Budgeting and Cash Flowing within the Healthcare Sector - Samples

Question: Discuss about the Budgeting and Cash Flowing within the Healthcare Sector. Answer: Comment on the students response to the discussion: According to the response of the student, it has been evaluated that both budgets and cash flows are extremely significant in the healthcare industry. The discussion has been presented in a clear and concise manner, which is useful for the readers to gain an understanding about the topic. It has been identified in the discussion that budget helps in coordinating the coordination of activities between departments along with aligning such activities to the large picture. As a result, it helps in formulating the strategic plans of the healthcare organisations. Constructive feedback: After careful assessment of the provided discussion, the first feedback that could be provided regarding budgeting in healthcare organisations, as it provides evaluation of decision-making responsibilities along with enhancing responsibility of the management. Moreover, the budget helps in enhancing the performance assessments, which provide a common base for discussion on the performance of the managers in meeting their goals. In addition, the budgets provide a talking point about the variations in actual results from the original budget (Cleverley, 2017).Thus, budgeting strengthens all the areas within the healthcare sector to become highly efficient rolling up to higher efficiency organisation-wide. Another constructive feedback is that the cash flows are extremely significant for long-term planning. With the help of cash flows, an organisation could identify its existing state, in which the financial requirements are determined (Mukherjee, Al Rahahleh Lane, 2016). The outcome obtained might compel to make modifications in the capital structure of the healthcare organisation and with the help of budgets, these modifications could be implemented. Thus, cash flows are extremely significant in the healthcare organisations in estimating its capability to earn sufficient revenues in future. Hence, by agreeing fully to the response, both cash flows and budgeting are important to the process of planning. References: Cleverley, W. O. (2017).Essentials of health care finance. Jones Bartlett Learning. Mukherjee, T., Al Rahahleh, N., Lane, W. (2016). The capital budgeting process of healthcare organizations: a review of surveys.Journal of Healthcare Management,61(1), 58-76.