Case Study : Managing Variable Budget

1503 Words Feb 15th, 2016 7 Pages
A Case Study: Managing Variable Budget
Nessrin Leonida
Thomas Edison State College

A Case Study: Managing Variable Budget
In order for a unit to operate effectively fiscal yearly budgets needs to be set and maintained. In some cases the nurse manager needs to be strong in negotiation to be able to get financial support for the year (Yoder-Wise, 2015, 226). As a result, nurse’s managers need to be able to adjust their budgets every quarter to not exceed the budget set.
Addressing Request
As a nurse manager, there are many factors to consider when adjusting and maintaining their budget. In the Intensive Critical Care Unit there are 127,600 dollars left for the next three months of the fiscal year. The nurse manager would divide that by the three months left to see how much she or he can work with for the month. There would be 42,533 dollars budgets totaling sections. From there the nurse manager can focus on where she or he can adjust or cut the budget and move to other areas to stay within the cost set. This kind of budgeting is called a variable budget. A variable cost is “costs that vary in direct proportion to patient volume or acuity (Yoder-Wise, 2015, p588).”
Increased Acuity
One factor to consider is adjusting staffing for increase acuity of the patient population. Looking at the fiscal year budget there would be 41,666 dollars a month for the next three months. The month of March showed an actual expenditure budget of 25,000 dollars. Having 16,666…
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