Running Head: PROBLEM ANALYSIS AND BUDGET IMPACT PROBLEM ANALYSIS AND BUDGET IMPACT 5 Problem Analysis and Budget Impact Tanyanika McMillian South University The hospitals face different healthcare financial problems which at times can make the delivery of quality care to the patients difficult. Healthcare is one of the major industries facing financial problems. According to Bazzoli et al. (2008), the deficiency in the quality of patient care deteriorated at the time when many hospitals were facing financial crisis. Therefore, the quality of attention given in the hospitals dependent on its financial stability. The purpose of the paper is to create an analysis of the patient care financial problem and to identify more financial problems based on the interviews carried on the management of hospital and the available literature review. The primary purpose of the hospital is to provide care to the patient, a task which can be costly. Maintaining the health care staff can be expensive. The problems identified were compiled after interviewing more than 150 employees faced with financial challenges. The main basis of the problems in the health care industry as indicated by the chief financial officer and the senior accountant of the hospital is the lack of skilled labor and information to implement the budget (Bazzoli, Chen, Zhao, & Lindrooth, 2008). Few employees are involved in the budget-making of the hospitals. Although budgeting is very instrumental to the success of any organization, lack of skilled labor to implement it poses a challenge to many hospitals. Many hospitals have insufficient workforce who have financial skills (McKeeargue, 2010). Managing the funds becomes a difficult task for the hospitals and it becomes difficult for the hospital to use the available financial resources to achieve quality care resulting in a healthy society. Report by the Berger (2008) identified another healthcare financial problem as managing investment in a capital strained environment. There are current changes happening in the industry such as frequent change in laws mainly the healthcare reform. Another change recorded is the expansion of healthcare access and growing patient demands, which can reflect high costs for hospitals if they care for to many patients that do not have health insurance. Besides the increasing demands of patients, there is pressure on the hospitals to cut costs. The restriction is put on how much can be spent on improving the patient’s health. Therefore, the rising demands for services from the patients is another cause of health care financial problems. Also, hospitals are also facing challenges in adapting the market forces. They have adopted the market forces as any other conventional business (Karanikolos, 2013). A good example is the mergers that have become prevalent in the health industry. It is a current landscape that hospitals are adopting. Many small hospitals are hospitals consolidating and joinin ...

1. Running Head: PROBLEM ANALYSIS AND BUDGET
IMPACT
PROBLEM ANALYSIS AND BUDGET IMPACT 5
Problem Analysis and Budget Impact
Tanyanika McMillian
South University
The hospitals face different healthcare financial problems which
at times can make the delivery of quality care to the patients
difficult. Healthcare is one of the major industries facing
financial problems. According to Bazzoli et al. (2008), the
deficiency in the quality of patient care deteriorated at the time
when many hospitals were facing financial crisis. Therefore, the
quality of attention given in the hospitals dependent on its
financial stability. The purpose of the paper is to create an
analysis of the patient care financial problem and to identify
more financial problems based on the interviews carried on the
management of hospital and the available literature review.
The primary purpose of the hospital is to provide care to the

2. patient, a task which can be costly. Maintaining the health care
staff can be expensive. The problems identified were compiled
after interviewing more than 150 employees faced with financial
challenges. The main basis of the problems in the health care
industry as indicated by the chief financial officer and the
senior accountant of the hospital is the lack of skilled labor and
information to implement the budget (Bazzoli, Chen, Zhao, &
Lindrooth, 2008). Few employees are involved in the budget-
making of the hospitals. Although budgeting is very
instrumental to the success of any organization, lack of skilled
labor to implement it poses a challenge to many hospitals. Many
hospitals have insufficient workforce who have financial skills
(McKeeargue, 2010). Managing the funds becomes a difficult
task for the hospitals and it becomes difficult for the hospital to
use the available financial resources to achieve quality care
resulting in a healthy society.
Report by the Berger (2008) identified another healthcare
financial problem as managing investment in a capital strained
environment. There are current changes happening in the
industry such as frequent change in laws mainly the healthcare
reform. Another change recorded is the expansion of healthcare
access and growing patient demands, which can reflect high
costs for hospitals if they care for to many patients that do not
have health insurance. Besides the increasing demands of
patients, there is pressure on the hospitals to cut costs. The
restriction is put on how much can be spent on improving the
patient’s health. Therefore, the rising demands for services from
the patients is another cause of health care financial problems.
Also, hospitals are also facing challenges in adapting the market
forces. They have adopted the market forces as any other
conventional business (Karanikolos, 2013). A good example is
the mergers that have become prevalent in the health industry. It
is a current landscape that hospitals are adopting. Many small
hospitals are hospitals consolidating and joining forces to
operate under the same umbrella. Again, the patients have let
their voices be recognized as consumers, enabling them to

3. demand quality services. As nurses, it is important that they be
the voices for the patients and themselves as staff. Nurse play
an important part in the budget development because they have
vital input on how a nursing unit can run efficiently, give
quality care and stay within the budget. To achieve this
communication has to be open with the staff employees and
corporate. The market forces are making it difficult to recruit
and retain clinical talent in the hospitals (Andersen, Rice, &
Kominski, 2011). When hospitals have retention problems, poor
working conditions tends to be the reason, resulting in the
hospital facing remunerations of the staff increasing the
financial pressure on hospitals. Hiring new staff costs money,
requiring the employer to get background checks at a cost, and
the man hours of orientation just to name a few.
Finally, the last financial problem to healthcare is a high level
of bad debts. Some services such as emergency care are leading
to increased cost of care to hospitals (Berger, 2008). The
hospitals have to devise ways of reducing bad debts such as
reducing the unnecessary visits to the emergency room. Most of
the emergency room users should be redirected to non-
emergency care setting. Many hospitals have recognized this
and they triage patients that are non-emergent to urgent care.
In conclusion, the financial health care costs can be reduced by
the development of efficient cost accounting department that
will allow a deeper look into hospital finances to increase
viability and profitability. In so doing, the hospital will counter
the problem of insufficient budgeting. Finally, the hospitals
should develop different ways of reducing the level of bad
debts.

4. References
Andersen, R. M., Rice, T. H., & Kominski, G. F. (2011).
Changing the US health care system: Key issues in health
services policy and management. John Wiley & Sons.
Bazzoli, G., Chen, H., Zhao, M., & Lindrooth, R. (2008).
Hospital financial condition and the quality of patient care.
Health economics, 17(8), 977-995.
Berger, S. (2008). Fundamentals of health care financial
management : a practical guide to fiscal issues and activities.
San Francisco: Jossey-Bass.
Karanikolos, M. (2013). Financial crisis, austerity, and health in
Europe. The Lancet, 381(9874), 1323-1331.
McKeeargue, M. (2010). Budget crises, health, and social
welfare programmes. Bmj 341, 77.
Running head: FINANCIAL MANAGEMENT
1
FINANCIAL MANAGEMENT
6
Financial Management
Tanyanika McMillian
South University
Financial management
Financial management refers to the process through which

5. organizations come up with those techniques and methods that
enable them to manage their financial resources (Paramasivan,
& Subramanian, 2009). It is the process through which firms
make sure that they identify those ways and strategies that will
make it possible for them to effectively allocate their resources
to the different departments that exist. It is, therefore, the
responsibility of the company through the management team to
make sure that they work towards making sure that the company
achieves efficiency and effectiveness. The hospital has an
average of 150 employees who are affected by the financial
issue.
The selected organization is a hospital that exists in the health
industry. The main function of the hospital is to provide care
and services to the patients to maintain a healthy society. The
financial issue that was looked into is the negative impacts of
the budget due to unskilled nurses, lack of information, and
understaffing. Budgets refer to the form of planning that
enables organizations to manage and control the available
financial resources to make sure that the hospital achieves
quality care and a healthy society (Stanton, & Rutherford,
2004).
Role of the interviewees
The interview was conducted to the Chief Finance Officer and
the accountant who are in a better position to explain more
about financial management. The roles of the two are to make
sure that they identify the available funds and discuss how to
allocate the funds to the different departments that exist. Also,
they are believed to set up the budgets for the organization
enabling them to continuously view and follow up the
organizational financial performance.

6. How long has the organization tried to address this issue?
It has been identified that the organization has been facing this
problem for a period of five years according to the Chief
Finance Officer. The hospital has not been in a position to come
up with the best means and methods that will help eliminate the
issue to be in a position to gain success. The problem has
continued to exist because of the lack of skilled and
experienced personnel with the ability to closely monitor and
control the use of funds.
What measures have been taken to address this issue in the
past?
Some of the measures that have been put in place include
searching the skilled and experienced personnel who will assist
in the management of the funds. Also, the Chief Finance Officer
and accountant have been working together to make sure that
they recruit a supervisor for the finance department whose
responsibility will be to oversee the day to day activities of the
hospital. The third measure has been to create training and
development programs to train the employees on how to use the
budget towards the management of the funds. Also, the Chief
Finance Officer has directed the employees on providing weekly
reports based on how they use the funds allocated to them.
What future steps have been planned to address this issue?
The company intends to always make sure that they involve
some of the employees as they prepare the budgets so as to
make sure they come up with the best budgets. Also, the
organization plans to install an accounting system that will be
in a position to control all the funds and make sure that all

7. details are kept up to date enabling them to manage the funds
easily. Also, the organization intends to employ more finance
officers so as to make sure that they help one another towards
the achievement of the goals and objectives. Also, the
organization aims at identifying more sources of funds that will
be in a position to fund all the activities.
What problems does the organization foresee as blocks to
addressing this issue?
However, it is clear that problems and difficulties are part and
parcel of our lives. It is difficult to operate effectively without
having some problems at some points. Therefore, some of the
problems that exist are that it may be difficult to identify the
most skilled and experienced individuals from the society.
Another block is that the hospital might not be in a position to
fund all the additional steps such recruiting more employees due
to poor employee retention. Therefore, the firm may face the
problem of inadequate financial resources (Berger, 2008).
Also, another foreseen block is the issue of advanced
technology that requires the accounting system to be continually
updated to meet the present requirements. Also, there are
occasions where the organization may employee individuals that
maybe from a different culture from that of the firm, which has
a potential for friction with employees. Therefore, it will be
difficult to make it possible for the employees to accept and
appreciate the organizational culture. Also, there could exist
issues of interpersonal conflicts that may prevent the
achievement of the goals.
How did your perception of the financial issue differ from the
perception of those who are actually working on finances in the
organization?

8. My perception of the impact of the budget was differently
because I have always believed that budgets are the reasons why
organizations excel. I believe that as long as an organization has
a budget it will always continue to excel. However, it was
differently from the Chief Finance Officer and accountant’s
argument who made it clear that health centers have to put more
efforts towards the effectiveness of the budget (Aiken, Clarke,
Sloane, Lake, & Cheney, 2008). They explained that a budget
acts as a direction which requires firms to closely monitor and
control the organizations’ activities for the budget to be
successful.
References
Aiken, L. H., Clarke, S. P., Sloane, D. M., Lake, E. T., &
Cheney, T. (2008). Effects of hospital care environment on
patient mortality and nurse outcomes. The Journal of nursing
administration, 38(5), 223.
Berger, S. (2008). Fundamentals of health care financial
management : a practical guide to fiscal issues and activities.
San Francisco: Jossey-Bass.
Paramasivan, C. & Subramanian, T. (2009). Financial
management. New Delhi: New Age International (P) Ltd.,
Publishers.
Stanton, M. W., & Rutherford, M. K. (2004). Hospital nurse
staffing and quality of care. Rockville: Agency for Healthcare
Research and Quality.
NOTE: If a component is absent, student receives a zero for that
component.

9. Rubric
Unsatisfactory
1
Emerging
2
Proficient
3
Exemplary
4
Score
Assignment Components
Described at least two solutions to the identified problem.
Lacked the description of one solution to the identified
problem
Provided a minimal description of one solution to the identified
problem
Provided a description of two solutions to the identified
problem
Provided a thorough description of two or more solutions to the
identified problem
[Score x 5 = 20 pts]
Provided a background for selection of two solutions including
expert opinions and current literature.
Lacked a background for selection of one solution including
expert opinions and current literature.
Provided minimal information about a background for selection
of one solution including expert opinions and current literature.
Provided information about a background for selection of two
solutions including expert opinions and current literature.
Provided thorough information about a background for
selection of two or more solutions including expert opinions and

10. current literature.
[Score x 5 = 20 pts]
Discussed a process for implementation of two strategies
including information related to the roles of various members of
the organizational team including administration, nursing and
any other related aspects of the organization.
Lacked a discussion about a process for implementation of one
strategy including information related to the roles of various
members of the organizational team including administration,
nursing and any other related aspects of the organization.
Provided a minimal discussion about a process for
implementation of one strategy including information related to
the roles of various members of the organizational team
including administration, nursing and any other related aspects
of the organization.
Provided a discussion about a process for implementation of
two strategies including information related to the roles of
various members of the organizational team including
administration, nursing and any other related aspects of the
organization.
Provided a thorough discussion about a process for
implementation of two or more strategies including information
related to the roles of various members of the organizational
team including administration, nursing and any other related
aspects of the organization.
[Score x 5 = 20 pts]
Identified two specific nursing role in the creation of the
solution and compare that role to the evidence from the
literature.
Lacked one specific nursing role in the creation of the solution
and compare that role to the evidence from the literature.
Provided minimal information about one specific nursing role in

11. the creation of the solution and compare that role to the
evidence from the literature.
Provided information about two specific nursing roles in the
creation of the solution and compare that role to the evidence
from the literature.
Provided thorough information about two or more specific
nursing roles in the creation of the solution and compare that
role to the evidence from the literature.
[Score x 5 = 20 pts]
Writing Components
Introduction is limited or missing entirely.
Poorly organized document.
Transitions are infrequent,
illogical, or missing entirely.
Conclusion is limited or missing entirely.
Writing contains numerous errors in spelling, grammar, or
sentence structure that severely interferes with readability and
comprehension.
No attempt at APA
formatting.
Introduction is present but incomplete or underdeveloped.
Poorly organized document that interferes with readability and
comprehension.
Transitions are sporadic. Conclusion is present, but incomplete
or underdeveloped.

12. Writing contains numerous errors in spelling,
grammar, or sentence structure that somewhat
interfere with readability or comprehension.
APA format is attempted to paraphrase, quote, and cite, but
errors are significant.
Introduction has a clear opening, provides background
information, and states the topic.
Loosely organized document that may haveto be inferred.
Transitions are appropriate and help the flow of ideas.
Conclusion summarizes main argument and has a clear ending.
Writing follows conventions of spelling and grammar
throughout. Errors are infrequent and do not
interfere with readability or comprehension.
APA format is attempted to paraphrase, quote, and cite, but few
errors are present.
Introduction catches the reader’s attention, provides compelling
and appropriate background information, and clearly states the
topic.
Well organized document with an appropriate introduction.
Transitions are thoughtful and clearly show how ideas relate.
Conclusion leaves the reader with a sense of closure and
provides concluding insights.
Writing follows conventions of spelling and grammar
throughout that helps establish a clear idea and aid the reader in
following the writer’s logic.

13. APA format is used throughout when appropriate or called for.
[Score x 5 = 20 pts]
Subtotal
Timeliness
Late Work penalty:
Total Score
/ 100

14. AU-CJA105 LASA 1 Grading Rubric
3