Annual Report of XYZ Health Care, Essay Example

Report of Budget 1

1. In this budget the Administration Department Director, Business Officer, Business Office Clerk and Administrative assistance are under the state and Local Funds so the Salary of these members is increased by 3%.
2. The Clinical programs in which Nurse practitioner, Nursing Supervisor, Nurses salaries, Nurses Aid, Clerical Support is not yet increased. Salary of the staff which is under the clinical programs is not increased by 3%. Because the clinical revenue cover clinic expenses and all the other liabilities and assets.
3. Staff which are under the environmental Program like Environmental Supervisor, Environmentalists and Clerical support is also increased by 3% because they are also under the state and local government fund.
4. In Health Promotion Program the source of fund is Prevention Grant in which the staff .members Nutritionist or Dietician, Health Educator, Cancer Prevention Coordinator, Diabetes Control Coordinator and Clerical Support are considered they are unfortunately cannot take the advantage of the increase of salary.
5. 3% of salary is contributed in the managed benefit fund which is only for our full time employees, retirement; health and life insurance these are facilities are given to them. That employee which is a part time or temporary worker they do not contribute in managed benefits.
6. After doing all these increment and contribution in the benefit budget we sum all the price that is % FTE, Annual Salary, FICA Medicare, Annual Benefits are sum of under the Total Compensation. Which is sometimes greater in the case of the employees that are under the State and Local fund? And sometimes have no effect in the case of employees that are under the Clinical funds and Prevention Grant.
7. As the foundation funding ends on the December 31, 2014 we also close the staff support services because in this way there is huge pressure on our department budget. And department cannot survive with that amount of workers. And the other reason is that the budget is sufficient for all workers that are present at the past time of the company (Stickney, 2010).
8. The additional positions have to be eliminated because of stop funding of the foundation budget. The eliminated position consist of those workers who are under the outreach. Because those workers are not permanent and they are not contributed in the managed benefit.

Report of budget 2

1. In the Second budget the foundation funding of 10% is deducted because of this mostly programs of health services should be closed. Due to this deduction there is a great effect on company annual budget and company needs to have stakeholders to keep company survive (Pandey, 2005). Due to this deduction the Salary which is increased in the previous plan of budget is not increased and remains the same as earlier.
2. Our Revenue will low and company expenses are increased in this way the company. There is no way to continue all the programs because the company fund has been deducted. When the revenue will low then it has a great effect on the Clinic fund and the services of Staff providing will also take effect. Now there is two if the Local and state funding offer that they can fund the Clinical department then the service of staff providing is not remain closed.
3. If the company increased the salary of remaining staff then it is also be a very dangerous time for the company so it is better that the company don’t increase the salary of the worker full time or half time. The best plan is that to decrease the salary of 10% all the workers that are working in the organization.
4. As there is decrease in the Salary of the members then it also decrease the company annual budget. In annual budget all the salaries, Expenses, Liabilities and General Operating Expenses is included. But now it has a great decrement in the budget because of the decrease in the Salaries and Expenses.

Negotiation Strategy

Negotiation is a technique of getting things what you want from others. It is a backward and forward communication to reach at a pre-defined target. Any negotiation technique involve following elements:

1. Being clear of what you want?
2. Understanding the context.
3. Preparing the ground
4. Managing you and copying with encounter (Fletcher, 1998).

A health care organisation generally has to spend on following 10 essential services where budget reduction can be desired by the organisations:

1. Monitoring health status
2. Diagnose and investigate health problems
3. Empowering and educating people against few major diseases
4. Mobilizing community partnership to solve health problems
5. Enforcing laws and regulations which protect heath
6. Linking people for personal health services
7. Assuring a competent healthcare workforce
8. Evaluating and testing of health care services
9. Research and development tasks
10. Developing policies and plans (i.e. administrative roles)

In the current situation the purpose of XYZ Health Care is to reduce the budget expenses. United States, Congressional budget office (1991) has given some

1. Limiting the expenses on particular health care services like Canadian federal government has capped its contribution to national health spending (United States. Congressional Budget Office, 1991)
2. Former West Germany Health Care Cost Containment Act of 1977 has established an annual assembly of health care providers which sets a limit on the growth rate of spending on health care service provider alliance. This strategy can be adopted by the Health care organisation under study (United States. Congressional Budget Office, 1991).
3. Expenditure targets for physician services can be effective means to set the spending under limit. In case, service requirement increases of physician’s services, their pay rate should be decreased as compared to normal rate. It is an effective way to achieve budget reduction (United States. Congressional Budget Office, 1991).
4. Reduce the use of services by increasing the out of pocket price to consumers.
5. Spending should be done against quotation as opposite to normal direct buying from a single supplier.
6. Asking for higher contribution and donations from the local and state officials is also a good tact to manage cost effectiveness and budget reduction.

Assumption of successful use of strategy: Here the only thing which can be assumed is that professional services can be acquired even at restricted amount of spending or budget. In case, it is likely that after controlling the expenditure the services hampered, then the strategy would assumed to be failed.

Role of Stakeholders

Stakeholders comprise a various categories of people or organisation around the organisation. Following are the main groups which consist of stakeholders:

1. Shareholders or Members
2. Customers
3. Suppliers
4. Government Officials (State, Local and National)
5. Society and general public

Stakeholders are always important for any organisation whether it is for the profit organisation or not for profit organisations. We can assess the importance of each of them as follows:

1. An organisation whether it is profit oriented or not, need funding and finance. So, role of shareholders (in case of companies for profit) and members (in other type of organisations) is very important as they provide finance which is must for operating growth and survival of organisation.
2. A health care organisation is particularly dedicated to serve patients. Without them a healthcare organisation has no worth. This is the money charged from them which is major source of revenue of a health care organisation apart from donations etc. from other groups.
3. Suppliers’ role is however limited in providing the supplies like medicines and other materials needed.
4. For a health care organisation role of government officials is really important as they are the second big source of revenue in form of grants and donations apart from other sources like fees and charges from patients.
5. Company should analyse its problem for not making progress and then work on that why all this happen and senior member like manager try to overcome these problem then the company will be in better condition.

There is very important role of manager that he creates an environment of work (Murray, 2009). If the manager is sincere with the company then no doubt any organization can make progress. These are the following points of negotiation or which states the official budget reduction:

1. Official budget is reduced by the deduction of the 10% of state and local fund. State and Local Fund handles the salary of the staff and the General Operating Expenses.
2. Second reason of the reduction of budget is to completion of the agreement of the outreach program at December 31. That organization in which organization providing the support services (Lall, 2001). In this way 25% is deducted from the health education.
3. The Source of fund Prevention Grant and WIC Grant is very low as compare to State and Local Fund. The result of which, company has no fund for the completing their own needs.
4. The fund for the Preparedness Coordinator and Clerical Support comes from the preparedness Grant which is already very low.
5. Outreach Clinical Nurses have 40% FTE only that is from the outreach Grant which is a source of fund.

Reference

Fletcher, K., 1998. Negotiation for Health and Social Services Professionals. USA.

Hagel, J., et al, 2008. Shaping Strategy in a World of Constant Disruption. Harvard Business Review, 86(10), pp.80-89.

Lall, S.e.a., 2001. Competitiveness, Technology and Skills. Cheltenham: Edward Elgar.

Lund, S..e.a., 2013. Financial globalization: Retreat or Reset? Global Capital Markets 2013. McKinsey Global Institute.

Murray, 2009. The Wall Street Journal Guide to Management. Harper Business.

Nelson, S.S., 2008. Strategic Planning for Results. USA.

Pandey, M., 2005. Financial Management. New Delhi: Vikas Publishing House Pvt Ltd.

Plotnik, R., 2011. Introduction to Psychology. Belmont, CA: Wadsworth.

Shields, J., 2007. Managing Employee Performance and Reward: Concepts, Practices, Strategies. UK.

Stickney, C..e.a., 2010. Financial Accounting: An Introduction Concepts, Methods and Uses. South Western: Cengage Learning.

Sybille Sachs, ?.R., 2011. Stakeholders Matter: A New Paradigm for Strategy in Society. UK: Cambridge University Press.