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