Flexible Budgeting

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:

• 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.
• 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.
• 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.