The brief

The hospital wanted to strengthen its financial planning and get more value from the resources it already had.

The work

A run-rate review to ground the numbers

The work began with a run-rate review, giving the organisation a clear, evidence-based view of its current spending. That review fed directly into forecasting and budgeting, and gave executives confidence in how the budget for the year ahead was being shaped.

A bottom-up budget that reflects how the hospital operates

The bottom-up budget process was then rebuilt and overseen from start to finish. Developed with cost centre managers, the new budget reflected how the hospital actually operates, rather than rolling forward last year's numbers.

Reviews of key areas of financial opportunity

Alongside the budget work, targeted reviews looked closely at areas where the hospital could get more value:

  • nursing agency use;
  • VMO arrangements;
  • private practice funds.

These reviews delivered sizeable benefits for the client.

Sound accounting and regular reporting, restored

Sound accounting practices and regular reporting were reinstated for the hospital's private practice funds and its medical education expenditure. The funds' stakeholders now receive transparent, reliable information, which gives them a strong platform for good governance from here on.

What the hospital has now

  • An evidence-based view of current spending that feeds its forecasting and budgeting.
  • A bottom-up budget built with the managers who run each cost centre.
  • Benefits from its agency, VMO and private practice reviews.
  • Regular, reliable reporting on its private practice funds and medical education expenditure.