Describe the financial concepts associated with staffing in a health care organization.
Financial concept in healthcare staffing is very significant to understand for the managers. Healthcare is primarily service sector in which staffing cost is the main contributor in total overall cost. Staffing forecasts are inputs in the operating budget. Staffing forecasts have three important considerations; controllable vs non-controllable expenses, required minimum staff levels and labor market issues in staffing forecasts.
Controllable costs are subject to a managers’ own decision making, the areas that are non-controllable costs are outside the manager’s power. When the non-controllable expenses are included it is very difficult to make staffing
Financial concept in healthcare staffing is very significant to understand for the managers. Healthcare is primarily service sector in which staffing cost is the main contributor in total overall cost. Staffing forecasts are inputs in the operating budget. Staffing forecasts have three important considerations; controllable vs non-controllable expenses, required minimum staff levels and labor market issues in staffing forecasts.
Controllable costs are subject to a managers’ own decision making, the areas that are non-controllable costs are outside the manager’s power. When the non-controllable expenses are included it is very difficult to make staffing