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Explain the role of key leadership in the budgeting process, from the chief executive officer down through to the staff level of a financial analyst.

As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Click here for last year’s budget. After reviewing specific data, internal input, and external input from various sources, you find that the executive management team would like the budget to reflect the following:

  • 10% increase in inpatient revenue
  • 15% increase in outpatient revenue
  • 5% increase in pharmacy revenue
  • 15% increase in home health and hospital revenue
  • 10% increase in payroll and benefits

Additionally, provide discussion on the following:

  • How do you think that revenue would increase in each of the areas? Think outside of the box, and perform research to determine current trends in those areas.
  • Why would there be a forecasted need to increase payroll and benefits?
  • Explain the role of key leadership in the budgeting process, from the chief executive officer down through to the staff level of a financial analyst.

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