• E-mail
• Print
• RSS

How to comply with standard LD.2.50

Accreditation Connection, December 22, 2004

Surveyors now expect leaders to use information from the past and present to build a fiscal map to help plan for the future. Leaders should foresee and plan for capital expenditures for buildings, beds, and equipment, as well as projected changes, additions, or deletions to patient care services. Base budget decisions on the identified needs of a patient population and the current services provided, as well as the Life Safety Code®.

During budget and capital plan discussions, consider input from all the areas and disciplines that are affected by the budget decisions. Ask individual departments to develop budgets in the same fashion so they will fit into the hospital's overall budget goals. Budget documents, policies, and other written materials should show surveyors that hospital leaders considered the following:

*  Assumptions used to develop the budget
*  How patient care needs will be met
*  Staffing needs and plans
*  Risk management, utilization management
*  Indications (from the strategic plan) that leaders must revise the patient care budget
*  How leaders will monitor departments for budget compliance
*  What will occur when there is a variance from the budget target

The governing body must review and approve the final annual operating budget and capital plan. Surveyors may examine the governing body's meeting minutes for compliance.

If your hospital leaders are articulate when describing budget development activity, surveyors may not examine the budget plan in detail. However, you should expect surveyors to look for a planning process for budget development, annual operating budget, and capital plan that is based on departmental representation. They may compare your hospital's "Plan for Provision of Patient Care" to budget allocations.
Finally, they compare planned long-term capital expenditures to the annual operating budget to determine whether the hospital developed these items collaboratively.

For more information, read Leadership: Tools to Prepare Your Leaders for JCAHO Survey. You may purchase this book online at www.hcmarketplace.com or by calling us at 800/650-6787.

• E-mail to a Colleague
• Print
• RSS
• Archive