Use a Rolling Six Quarter Forecast (6QF) to Improve Performance

• Provides an updated financial plan every three months
• Creates a focused plan using Key Demand Indicators and Key Expense Drivers
• Senior leadership drives the plan because they make the assumptions
• Model can be easily updated for any significant business change
• Track daily progress for quarterly success
• Improves financial planning while saving time
• Includes capital expenditure plans
• Includes financing and capital lease plans
• Includes major business unit acquisitions or sales
• Results in a complete set of financial statements including cash flow
• Multiple scenarios can be created by simply changing the key assumptions
• Other periods can be used such as monthly, semi-annual or annual

The 6QF is Very Efficient

• Requires only 15 to 20 hours of Finance time each quarter
• Senior leadership spends only 1 to 2 hours each quarter

Hospitals have Stopped Budgeting

• Manager time spent budgeting is redeployed to operational improvement work
• Benchmarking actual costs per unit of service and actual to prior actual
• Forward looking financial planning
• No more budget to actual explanations for past months
• Budget preparation “game playing” is eliminated