Exercise: Adjusting the Budget
Using the sample budget for the health information management service beginning on page 269 of the textbook, Follow the instructions in the Exercise: Adjusting the Budget (on page 272-273 of the textbook). Respond to items 1, 2, and 3 in a written document. The items are provided below:
1. What would be the dollar impact if the 5% increase planned for January 1 were reduced to 3.5% and postponed until April 1?
2. As an alternative cost-saving strategy, determine the annual savings if all hourly staff were reduced from 40 to 37.5 hours as their standard workweek. Consider the top three staff—director, compliance specialist, and registries coordinator—as salaried and thus unaffected by the workweek change.
3. Determine the total dollar impact if both of the foregoing strategies were implemented together. Remember that the pay increase affects everyone, but the 37.5-hour week affects just the hourly staff.
Points Possible: 30 (10 points per question)
Text Book: “Management principles for health professionals 7th edition”
By Joan Gratto Liebler & Charles R. McConnell
