Happy Hosptal

Happy Hospital

Happy Hospital is well known for providing a high quality of care, meeting the needs of the community, and serving all people with dignity and respect regardless of their ability to pay. In 2008 Happy Hospital engaged in some poor fiscal decisions that could be detrimental to the future operations of the hospital. In order for Happy Hospital to improve its current financial dilemma they will need to review the current spending habits, begin to engage in more ethical operational practices, and begin to use budgets and performance reports to improve their decision making process. Looking at the overall picture and engaging in better financial management practices would better maximize their wealth potential.

Budgets and Performance Reports

The key to overseeing organizations finances is to compare the actual revenues and expenses with the figures that were projected in the budget. In order for Happy Hospital to come out of the poor fiscal condition that they are currently in, they need to take immediate action because their revenue is lower that their expenses. This information is needed to prepare a realistic budget, which can only be done by comparing this year’s budget with the actual results.

Happy Hospital will need to engage in the financial planning process for key planning to develop structure within the accounts, budgets, and the financial reports. This will also assist them with developing a sensible budget that makes projections for next year’s revenues and expenses. It is clear that there was no financial planning that went into the decisions. There were no priorities taken into consideration. Happy Hospital would do well by hiring a financial manager to assist them with future budgets, financial reports, and advising them on getting out of the current crisis that they are in.

Ethical Accounting Decisions

Ethics or simple honesty is the building blocks upon which our whole society is based, and business is a part of our...