Which of the following is a key component of a medical practice's budget planning?

Expense forecasting is indeed a key component of a medical practice's budget planning because it involves predicting future costs based on historical data, expected changes, and potential growth. This allows the practice to allocate funds appropriately, ensuring that there are sufficient resources available for both operational and capital expenditures. By accurately forecasting expenses, a practice can maintain financial stability and make informed decisions regarding staffing, equipment purchases, and other investments.

In contrast, patient demographics, while important for understanding the patient population and tailoring services, do not directly impact the financial planning aspect of the budget. Staff training needs are vital for improving staff performance and patient care but are part of operational planning rather than core budget planning. Health insurance coverage is critical for both patient care and revenue generation, but it is not a direct component of the budgeting process itself; instead, it can be affected by the financial planning conducted through expense forecasting.