When we talk about budgets, we can divide them into several types based on their classification. The types of budgets that exist are:
The master budget which is based on what is available for the entire organization and it contains the lower level budgets that surround the rest of the units that operate under this organization. One of the characteristics is that it is presented with an image where the union of all the general financial projections of the company is the fundamental objective, in addition it also constitutes a planning tool which is in charge of centralizing all the financial management of the organization and is together with the evaluation team they evaluate the costs of the organization as well as the fulfillment of the central work, also another task is to allocate the different funds and guide the activities of a full fiscal year. We could mention several examples such as the cash budget and the financial statements. Another type of budget that we can see in organizations is the operating budget, which is based on data collection and income analysis for a certain time. It is presented as an income plan that includes labor, administrative expenses and other expenses that are developed daily for a period of one year. An example of this type of budget is the settlement of wage costs. Another budget that is also important to talk about is long-term budgeting, which is currently widely used by companies since it is used based on planning for the future in each time. The program budget is another that is dedicated to specific programs, that is, it focuses on the analysis of programs that have a specific objective or a certain scope. An example of this can be seen in a budget for a cardiovascular care center. We should mention the financial budget that specializes in ensuring that the type and amount of funds are always available and for all situations. With this type of budget, you can always determine their availability and constantly monitor basic needs. Lastly, I am going to mention the cash flow budget, this budget modality is the one used by the administration, which includes operational and financial activities, etc. In short, this type of budget reflects the projection of how and when money comes and goes. (Tomey, 2009)
The definition of the budget in financial terms consists of an integration and coordination plan where there are a series of financial terms that are related to the different operations and include the resources that are in a certain company for a certain period of time. Its main objective is to meet the expectations of the administration and the high command of the organization. This preparation process is used to plan the organization’s funds in a concrete and safe way, establishing a financial plan to achieve this objective that includes the income and expenses that are forecasted for a determined period, they are also used to support different financial activities. It is of great importance since the management plans, objectives and plan are formalized to achieve the planned goals. (Drake, 2020)
Direct costs are nothing more than those costs that are directly associated with the realization of products and are part of the goods and services of a given company, these direct costs can be translated as the labor used in the processes, the materials that are used for production. In the world of medicine, these direct costs could be doctors, technicians, nurses, in other words, everything related to the patient, among which we can also include laboratories, images and medications. On the other hand, indirect costs are based on those that are not directly associated with production. Most of the occasions are difficult to assign to any specific good and it is part of the depreciation. Examples in the environment in which we are related would be maintenance costs, as well as air conditioning, building rent and energy. (Mangla, 2016)
The productive hours as its name expresses are no more than the hours in which the worker is producing, that is, the hours in which the worker is performing the work to which he is dedicated. In the case of nurses, the productive hours would be the 12 hours dedicated to the attention and care of the patient. Unlike the productive hours, the non-productive hours are hours that are paid to the worker without the care of the patient or the function for which he was hired, an example of which are the so-called PTO, which are those hours that are used for vacations or for family emergencies.
The Health Maintenance Organization known by the acronym HMO is an organization created with the objective of grouping together a series of providers with the objective of providing health insurance coverage with a monthly or annual fee. This organization is also in charge of limiting the coverage of some providers as well as helping them to collect and profit from them. (Falkson, 2020)
Preferred Provider Organization with the acronym PPO is the organization that is accessible to those users with fewer resources and with less money coming into the home, this organization offers low prices and guarantees that these alternative plans exist where facilities Doctors provide their services to these low-cost clients at reduced prices.
Point of Service Plan is a hybrid of HMO and PPO. This type of organization is a mix between those we have spoken about previously and the fundamental objective is that those who participate in this plan be appointed to a doctor who is within a network and thus receive the proper care with characteristics of those of primary care as in HMO, despite that you can use services outside the certain provider network and be able to access the services although with characteristics of medical care as in a PPO, with the difference that we must pay a higher cost high for service.
The DRGs are called the diagnostic groups since they form a system where all the studies that are carried out of the patient that form hospitalization charges are covered from the moment the patient is admitted until his discharge. A feature of this system is that patients are classified and accommodated to a prospective payment, which helps to contain the high costs and damage that hospitalizations cause to patients.
In the previous question we talked about what DRGs were and what their objectives were. These diagnostic groups cover all costs related to patients from the time of hospitalization to discharged, these patients will be covered and without the stress of having to pay for services at the time of care, it is a great relief not only for patients but also their relatives. After the discharge, the patients are accommodated to make payments that can be monthly or annual depending on the situation. These groups also make sure to eliminate the high costs and discomforts that can be caused during hospitalizations. (D’Agostino, 2019)
D’Agostino, F. V. (2019). Nursing diagnoses as predictors of hospital length of stay: A prospective observational study. Journal of Nursing Scholarship, 96-105.
Drake, K. (2020). Staffing during budget cuts. Nursing Management, 51(3), 56.
Falkson, S. R. (2020). Health Maintenance Organization (HMO). StatPearls Publishing.
Mangla, S. O. (2016). Novel model of direct and indirect cost–benefit analysis of mechanical embolectomy over IV tPA for large vessel occlusions: a real-world dollar analysis based on improvements in mRS. Journal of NeuroInterventional Surgery, 1312-1316.
Tomey, A. M. (2009). Nursing management and leadership. Missouri: Elsevier.