Contemporizing the Financial Planning Process

SITUATIONAL COMPANY ISSUES & OBJECTIVES

Government-sponsored hospital had been experiencing increasing financial losses in recent years

In response to financial pressure, the Board sought a comprehensive analysis of the system’s revenue cycle, managed care operations and selected areas of financial operations

The analysis identified, among other findings, the need for a more effective financial planning process

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ACTIVITIES & RESULTS

Developed an understanding of the current financial planning process—governance/decision rights, workflows, technology and timetable

Current practices were evaluated against contemporary financial planning processes and a new financial planning process was designed

The features of the newly designed financial planning process include:

1. Strategically developed financial targets based on credit market financial performance expectations
2. Creation of a financial planning governance committee
3. Acquisition of state-of-the-art financial planning tools
4. A timetable that compresses the operating and capital budget preparation by approximately 33%