Question

Variance analysis is a responsibility of the nurse executive. Please reflect on your future practice as a nurse executive and provide three strategies and three corresponding directions to use variance analysis as a tool for your future role as a nurse executive.

Answer 1

Variance analysis the identification of patient or family needs that are not anticipated and the actions related to these needs in a system of managed care. There are four kinds of origin for the variance: patient-family origin, system-institutional origin, community origin, and clinician origin.

Variance Analysis
Budgets are fluid, line items are rarely on target. Therefore, variance analysis is an essential part of the budgeting process. Variance analysis is a tool applied to financial and operational data that aims to identify and determine the cause of the variance. In project management, variance analysis helps maintain control over a project’s expenses by monitoring planned versus actual costs.

Effective variance analysis can help a company spot trends, issues, opportunities and threats to short-term or long-term success. Variances between planned and actual costs might lead to adjusting business goals, objectives or strategies.

Variances may be characterized as volume, efficiency, rate, or non-salary expenditure:

Startigies of Variance Analysis are as follows:

1. Volume variances in the hospital are usually in response to a fluctuation in patient days.

2. Efficiency variances in the hospital are usually expressed in changes from the anticipated hours per patient day (HPPD).

3. Rate Variances reflect the differences between the budgeted hourly rate and the paid hourly rate.

4. Non-salary expenditure variances may be caused by changes in patient mix and volume, supply quantities and costs, price paid, or new technology or regulations

In my future role as an nurse executive I utilize variance analysis in the following directions:

1. Maintaining/ recording the volume of patient visiting the hospital.

2. Rate at which the patients treatment has been completing efficiently.

3. Recruiting the efficient health care workers who having qualifications and good experience.

4. Assigning trainings to the staff to perform the duties effectively and efficiently.

5. Training the staff on work health safety while treating or caring the patients.

6. Managing the hospital within a actual budget which is mandatory to grow the hospital future.