What is an Expense Budget Assumptions for Healthcare Providers?

Expense Assumption input forms are considered budget drivers and are often used by budget managers to automatically calculate expenses such as for personnel and capital purchases. Some of the key functionality in this type of form is that it provides input for salary and capex drivers. Details for compensation includes tax and benefit drivers, increases for shift, overtime and other labor. Details for capex include average lifetime for various asset categories. You find an example of this type of form below.

Purpose of Expense Assumption Forms

Hospitals and clinics use Expense Assumption Forms to streamline and automate their expense budget. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, an organization can improve its expense planning process as well as reduce the chances that budgets become static and time consuming to adapt changing circumstances.

Expense Assumption Form Example

Here is an example of a Expense Budget Assumption form for a healthcare provider.

Expense Budget Assumptions for Healthcare Providers Example

Expense Budget Assumptions for Healthcare Providers Example

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Who Uses This Type of Form?

The typical users of this type of form are: Budget Managers, analysts and CFOs.

Other Forms Often Used in Conjunction with Expense Assumption Forms

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Expense Assumption Forms, along with detailed budget input forms for revenue, capex, payroll and operating expenses and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

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