Your company s CFO begins the preliminary work of developing the organization s financial plan for the upcoming year. Recently, there have been several articles in the newspaper regarding the state s need to cut its healthcare budget. There have also been rumors in the community that the state Medicaid budget may be reduced, including those eligible to enroll in government funded health plans. Over the past year, there have been Board discussions regarding diversifying and opening healthcare facilities that provide services to various populations other than Medicaid recipients. Compose a memo to the CEO regarding your department s preparation for next year s financial plan. In the memo, address the possible issues surrounding next year s forecasting including the management structure that could be considered for next year s financial plan.
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