Health Care Research Paper on Budget Planning Process of a Health Service Organization

Budget Planning Process of a Health Service Organization


  1. Introduction


2.0 Situation Analysis

3.0 Evaluation of needs

4.0 Setting Goals

5.0 Implementation


  • Conclusion
  •  Reference Page

Budget Planning Process of a Health Service Organization

1.0 Introduction

The Budget Planning process consists of Situation analysis, Evaluation of needs, Setting goals and Implementation

  • Situation Analysis

During this stage, hospital managers assess the situation of the hospital in terms of the structure and size of the population it serves and its locality. The relevant stakeholders of the hospital are also consulted for their opinions on planning. The managers also assess the function of the budget to the hospital. The last process of situation analysis is usually to reviewing the available public and private resources of the HSO (WHO, 2012).

3.0 Evaluation of Needs

In this stage, an assessment of the needs of the clients is done. This is done by establishing the prevalence of certain common conditions within the area that the hospital provides its services. It is in this stage where the amount of resources required for health services is calculated. The assessment of the needs of a HSO is important when setting targets.

  • Setting Goals

This is the most important stage of budget planning in HSOs. In this stage, the most urgent and unsatisfied need is identified and set as a priority over the others. Priorities are listed from the most urgent to least urgent with time spans sets for their accomplishments. Usually, the times are between three to five years to ensure that realistic goals and time limits are set (WHO, 2012).

  • Implementation

During implementation, the HSO managers manage the budget to ensure that all the items are accomplished. During implementation, the HSO managers supervise and monitor the implementation of the activities set in the budget ensuring that all are achieved. In the end, evaluation is done to check whether the priorities set in budget were accomplished.

  • Conclusion

The steps of budgeting planning were formulated to ensure the HSO balances its resources and needs


WHO. (2012). Budgetting of HSO. WHO. Retrieved 8 June 2015, from