Budget Management Anylasis Essay Example for Free

Bud beat back Management Anylasis EssayThe first step in cost-variance analysis is under take aimed a budget this is an assumption of all cost in the hospital (Miller Ryan, 1995). The second step is to soak up information on accurate cost accounting (Miller Ryan, 1995). It can be challenging for healthcare organizations to develop a budget or cost-variance analysis because of the complexity of the healthcare economy. Using the hospital of phoenix budgeted cost were compared to actual utilization. Several variances exist in all categories.Developing an accurate budget is one strategy to manage a budget within the forecast. Collected data and accounting resources can help counseling to formulate an accurate budget. Other strategies can come from surveying all parts of the hospital to get the opinions of staff in all field of forces on how to keep costs in budget or evidently minimize cost. The elaboration of all staff will create an urgency for budget compliance and invol vement will make employees feel as though the task is more personal. Benchmarking progress through surface the year is important. Changes and evaluations can be made to areas that are not with in the targeted budget. This will help by making changes before the variance becomes any higher and may decrease the general variance.The budget embrace showed variance overage among convict gross, outpatient revenue, delegacy supplies, purchased services, equipment maintenance repair, depreciation expense, and operating margin before contractuals. The inpatient and out patient revenue had variances that were over the projected budget. However, as a result of the decrease in patientservices the operational expenses of salaries, benefits, medical supplies, and pharmaceuticals were reported under the projected budget amount. The decrease in patient services could have been for a number of reasons. Repairs and maintenance on equipment was under budgeted for. Lack of work equipment may have been one reason for the decrease in patient services.If needed equipment is not useable a patient must be sent to a facility with the proper equipment and services. This takes a right smart from the hospitals revenue as well as its statistics. To determine other reason why there was a rectify in patient revenue would require more information. The overage of money spent on force supplies cannot be accounted for. There was a lower than expected patient load therefore the cost for office supplies should have been lower than expect as the medical supplies proved to be. There needs to be a unit based investigation to see where the additional expenses on office supplies are coming from.To meliorate the variance with in the predicted budget and the actual spending benchmarking should be used. There are three approaches to benchmarking competitive, cooperative, and collaborative (Finkler, 2007). Competitive benchmarking would find specific information about individual areas. This would be a good way to track supply usage and also staffing on individual units or areas of the hospital. Cooperative benchmarking is a play in which information from other organizations is used to improve this hospitals budget (Finkler, 2007).This could help the hospital improve the overall budget analysis and plan ways to save within the facility. The third benchmarking approach is collaborative benchmarking which refers to determination information in particular areas of the hospital and using it to benefit all areas of the organization (Finkler, 2007). Information from the pharmaceuticals area could be used to improve other areas such as the variance with office supplies.ReferenceFinkler, S. (2007). fiscal Management for Nurse Managers and Executives (3rd ed.). Saunders Elsevier Inc. St. Louis, MO. Retrieved on February 29, 2013 from University of Phoenix Materials.Miller, T. R., Ryan, J. B. (1995). Analyzing cost variance in capitated contracts. Healthcare Financail Management, 49 (2), 22-3. Retrived from http//search.proquest.com/docview/196372371?accountid=35812 Nelson, B. (1994). Improving coin flow through benchmarking. Healthcare Financial Management, 48(9), 74-8. Retrieved from http//search.proquest.com/docview/196364264?accountid=35812