Have you ever wondered how finance sets a department's budget each year? While most explanations we've heard sound quite complex, the truth is quite simple.
There are only 3 ways to set a productivity target: Run Rate, Benchmark, and Zero-Base
Leaders struggling with their target often ask this question and most are unable to get a straight answer - perhaps because the person they are asking isn't sure. This common complaint inspired us to share this newsletter and we hope it helps!
Read MoreProductivity targets help hospitals balance resource requirements with financial goals by budgeting specific hours for the workload in each department. The process of setting productivity targets can present a challenge to both nursing and finance leaders as they work together to identify the ideal goal. By using zero based staffing models, industry leaders ensure that the right staff are in the right place at the right time.
Read MoreHospitals establish and manage to productivity targets to ensure that the right number of staff are available to care for patients. Balancing financial, clinical, and operational goals, thoughtful productivity targets ensure the department is not overstaffed or understaffed, supporting operations, quality care, and patient satisfaction with efficiency.
When hospital finance sets productivity budgets, it is very common for department leaders to ask questions like, “Why is this my target?”, “Where did this number come from?”, or “This can’t be right.” “Is this really how my peers are operating?”.
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