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 Jones, Finkler, Kovner, and Mose (2019) highlight that “variances are generally caused by internal changes in quality of care provided, changes in technology being used, changes in organizational policy, and changes in the efficiency of the nurses, or externally caused by price changes for supplies, volume changes in workload, and unexpected shifts in the availability of staff” (p. 290). What are different types of variances? Provide a clinical example in which variances would be considered desirable and a clinical example in which variances would be considered undesirable. What can staff nurses and leaders do to limit budget variances? Scenario: Several of the key medical providers for your service line have elected to move their practice to a competitor. As the Director of the unit being impacted, you believe it is likely significant reductions in RN hours will be needed at least in the short term secondary to reduced volume. A routine staff meeting is scheduled for later today. You want to be transparent, but at this point don’t have all of the answers. What would you tell the staff? Reference Jones, C. B., Finkler, S. A., Kovner, C. T., & Mose, J. N. (2019). Financial management for nurse managers and executives (5th ed.). St. Louis, MO: Elsevier.

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