Actual charge volumes and revenue are downloaded each month and imported to Med-Link using interface utility programs provided with the system.
Med-Link calculates
the actual service units (patient days, acuity values, lab procedures,
CAPs, etc.) and provides a comparison to the budgeted volumes
for each service unit. For example, actual volumes of laboratory
tests will be shown along with the actual number of laboratory
hours.
Med-Link will increase or decrease the budget amount for each account based on the variability of the accounts in relation to the actual service unit volumes.
The resulting
analyses provide valuable information about budget variances.
Variances for each labor group account include:
Total Variance
Did we achieve our budget objectives for the actual level of
activity? Med-Link then analyzes the total variance
by providing the following information:
Efficiency Variance
Did the department utilize more or less staff than was expected
for this level of activity?
Rate Variance
Was our actual rate of pay for each labor account higher or
lower than we anticipated?
Variances for non-labor accounts do not include the efficiency
and rate variances.
The Flexible Budgeting module of the Med-Link
system is integrated with the Cost Accounting application and
provided at no additional cost.
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