Healthcare Strategic Budgeting Issues & Solutions


Strategic budgeting, both from a theoretical perspective and in execution, has always been a hot topic for debate among experts in the economic field. This topic is extremely relevant for the healthcare system, which contains questions of effective personnel relations, technological innovations, and new challenges in terms of diseases and injuries. According to Vraciu (1979), “the planning, budgeting, and controlling processes (PBCP) largely subsume all of the planning and controlling activities of an organization” (p. 126). The purpose of this paper is to consider the new problems facing healthcare strategic budgeting, possible ways to overcoming these problems, and the responsible part of the Radiology department manager in it.

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New Obstacles of Healthcare Strategic Budgeting and Methods of Solution

New difficulties of a competent budgeting strategy are related to the issue of overpopulation. Every day, the number of human beings increases, and so does the number of patients. This leads to high costs for hiring more medical staff, a number of procedures, and care for sick people. This issue can be solved by establishing a payment system based on the funds spent on treatment. Another important task of strategic budgeting is the calculation of the financial costs of updating the apparatus of a medical institution. The business and reputational success of a medical organization depends mostly on the latest technical treatment methods. The great support can be shown here by the Radiology department manager. According to Vraciu (1979), “much of the management control process involves informal communication and interactions” (p. 126). Radiological equipment is the most expensive aspect of any clinic, and competent knowledge in its application, shelf life, and training of other specialists can save a lot of money.


In the process of strategic budget composition, persons responsible for the financial component should consult key specialists. They also need to know and understand important topics of the world community, such as overpopulation and significant events in technological progress. Keeping up with the times and ongoing consultations can determine the success of the distribution of funds and, consequently, decide the fate of the organization as a whole.


Vraciu, A. (1979). Programming, Budgeting, and Control in Health Care Organizations: The State of the Art. Web.

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