Need help with your Discussion

Get a timely done, PLAGIARISM-FREE paper
from our highly-qualified writers!


Budget Development in the New York-Presbyterian Hospital

Budget Development in the New York-Presbyterian Hospital

Budget Development in the New York-Presbyterian Hospital

Developing a detailed operating budget outlining forecasted revenue and expenses over a specified future period is an integral part of running a nonprofit organization. Adequate funding should contain all the direct costs and Facilities and Administrative (F&A) expenses needed to conduct the set objectives. In healthcare institution settings, a growing issue of the price and value of healthcare services necessitates ensuring the maximum effectiveness and benefits are realized. This is the case with the New York-Presbyterian Hospital, which seeks to account for its expenses and optimize its revenues per its strategic objectives. The developed budget is the institution’s plan for one year and will go a long way in helping the management set and achieve specific goals.

Meanwhile, the New York-Presbyterian Hospital is a not-for-profit, academic medical centre that strives to deliver quality and unique patient care, teaching, research, and community service. The institution is committed to offering various healthcare services (New York-Presbyterian, 2004). The hospital’s mission concerns the constantly changing healthcare environment and provides a medium to set its priorities for new investments and strategic initiatives.  At the core of its objectives is budget development, aiming to weigh the benefits, risks, and costs of the hospital’s strategic goals.

The operating budget comprises the revenue, cost, and expense budget. Typically, it lists the anticipated income, fees, and expenses for the upcoming fiscal year (Walsh, 2016). The budget’s general breakdown revenues comprise the net patient revenue, provision for bad debts, and other revenues stemming from consultancy and a comprehensive continuum of service around specific patient populations and disease areas. The budget estimate for the following fiscal year is $7,826,500 million for net patient service, $367,200 million for fringe benefits, and $ 404,600 million for miscellaneous income. Based on the institution’s internal revenues service classification (IRS), the New York-Presbyterian Hospital directly receives its significant charitable payment, including grants, donations, and bequeaths (The New York and Presbyterian Hospital, 2017). With the anticipated total revenue of $ 8,751,113 million in the coming year, the institution remains committed to scaling up these sources of benefits to fund its strategic, capital, and physician recruitment plans and community services.

In terms of operating costs, the operating budget consists of patient subsidies, salaries and wages, provision for bad debts, employees’ benefits, rental expense property, buildings, and equipment leases, software licensing and hosting contract, suppliers and other benefits interest, depreciation and amortization, and lease agreements. Patient subsidies are expected to increase in the upcoming fiscal year to $153,000 million. This aligns with the institution’s planned service lines of improving the behavioural health, cardiac, children’s, and women’s health in the targeted communities (New York-Presbyterian, n.d.). The strategy is the foundation to plan for the facility’s future objectives to improve its services’ quality, growth, and cost-effectiveness. In the same vein, the hospital anticipates increasing its salaries to $ 600 million to bridge the gap in the doctor-patient ratio. Essentially, the institution plans to recruit more healthcare workers and physicians to meet the doctor-patient ratio deficit. The same case is expected in employees’ benefits, which will likely rise to 1,028,000 million to reflect the hospital’s defined benefit pension plans. The provision of bad debts is also expected to increase to $ 153,000 million.

Similarly, the anticipated rise in licensing and hosting contract costs is due to a planned contract with the Systems Corporation for their revenue cycle solution and integrated electronic medical records (The New York and Presbyterian Hospital, 2017). Total licensing software costs are expected to hit $ 480 million. The expenses of depreciation and amortization and facility services/ lease agreements are also expected to close at $ 362,500 million and $ 1,900 million, respectively. These figures will be about the arrangement to lease assets to the Dormitory Authority of the State of New York (DASNY).

The hospital understands that the following fiscal year will heighten its healthcare service horizon; hence, operating expenses are also expected to increase. These expenses are expected to be as follows: Long-term debt – current portion ($70,491 million), accounts payable and accrued expenses ($695,047 million), accrued salaries and related liabilities ($375,100 million), pension and postretirement benefit liabilities – current portion ($24,915 million), professional and other insurance liabilities – current portion ($132,700 million), other current liabilities due to related organizations ($247,000 million), professional and other insurance liabilities ($23,985 million), pension and similar benefit plans ($221,000 million), deferred revenue, postretirement benefit liability ($1,000 million), other noncurrent liabilities ($544,800million).

The New York-Presbyterian Hospital acknowledges that resolving the budget gap cannot be the sole burden of the taxpayers and the state. Instead, the responsibility must be shared responsibly. For this reason, the institution has identified some initiatives that will generate additional revenues to cut some overhead costs. These programs, along with the expected inpatient volume related to Liver transplants, children’s and mental health, are projected to increase considerably. Therefore, this budget will act as the road map towards implementing the hospital’s strategic plan in the following year.

Revenues Projected Operating Budget for 2021 ($million) Proposed Operating Budget for 2021 ($million)
Net patient Service revenue 7,826,454 7,826,500
Net patient services revenue 7,979,447 7,979,500
Fringe benefits 367,145 367200
Miscellaneous Income 404,521 404600
Total revenue 8,751,113                                                                                                                    8,904,300.0
Operating Costs
Patient subsidies 152,993                                                                                                                        153,000.0
Salaries and wages                                                                              362,581.00                                                                                                                        362,600.0
Provision for bad debts 152,993                                                                                                                        153,000.0
Employees’ Benefits 1,027,965                                                                                                                    1,028,000.0
Rental expense 108                                                                                                                                200.0
Property, Buildings and Equipment  leases 210.6                                                                                                                                211.0
Software licensing and hosting contract 476.6                                                                                                                                480.0
Suppliers and other benefits 2,521,533                                                                                                                    2,215,400.0
Interest and amortization of deferred financing fees 98,296                                                                                                                          98,300.0
Depreciation and amortization 362,479                                                                                                                        362,500.0
Facility services/ Lease agreements 1,899                                                                                                                             1,900.0
Total operating cost                                                                          4,528,541.40                                                                                                                    4,222,591.0
Operating Expenses
Long-term debt – current portion                                                                                  70,491.0                                                                                                                          70,491.0
 Accounts payable and accrued expenses                                                                                695,047.0                                                                                                                        695,047.0
Accrued salaries and related liabilities                                                                                375,066.0                                                                                                                        375,100.0
Pension and postretirement benefit liabilities – current portion                                                                                  23,915.0                                                                                                                          24,915.0
Professional and other insurance liabilities – current portion                                                                                132,704.0                                                                                                                        132,700.0
Other current liabilities due to related organizations                                                                                246,948.0                                                                                                                        247,000.0
Professional and other insurance liabilities                                                                                  23,985.0                                                                                                                          23,985.0
Pension and Similar Benefit Plans                                                                                220,921.0                                                                                                                        221,000.0
Deferred revenue                                                                                     1,001.0                                                                                                                             1,000.0
Postretirement benefit liability                                                                                  64,754.0                                                                                                                          64,760.0
Other noncurrent liabilities                                                                                544,784.0                                                                                                                        544,800.0
Total Operating Expenses                                                                            2,399,616.0                                                                                                                    2,400,798.0


New York-Presbyterian. Community Service Plans | NewYork-Presbyterian. Retrieved May 28 2021, from

New York-Presbyterian. (2004). New YorkPpresbyterian Hospital 2004 community service plan comprehensive report (pp. 1-25). New York: New York-Presbyterian Hospital. Retrieved from

The New York and Presbyterian Hospital. (2017). consolidated financial statements and supplementary information and accompanying reports and schedules related to the uniform guidance: The New York and Presbyterian Hospital Year Ended December 31, 2017, With Reports of Independent Auditors. Ernst & Young LLP. Retrieved from

Walsh, K. (2016). Managing a budget in healthcare professional education. Annals of Medical And Health Sciences Research6(2), 71.


Strategic plan link:


We’ll write everything from scratch


If your organization makes frequent business transactions, one of the tasks you face as a manager is budget preparation. A budget is a tool used for planning and controlling financial resources. It guides your plan of action in financial terms within a set period. A budget does not have to be complex; however, it should support the organization’s strategic plan. We will need resources to achieve our goals and objectives.

Budget Development in the New York-Presbyterian Hospital

Budget Development in the New York-Presbyterian Hospital

For this assignment, you will focus on the operating budget. An operating budget shows the company’s projected revenue and associated expenses for an upcoming period—usually the following year. An operating budget starts with income and then displays each expense type. This includes variable costs—or the costs that vary with sales—such as raw materials and production labour. The operating budget includes fixed costs, such as the monthly rent on office space or the monthly payment for a photocopier lease. The budget also includes operational expenses, such as interest on business loans and the noncash depreciation expense. These items enable the company to compute its projected net income and net profit percentage.


Imagine you are the health care administrator for a nonprofit nonprofit health agency or outpatient surgery centre. Your first task is to locate the strategic plan for that organization or determine its strategic direction through the vision statement, mission or purpose statement, and strategic priorities or goals. You will also need the audited financial statements for the organization.

Using the information from your research, develop a one-year operating budget for the chosen entity, including operating revenues and expenses. Include a 1–2 page document to justify the approach you use in constructing the operating budget with the strategic plan or strategic direction.

Upload the strategic plan or direction and audited financial statements as an attachment or include the Web link.
Complete your operating budget using Excel.
Support your work with at least three quality references, one being your course textbook. These should be cited per the Strayer Writing Standards.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your system. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Develop a budget for a department within a healthcare organization.

Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.

Office Address: 2066 N Capitol Ave, San Jose, CA 95132, United States
UK Address: 2 Frederick Street, Kings Cross, London, United Kingdom, WC1X 0ND ©2023 All rights reserved. Terms of usePrivacy Policy Revision PolicyMoney Back Guarantee | Plagiarism Free Guarantee
We Can Write It for You! Enjoy 20% OFF on This Order. Use Code SAVE20

Stuck with your Assignment?

Enjoy 20% OFF Today
Use code SAVE20