Budgeting Basics for Medicaid Organizations
Budgeting Basics for Medicaid OrganizationsMedicaid organizations have closely watched budgets — government agencies must be sure budgets line up with recommendations and allowances on a state and federal level. Data analysis, care delivery analysis, and analysis of other existing data collected by the agency can inform future budgets and assist in altering current budgets where it is needed. The budget of an organization can impact everyone from individuals receiving services to employees to agency suppliers and must be considered carefully before changes are made. The purpose of a budget is to plan, track, and control spending and support funding requests. Let’s take a closer look.
Analyzing the Current BudgetAlthough many aspects of a direct support provider agency’s budget are determined by state and federal regulation, there is some wiggle room. Analyzing the budget will require the help of financial professionals within the agency, or supplied through third-party auditing companies or the government. The main steps of budget analysis are:
- Item-by-item review and analyzing expenditures
- Using tools to help analysis
- Incorporating the organization’s mission
- Funding authorization and a budget resolution
- Measuring performance, effectiveness, and outcomes of the new budget
Need help? DCI can help with budget analysis!
Establishing a Timeline for New Budget ImplementationOnce an organization knows which changes need to be made, a timeline for making the changes should be established. Finance and management are the best people for this job, as well as IT employees who will be implementing the changes in the network or system. The timeline should be rolled out to the entire agency in time for completion, and adjusted if necessary.
Budgeting Policy & Procedure Follow UpAs in any large agency or provider budget change, measurements will have to be put in place to find out if the budgetary changes are or were effective, and what future changes may need to happen. Monitoring a budget is an ongoing project that all businesses and organizations should stay on top of if they wish to be successful.
DCI can help an organization analyze, plan, and implement any budget changes necessary to improve functioning, resources, and care.
Using a Project Management ApproachThe best and simplest way to ensure that a new budget is planned, implemented, and successful at an organization funded by Medicaid is to follow a project management approach. Project management requires that the provider agency goes through these steps to ensure that the budget project is properly begun, completed, and reviewed for success or changes down the line:
- Monitoring and Controlling