Budget Management Analysis Essays

1413 Words Jun 25th, 2012 6 Pages
Budget Management Analysis

HCS/571 Financial Resource Management
June 27, 2011
Dr. Lena Watson

Budget Management Analysis
Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made.
Strategies to
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The hours per patient day over budget may have been caused by the unit being over staffed or also due to the overtime and registry hours. The average daily census (ADC) per unit varied from being within budget to 7.50 over the budget. The daily census is very unpredictable and depends on the time of year, the admissions from ER or the clinic, and transfers from other hospitals or facilities. Strategies to keep the results aligned with expectations may be done by performance budgeting, which will analyze key areas such as staffing, cost control, increased productivity, and indirect and direct patient care. The activities affected by analyzing these performance areas would be daily staffing calculations, reduced cost to the unit, working more efficiently and better time management, patient care planning, and time spent on patient charting. Offering incentives could also be a good way to involve the staff by informing them of the budget goals.
Benchmarking
Benchmarking helps to identify performance gaps and identify where improvement is needed. “Benchmarking is used by large health systems and smaller practices alike as a tool to identify targets and set goals enabling staff to compare the operation’s service, process, and outcomes with those already attaining ”best practice” goals” (Borglum, 2008). There are many benchmarking

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