What is a Operating Expense Budget Model for Healthcare Providers?

Operating Expense (“Opex”) budget input templates are considered essential in annual budgeting and forecasting processes and are often used by budget managers to collect expense plans from each department, especially within a healthcare facility. Key functionality in this type of input model shows months across the columns and general ledger (GL) expense accounts down the rows. Note: Any GL account (like payroll or capital expenses) that requires more detailed models will have their own templates that roll up to the Opex form. For any account where the user needs to enter more detail, they can click at the bottom of the screen to open a line item detail screen. This enables unlimited budget transactions with comments and spreading per GL account. You will find an example of this type of input model below.

Purpose of Operating Expense Models

Hospitals and clinics use Operating Expense Models to get a detailed plan for their operating expenses at the department level. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a healthcare provider organization can improve its expense planning accuracy, as well as, reduce the chances that the budget process is delayed because department heads have not properly documented the reasons for their funding requests.

Operating Expense Model Example

Here is an example of a Operating Expense budget input form with line item detail and spreading.

Operating Expense Budget Model for Healthcare Providers Example

Operating Expense Budget Model for Healthcare Providers Example

You can find hundreds of additional examples here.

Who Uses This Type of Input Model?

The typical users of this type of input model are: Budget managers and department managers.

Other Input Models Often Used in Conjunction with Operating Expense Models

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Operating Expense Models along with budget templates for revenues, KPI metrics, payroll, balance sheet 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)

Corporate Performance Management (CPM) Cloud Solutions and More Examples