With this model, services that were once billed separately are paid as a single (typically reduced) reimbursement. Bundles have the net effect of decreased overall payments. This is manageable from a budgeting standpoint if practices have advanced notice, and if each of the bundled services are provided by a single entity. The accounting becomes much more complex when services provided by different entities receive a single payment, and more challenging yet when a single payment is provided for the services of multiple physicians (often representing different practices). It is likely, under this scenario, that hospitals will receive global fees and then decide how much to pay to each participating physician. In effect, physician practices will have little-to-no ability to forecast revenue from hospital services provided. Episode of care is an additional model that combines features of fee-for-service and bundled payments. Physicians will be paid global fees to provide care to patients for extended periods.

Budgeting can be a very boring and daunting task that many people would rather continue to put off instead of actually take action and set a budget they can stick to. You do not have to be an accountant in order to understand the process of budgeting and learning just what makes a successful budget work and most importantly how to stick to this budget over time. When you first begin to think about learning how to budget your bills and other monthly expenses, it is important to keep it simple from the beginning and create a basic outline of your budget to start with. Getting too complicated in the beginning can become frustrating and difficult if you are new to this type of financial control. You want to first start out with a sheet of paper with one side listing your assets and the other side listing your liabilities, your monthly or reoccurring bills.

You can now roll with the punches. You are no longer limited by one months worth of pay. Go ahead and dip into your reserve buffer. YNAB will adjust your next months budget by deducting whatever you borrowed for the unexpected expense. So if you are twenty dollars over buget in May, then you will have twenty less dollars to use for budgeting in June. Are you over your budget? Are you under your budget? With YNAB you will quickly be able to tell. When you start the software you create budgeting categories or use the defaults. You can use basic categories such as Debt Reduction, or break it down with subcategories such as “Debt Reduction:Credit Cards” and “Debt Reduction:Car Loan”. Next, record your transactions in the register. Enter these transactions manually or download them in Microsoft Money or Quicken format from your bank. You will then assign a budgeting category to each transaction in your register.

Do you have trouble budgeting? For most the answer is yes. Budgeting doesn’t have to cause headaches. Budgeting can be easy using YNAB. YNAB is software used to create and follow a budget. YNAB makes it easy to set limits for budgeting categories and track how you are doing. The goal is to stop living paycheck to paycheck. This is accomplished by creating a one month buffer. The one month buffer is equivalent to how much you make in one month. The buffer is used to budget for the current month. For example if the current month were June, you would be budgeting and spending money you made in May. Don’t worry if you don’t have enough money saved up for your buffer. YNAB will show you how to create it. After you have your buffer created you will no longer be surprised when unexpected expenses such as car trouble or medical expenses arise.