Variance analysis is a financial management tool. This analysis helps hospital administrators identify areas to make adjustments for future periods. This tool is used to assess the difference between budgeted or planned financial performance and the actual performance. Variance analysis helps hospital administrators understand where actual financial results deviate from the budgeted figures. This is of prime importance when it helps them make informed decisions to improve operational efficiency.
TYPES OF VARIANCE ANALYSIS
There are two primary types of variance in analysis:
1. Cost Variance
2. Revenue Variance
Cost variance is the difference between budgeted cost and actual cost. Difference between expected and actual revenue is termed as revenue variance. Hospital administrator uses these tools for improving the functioning of the hospital.
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CONCLUSION
What Is Diploma In Hospital Administration in Nagercoil is an often asked question and the answer is that this Hospital Administration course provides a comprehensive understanding of how healthcare institutions function from an operational and managerial perspective. Through this course, learners is open to knowledge on various domains such as hospital operations, human resource management, healthcare finance, supply chain logistics, legal compliance, and quality assurance.
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