating budget and a capital budget. What are the steps in creating each budget? Part 2One of the decisions that a healthcare finance manager has to make is whether to allow budgets to change over the course of a reporting period.
Part1 A budget is a plan expressed in dollar amounts that acts as a road map to carry out an organization’s objectives, strategies and assumptions. There are different types of budgets that healthcare organization use to manage its financial and managerial goals and obligations.Discuss the difference between an operating budget and a capital budget. What are the steps in creating each budget? Part 2One of the decisions that a healthcare finance manager has to make is whether to allow budgets to change over the course of a reporting period. A budget that never changes is called static, while a budget that changes based on actual activity is called flexible. Both approaches offer advantages and disadvantages for the healthcare organization.Refer to the lecture, Static and Flexible Budgets, An Example. In the example of the walk-in clinic, if you had the option of retaining the nurse practitioner on a salary, what salary would you offer? Why?
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