Description

QUESTION SET TWO

Budget Variances

Questions 1–6 are worth 10 points each. Questions 7 and 8 are worth 15 points each. Compile all

questions and responses in a single Microsoft Word document. The document must follow

current APA format (current APA format and writing style is worth 10 points) and include a title

page and a reference page.

1. Why is it important for a nurse leader to understand variance reporting? How does this

reporting become a valuable tool?

2. Staffing is usually the most expensive resource in the provision of care. What reports

would provide the nurse leader with valuable information regarding this expense?

3. As a nurse manager of your unit, why is it important to keep track of education, meeting,

and orientation hours?

4. What resource is available for the nurse leader to identify reimbursement for Medicare

and Medicaid patients?

5. Why do freestanding skilled nursing facilities function more profitably than skilled

nursing facilities in acute care organizations?

6. What is a cost-to-charge ratio? Why should a nurse leader understand this ratio, and how

would he or she utilize it?

7. What are the top ten diagnosis-related groups (DRGs) in your organization? Has the

administrative team determined if each is cost effective? Is this accurate? If not, how

would you determine whether they are cost effective?

8. In the new value-based reimbursement environment, what other measures can a nurse

leader take to enhance reimbursement and prevent revenue loss?