Happy Hospital Analysis

Running Head: Happy Hospital Accounting Scenario

Happy Hospital Budget Accounting Scenario & Decision Making

ACC/HC 561

University of Phoenix

Professor: Charlo Ann Reynolds

Dalia Kahill

October 29th, 2010

Happy Hospital Budget Accounting Scenario & Decision Making

Happy Hospital is a 115 bed non- profit community hospital, and it has a long tradition of providing high quality care, meeting the needs of the community, and serving all individuals with respect and dignity despite of incapability of paying medical bills. Currently, Happy Hospital has approximately $12.5 millions of current assets, with the vast majority falls in account receivable, compared to $4.3 millions in current liabilities, and only $800,000 in cash (Finkler & ward, 2006).

Harm O.Knee, CEO of Happy Hospital and other officials could utilize budget and performance reports as part of the decision making process along with how ethics must affect management’s accounting decisions. Finally, this paper will address some accounting information that is the most relevant for happy hospital to consider in making decisions.

The CEO understands the crucial need for the Electronic Medical Records (EMR) system for the organization to improve efficiency and to reduce medical errors. It is time to keep up with advancement in technology and overcome any medical record’s problem to better serve the patients and provide them with the best quality care. Recently, there are two different vendors have been promoting for their medical records systems; both are good examples for improving efficiency and reducing errors. Because Mr. Knee is pushing the management to decide which vendor to award the contract, it is necessary to have cost account reports, performance report, and budget report available for the management to finally decide on which vendor to choose or whether to proceed investing in this system or not.

The budget and performance reports would be primarily used...