Financial Forecasting Memo

Scenario
The nurse manager in orthopedics has asked for your assistance with a finance project. She is being asked to estimate revenue for the next fiscal year based on the projected number of hip replacements increasing from 300 this year to 340 next year.

The nurse manager must also factor in the expected changes in sources of revenue by payer. It is estimated that the hospital will lose some contracted insurers due to local competition, and see an increase in Medicare and Medicaid patients due to area demographics and economic conditions. She has provided you with the numbers from this year’s budget and the projections on numbers and payment amounts for next year.

Instructions

Prepare a financial forecasting memo to your nurse manager that:

Part One – Financial Forecasting Model

Contains a completed financial forecasting model by downloading the Financial Forecasting Model to:
Calculate the income projected from each payer source and total for the year to compare next year’s revenue to this year’s revenue.
Provide your nurse manager with your estimates on the increase/ decrease in revenue for next year’s budgeting.
Part Two – Financial Forecasting Memo

Explains how the change in payer mix will impact the overall projected revenue of the unit.
Describes the financial impact of a changing payer mix.
Lists recommendations for the manager to consider in expenses, so that the budget will balance as neutral.
Provides stated ideas with professional language and attribution for credible sources with correct APA citation, spelling, and grammar in the memo.

Sample Solution

foods and other necessities of life. There are a lot of people around the world in danger, for example due to war. War Child protects, educates and stands up for the rights of children in war situations. If children are not provided with education, there will be an increase of illiteracy as well as poverty. (UK, 2018 )
War Child understands the needs of children and respects their rights. The needs and rights of children are considered as first priority at everything they do. War Child’s focus group are children but another important group are young people. War Child helps them to change systems and practices that affect them. The four main areas War Child works in are: protection, education, livelihoods and advocacy. (UK, 2018 )
To work in these four areas, War Child needs income. One of the most important sources of income War Child has, are charitable donations. Charitable donations in the charity sector can be stated as a gift that is made by an organization or individual to a charity organization. The gift is mostly in form of cash or direct debit but it also can be in real estate for example. (Belanstingdienst, 2005)
The City University of London Institutional Repository has done research about charitable giving. The university has done research about the different ways to donate to charity organizations and the motivations and barriers for charitable giving. The supporters were asked about the reason why they give donations to charity. Research has shown that 52% of the donors donate because they think the work of the organization is important, 41% thinks it is the right thing to do and the rest of the group had more self-interested reasons like something happened to them or someone close or that it could benefit them in the future. Some of the donors were donating because of information the charitable organization gave. A small amount of the group felt pressured because they would not refuse while they were asked. (Low, 2007)
Thereby, research has shown that age was a major component as well. Donors in the age category 16-24 were least likely to give a donation because it appealed in the media or because charitable organizations gave information. Donors in the age category 25-34 were most likely to donate at charities because they felt good about it.
Donors that donate because they thought the work was important increases significantly with age. Gender was not an important factor in this research. To that, an important factor was income. A reason to give more was the increase of income stated by 41% of the donors. A lower income will give lower donations. (Low, 2007) (Shenkman, 2018, p.67) states that wealthier donors are more likely to react on donation request. Thereby, wealthier donors are more likely to react because it feels like a personal achievement.

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