Cost variances in health care: when should managers investigate?
When costs must be controlled, variance analysis can be a useful tool to implement that control. Variance analysis compares a standard of performance against actual results and investigates those differences that are felt to be the result of inefficient performance. The question becomes, which variances should be investigated? Using a decision model based on probability theory, variances can be identified that are statistically significant and require further investigation.
D000704:Analysis of Variance; D003365:Costs and Cost Analysis; D005376:Financial Management; D005377:Financial Management, Hospital; D008962:Models, Theoretical; D011336:Probability; D014481:United States