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Article: Understanding variation in revenue and expenses: control charts can point the way to appropriate action to manage undesirable performance variation.(Industry Overview)
- Article from:
- Healthcare Financial Management
- Article date:
- December 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Healthcare organizations have performance data available on a daily weekly, or monthly basis. However, it is often difficult to determine whether sudden changes in key performance indicators are due to normal variation in revenue-cycle processes or to an irregularity that must be dealt with immediately. Most healthcare organizations cannot afford to wait several months to see if a decrease in revenue or increase in expenditures is significant or merely a slight variation from the normal pattern. Distinguishing normal variation from irregular variation is necessary to optimize revenue and control expenditures. Control charts can be used to make this distinction. Control ...