I work in healthcare and we use a static budget so there are always variances. A lot of the variances come from variances in visit counts. For example. a heavy flu season will bring in an influx of patients to the urgent care and pharmacies. There can also be negative variances such as a new competing urgent care opened and our volume went down. What is a good response to? A big area of variances that we see is in payroll. Being that healthcare is a service industry, our largest cost is payroll and variances can be significant. Those variances will need research because unusual payroll patterns will affect the departments performance. Variances can be from terminated or newly hired employees, bonuses, disability leaves, fluctuating shifts etc. Another category that requires more research is outside services. We have significant costs in services we outsource and large fluctuations need to be researched. Understanding the budget well and which cost variances need research will help identify issues earlier and lead to more productive decisions.
I work in healthcare and we use a static budget so there are always variances. A lot of the variances come from variances in visit counts. For example. a heavy flu season will bring in an influx of patients to the urgent care and pharmacies. There can also be negative variances such as a new competing urgent care opened and our volume went down.
What is a good response to?
A big area of variances that we see is in payroll. Being that healthcare is a service industry, our largest cost is payroll and variances can be significant. Those variances will need research because unusual payroll patterns will affect the departments performance. Variances can be from terminated or newly hired employees, bonuses, disability leaves, fluctuating shifts etc. Another category that requires more research is outside services. We have significant costs in services we outsource and large fluctuations need to be researched.
Understanding the budget well and which cost variances need research will help identify issues earlier and lead to more productive decisions.
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