The text discusses the need to use Variance analysis to make Wise Decisions in healthcare. In...
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The text discusses the need to use Variance analysis to make Wise Decisions in healthcare. In your own words describe what variance analysis is and create an example of some metric that you think is important to monitor in a hospital setting and why.
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All hospitals produce monthly operating reports or reviews. Are monthly reviews really necessary? Why or why not.
Homework Answers
Variance analysis is the quantitative investigation of the difference between actual and planned behavior. This analysis is used to maintain control over a business.
Example of the metric related to budget , if the set budget for the month is $10,000 and actual usage of budget is only $8,000, variance analysis yields a difference of $2,000.
Monthly operating reports are necessary because of the following reasons :-
- accumulation of reports of 5 -6 months will be difficulty to make and chances of errors are more
- monthly report will help to be aware of the shortages and what all things are necessary to be ordered for the proper functioning.
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