Charting the Budget
'Charting' the budget means using tables and graphs to show the budget's plan (income and expenses) over time.
Hospital and healthcare upper management (UM) interest is geared toward seeing the 'big picture' when reviewing fiscal responsibility in laboratory Services. These reviews occur often (monthly, in many cases). UM is most interested in the number of patients, test volume, revenue, and expenses.
The image below is an example laboratory budget. If revenue and expenses change significantly, they can compare the number of patients and test volume to see if these categories might explain the difference. If patients and volumes have not changed, a follow-up for root causes should be made with laboratory management. The example below would be positively received by upper management as monthly and yearly expenses and revenue are better than the budgeted amounts.
When charting the laboratory budget, it is important to continuously monitor, explain any variances that occur, and make necessary adjustments in real-time. (An example is presented on the next page.)
