Introductory summary

MHA FPX 5006 Assessment 4 Operating Budget Proposal goal to advice create a strategy to reduce operating costs by 10 percent in the coming year. Although simply reducing each line item will work, it may not be appropriate for all departments. The proposal considers various options and discusses ways to reduce costs and generate savings in the financial department of Vila Hospital. If budget cuts are necessary, there are many factors to consider. The first is the fixed costs that are required to carry out daily operations. It is important to review each department before deciding to cut budgets.

MHA FPX 5006 Assessment 4 Operating Budget Proposal

If it is necessary to cut expenses by ten percent during the year, freeze recruitment, travel, and purchasing activities to reduce current expenses. This is the most effective way to stop spending and maintain your budget. Other things to consider when reducing hospital budgets include but are not limited to, providing daily electric lighting services in hallways and bathrooms, automating daily services, separate cleaning of toilets and urinals, and switching to energy-efficient areas throughout the hospital. Changes like switching to electric lighting can help reduce overhead costs. While these strategies are not listed in the guide, they should be considered when operating a large facility like Vila Community Health Center.

Recommendation One: Outsourcing Services

Studies show that outsourcing food service to outside customers can significantly reduce costs. Outsourcing can reduce food costs by up to 90%, according to a recent study. This means eliminating the food service department and outsourcing it would reduce the cost of food services by $36,225. Unfortunately, departments have to downsize and lose staff through outsourcing. Studies show that outsourcing can reduce full-time employee costs by up to 25%. MHA FPX 5006 Assessment 4 Operating Budget Proposal can reduce food inventory costs by 50%, reduce food waste by 50%, and increase revenue by nearly $250,000 per year. In addition, numerous research findings show that most patients are comfortable using outsourced food services in hospitals.

Related Assessment: MHA FPX 5006 Assessment 3 Cost-Benefit Analysis

In addition to outsourcing the food service department by reducing the number of full-time equivalent (FTE) employees in the food department, monthly revenue is also increased. Reducing the number of FTE departments can still increase monthly revenue by about 45%, or about $26,000 per month. While these initiatives will reduce staff, they can also help save significant costs, which can be significant when you consider your annual budget. Reducing staffing levels will help reduce expenses in the food service department, but the number of employees will not be eliminated. Other food service department employees are responsible for serving and preparing meals for patients, cleaning food in rooms, taking orders, etc.

Recommendation Two: Temporary Bonus Withholding/ Overtime Reduction

If you are on a tight budget, this can happen because you are spending too much money on projects that do not add to your bottom line. The total bonus across all divisions is $72,416 per month. Holding the bonus for a month or two will reduce morale. However, to get your budget back to normal, you may need to make some changes. There are two options: cut the budget by 50% or eliminate the budget altogether, depending on leadership preferences.

MHA FPX 5006 Assessment 4 Operating Budget Proposal

In addition to reducing or eliminating budgets, you should also consider analyzing the percentage of time worked in each department. The cost of overtime across all departments is estimated to be $65,000 per year. Reducing work hours can be difficult at first, but it is possible to reduce work hours with a little effort. When analyzing the work schedule of each department and each employee, there is always room for improvement in the methods and procedures for completing tasks. If there are many overtime hours, this may indicate a workload, which may indicate an urgent need to hire additional staff.

Recommendation 3: Reducing Staff for Graveyard Shifts

Hospitals are 24-hour businesses and require night shift workers to work, care for patients, and manage hospital business. A thorough analysis of night shift workers should be conducted to determine the basic requirements for proper night shift work in each department. MHA FPX 5006 Assessment 4 Operating Budget Proposal provide critical patient care in hospitals, it is also important to analyze their effective practices to identify areas for improvement. Implementing improvements can reduce staffing needs and prevent attrition after training is implemented.

Nursing is a critical part of the hospital and, importantly, has many responsibilities within the department. For example, benefits for overtime are not considered, management must approve the work, and plans for each program must be reviewed. For home services, advertising for additional workers will be phased out in the coming months to meet financial needs. In addition, evaluating housekeeping staff could be a way to offer rewards and other incentives to increase efficiency. In this way, while reducing advertising costs, which may not require additional work, advertising costs are shared among housekeeping staff, thereby increasing efficiency. Increasing productivity does not change the work; however, motivated workers can complete tasks faster, reducing the need for more workers (d’Ettorre and Pellicani, 2020).

References

Arora, M., Thakur, S., Kaushik, R., & Gupta, R. (2022). A Comparative Study of Outsourced Vs In-House Dietary Services in Two Hospitals to Study the Cost Effectiveness. Webology, 19(4), 74-85. http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fscholarly-journals%2Fcomparative-study-outsourced-vs-house-dietary%2Fdocview%2F2691519346%2Fse-2%3Faccountid%3D27965 d’Ettorre, G., & Pellicani, V. (2020). Preventing Shift Work Disorder in Shift Health-care

Workers. Safety and health at work, 11(2), 244–247. https://doi.org/10.1016/j.shaw.2020.03.007 Osman, N. S., Md Nor, N., Md Sharif, M. S., Hamid, S. B. A., & Rahamat, S. (2021). Hospital

Food Service Strategies to Improve Food Intakes among Inpatients: A Systematic Review. Nutrients, 13(10), 3649. https://doi.org/10.3390/nu13103649

Tayyab, A., Ullah, S., & Baki, M. F. (2023). An Outer Approximation Method for Scheduling Elective Surgeries with Sequence Dependent Setup Times to Multiple Operating Rooms. Mathematics, 11(11), 2441. https://doi.org/10.3390/math11112441