Purchase Solution

Cost Management and Coping with a Reduced Budget - Uptown Clinic

Not what you're looking for?

Ask Custom Question

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below are some data from the past year.

Program Area Costs

Administration

Salaries:
Administrator
$60,000
Assistant
$35,000
Two Secretaries
$42,000

Supplies:
$35,000

Advertising and promotion:
$9,000

Professional meetings/dues:
$14,000

Purchased Services:

Accounting and billing
$15,000
Custodial
$13,000
Security
$12,000
Consulting
$10,000

Community Mental Health Services
Salaries (two social workers)
$46,000
Transportation
$10,000

Outpatient mental health treatment
Salaries:
Psychiatrist
$86,000
Two Social Workers
$70,000

Give a dollar range of costs to reduce budgets (worst and best case analysis).

You need to cut $94,000 in cost. Prioritize those cuts that can be made without impacting the operation or quality care of the organization.

How would you advise Dr. White to prepare for reduced budgets?

Purchase this Solution
Solution Summary

This solution compromises of 1440 words detailing how a clinic might cut their budget, including helpful tables of where and how their expenses could be managed to deal with such a reduction in funds.

Solution Preview

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below are some data from the past year.

Program Area Costs
Administration
Salaries:
*Administrator $60,000
*Assistant $35,000
*Two Secretaries $42,000
Supplies $35,000
Advertising and promotion $9,000
Professional meetings/dues $14,000

Purchased Services:
*Accounting and billing $15,000
*Custodial $13,000
*Security $12,000
*Consulting $10,000

Community Mental Health Services:
Salaries (two social workers) $46,000
Transportation $10,000

Outpatient mental health treatment
Salaries:
*Psychiatrist $86,000
*Two Social Workers $70,000
Total $457,000

Give a dollar range of costs to reduce budgets (worst ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Introduction to Finance

This quiz test introductory finance topics.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Uptown Clinic Cost Management: Using Excel for budgeting and cost reductions

    I am the Chief Administrator of Uptown Clinic, a community mental health agency, I am concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Identify Where Costs Can Be Cut or Reduced: Dr. Stephanie White, Chief Administrator of Uptown Clinic

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Controlling budgets

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Dr. Stephanie White, the Chief Administrator of uptown Clini

    Stephanie White, the Chief Administrator of uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Management Accounting : key information

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • MANAGERIAL ACCOUNTING

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Analyzing budgets for cost cutting

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Budget Reductions and Derivation of a Cost

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

  • Description of Cost Management

    Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services.

View More Related Solutions