Expenses ....

IMS displays expense information in a hierarchical format.  Management can view their expense information at various levels, as depicted in the graph above, depending on their level of access within the IMS system. Expenses are rolled up starting from the account level up to the hospital level.  Drill down capabilities by Hospital, VP, and cost center levels are available.  The expenses are compared to the budget at every level.  Management can enter reasons and action plans for variances.  Expense Overages are highlighted in RED.

IMS contains your complete General Ledger (GL) detail and much more. IMS receives data from the financial system and refines it further. Financial packages are good at putting expense dollars in the correct cost center, but bad at detecting volume related issues. 

Financial programs break down expenses into GL category and account.  This data is then rolled up to produce a balance sheet.  IMS identifies each account as a fixed or variable expense. Variable meaning expenses should go up or down based on fluctuating volumes. Fixed means the expense is not significantly influenced by volume.  IMS presents a new volume adjusted budget based on whether the expense accounts are fixed or variable.  How many times have you read a reason for an expense overage “my volume was above budget”?  That is an unacceptable reason in IMS since the system has already adjusted the expenses.

The system presents Budget to Actual Expense and Volume Adjusted to Actual Expense by:

Expenses are available to the invoice level.

Hospital Level Volume Adjusted Total Expense Screen

Reports are available for all the above categories, including exception reports set to your specific review parameters. Example: cost centers with ‘xx’ account volume adjusted expense over by $1000. The system will produce a report of all cost centers that meet the criteria along with the reasons for the variances and action plans that have been entered into the system by management.

• Cost Centers are designated as either "Support" or "Direct"

• Expenses are volume adjusted

• Expenses are categorized as fixed or variable

• Expense Analysis

• Profitability Enhancement

• Expense Trending