Week 8 Assignment

Week 8 Discussion 1: Operating Margins

Operating margins should be high, which indicates that a sufficient portion of company's budget is available after paying for the expenses. Some profitable hospitals are charged with the allegations of overcharging the insurers & patients. However, the best way to control the operating margins is to control budgeting. Budgeting serves as a key driver for improving operating margins. By implementing budget management tools, the budgeting can be controlled to derive performance. A hospital management can analyze their expense ledger in order to assess the variance (Richard, 2004). The expense ledger will communicate how much ...