ABSTRACT
The development of budgets follows establishment of the annual plan that outlines desired performance in the practice through defined programmed activities. Zero-based budgeting is a defense against creep up in numbers of FTE employees and in support for non-productive activities. This chapter presents budget plans to balance decreasing reimbursement from third-party payers with needs for medical care of good quality. The chapter enhances financial management of the practice by systematically predicting and achieving desired successes. It enhances financial management of the practice by systematically predicting and achieving desired successes and addresses the application of financial information and information on volume and utilization in the managerial process. Physicians can prepare to succeed through effective financial management founded on sound practices. Without clear leadership and proactive participation by physicians at each level within the universe of health care, there will be less effective health care, health products-related services, and less excellence in both the clinical and service quality of the care provided.
