Journal Entry 2

9/29/09
My objective for today is to learn how to effectively utilize human and material resources strategies, types of budgeting techniques used to provide cost-effective quality care. In order to achieve this, we started off doing the previous month financial review and auditing the budget analysis (treatment audit VS resources audit), drafting a sample facility budget for the next month. Julie explained that since the facility is subdivided into 3 independent unit (in center hemodialysis unit, home hemodialysis training clinic and peritoneal dialysis unit), she tend to utilizes a combination of two types of budgeting techniques (formula/ program budget).
I reviewed the past three month budget analysis and in the process, she explained how to draft a sample budget. In addition to the month to month budget, she has to do an annual budget proposal for the next year, usually in the month of November. From this sample budget draft, I learnt that allocations of resources (such salary paid to employee, project quantity of supply usage) are typically tied to the numbers of treatment/services provided to patients. Julie explained that in order to stay within the proposed budget, one technique she uses is mandating that all clinical supervisors stay on top of patient to staff ratio. This involves a continuous reassessment of patient assignment and redistribution of workload within each shift. The clinical supervisors have to ensure that resources are not wasted. According to Julie, if all teammates adhere to policy and set guidelines when providing care, resources would be effectively utilized and clinical outcome would be good.
After reviewing the past 3 month budget analysis, I observed that there was only a slight variance from the actual budget to the expected budget. She explained that looking at the current budget trend; their facility has been meeting their goals, as compared with the other clinic within the region, state and nationwide. This learning experiences, highlighted a budgeting style that can be use to provide cost effective quality care, when utilizing set clinical guidelines. I have learnt that it is vital to have an understanding of good financial management in order to be successful in running a facility.