Share
Explore BrainMass

Analysis of Health Care Budgets

When analyzing an expense report of a general medical floor in a hospital what are some benchmarking techniques that can be used to avoid budget variences and those that might improve budget accuracy in future forecasts.

Solution Preview

Analysis of Budgets in Health Care

When analyzing an expense report of a general medical floor in a hospital what are some benchmarking techniques that can be used to avoid budget variances and those that might improve budget accuracy in future forecasts.

Some benchmarking techniques include setting budgets based on a strategic point of view to fund future growth and operations. First set the volume or revenue side of the budget and then balance ...

Solution Summary

Some benchmarking techniques include setting budgets based on a strategic point of view to fund future growth and operations. First set the volume or revenue side of the budget and then balance it by driving down the cost side and by providing managers with the following year's budgets based on historical performance to hold costs down. The budget can be managed through educating hospital management about budgeting and finance, offering incentives to stay within budgets, holding budget variance meetings with managers, and requesting corrective action plans from managers whose budgets are outside targets, setting accurate budgets, establishing accountability, monitoring variances, and managing expenses.

$2.19