Helping financial analysts communicate variance analysis
Dove, H.G.; Forthman, T.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 49(4): 52-54
1995
ISSN/ISBN: 0735-0732 PMID: 10146167 Document Number: 441356
Healthcare organizations often use variance analysis to explain variation between planned and actual costs and charges. This type of analysis is becoming even more common as healthcare executives work to improve efficiency, to set priorities for organizational improvement as part of strategic planning, and to explain costs and charges to interested groups such as purchasers and payers. Variance analysis produces data that must be presented in a format useful to senior executives. An effective format would express the data in a visual summary that is simple enough to be readily understood and detailed enough to provide valuable information.