Calculate year-to-date variance for each category

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Reference no: EM132085010

Assignment: Case Study

Fiscal Concerns in the Healthcare Setting Case Study

Purpose/Overview:

With current constraints on healthcare budgets in hospitals, medical centers, and long term care facilities, administration may call for tighter control as noted in this case study. Follow the assignment guidelines and analyze the situation to answer the questions posed at the end of the assignment paragraph. This assignment is worth 15% of your grade.

Assignment

Guidelines for Writing the Paper
- Use references for assistance in completing the assignment.
- Use your text readings for support.
- Do not include the case study scenario paragraphs in your paper.
- The questions are to be answered in a narrative text using APA (6th edition) guidelines for both the text and the references.
- The maximum number of pages is six double-spaced, excluding the title page and reference page.

Case Study:

You are the manager of a cardiac care unit. Today is April 1st, and the fiscal year began on July 1st. You work with a variable budget and have the opportunity to make changes to the current budget based on variance. You cannot go over the total budgeted amount assigned to you. Your budget is presented below.

	Annual Budget	Expended in March	Expended Year to Date	Amount Remaining
Personnel	$400,000	$30,000	$275,000	$125,000
Overtime	$50,000	$0	$50,000	$0
Supplies	$18,000	$1,800	$15,500	$2,500
Travel	$1,000	$100	$400	$600
Equipment	$5,000	$0	$5,000	$0
Staff education	$1,000	$200	$600	$400

Several factors that you must consider include:

1. A changing staffing pattern as a result of high acuity on your unit. Your care managers have requested permanent staff lines.

2. The risk manager wants you to purchase new "smart pumps." These are IV pumps that calculate and manage high risk medications in order to meet JCAHO safety standards. Right now there is a special price of $3, 000.00/per pump. The risk manager thinks 3 pumps is a good start.

3. Your prevalence rate of infections is rising and a representative has suggested that you use a new soap dispenser outside of each room. The company will pay for the product for a 4 month trial but you need to buy the dispensers which will cost $2000 for your unit..

4. Your nurses have requested a new nursing medication web subscription for your unit with a monthly cost of $100.

Case Study Questions:

In a paper format determine the following:

1. How you will address these requests based on the budget print out.

2. What expenses can be deferred to the new fiscal year.

3. Accuracy of projections:

o What budgeting area was your previous projections most accurate.
o What budgeting area was your previous projections most inaccurate.

4. Calculate year-to-date variance for each category.
o Factors that may have contributed to situations of being over budget as determined by variance.

5. Steps that could be taken in the 4th quarter to adjust the budget.
Mentor's tips: There may be several plausible explanations or answers. The most important thing is that your answers are consistent within your paper, and that your numbers add up. Tables may be helpful in this paper.

Reference no: EM132085010

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