Tuesday Morning Learning Opps
Does RCM Budgeting Make a Difference in Financial Health?
- Tuesday, July 16
- 08:30 AM - 09:45 AM
- Austin Conv Center
- Level 4, 16
Implementing Responsibility Center Management (RCM) budgeting requires senior leadership to make large commitments for information system resources and provide major support for substantial culture changes. In environments of diminishing resources, senior leadership looks for solutions that will not only help survivability but also accomplish more strategic priorities with less cost. Hear the results of a study that examined four public institutions in two states with both RCM and non-RCM budget models; this research attempts to determine if a large resource commitment results in a measurable change in financial health. The findings indicate that differences in financial health were not significant, based on annual percentage changes in the Composite Financial Index (CFI), the four core ratios of the CFI, and four related performance metrics over a 10-year period.
- Optimize information for making strategic decisions
- Describe budget models and their definitions and applications
- Use performance ratios to evaluate longitudinal changes in financial health