Yoder-Wise Case Study

According to Yoder-Wise (2011), “variance is the difference between the projected budget and the actual performance for a particular account” (p. 243). In the table presented on page 244 of Yoder-Wise (2011), some of the major budget variances are the insurance payment revenues (550), managerial/professional expenses (-750), benefits expenses (-200), and net non-personnel expenses (-250). A favorable variance is seen when the actual amount spent is lesser than the projected budget, while an unfavorable variance occurs when the actual amount spent is greater than the budget (Yoder-Wise, 2011, pp. 243-244). The favorable variances exhibited on the same table are the insurance payment revenues (550), donations revenues (50), and clerical/technical expenses (200). On the other hand, the unfavorable variances are the managerial/professional expenses (-750), benefits expenses (-200), supplies and materials expenses (-100), and travel expenses (-150). Additional information should be collected and analyzed in order to explain the positive and negative variances. These factors include the monthly patient census, patient acuity, staff turnover rates, staff meetings and orientation, paid time off utilization, and mandatory staff training and workshops (Yoder-Wise, 2011). Different

For example, the variability of the patient census is uncontrollable, especially in an urban area where there are numerous competing hospitals. Nonetheless, I can control the personnel expenses by promoting a healthy working environment for nurses, in order to reduce turnover rates. Also, I will staff appropriately by considering the unit census and patient acuity. Furthermore, I can control the non-personnel costs by availing of cost-effective, high-quality materials and supplies. Lastly, I will implement a data-driven initiative that aims to reduce overtime and increase