Healthcare is a business in which money is brought in via payment for services and money is spent toward providing those services.

Healthcare is a business in which money is brought in via payment for services and money is spent toward providing those services. Every effort is made to anticipate the dynamics of revenue and expenditures by developing a budget. However, when those two have a gap in which revenue is less than expenditures, then a manager must find a way to bring the two together. One way to address the issue is to look at the salary and benefits being provided to the employees. Below is a sample of salary and benefits for an employee at your facility:

Salary and Benefit

Dollar Amount $ per year

Base Salary

47,000.00

Medical Insurance

   7,600.00

Life Insurance

      500.00

Accidental Death and Dismemberment

      600.00

Long Term Care Insurance

    2,000.00

Paid Time Off

    3,100.00

Retirement Plan

    1,700.00

Consider and Discuss the following:

In the event of a budget shortfall, which of the benefits would you cut to meet your budget and still be an attractive job to prospective employees?

Describe the reason and rationale for your choice of benefits to cut.

If the opposite were true and the revenue exceeds the expenditures, then you would have money to enhance the working benefits for your employees. In that case:

If you could add a benefit for your employees, what would that benefit that you would add?

Describe the reason and rationale for your choice of benefits to add.