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Running head: OPERATING BUDGET PROPOSALOperating Budget ProposalName:Course:Instructor:Date:1OPERATING BUDGET PROPOSAL2IntroductionThe aim of this operating budget proposal is to depict the alignment between the proposedbudget and the targeted profit margins of the clinic. it provides an overview of the environmentalforces or factors likely to have an influence on the proposed budget and ways to minimize theirimpact. The measures to track financial performance and its evaluation are also proposed andexplained.Environmental Forces Likely to Affect the BudgetThe American Health Care Act (AHCA) that was passed by the U.S House of Representatives,will decrease the federal spending on Medicaid by more than $834 billion over the next tenyears. The recently released Senate bill will cut Medicaid even further. It will place caps on thefederal dollars which states receive to provide health insurances to millions of low-incomeearning Americans. This means that over the next ten years, hospitals especially those inMedicaid expansion states will have an increase in uncompensated care. This comprises ofservices or treatment offered and not paid for by the insurer or patient. This is likely to result in amarked decline in the clinics operating margin (Page, 2014).A lot of money is spent on compliance and related activities. Changes in compliancerequirements may result in a shift according to the allocated budget. Healthcare organizationsbear the costs of ...


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