|
Correct Answer: volume variance
the correct answer is volume variance. in the context of hospital management, understanding different types of variances is crucial for budgeting and financial planning. variances are the differences between what was planned or expected and what actually occurs. they help in identifying areas requiring attention and adjustment in the management of hospital resources.
volume variance specifically refers to the fluctuation in the number of patient days compared to what was budgeted or anticipated. this type of variance is significant in a hospital setting because the number of patients can vary widely due to seasonal illnesses, epidemics, accidents, and other unpredictable factors. when there are more or fewer patient days than expected, it directly affects the hospital's resource allocation, staffing needs, and financial planning.
other types of variances include:
1. **efficiency variance** - this occurs when there is a deviation from the expected hours per patient per day (hppd). it measures whether the staff is working more or less efficiently than planned.
2. **non-salary expenditure variance** - this arises from changes in patient mix, volume, supply quantities and costs, price paid for supplies, or the introduction of new technology or regulations.
3. **rate variance** - this is observed when there is a discrepancy between the budgeted hourly rate for staff and the actual hourly rate paid. this can be due to changes in wage rates, differential pay, or overtime costs.
understanding and managing these variances is essential for the nurse executive to maintain the quality of care while ensuring that the hospital operates within its financial constraints. volume variance, in particular, requires careful monitoring and flexible planning to adapt to changing patient needs and maintain operational efficiency.
|
