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1) What type of cost measurements best fit in health care and which do not? How do cost measurement techniques vary with regard to the operating budget, capital budget, and variance analysis?

2) Variance between budget projections and budget performance is inevitable. Is a proactive application of cost measurement and corrective actions a realistic approach to minimize variance? Justify your answer with exs.

3) An auditor comes in and once issues are found, the company then prepares policies around it so that it never happens again (in theory). This reminds me of shutting the chicken coop door after the coyote has ate all the chickens.

Wouldn't it be better to be proactive? How could you identify issues before the auditor arrives?

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