A flexible monthly budget would be recommended for a hospital which:

A flexible monthly budget is particularly beneficial for a hospital that is planning to close some of its wings for renovation for three months. This scenario involves a significant and temporary change in operations, which can lead to fluctuations in both revenue and expenses. A flexible budget allows for adjustments based on actual activity levels, enabling the hospital to more accurately reflect its financial situation and resource utilization during the renovation period.

Since the hospital will face varying costs related to the renovation and potentially decreased revenue from reduced service capacity, a flexible budget can be tailored to reflect these changes. This allows for better financial management and forecasting, accommodating the uncertainties associated with the renovation process.

In contrast, expecting no changes in expenses or revenue, as described in the first option, suggests a stable operational environment where a static budget would suffice. Expecting to be at 90% occupancy implies a relatively predictable operating level, which also might not necessitate a flexible budget. Lastly, the size of the staff alone does not directly warrant the need for a flexible budgeting approach, as the complexity of operations and financial variability is more significant in determining the necessity of flexibility in budgeting.