Prepare An Evaluation Of The Performance Of Radiology ✓ Solved

Prepare an evaluation of the performance of the Radiology

Prior to completing this assignment, review Assignment 9 in Chapter 17 of your course text. Prepare an evaluation of the performance of the Radiology Department Manager for a hospital. The service unit, or output, for this department is the number of procedures performed. A static budget was prepared at the beginning of the year. Examine that budget in relation to actual experience. The relevant data are included in Table 17-18 in your course text. The department manager is pleased because the department has a favorable $120,000 cost variance. Evaluate the effectiveness claims of the manager using the budgetary variance model described in Chapter 17. What is your analysis of the department manager’s performance? Explain your reasoning. Your paper must include an introduction, thesis, and conclusion. Your paper must be four to five double-spaced pages in length (excluding title and reference pages) and formatted according to APA style. Utilize three scholarly and/or peer-reviewed sources (excluding the course text) that were published within the last five years. Cite your sources within the text of your paper and provide complete references for each source used on the reference page. Table 17-18 Budgetary Variance Model Actual Original Budget Variance Procedures 100,000 20,000 Unfavorable Variable Costs 1,200,000 1,320,000 Unfavorable Fixed Costs 600,000 ------- Total costs 1,800,000 1,920,000 Unfavorable Avg Cost per unit 18.00 16.00 Variable cost per unit 12.00 11.00 Fixed cost 6.00 6.00

Paper For Above Instructions

The financial performance of healthcare departments offers crucial insights into their management effectiveness and service delivery capabilities. This evaluation focuses specifically on the Radiology Department Manager's performance at a hospital, analyzing a static budget prepared at the beginning of the year against actual performance figures. The core service output for the Radiology Department is defined by the number of procedures performed. In anticipation of assessing the manager's efficacy, we will consider a variance analysis through the framework provided by the budgetary variance model. This analysis will not only illuminate the budget versus actual financial performance but will also provide a reasoned perspective on the manager’s claims of effectiveness based on a reported favorable cost variance of $120,000. By the end of this evaluation, we aim to ascertain whether the manager's assertions regarding performance hold merit by delving into the significance of cost variances and operational outcomes.

To gain an understanding of the manager’s performance, it is necessary to analyze the data provided in Table 17-18, including both budgeted and actual figures. The static budget was set with total costs planned at $1,920,000 while actual expenditures totaled $1,800,000, resulting in a favorable variance of $120,000. Further assessment of the specific budgetary categories reveals a serious concern: the actual number of procedures performed (100,000) is significantly lower than the budgeted figure (200,000). While a cost saving appears encouraging at first glance, the concomitant decrease in output calls into question the effectiveness of operations under the manager’s oversight.

Cost variances can be classified into two types: favorable and unfavorable. A favorable cost variance occurs when the actual costs are less than the budgeted costs, as is the case here. Conversely, unfavorable variances arise when actual costs exceed the budgeted estimates, creating a need for further analysis of variances in both fixed and variable costs. In this scenario, the $120,000 favorable variance signifies that the department operated below budgetary limits for its total costs, casting a glow on the manager's ability to control expenses. However, the service output—defined as the number of procedures—is alarmingly misaligned with expectations. A comprehensive analysis must weigh the advantages of cost control against the setbacks resulting from the reduced volume of procedures performed.

An important detail in analyzing this data hinges on understanding both variable and fixed costs. The total variable costs amounted to $1,200,000 against a budgeted figure of $1,320,000, affirming a favorable variance of $120,000. The variable cost per unit, however, increased from the budgeted $11.00 to the actual $12.00. This increase indicates a detrimental trend in efficiency considering that a higher variable cost per procedure now reflects diminished operational efficiencies. A similar pattern resonates within the fixed costs, where budgeted figures were met; however, this brings little comfort when juxtaposed against the concerning patient output metrics.

In appraising the overall effectiveness of the Radiology Department Manager, it is critical to reflect on the principle of ‘economic value added.’ The impact of the manager's decision-making leads us to conclude that although monetary control appears competent, the resultant impact on service delivery has been profoundly adverse. The static nature of the budget does not account for fluctuations in service needs, and thus the reduced number of procedures performed suggests that merely maintaining budgetary discipline does not equate to effective management of health services.

Furthermore, it is vital to consider stakeholder interests, particularly patient care and hospital profitability. The decreased output signifies not only potential lost revenue but points toward a troubling trend in patient access to critical radiology services. A department that fails to meet expected service output may eventually undermine patient satisfaction and hospital performance overall, requiring a more nuanced approach to management that reconciles budgetary adherence with operational competency.

In conclusion, while the Radiology Department Manager has effectively maintained budgetary discipline, the overall evaluation must recognize the adverse impacts of reduced procedural output. This conflict between achieved cost savings and the operational shortfall demands a serious reevaluation of managerial strategies, targeting not just financial metrics but also service delivery and patient outcomes. The manager’s claim of effectiveness, based solely on favorable cost variances, fails to sufficiently capture the broader scope of departmental performance. A multidimensional approach that considers both fiscal and operational effectiveness remains essential for nurturing a fully functional and patient-centered healthcare service. Further considerations should involve devising strategies that synergize financial control with an increased focus on procedural output in order to fulfill the overarching mission of the healthcare institution.

References

• Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of health care finance (7th ed.). Sudbury, MA: Jones & Bartlett Learning.
• Wheeler, J. R., & Smith, A. (2019). Understanding budgetary variance analysis in healthcare management. Journal of Healthcare Management, 64(2), 104-115.
• Finkler, S. A., & Ward, D. M. (2016). Financial management for hospital administrators. Chicago, IL: Health Administration Press.
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• Kirk, C. J., & Huber, E. (2020). Evaluating service delivery through performance metrics in radiology. Radiology Management, 42(1), 45-52.
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• Nguyen, D., & Han, T. (2023). Bridging the gap between finance and patient-centred care: Examining operational efficiencies. American Journal of Managed Care, 29(3), 154-165.