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Addressing a Budget Shortfall

Addressing a Budget Shortfall

Addressing a Budget Shortfall

3 Pages

 

Preparation

Review the Villa Health Financial Statement Analysis scenario as needed. Conduct general research on the hospital department you have chosen to better understand how it operates, particularly in areas related to its finances.

Scenario

In the weeks after the Villa Health Board meeting, your department is facing a large staffing shortage that has resulted in a significant increase in overtime costs. Your department needs to address the ensuing budget shortfall and share the plan with senior leadership.

Instructions

Considering the scenario, create a brief to senior leadership that shares your initial steps for addressing the budget shortfall. In your brief, include the following:

  • Explain which three financial statements or figures would likely reveal useful insights into the causes or solutions to the problem.
  • Suggest three reasonable options for addressing the specified budget shortfall with detail that would inform decision-making.
  • Justify your choice of the best option by providing an effective analysis of its pros and cons.
  • Provide reasonable and specific projections of how this action would impact the financial statements or figures you selected in the first bullet point.
    • “Specific projections” should include the general magnitude and direction of changes and not necessarily specific numbers.
    • You needn’t focus on actual amounts or perform detailed accounting projections; you are merely seeking to provide insight into areas and magnitude of change (general direction) caused by the action(s).

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