What To Do When Budget Cutting Threatens


Any department manager who has been through a financial belt-tightening exercise has undoubtedly collided with one of the fundamental contradictions to be encountered in organizational life, and especially in health care organizations.

That contradiction is, on the one hand, the fact that education receives a considerable amount of verbal support from senior management who speak of its importance, and their belief in education; on the other hand, as department managers frequently discover, after the first budgeting pass, when it becomes evident that further trimming is necessary to bring projected revenue and expenses into line, education is one of the first line items to be reduced or eliminated.

Also, by many who tend to view all expenditures in terms of cost versus benefits, education comes up short by very nearly defying cost-benefit analysis. In defense of your education budget, which the Budget Director has said must be reduced by half or more, you are to :

Address how you will utilize whatever funding you do receive to maintain your department’s proficiency.

Please utilize any pertinent research and your ability to develop compelling arguments in favor of your position on this issue.

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