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Is Your Budget and Budget Variance Reporting an Asset
or an Exercise?
With continued reductions in managed care payments, and the increasing
costs of many items including labor, pharmaceuticals and debt, it is becoming
increasingly difficult for hospitals to achieve targeted profitability levels.
While some opportunities remain to increase revenues, controlling expenses may
be the single most critical success factor for many hospitals. Moreover,
managing expenses as patient volumes fluctuate can be the difference between
operating in the red or the black
Take the Guess Work out of Budget Variances and Managing Expenses
Let’s face it – Most of your department managers want to operate their departments
in the most efficient manner possible without sacrificing quality. They
understand your hospital’s ability to thrive and maybe even just survive in the
future is incumbent on their operating efficiently and effectively.
Why not help them out by implementing an interactive, department-specific
flexible budgeting and volume-adjusted variance reporting tool?
Once a flexible budgeting and volume-adjusted variance reporting system has
been established, department managers and executives alike can evaluate
performance objectively and eliminate a tremendous amount of time and effort
explaining cost variances. Furthermore, understanding the link between your
operations and costs can lead to the identification of long-term process
improvement opportunities.
Why Employ Kreg’s Results-Oriented Process?
At Kreg, we combine the capabilities of our state-of-the-art decision support
technology with the experience and know how of our Strategic Services
consultants. This combination provides you with many unique benefits.
Some of the reasons to use Kreg to develop a Flexible Budgeting and
Volume-Adjusted Variance Reporting process are:
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We have established a comprehensive approach which analyzes the behavior of
each individual expense account and identifies the factors which drive increases
or decreases in those expense categories. During this process, we solicit input
and buy-in from key executives, thereby ensuring hospital-wide support for the
flexible budget as a key component of your organization’s plan.
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Through its advanced report writing capabilities, the software we utilize in
this process (BUD) can be easily formatted for flexible budgeting and
volume-adjusted variance reporting.
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Our professionals bring a breadth of valuable experience such as management
engineering, budgeting, systems design, and hospital operations to this
engagement. More specifically, our professionals have over 50 years of
budgeting experience including the development of flexible budgets for many diverse healthcare organizations.
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