Why Do Good Budgets Go Bad Assignment | Essay Help Services

Respond to Sally’s post by offering supporting ideas you believe they should address, alternative solutions to the issue, or specific financial, budgetary, or other challenges you believe their approach should address. APA 7th edition Insight into the Budget Variances in the Scenario The total variance for the surgical volumes is +300 favorable. The total variance for patient days expenses was -1000 favorable. I anticipate that the miscellaneous expenses and pharmacy expenses were unfavorable due to the significant increase in surgery revenues. There is potential that the rate of supplies could have increased as well. Overall, the budget analysis appears favorable for the hospital. All of the revenues were favorable, above budget. Expenses were overall unfavorable above budget; however, this was made up for in the favorable variance of the revenues. The significant positive variance in surgical revenue and miscellaneous supplies expenses should trigger an investigation to dig deeper into the cause of the variance. Corrective action may need to be taken for the negative variance in the expense report depending on the cause. In General, Managing Budget Variances To manage budget variances, an investigation into the cause needs to be done to determine what has offset the budget. I think budget analysis should be done monthly or quarterly to ensure a company stays on track and can take action on variances, need be. Doing small investigations and communicating the variances to the appropriate stakeholders is a necessity. Performing a budget analysis is a good way to communicate about the progress for the year. Best Practices and/or Strategies for Budget Control In my position, we review the budget every quarter with the financial advisor. I have a goal to check my budget report every month to stay on top of what I can change locally in my department, such as miscellaneous expenses. This is a way to see what patient volumes are and how that compares to revenue and expenses. Another way to stay on top of budget control is to double check the billing process to ensure no charges are being missed. Charges need to be captured by the 6th of every month, so if any are missed after the 6th, they can’t be captured and billed. Micromanaging a budget is important when running a business. Lockhart, L. (2018). A pay for performance primer. Nursing Made Incredibly Easy!, 16(3), 55. doi: 10.1097/01.NME.0000531880.09273.33. Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). New York, NY: Springer Publishing Company. Woodruff, J. (2019). What is a budget variance analysis? Retrived from http://smallbusiness.chron.com/budget-variance-analysis-60250.html