Case study

Case Study Analysis
Student’s name
Institutional affiliation
Analyzing the Los Reyes Hospital
Organizations use departmental budgets to project the income and expenses used by different departments with an objective of achieving monetary goals (Maher, M. H., Fakhar & Karimi, 2018). A departmental budget will allow the organization to examine costs and expenses that are related to each department and determine the sufficiency of the firm’s income to meet the costs identified. Additionally, with departmental budgeting, there is a possibility of coordinating all activities between departments hence enhancing strategic planning (Roberts, McWilliams, Hatfield, Gerovich, Chernew, Gilstrap & Mehrotra, 2018). As a result, the firm will be faced with the responsibility of decision making which is very significant towards improving the performance of the organization.
Financial officers do have steps to be followed when formulating departmental budgets. In the case study, Mr. Cohn the Chief Financial Officer used the past information to determine the budget that various departments in the hospital will need. This was the first step towards his departmental budgeting. The four service department that he was dealing with include radiology, laboratory, routine care and pharmacy. As the leader, he met with all department heads to discuss the amount of money needed. The third step he used in his was analyzing the fixed costs within each department and additional expenses that may be incurred by the departments.

To prevent any errors during departmental budgeting, there should be a creation of a budget reflecting the strategic plan for the organization. Secondly, Mr. Cohn ought to have engaged a team to review and compare budget with an objective of identifying the strengths and weakness. Lastly, a budget is a tool that translates the goals and plans of the organization, in case it is well developed it can provide many opportunities towards the departments working as a unit hence keeping the organization on track (Preiser, Petronis, Petronis & Petronis, 2018). Most importantly, when dealing with departmental budgeting, it is essential to deal with the planned resources and department.
References
Maher, M. H., Fakhar, M. S., & Karimi, Z. (2018). The relationship between budget emphasis, budget planning models and performance. Journal of Health Management and Informatics, 5(1), 16-20.
Preiser, W. F., Petronis, J. P., Petronis, J. W., & Petronis, L. (2018). Towards a Hospital Activation Process Model. In Building Performance Evaluation (pp. 99-113). Springer, Cham.
Roberts, E. T., McWilliams, J. M., Hatfield, L. A., Gerovich, S., Chernew, M. E., Gilstrap, L. G., & Mehrotra, A. (2018). Changes in health care use associated with the introduction of hospital global budgets in Maryland. JAMA internal medicine, 6(2), 27-33.