Lecture 2
Financial Management
Cost management
At operational level
- Staffing and scheduling decisions
- Toolbox: linear programming
At strategic level
- Alternative choice decision making
Management of costs
- What type of costs does the organization have?
o Personnel costs
o Material costs
o Capital costs
- Where do the costs occur?
o Mission center
o Support center
- What are the cost objects?
o Products
o Services
Employee expenses: important considerations
- How much staffing is required?
- Given X FTE (full-time total equivalent) of staff:
o What services should be realized?
o When to schedule?
o Who is responsible for what?
- Important parameters:
o Capacity constraints
o Number of patients, intensity of treatment and care
o Education, expertise and performance of staff members
o Contractual provisions
o Laws
Staffing requirements
- Staffing requirements can be derived
o Per time period
o Per professional group
o Per organizational unit
- Staffing requirements: required labour hours / available labours hours per FTE
- Available labour hours per FTE dependent on:
o Standard weekly hours
o Number of bank holidays
1
Financial Management
Cost management
At operational level
- Staffing and scheduling decisions
- Toolbox: linear programming
At strategic level
- Alternative choice decision making
Management of costs
- What type of costs does the organization have?
o Personnel costs
o Material costs
o Capital costs
- Where do the costs occur?
o Mission center
o Support center
- What are the cost objects?
o Products
o Services
Employee expenses: important considerations
- How much staffing is required?
- Given X FTE (full-time total equivalent) of staff:
o What services should be realized?
o When to schedule?
o Who is responsible for what?
- Important parameters:
o Capacity constraints
o Number of patients, intensity of treatment and care
o Education, expertise and performance of staff members
o Contractual provisions
o Laws
Staffing requirements
- Staffing requirements can be derived
o Per time period
o Per professional group
o Per organizational unit
- Staffing requirements: required labour hours / available labours hours per FTE
- Available labour hours per FTE dependent on:
o Standard weekly hours
o Number of bank holidays
1
