Accounting – Operational budgeting at an award winning US healthcare organisation

The operating budget at the Mercy Health System (MHS), a US health care system and winner of the 2007 Malcolm Baldrige National Quality Award (Healthcare Sector), was an element of the annual strategic planning process. A top-down, bottom-up operating budget development process allocated resources based on contribution to achievement of strategic goals. Capital funding was tied to operating income targets, subject to available funds, and adjusted during the year to maintain corporate financial g...

BPIR Categories

11.1.1 Develop budgets
2.2.4 Formulate and review business unit strategy