Budget Management Analysis Analytical Essay by scribbler

Budget Management Analysis
An examination of the budgetary analysis process in healthcare facilities.
# 152324 | 1,644 words | 5 sources | APA | 2013 | US
Published on Jan 27, 2013 in Accounting (Managerial) , Business (Accounting) , Medical and Health (General)

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This paper examines specific strategies to manage budgets within forecasts and focuses on five to seven areas that could have some sort of variance. Next, the paper discusses three benchmark techniques that could improve accuracy and explains why these choices were selected. The paper then shows how these different elements provide the greatest insights as to how administrators and actuaries can be able to improve the budget analysis process at any hospital.

Specific Strategies to Manage Budgets within Forecasts
Three Benchmark Techniques that could Improve Accuracy
Why were the Three Benchmarks Chosen?

From the Paper:

"In the field of Accounting the word variance is defined as the difference between the actual cost (the initial cost of piece of equipment / project) and the standard costs (this is the cost for providing a particular service). The standard cost would include everything that is required to consistently produce the various services being provides such as: labor costs, utility costs and other factors. ("Variance ," 2010) For any health care facility, all equipment purchases and budget expenditures must justify the purchase by a showing a positive rate of return. Otherwise, the expenditure more than likely will be cut as wasteful spending, in an era of rising costs and declining profit margins. Five possible areas of variance within the hospital budget would include: Tenant Impro Allow Armitorization, total property expenses, physicians compensation, medical equipment and all furniture / non medical equipment. Some possible reasons for the large variance in these different areas would include: economic / financial related issues and deprecation. When you look at the five different areas one of the most notable areas of variance is in the total property expenses. One reason why this is probably occurring is because of the implosion in real estate prices, where the different properties and assets owned by the hospital are declining in value."

Sample of Sources Used:

  • Health Care Costs to Rise 9% by 2010. (2009). Retrieved May 17, 2010 from USA Today website: http://www.usatoday.com/money/industries/health/2009-06-18-health-care-costs_N.htm
  • Variance. (2010). Retrieved May 17, 2010 from Invest Words website: http://www.investorwords.com/5227/variance.html
  • Becky, G. (2004). Rural Hospitals Meet Challenges. Retrieved May 17, 2010 from All Business website: http://www.allbusiness.com/north-america/united-states-mississippi/1073761-1.html
  • Finkler, S. (2006). Accounting Fundamentals for Health Care Management. New York, NY: Jones and Bartlett Publishers.
  • Pear, R. (2010). Health Insurance Companies try to Shape Rules. Retrieved May 17, 2010 from NY Times website: http://www.nytimes.com/2010/05/16/health/policy/16health.html

Cite this Analytical Essay:

APA Format

Budget Management Analysis (2013, January 27) Retrieved September 28, 2023, from https://www.academon.com/analytical-essay/budget-management-analysis-152324/

MLA Format

"Budget Management Analysis" 27 January 2013. Web. 28 September. 2023. <https://www.academon.com/analytical-essay/budget-management-analysis-152324/>