50+ Sample Hospital Budgets

What Are Hospital Budgets?

Just like any other business, there is an official budget sheet used to record all types of expenses. And in hospital budgeting, they use hospital budgets to manage different factors as well. Medical expenses may cover from the general budget, supplies cost, payroll, and many more. And a hospital budget carries the full breakdown of healthcare costs that can be used for planning, monitoring, etc.

A 2018 Navigant study report stated that 38% of hospital executives agreed that lessening operating expenses is possible by prioritizing the supply chain.

The Different Categories of Hospital Budgets

The word ‘budget’ is too broad when you think about a hospital’s expenses. And that is why it is crucial to divide the hospital budget into categories so you won’t mix up one type of budget to another. Generally, the various categories of hospital budgets contain the following:

Wages and Benefits: A common use of a hospital budget is to track every employee’s wage and benefits. Similar to payroll, this part notes the hospital employees’ monthly income, average salary, and vacation or sick leave plan.Equipment and Utilities: From the hospital’s medical equipment, food, down to other utilities mark another category of the hospital budget. Expect the equipment and utility section to note the breakdown of such costs.Professional Services: Different professional services are given from work may it be from the doctor, nurse, clerk, and more. Hence, expect to line up the nursing, general, fiscal, administrative, and other professional services in the overall budget plan too.Gains: Hospitals may receive revenues from donations, grants, charities, and other sources of income. And it should be tabulated in the hospital budget to check which gains are tax exempted or not.Hospital Billing: Managing the hospital billing is one of the crucial elements to consider in the hospital budget. For example, a patient could be covered with insurance from Medicaid or Medicare. Therefore, it is another source of income to record for the budget.Gross vs. Net Revenue: What was billed (gross revenue) and what were collected (net revenues) play a huge part in the healthcare or medical sector. That is due to discounting the bills.

How to Create a Hospital Budget

Spare some time to check the sample hospital budgets above first. Explore every template until you can start working on your hospital budget shortly. You can download, print, and customize your budget anytime. And to ensure your budgeting scheme for your hospital works effectively, don’t forget to follow these simple steps:

Step 1: Identify Your Budgeting Goals

Every hospital has different budgeting goals and purposes. And they should be your basis on how to tailor your hospital budget’s content. That way, you will eventually know what type of budget should be listed in the hospital budget. Also, people consider different functions for their hospital budget may it be for a business proposal, an assessment report, or for accounting purposes only.

Step 2: Categorize Your Hospital Budget

Hospital budgets are expected to be itemized by categorizing all the budgets involved in the hospital or facility. And the easiest way to do that is by following the different categories of a standard hospital budget, which were already discussed before. So start tabulating the budget sheet from the wages, gains, etc. But, only use categories that are relevant to your purpose or you would fail instead.

Step 3: Conduct an Easy-to-Follow Structure

The last thing you want to make is a hospital budget that is complicated to use. Ensure that your document is easy to follow by implementing easy instructions, adding graphs, charts, or visual organizers, and prevent using complete sentences. In fact, budget sheets focus more on enumerating and calculating numerical data rather than describing them word by word.

Step 4: Update the Budget Regularly

Most importantly, find time to update the hospital expense sheets regularly. Money may come and go anytime so financial records change for sure. Also, you can calculate budgets for the future from your data instead of simply guessing how much to earn or lose without evidence. By keeping track of hospital budgets always, all expenses involved will surely pay off.

FAQs

What are the classifications of a hospital’s general expense breakdown?

According to Statista, general hospital expenses are grouped into eight sections. And they consist of the following:

  • Wages or benefits
  • Professional fees
  • Tools and equipment
  • Prescription drugs
  • Labor intensive
  • Non-labor intensive
  • Liability insurance
  • Utilities

What are the major types of budgets hospitals use?

Hospitals usually use important hospital budgets from the operating budget, cash budget, and capital budget.

When do hospitals check their budgets?

Normally, hospitals budget annually. There is a department meant to manage the budget during the fiscal year may it be to lessen expenditures and meet the yearly spending target.

The next time you create a budget for your hospital or healthcare business, be sure to use sample hospital budgets as your guide. The sample templates given observe professional standards for financial modeling worldwide. More so, you can accommodate different budget types, alter the format and design, and even print as many budget documents as you want. Start downloading now!