When deciding whether to use rolling forecasting alone or in addition to annual budgeting, finance leaders should consider major differences between the two approaches.

Hospital and health system finance professionals are turning increasingly to rolling forecasting to fortify their organizations’ financial projections with the most current performance information and data-driven assumptions. Rolling forecasting is used widely across many industries and by most Fortune 500 companies. In healthcare, it typically is applied in one of two ways: in conjunction with existing budget processes or as a replacement for annual budgets.