NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Preparing and Managing a Capital Budget 

Capital acquisition refers to obtaining significant physical assets or investments, such as property, equipment, or renovations, to enhance an organization’s operational capabilities and infrastructure. This involves substantial financial expenditure and supports long-term growth and efficiency improvements (Cerullo et al., 2022). The capital acquisition project at Houston Methodist Hospital aims to renovate a staff lounge in a 35-bed unit to improve comfort, aesthetics, and functionality. This assessment aims to assess the renovation’s financial impact, including accurate cost calculations and potential return on investment. The assessment will also address uncertainties and establish a budget management plan to ensure the project’s success.

Definition of Capital Acquisition 

The capital acquisition involves renovating a staff lounge in a 35-bed hospital unit at Houston Methodist Hospital. The renovation aims to enhance the lounge’s comfort, aesthetics, and functionality, thereby improving the overall well-being and satisfaction of the nursing staff (Cerullo et al., 2022). The renovation scope includes updating the interior design with modern, comfortable furniture, enhancing the space with new amenities such as a fully equipped kitchenette, high-speed internet access, and relaxation areas, and increasing the lounge’s capacity to accommodate more staff members simultaneously. 

The renovated lounge will feature an inviting and aesthetically pleasing environment, with contemporary furnishings designed for comfort and relaxation. Amenities will include ergonomic seating, recreational facilities like a television and reading nook, and practical elements like charging stations and personal lockers (Bruch et al., 2020). The design will prioritize a calming ambiance through soft lighting, soothing color schemes, and artwork, creating a sanctuary for staff to unwind and recharge during breaks. This focus on comfort and amenities aims to enhance job satisfaction and reduce stress, contributing to lower turnover rates and higher productivity.

The project is scheduled to be completed within six months, ensuring minimal disruption to daily operations. This plan assumes stable patient volumes and acuity levels, consistent market prices for renovation materials and services, and a stable workforce with minimal turnover, allowing for predictable staffing needs and consistent use of the lounge facilities. 

Justification of the Need for Capital Acquisition

Justifying the need for the capital acquisition to renovate the staff lounge in a 35-bed hospital unit at Houston Methodist Hospital centers on the profound impact such improvements can have on nursing staff well-being and, consequently, patient care. The renovation is essential because it addresses the nursing staff’s physical and mental health needs by providing a comfortable, aesthetically pleasing, and functional space for rest. By incorporating modern furniture, amenities like a fully equipped kitchenette, high-speed internet access, ergonomic seating, and relaxation areas, the renovated lounge will create an inviting environment that significantly enhances job satisfaction and reduces stress (Monteros et al., 2021). A well-rested and satisfied nursing staff is more likely to deliver compassionate, high-quality care, positively affecting patient outcomes. Patients benefit from more attentive and engaged care providers, improving overall patient satisfaction and potentially quicker recovery times.

Aligning with Houston Methodist Hospital’s mission of providing high-quality, compassionate care, the nurse’s lounge renovation supports these goals by investing in the staff’s well-being. The mission emphasizes patient care and the importance of maintaining a supportive and efficient working environment for healthcare providers. This renovation demonstrates a commitment to creating an optimal workplace, reflecting the organization’s values and dedication to excellence (Maassen et al., 2021). Executive leaders may have mixed reactions to the project budget; those valuing staff well-being will likely support it for long-term gains, while others focused on short-term costs may hesitate. Presenting successful case studies can help garner support by highlighting long-term benefits and mission alignment.

Preparing a Capital Budget

The capital budget for renovating the staff lounge in a 35-bed hospital unit at Houston Methodist Hospital includes direct and indirect expenses, ensuring comprehensive coverage of all project-related costs. The budget has a minimum dollar amount to cover essential updates and consists of a contingency line item to address unexpected expenses (Ren et al., 2021). The direct costs encompass purchasing modern furniture, ergonomic seating, and amenities like a fully equipped kitchenette, high-speed internet access, and entertainment facilities. Indirect expenses cover the costs of design, labor, and project management. 

The comprehensive budget ensures the successful completion of the renovation within the scheduled six-month timeline, aiming to enhance the lounge’s comfort, aesthetics, and functionality, ultimately benefiting the nursing staff and improving patient care. The total estimated budget is $119,750.

Process of Cost Calculations

Calculating the costs of renovating the staff lounge at Houston Methodist Hospital involves several steps and sources of information to ensure accuracy and comprehensiveness. Primary sources of cost information include historical data from previous renovation projects, current market prices for materials and services, and consultations with vendors and contractors. Cost data are obtained from recent price quotes and market research, ensuring they are as current and reliable as possible. To determine these costs, consultations with key stakeholders such as the hospital’s procurement team, facilities management, financial officers, and design experts are crucial (Sdino et al., 2021).

Cost calculation methods include itemizing each expense, such as modern furniture, ergonomic seating, kitchenette equipment, high-speed internet setup, entertainment facilities, and additional amenities like charging stations and personal lockers. Indirect expenses, such as design and planning, labor, project management, and contingencies, are also considered. The estimated budget is $119,750, with a contingency line item to address unexpected costs. 

Budget Management Plan

A collaborative approach with financial officers, administrative staff, and the budget committee is essential to effectively manage the budget for the staff lounge renovation at Houston Methodist Hospital. Key stakeholders such as the hospital’s procurement team, facilities management, and design experts will provide accurate cost estimates and oversee expenditures (Doshmangir et al., 2022). The primary sources of cost information include historical data from previous projects, current market prices, and vendor consultations, ensuring data is current and reliable.

Cost control methods will include regularly monitoring and tracking expenses against the budget, employing a robust approval process for additional costs, and using cost-saving strategies such as bulk purchasing and negotiating with suppliers (Sohn et al., 2020). To manage budget variances, it will be crucial to conduct monthly budget reviews to identify discrepancies early and adjust allocations as necessary. Including a contingency line item in the budget allows for unforeseen expenses, reducing the risk of significant variances.

Assumptions underlying the budget management plan include stable market prices for materials and services, consistent patient volumes, and minimal staff turnover. These assumptions help maintain predictable costs and usage patterns, ensuring the renovation stays within budget and schedule. The budget management plan aims to achieve the project’s goals without financial overruns by working closely with all relevant teams and employing stringent cost control methods.

The Impact of Capital Acquisition on the Financial Health of the Hospital 

The renovation of the staff lounge at Houston Methodist Hospital is expected to positively affect the organization’s financial health by enhancing nurse well-being, leading to lower turnover rates and higher productivity. This improved staff satisfaction directly contributes to better patient care, elevating patient satisfaction scores and potentially increasing patient volumes and hospital revenue (Cerullo, Lin, et al., 2022). This project’s return on investment (ROI) comes from both intangible benefits, such as improved staff morale, and tangible outcomes, like reduced recruitment and training costs for new hires.

The renovation’s ROI will depend on various factors, including improving staff satisfaction and patient care quality. A conservative estimate might see the hospital recovering the renovation cost within three to five years, primarily through savings from lower turnover rates and increased operational efficiency (Thusini et al., 2022). Additionally, considering the depreciation value of new assets, the hospital can spread the capital expenditure over several years, aligning the costs with the period during which the benefits are realized.

Conclusion 

The capital acquisition project at Houston Methodist Hospital aims to renovate a staff lounge to enhance nurse well-being and satisfaction, thereby improving patient care. The project involves a detailed budget management plan to cover all renovation costs and address potential uncertainties. The anticipated return on investment includes intangible benefits like improved staff morale and tangible outcomes like reduced turnover rates. The costs are expected to be recovered within three to five years.

References

Anderson, D. M., Cronk, R., Best, L., Radin, M., Schram, H., Tracy, J. W., & Bartram, J. (2020). Budgeting for environmental health services in healthcare facilities: A ten-step model for planning and costing. International Journal of Environmental Research and Public Health, 17(6). https://doi.org/10.3390/ijerph17062075 

Bruch, J. D., Gondi, S., & Song, Z. (2020). Changes in hospital income, use, and quality associated with private equity acquisition. Journal of the American Medical Association Internal Medicine, 180(11), 1428. https://doi.org/10.1001/jamainternmed.2020.3552  

Cerullo, M., Lin, Y. L., Hain, J. A. R., Ho, V., & Offodile II, A. C. (2022). Financial impacts and operational implications of private equity acquisition of US hospitals. Health Affairs, 41(4), 523–530. https://doi.org/10.1377/hlthaff.2021.01284 

Cerullo, M., Yang, K., Maddox, K. E. J., McDevitt, R. C., Roberts, J. W., & Offodile, A. C. (2022). Association between hospital private equity acquisition and outcomes of acute medical conditions among medicare beneficiaries. Journal of the American Medical Association Network Open, 5(4). https://doi.org/10.1001/jamanetworkopen.2022.9581 

Doshmangir, L., Khabiri, R., Jabbari, H., Zozani, M. A., Kakemam, E., & Gordeev, V. S. (2022). Strategies for utilisation management of hospital services: A systematic review of interventions. Globalization and Health, 18(1). https://doi.org/10.1186/s12992-022-00835-3 

Maassen, S. M., Oostveen, C. van , Vermeulen, H., & Weggelaar, A. M. (2021). Defining a positive work environment for hospital healthcare professionals: A Delphi study. Public Library of Science ONE, 16(2), 1–14. http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?vid=7&sid=9b5fb7fd-cd0d-4f45-81c4-52c8389d17f6%40sessionmgr4007 

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Monteros, J. C. E. de los, Torres, A. C., Salgado, J. G., Rivera, J. F., Salgado, C. G., & Vázquez, V. C. (2021). Administration of strategic agreements in public hospitals: Considerations to enhance the quality and sustainability of mergers and acquisitions. International Journal of Environmental Research and Public Health, 18(8), 4051. https://doi.org/10.3390/ijerph18084051 

Ren, W., Zhao, Y., Zhong, H., Fu, X., & Wu, J. (2021). Exploring the optimal allocation decision-making of expenditure budget in hospitals under multi-objective constraints: Evidence from urban public hospitals, China. SAGE Open, 11(4), 215824402110581. https://doi.org/10.1177/21582440211058191 

Sdino, L., Brambilla, A., Ovo, M. D., Sdino, B., & Capolongo, S. (2021). Hospital construction cost affecting their lifecycle: An Italian overview. Healthcare, 9(7), 888. https://doi.org/10.3390/healthcare9070888 

Sohn, H., Tucker, A., Ferguson, O., Gomes, I., & Dowdy, D. (2020). Costing the implementation of public health interventions in resource-limited settings: A conceptual framework. Implementation Science, 15(1). https://doi.org/10.1186/s13012-020-01047-2 

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Thusini, S., Milenova, M., Nahabedian, N., Grey, B., Soukup, T., Chua, K.-C., & Henderson, C. (2022). The development of the concept of return-on-investment from large-scale quality improvement programmes in healthcare: An integrative systematic literature review. BioMC Health Services Research, 22(1).
https://doi.org/10.1186/s12913-022-08978-0 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Budget Negotiations and Communication

This document thoroughly examines our healthcare department’s operational budget, which is intricately crafted to foster fiscal success. It optimizes staff productivity, validates equipment and service expenditures, and fortifies our alignment with our organization’s overarching mission and goals. Drawing upon the extensive assessment data provided, our approach integrates meticulous consideration of internal and external variables that could impact the execution of our strategic initiatives. Each document segment is meticulously tailored to meet the specific criteria for evaluating our department’s budgetary framework, offering a comprehensive glimpse into our strategic decision-making methodology.

Strategic Plan Ensuring Profitability and Fiscal Success

The carefully constructed strategic plan guarantees the 35-bed hospital unit’s financial stability and profitability. This plan goes beyond operational details; it strategically aligns with our organizational objectives and long-term goals. The plan outlines several vital initiatives to achieve these goals. The strategic plan prioritizes employee empowerment through initiatives fostering ownership, innovation, and collaboration. This includes programs for professional development, recognition, and involvement in decision-making processes, aiming to engage and motivate staff members fully. Investment in advanced healthcare technologies is key, with strategies to leverage electronic health records (EHR) systems, telemedicine platforms, and digital solutions.

These technologies aim to enhance efficiency, communication, and patient care delivery. Central to the plan is providing exceptional patient-centered care. Initiatives focus on improving the patient experience, fostering communication between healthcare providers and patients, and tailoring care plans to individual needs and preferences. Ensuring financial stability and profitability is integral, with actions including cost-saving measures, revenue enhancement strategies, and prudent economic management practices. The goal is to maximize resources and minimize monetary risks in alignment with organizational objectives. Each initiative is strategically significant and aligned with our organizational mission and vision. Executive leaders understand the strategic direction and the imperative for action in these critical areas (Ziadlou, 2021). 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Responsibilities are clearly defined and assigned to various stakeholders within the strategic plan. Departmental leaders oversee initiative implementation, finance professionals manage financial resources, clinicians deliver quality care, and administrators provide support. They ensure alignment with goals, financial stability, and exceptional patient care. This ensures accountability and oversight in implementing initiatives and aligning with strategic direction. Each stakeholder understands their role in driving the plan forward and achieving the desired financial outcomes. The plan is supported by robust data analysis of historical financial trends, patient demographics, and healthcare utilization patterns (Pereno & Eriksson, 2022).

Additionally, case studies from similar healthcare settings provide valuable insights and benchmarks for our implementation strategy. These data-driven insights enhance the credibility and effectiveness of the plan, providing a solid foundation for decision-making. In the strategic plan, the hospital unit acknowledges significant uncertainties regarding the accurate prediction of patient volume, determination of acuity levels, and management of overtime expenses. Despite thorough planning, these areas present challenges that require ongoing data analysis and monitoring for refinement. By identifying and acknowledging these uncertainties, the hospital unit is committed to continuous improvement and adaptability in the face of evolving challenges (Cleverley et al., 2023). The combination of various strategic initiatives ensures the strategic plan is well-defined and adaptable to changing circumstances. It provides a solid foundation for profitability and fiscal success while staying true to our mission of delivering exceptional patient care.

Plan for Goals of Staff Productivity 

A multifaceted strategy is proposed to optimize staff productivity within the 35-bed hospital unit while adhering to budget constraints, considering various factors influencing staffing and productivity. Initially, consideration was given to reducing staff numbers to curtail costs. However, analysis of historical data revealed the adverse repercussions of such reductions, including diminished productivity, increased workload for remaining staff, and compromised patient care quality (Kovacs & Lagarde, 2022). Consequently, this approach is unequivocally rejected due to its detrimental effects on the overarching objective of delivering exceptional patient care. The comprehensive plan is strategically crafted to address pivotal staffing and productivity factors, including patient volume fluctuations, acuity levels, and overtime expenses. The meticulous examination of historical data aims to accurately forecast patient volume and acuity, ensuring that staffing levels align precisely with demand without unduly burdening the workforce (Smallwood et al., 2023). 

By meticulously aligning proposed staffing levels with organizational goals of delivering high-quality patient care, ensuring staff satisfaction, and maintaining operational efficiency, an environment conducive to achieving objectives is fostered. Furthermore, adequate staffing facilitates timely patient care delivery, reduces wait times, and significantly enhances overall patient satisfaction. Moreover, by mitigating staff burnout by allocating reasonable workloads, a positive work environment that promotes staff retention and organizational success is cultivated (Schlak et al., 2021).

Various staffing metrics substantiate the plan, including nurse-to-patient ratios, patient acuity assessments, and overtime tracking. These metrics and insights gleaned from historical data analysis and case studies from analogous healthcare settings serve as the cornerstone of evidence-based decision-making. For instance, research elucidates that optimal nurse staffing ratios correlate with improved patient outcomes, such as reduced mortality rates and incidences of hospital-acquired infections (Assaye et al., 2020). By integrating these empirical findings and case studies into the staffing plan, a strategic approach is ensured, meeting productivity goals while upholding the commitment to delivering superior patient care within budgetary parameters.

Justifying Equipment and Service Costs

Our strategic plan incorporates the justification for equipment and service costs, which lies in their pivotal contribution to organizational goals, enhancing patient care delivery, improving operational efficiency, and ensuring staff satisfaction. For instance, investing in advanced medical devices enables more accurate diagnoses and treatments, directly improving patient outcomes (Awad et al., 2021). Similarly, allocating resources to staff training enhances employee skills and competencies, enhancing service quality and increasing patient satisfaction.

Cost calculations involved thorough market research, vendor quotations, and historical expenditure data analysis, optimizing costs while ensuring quality and reliability. To maximize resources, input from clinicians, administrators, and finance professionals is crucial. Clinicians provide insights into specific equipment and service requirements, while administrators offer guidance on budget constraints. Finance professionals assess financial feasibility and identify cost-saving opportunities. Projected costs are based on key assumptions, including stable vendor pricing and uninterrupted supply chains. Investments are expected to improve patient care outcomes and operational efficiency, leading to a positive return on investment.

Alignment with the  Mission and Goals of the Organization

The analysis effectively links our departmental strategies with the organization’s mission and goals. Our strategic plan directly aligns with the broader organizational objectives of delivering exceptional healthcare services and ensuring operational effectiveness by emphasizing initiatives that prioritize patient care quality, operational efficiency, and staff satisfaction. This alignment is communicated through the strategic rationale behind our budget allocations, demonstrating a thoughtful consideration of organizational priorities and strategic alignment (Sinsky et al., 2020). Furthermore, our analysis effectively communicates these linkages by providing concrete examples of how our strategic initiatives directly contribute to achieving organizational goals.

For instance, investments in staff training and development programs enhance the skill set of our workforce but also significantly elevate service quality and staff satisfaction. Research by Waqanimaravu Arasanmi (2020) underscores that such initiatives directly support the organizational mission of delivering optimal patient care experiences. These programs empower our staff to provide compassionate and proficient care, aligning seamlessly with our organizational ethos. Similarly, allocations for advanced medical equipment align to improve patient outcomes and enhance healthcare delivery, reinforcing the strategic alignment between departmental actions and organizational objectives. The evidence supporting our analysis includes data from historical financial trends, patient demographics, and healthcare utilization patterns. Case studies from similar healthcare settings also provide valuable insights and benchmarks for our strategic decision-making process.

By incorporating evidence-based insights into our analysis, we ensure that our budget decisions are grounded in empirical data and aligned with organizational priorities (Teisberg et al., 2020). The analysis effectively communicates the linkages between our departmental strategies and the organization’s mission and goals, supported by evidence that underscores the strategic rationale behind our budget allocations. This comprehensive approach ensures that our resource allocations are strategically aligned with organizational priorities and objectives, contributing to achieving our mission and goals.

Conclusion

In conclusion, our strategic plan for the 35-bed hospital unit is meticulously crafted to safeguard fiscal success and profitability while staying true to our core mission and vision. By prioritizing initiatives in employee empowerment, technological advancements, and patient-centered care, we aim to drive growth and maintain competitiveness. Clear responsibilities assigned to stakeholders ensure accountability and oversight in implementing initiatives aligned with our organizational objectives. Through robust data analysis and evidence-based decision-making, we anticipate addressing uncertainties and refining our approach over time, fostering adaptability in the face of evolving challenges. This comprehensive strategy provides a solid foundation for achieving profitability and fiscal success while delivering excellent patient care.

References

Awad, A., Trenfield, S. J., Pollard, T. D., Ong, J. J., Elbadawi, M., McCoubrey, L. E., Goyanes, A., Gaisford, S., & Basit, A. W. (2021). Connected healthcare: Improving patient care using digital health technologies. Advanced Drug Delivery Reviews, 178(1), 113958. https://doi.org/10.1016/j.addr.2021.113958 

Assaye, A. M., Wiechula, R., Schultz, T. J., & Feo, R. (2020). The impact of nurse staffing on patient and nurse workforce outcomes in acute care settings in low- and middle-income countries. JBI Evidence Synthesis, Publish Ahead of Print(4). https://doi.org/10.11124/jbisrir-d-19-00426 

Cleverley, W. O., Cleverley, J. O., & Parks, A. V. (2023). Essentials of health care finance. In Google Books. Jones & Bartlett Learning. https://books.google.com/books?hl=en&lr=&id=CI7hEAAAQBAJ&oi=fnd&pg=PP1&dq=The+budget+adheres+to+standard+formatting+conventions+used+in+healthcare+settings 

Kovacs, R., & Lagarde, M. (2022). Does high workload reduce the quality of healthcare? Evidence from rural Senegal. Journal of Health Economics, 82, 102600. https://doi.org/10.1016/j.jhealeco.2022.102600 

Pereno, A., & Eriksson, D. (2020). A multi-stakeholder perspective on sustainable healthcare: From 2030 onwards. Futures, 122. https://doi.org/10.1016/j.futures.2020.102605 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Schlak, A. E., Aiken, L. H., Chittams, J., Poghosyan, L., & McHugh, M. (2021). Leveraging the work environment to minimize the negative impact of nurse burnout on patient outcomes. International Journal of Environmental Research and Public Health, 18(2), 610. https://doi.org/10.3390/ijerph18020610 

Sinsky, C. A., Biddison, L. D., Mallick, A., Dopp, A. L., Perlo, J., Lynn, L., & Smith, and C. D. (2020). Organizational evidence-based and promising practices for improving clinician well-being. NAM Perspectives. https://doi.org/10.31478/202011a 

Smallwood, N., Bismark, M., & Willis, K. (2023). Burn-out in the health workforce during the COVID-19 pandemic: Opportunities for workplace and leadership approaches to improve well-being. BMJ Leader, leader-2022-000687. https://doi.org/10.1136/leader-2022-000687 

Teisberg, E., Wallace, S., & O’Hara, S. (2020). Defining and implementing value-based health care. Academic Medicine, 95(5), 682–685. https://doi.org/10.1097/acm.0000000000003122 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Waqanimaravu, M., & Arasanmi, C. N. (2020). Employee training and service quality in the hospitality industry. Journal of Foodservice Business Research, 23(3), 216–227. https://doi.org/10.1080/15378020.2020.1724850 

Ziadlou, D. (2021). Strategies during digital transformation to make progress in achievement of sustainable development by 2030. Leadership in Health Services, ahead-of-print(ahead-of-print). https://doi.org/10.1108/lhs-08-2020-0056 

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Preparing and Managing an Operating Budget

Navigating the complexities of hospital unit management demands more than just expertise. It requires strategic planning and effective budgeting to thrive in the ever-evolving healthcare landscape. Our 35-bed hospital unit recognizes the critical role of a robust financial blueprint in guiding operations. Budgets transcend mere financial monitoring; they serve as guiding lights, illuminating priorities and driving decision-making processes across all levels of the organization.

This assessment delves into the strategies for crafting budgets, initiating strategic planning, and maintaining budget management within our unit. Our overarching objective is to ensure that these financial resources align seamlessly with our mission: to cultivate an environment that fosters optimal patient care, staff satisfaction, and operational efficiency. Through this lens, we explore how the budget functions not merely as a fiscal plan but as a strategic instrument propelling our unit toward its vision.

Preparing an Operating Budget: An In-depth Approach

In response to the financial challenges of our 35-bed hospital unit, the operating budget has been meticulously crafted to address the recent staff turnover, overtime expenses, and the specialized care required for our aging patient population. This budget spans one year, aligning with standard fiscal cycles and aiming to achieve financial stability while ensuring high-quality patient care. Several critical knowledge gaps and uncertainties have been identified, including accurately predicting patient volume and acuity levels, as well as effectively managing overtime expenses. Detailed analysis of historical data is essential to forecast staffing needs accurately while exploring cost-saving strategies in procurement and resource allocation to optimize expenditure without compromising patient care (MBA, 2023). Furthermore, identifying revenue enhancement opportunities, such as expanding services or forging partnerships, is crucial for financial sustainability. The proposed operating budget for the 35-bed hospital is as follows: 

Expense Component 

Revenue Component

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

The operating budget is structured into major sections, covering personnel expenses, operating expenses, patient care expenses, staff training & development, and miscellaneous expenses. Personnel expenses encompass salaries, benefits, and training costs for our staff, ensuring a well-supported workforce. Operating expenses include essential supplies, utilities, and medication costs, as well as maintaining quality standards in daily operations (Basu et al., 2020). Patient care expenses focus on tailored programs and services to meet the healthcare needs of our patients efficiently and compassionately. Revenue generation details income sources like patient services, reimbursements, grants, and donations, which are critical for sustaining operations and supporting growth initiatives (Jetty et al., 2021).

The budget adheres to standard formatting conventions used in healthcare settings, with precise categorization of expenses and revenues. Figures and totals are presented concisely for easy reference and analysis. This proposed operating budget for our hospital unit addresses current financial challenges. It lays a foundation for sustainable growth and improved patient outcomes. By identifying knowledge gaps, adhering to standard formatting conventions, and integrating comprehensive data tables, we aim to achieve fiscal responsibility while upholding our commitment to providing exceptional healthcare services to our community (Cleverley et al., 2023).

Designing and Creating a Budget: An Analytical Examination

Designing and creating a budget in healthcare involves a systematic approach to ensure the effective allocation of resources while meeting patient care needs and organizational objectives. This process begins by establishing clear goals and objectives aligned with the healthcare organization’s mission and strategic priorities. A multidisciplinary team, including finance professionals, clinicians, and administrators, collaborates to develop the budget. This collaboration is essential for considering diverse perspectives and expertise in the budgeting process.

The budgeting process typically includes analyzing historical financial data, projecting future revenue streams, and estimating expenses based on anticipated patient volumes, medical inflation rates, and regulatory changes (Khajavi et al., 2024). Assumptions form the foundation of the healthcare budget, encompassing factors such as patient demographics, reimbursement rates, and healthcare utilization trends. These assumptions are meticulously documented and periodically reviewed to ensure their accuracy and relevance to the budgeting process. For example, local wage rates are researched, and historical salary data are analyzed to determine labor cost assumptions (Amiri et al., 2021).

Determining line items and cost center codes is a critical step in budget creation. Line items encompass various expenses, including personnel costs, medical supplies, pharmaceuticals, facility maintenance, and administrative overhead. The process involves analyzing historical expenditure patterns, conducting needs assessments, and soliciting input from departmental leaders and subject matter experts. Cost center codes are assigned based on departmental structures and organizational hierarchy, ensuring accurate tracking and reporting of expenses (Hanson et al., 2022). Allocation for labor and equipment costs is essential for delivering high-quality patient care.

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Labor costs include salaries, benefits, and training expenses for both clinical and non-clinical staff. Equipment costs cover purchases, leases, maintenance, and upgrades of medical devices, diagnostic equipment, and IT infrastructure (Etges et al., 2020). Funding allocation for labor and equipment costs is based on projected staffing needs, patient care requirements, technological advancements, and industry benchmarks. For instance, staffing requirements are determined based on patient acuity levels, care delivery models, and regulatory guidelines. At the same time, equipment needs are assessed through equipment inventories, technology assessments, and input from clinical stakeholders (Niaz & Nwagwu, 2023).

Staffing requirements and workload calculations are meticulously determined to ensure optimal resource utilization and quality of care delivery. This involves analyzing factors such as patient census, acuity mix, case complexity, and care delivery standards to establish appropriate staffing levels across different shifts and clinical areas. Workload calculations are conducted to ensure a balanced nurse-to-patient ratio, considering peak hours and patient acuity levels. For example, workload calculations may involve assessing the number of patients per nurse per shift, taking into account patient acuity and care requirements (Yinusa & Faezipour, 2023). Equipment needs and ongoing expenses are carefully evaluated to ensure alignment with patient care priorities and organizational goals. This involves assessing clinical demand, technological advancements, regulatory requirements, and safety considerations.

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Ongoing expenses associated with equipment maintenance, repair services, calibration, and consumables are meticulously budgeted to ensure uninterrupted operations and optimal performance of medical equipment. For instance, ongoing expenses for equipment maintenance are estimated based on historical data and maintenance contracts with vendors (Zamzam et al., 2021). Primary sources of budget information in healthcare include financial statements, operational reports, patient data analytics, regulatory guidelines, and input from clinical and administrative leaders. Data reliability is ensured through robust data governance practices, including validation, quality assurance, and periodic audits. For example, financial statements are reviewed monthly, and any discrepancies are investigated promptly to maintain data integrity. Additionally, external benchmarking data and industry reports may be utilized to validate budget assumptions and projections (Cleverley et al., 2023). 

Developing a Strategic Plan and Proposing Evaluation Metrics

In developing our strategic plan, we’ve meticulously crafted a roadmap tailored to align every action with the core mission and vision of our organization. Our plan focuses explicitly on initiatives aimed at enhancing patient outcomes, streamlining operational processes, and fostering innovation within healthcare delivery. These efforts are all directed towards upholding our mission to provide exceptional patient care, drive advancements in medical research, and promote overall community health and well-being. To ensure the effectiveness of our strategic plan, we’ve set forth clear and measurable strategic initiatives that are following.

Employee Empowerment and Retention

 Our workforce is our greatest asset, and empowering and retaining our talented staff is paramount. We’ve devised a multifaceted program that includes tailored training and development, enhancements to the work environment, and a performance appraisal system with merit-based bonuses. By investing in our team’s growth and well-being, we cultivate a culture of excellence, reduce turnover rates, and elevate patient care outcomes (Xuecheng et al., 2022).

Technological Advancements for Enhanced Patient Care

 Innovation drives progress in healthcare, and we’re committed to leading the charge. From state-of-the-art medical devices to cutting-edge data analytics solutions, our strategic plan prioritizes investments that enhance care quality, efficiency, and safety. By embracing the latest technologies, we not only meet the evolving needs of our patients but also position ourselves as industry leaders (Ikhtiyorovna, 2023).

Tailored Resource Allocation for Patient-Centric Care

Every patient is unique, and our resource allocation strategies reflect this understanding. We’ve tailored our resources to meet the specific needs of our diverse patient population, particularly the elderly. This includes ensuring ample supplies of essential medical equipment, medications, and personalized care resources such as rehabilitation services and home health care programs. By customizing our resources, we enhance patient experiences while staying true to our mission of compassionate care (Aminabee et al., 2024).

To rigorously assess the outcomes of our strategic plan and ensure alignment with our mission, we’ve established specific evaluation criteria. Firstly, we will evaluate the effectiveness of our employee retention efforts by monitoring staff turnover rates and employee satisfaction scores and gathering qualitative feedback (Qathmi & Zedan, 2021). Secondly, we’ll closely track the impact of our technological investments by analyzing key performance indicators such as patient outcomes, operational efficiency metrics, and staff productivity. Lastly, we’ll assess patient-centered outcomes by utilizing patient satisfaction surveys, clinical quality indicators, and patient-reported outcomes. These comprehensive evaluation criteria will allow us to measure the success of our strategic initiatives and ensure that they are in line with our organizational mission of providing exceptional patient care (Davidson et al., 2021).

We anticipate a positive response from our executive leaders to our strategic plan and budget proposal. By clearly demonstrating how each initiative supports our mission and organizational goals, we instill confidence in our strategic direction. Our budget is meticulously aligned with our mission, with every allocation serving a strategic purpose and contributing to our overarching objectives. Furthermore, our budget has been meticulously crafted to exclude “nice-to-have” items or non-essential expenditures. Instead, we have prioritized initiatives that have a direct and meaningful impact on advancing our strategic goals and fulfilling our mission. This strategic approach ensures that every allocation serves a purpose and contributes to achieving our organizational objectives (Youn et al., 2022).

Framework for Ongoing Budget Management

Our approach to ongoing budget management is meticulously designed to address the multifaceted factors that influence our financial health, including organizational objectives, policies, and competition for funding. To effectively manage our budget, we have outlined specific strategies for limiting staff overtime, managing non-productive time and expenses, and controlling ongoing costs related to supplies and equipment. To account for variances and ensure proactive financial management, we will conduct monthly budget reviews. During these reviews, we will analyze expenditure trends and assess budget performance against organizational goals.

Adjustments to the budget will be made quarterly, allowing for timely responses to emerging financial challenges and opportunities (Raghupathi & Raghupathi, 2020). Our approach to managing staff overtime involves implementing efficient scheduling practices and workload distribution strategies. By closely monitoring staffing levels and workload demands, we aim to minimize the need for overtime hours while maintaining high standards of patient care. Additionally, we will incentivize adherence to scheduled hours through performance-based bonuses, promoting accountability and efficiency among our workforce (Chatrath et al., 2021).

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Non-productive time and expenses, such as education and certification programs, will be integrated into our staff development initiatives. We will offer flexible learning opportunities, including online courses and workshops, to minimize disruptions to workflow while enabling staff to enhance their skills and qualifications. By aligning educational activities with organizational objectives, we can ensure that non-productive time contributes to the overall advancement of our workforce and the delivery of quality patient care (Koukourikos et al., 2021). Strategic procurement practices will guide our management of ongoing expenses related to supplies and equipment. Through comprehensive inventory management and vendor negotiations, we will optimize resource utilization and minimize unnecessary expenditures. Additionally, we will prioritize investments in cost-effective, high-quality equipment and supplies that align with our organizational objectives and patient care priorities (Ayer et al., 2023).

Several vital assumptions underpin our approach to ongoing budget management. We will conduct monthly budget reviews and quarterly adjustments to ensure proactive monitoring and decision-making regarding financial performance. This process will provide timely insights into our budget’s health and enable us to make necessary adjustments to stay on track with our financial goals. By implementing efficient scheduling practices, we aim to minimize the need for staff overtime while maintaining optimal staffing levels. This will not only help control labor costs but also ensure that our workforce remains well-balanced to meet patient care demands effectively (Schoenfelder et al., 2020).

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

We will adopt strategic procurement practices to optimize resource utilization and minimize unnecessary expenditures on supplies and equipment. By carefully managing our procurement processes, we can ensure that we obtain the necessary resources efficiently while controlling costs and maintaining budgetary discipline. Together, these assumptions form the foundation of our approach to ongoing budget management, aligning with our organizational objectives and ensuring financial sustainability. Through proactive monitoring, efficient scheduling, integrated staff development, and strategic procurement, we are confident in our ability to manage our budget and achieve our financial goals effectively (Cleverley et al.,2023).

Conclusion 

In conclusion, the meticulously crafted operating budget for the 35-bed hospital unit addresses critical financial challenges while prioritizing high-quality patient care. By accurately forecasting staffing needs, managing expenses, and maximizing revenue streams, the budget aims to achieve economic stability and sustainability. The strategic plan outlines clear initiatives focused on employee empowerment, technological advancements, and patient-centered care, all aligned with the organization’s mission and vision. With a framework for ongoing budget management emphasizing proactive monitoring, efficient resource allocation, and strategic procurement, the hospital unit is poised to achieve its financial goals while upholding its commitment to exceptional healthcare delivery.

References

Aminabee, S. (2024). The future of healthcare and patient-centric Care: Digital Innovations, Trends, and Predictions. Www.igi-Global.com; IGI Global. https://www.igi-global.com/chapter/the-future-of-healthcare-and-patient-centric-care/339355 

Amiri, M. M., Kazemian, M., Motaghed, Z., & Abdi, Z. (2021). Systematic review of factors determining health care expenditures. Health Policy and Technology, 10(2), 100498. https://doi.org/10.1016/j.hlpt.2021.01.004 

Ayer, T., Iii, C. C. W., & Zhang, C. (2023). Healthcare inventory management. Www.elgaronline.com; Edward Elgar Publishing. https://www.elgaronline.com/edcollchap/book/9781800377103/book-part-9781800377103-27.xml 

Basu, S., Phillips, R. S., Phillips, R., Peterson, L. E., & Landon, B. E. (2020). Primary care practice finances in the United States amid the COVID-19 pandemic. Health Affairs, 39(9), 10.1377/hlthaff. https://doi.org/10.1377/hlthaff.2020.00794 

Chatrath, D. S., Kaur, A., & Singh, H. (2021). Effect of overtime and work load balance on the well–being of nurses. PalArch’s Journal of Archaeology of Egypt / Egyptology, 18(7), 550–571. https://archives.palarch.nl/index.php/jae/article/view/7768 

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Cleverley, W. O., Cleverley, J. O., & Parks, A. V. (2023). Essentials of health care finance. In Google Books. Jones & Bartlett Learning. https://books.google.com/books?hl=en&lr=&id=CI7hEAAAQBAJ&oi=fnd&pg=PP1&dq=The+budget+adheres+to+standard+formatting+conventions+used+in+healthcare+settings 

Davidson, G. H., Haukoos, J. S., & Feldman, L. S. (2020). Practical guide to assessment of patient-reported outcomes. JAMA Surgery, 155(5), 432. https://doi.org/10.1001/jamasurg.2019.4526 

Etges, A. P. B. da S., Ruschel, K. B., Polanczyk, C. A., & Urman, R. D. (2020). Advances in value-based healthcare by the application of time-driven activity-based costing for inpatient management: A systematic review. Value in Health: The Journal of the International Society for Pharmacoeconomics and Outcomes Research, 23(6), 812–823. https://doi.org/10.1016/j.jval.2020.02.004 

Hanson, K., Brikci, N., Erlangga, D., Alebachew, A., Allegri, M. D., Balabanova, D., Blecher, M., Cashin, C., Esperato, A., Hipgrave, D., Kalisa, I., Kurowski, C., Meng, Q., Morgan, D., Mtei, G., Nolte, E., Onoka, C., Jackson, T. P., Roland, M., & Sadanandan, R. (2022). The Lancet Global Health Commission on financing primary health care: Putting people at the centre. The Lancet Global Health, 10(5), e715–e772. https://doi.org/10.1016/s2214-109x(22)00005-5 

Ikhtiyorovna, K. G. (2023). Embracing technological changes for a better future. American Journal of Language, Literacy and Learning in STEM Education (2993-2769), 1(9), 339–344. http://grnjournal.us/index.php/STEM/article/view/1510 

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Jetty, A., Jabbarpour, Y., Pollack, J., Huerto, R., Woo, S., & Petterson, S. (2021). Patient-physician racial concordance associated with improved healthcare use and lower healthcare expenditures in minority populations. Journal of Racial and Ethnic Health Disparities, 9. https://doi.org/10.1007/s40615-020-00930-4 

Khajavi, S. H., Jooriaby, M. E., & Kermani, E. (2024). Budgeting in healthcare. Studies in Systems, Decision and Control, 213–255. https://doi.org/10.1007/978-3-031-46735-6_9 

Koukourikos, K., Tsaloglidou, A., Kourkouta, L., Papathanasiou, I., Iliadis, C., Fratzana, A., & Panagiotou, A. (2021). Simulation in clinical nursing education. Acta Informatica Medica, 29(1), 15–20. https://doi.org/10.5455/aim.2021.29.15-20

MBA, C. R. H., DPA. (2023). Healthcare financial management: A applied concepts and practical analyses. In Google Books. Springer Publishing Company. https://books.google.com/books?hl=en&lr=&id=OpWkEAAAQBAJ&oi=fnd&pg=PP1&dq=This+budget+spans+one+year 

Niaz, M., & Nwagwu, U. (2023). Managing healthcare product demand effectively in the post-covid-19 environment: Navigating demand variability and forecasting complexities. Managing Healthcare Product Demand Effectively in the Post-Covid-19 Environment: Navigating Demand Variability and Forecasting Complexities, 2(8), 316–330. https://doi.org/10.58631/ajemb.v2i8.55 

Qathmi, A. A., & Zedan, H. (2021). The effect of incentive management system on turnover rate, job satisfaction and motivation of medical laboratory technologists. Health Services Research and Managerial Epidemiology, 8, 233339282098840. NCBI. https://doi.org/10.1177/2333392820988404 

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Raghupathi, V., & Raghupathi, W. (2020). Healthcare expenditure and economic performance: Insights from the United States data. Frontiers in Public Health, 8(156). NCBI. https://doi.org/10.3389/fpubh.2020.00156 

Schoenfelder, J., Bretthauer, K. M., Wright, P. D., & Coe, E. (2020). Nurse scheduling with quick-response methods: Improving hospital performance, nurse workload, and patient experience. European Journal of Operational Research, 283(1), 390–403. https://doi.org/10.1016/j.ejor.2019.10.047 

Xuecheng, W., Iqbal, Q., & Saina, B. (2022). Factors affecting employee’s retention: Integration of situational leadership with social exchange theory. Frontiers in Psychology, 13(872105). https://doi.org/10.3389/fpsyg.2022.872105 

Yinusa, A., & Faezipour, M. (2023). Optimizing healthcare delivery: a model for staffing, patient assignment, and resource allocation. Applied System Innovation, 6(5), 78. https://doi.org/10.3390/asi6050078 

Youn, S., Geismar, H. N., & Pinedo, M. (2022). Planning and scheduling in healthcare for better care coordination: Current understanding, trending topics, and future opportunities. Production and Operations Management, 31(12), 4407–4423. https://doi.org/10.1111/poms.13867 

Zamzam, A. H., Wahab, A. K. A., Azizan, M. M., Satapathy, S. C., Lai, K. W., & Hasikin, K. (2021). A systematic review of medical equipment reliability assessment in improving the quality of healthcare services. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.753951 

NURS FPX 6216 Assessment 1 Instructions: Mentor Interview

Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Mentor Interview

Nursing leaders play a pivotal role in healthcare organizations, requiring a blend of clinical expertise and business acumen. Understanding healthcare business fundamentals and financial management is crucial for analyzing national and international healthcare trends and implementing reforms. The research underscores the importance of nurses possessing both clinical and business skills to drive growth and meet community needs. This assessment is based on an interview that was conducted with Sarah Johnson, a nursing colleague who works as a nursing leader at Springfield Hospital. The interview explores various budgeting approaches and their impact on healthcare provision within the organization.

Comparison of Operating and Capital Budget Management

In order to manage the daily costs required for service delivery, Sarah explained at the outset of the in-depth discussion how operating budgets in healthcare organizations are handled. Nurse leaders face challenges such as accurately forecasting patient volumes, reimbursement rates, and changes in healthcare regulations. These uncertainties can significantly impact budget planning, necessitating agile decision-making for financial sustainability while meeting operational needs. Moreover, she highlighted the importance of addressing knowledge gaps regarding the costs of medical supplies and pharmaceuticals, which may fluctuate due to market dynamics. Overcoming these challenges, Sarah stressed, requires utilizing robust budgeting and forecasting techniques, along with variance analysis and cost-saving initiatives (Khajavi et al., 2024).

Transitioning to managing a capital budget, Sarah explained, nurse leaders encounter different considerations and challenges. Capital budgets, she pointed out, entail long-term investments in infrastructure, equipment, and facilities. Sarah discussed how nurse leaders must grapple with uncertainties regarding asset lifespan, maintenance costs, future funding availability, and project prioritization. Decision-making in capital budgeting, she emphasized, necessitates a strategic perspective, evaluating return on investment, and aligning projects with organizational objectives. Despite these complexities, Sarah highlighted, nurse leaders can employ standard financial management techniques like budgeting, forecasting, and stakeholder engagement to navigate uncertainties and ensure adequate resource allocation (Michelon et al., 2020).

Sarah concluded that nurse leaders play a pivotal role in managing both operating and capital budgets in healthcare organizations. By addressing the specific challenges and considerations inherent in each budget type, nurse leaders can optimize financial performance, support service delivery, and ultimately enhance patient care. Whether navigating the uncertainties of operating budget planning or making strategic decisions in capital budgeting, nurse leaders must leverage their expertise and resources to achieve organizational goals effectively (Paarima et al., 2020).

Resource Allocation for Equipment, Labor and Services

In an insightful interview with Sarah, she shed light on dealing with resources for equipment, labor, and services in healthcare. It is a critical procedure essential for ensuring seamless patient or client care. This involves carefully evaluating current and future needs, taking into account factors such as patient volume, acuity levels, and any specialized care requirements. To make informed decisions, healthcare providers rely on a diversity of data sources, including electronic health records (EHRs) for patient information, workforce management software for staffing data, and equipment inventory systems for tracking equipment utilization and maintenance schedules (Sheikh et al., 2021). Consultation with a diverse range of stakeholders within the healthcare system is crucial for obtaining valuable insights and ensuring that decisions are well-informed. This includes engaging with healthcare professionals from different disciplines, department heads, and financial analysts to gather perspectives on patient care needs, staffing requirements, and budget considerations (Pereno & Eriksson, 2020).

Effective decision-making in resource allocation involves prioritizing patient safety above all else and ensuring that staffing levels are appropriate to meet patient needs while maintaining efficiency and cost-effectiveness. It also requires careful consideration of equipment maintenance schedules, cost efficiency measures, and the ability to adapt to changing demands flexibly (Edoka & Stacey, 2020). Underlying this process are various assumptions about patient demographics, staff productivity, and equipment reliability, which guide decision-making and strategic planning efforts. Additionally, determining the equipment and services needed for seamless patient care requires collaboration with clinical teams to prioritize investments that align with organizational goals and enhance patient outcomes. By following these steps and considering all relevant factors, healthcare organizations can effectively allocate resources for labor, equipment, and services, thereby ensuring the delivery of high-quality care to patients and clients (Mburu, 2022).

Planning for Profitability and Fiscal Success

In an enlightening interview with Sarah, we explored various strategies and theories she employs to ensure plans for profitability and fiscal success are effective. She emphasized the importance of adopting a comprehensive method that reflects both short-term gains and long-term sustainability. She highlighted the significance of impartially considering the potential merits of alternative approaches, ensuring that decisions are based on objective analysis rather than biases or preferences. Relating financial principles to strategic planning is paramount for attaining organizational goals and the success of fiscal. She stressed the importance of aligning budgetary allocations with strategic objectives, ensuring that financial resources are allocated efficiently to support key initiatives. By integrating financial principles such as cost-benefit analysis and risk management into the strategic planning process, organizations can make informed decisions that optimize resource utilization and drive sustainable growth (Guyadeen et al., 2023).

Budget creation and management have a profound impact on the financial health of the organization. A well-designed budget provides a roadmap for allocating resources effectively, identifying areas of investment, and controlling expenses. Effective budget management involves continuous monitoring of financial performance against budgeted targets and making adjustments as needed to ensure financial stability and long-term viability (Keng’ara & Makina, 2020). When dealing with budget variances, Sarah emphasized the importance of proactive management and swift action. Positive variances may specify efficient resource consumption or increased revenues, while negative variances may signal excessiveness or revenue shortfalls.

Addressing budget variances promptly helps mitigate financial risks and ensures that the organization stays on track to achieve its fiscal goals (Demie, 2021). Discretionary spending, while providing flexibility in resource allocation, can have significant implications for the organization’s financial health. Unchecked discretionary expenditures may lead to financial instability and strain on resources, potentially compromising long-term sustainability. Therefore, it’s essential to create clear guidelines and oversight mechanisms to ensure that discretionary spending aligns with organizational priorities and contributes to overall fiscal success (Zarzà et al., 2024).

Evaluating a Nurse Leader Approach to Budget Management 

When examining a nurse leader’s method of budget management, it’s crucial to consider various factors influencing their strategies. Upon reviewing the nurse leader’s approach, both practical and ineffective aspects become apparent. Effective aspects include meticulous planning and allocation of resources, adherence to budgetary constraints while maintaining quality patient care, and proactive monitoring of budget performance against established targets. Ineffective aspects could involve oversights in budget forecasting, inadequate communication, and collaboration with financial stakeholders, or failure to adapt to changing financial circumstances (Cummings et al., 2020). From the nurse leader’s management approach, several best practices may emerge.

These could include fostering a culture of financial accountability and transparency among nursing staff, promoting interdisciplinary collaboration to align budgetary goals with patient care priorities, and implementing regular training and development programs to enhance financial literacy among nursing professionals (Kakemam et al., 2020). However, there are also areas for improvement in the nurse leader’s approach. Suggestions for enhancement include enhancing data-driven decision-making processes by leveraging advanced analytics and forecasting tools and fostering more vital communication channels with finance and administrative teams. It ensures the alignment of budgetary priorities and the implementation of strategies to mitigate budget variances through proactive risk management and contingency planning (Cummings et al., 2020).

Conclusion

In conclusion, the interview with Sarah highlights the critical role of nurse leaders in managing operating and capital budgets in healthcare organizations. Effective budget management requires addressing challenges such as forecasting uncertainties and aligning investments with organizational objectives. Resource allocation for labor, equipment, and services necessitates data-driven decision-making and collaboration with diverse stakeholders. Planning for profitability involves integrating financial principles into strategic planning and proactive budget monitoring to ensure fiscal success. Evaluation of a nurse leader’s approach should focus on fostering financial accountability, enhancing interdisciplinary collaboration, and implementing tactics for continuous improvement.

References

Cummings, G. G., Lee, S., Tate, K., Penconek, T., Micaroni, S. P. M., Paananen, T., & Chatterjee, G. E. (2020). The essentials of nursing leadership: A systematic review of factors and educational interventions influencing nursing leadership. International Journal of Nursing Studies, 115(103842). https://doi.org/10.1016/j.ijnurstu.2020.103842 

Demie, B. (2021). Assessment on budget implementation and controlling: The case of Sululta Woreda Finance and economic development bureau. Repository.smuc.edu.et. http://repository.smuc.edu.et/handle/123456789/6269 

Edoka, I. P., & Stacey, N. K. (2020). Estimating a cost-effectiveness threshold for health care decision-making in South Africa. Health Policy and Planning. https://doi.org/10.1093/heapol/czz152 

Guyadeen, D., Henstra, D., Kaup, S., & Wright, G. (2023). Evaluating the quality of municipal strategic plans. Evaluation and Program Planning, 96, 102186. https://doi.org/10.1016/j.evalprogplan.2022.102186 

Kakemam, E., Liang, Z., Janati, A., Zozani, M. A., Mohaghegh, B., & Gholizadeh, M. (2020). Leadership and management competencies for hospital managers: A systematic review and best-fit framework synthesis. Journal of Healthcare Leadership, Volume 12, 59–68. https://doi.org/10.2147/jhl.s265825 

Keng’ara, R., & Makina, I. (2020). Effect of budgetary processes on organizational performance: A case of marine state agencies, Kenya. Universal Journal of Accounting and Finance, 8(4), 115–130. https://doi.org/10.13189/ujaf.2020.080404 

NURS FPX 6216 Assessment 1 Instructions: Mentor Interview

Khajavi, S. H., Jooriaby, M. E., & Kermani, E. (2024). Budgeting in healthcare. Studies in Systems, Decision and Control, 213–255. https://doi.org/10.1007/978-3-031-46735-6_9 

Mburu, J. (2022). Determinants of quality of healthcare delivery in devolved systems: Case study of Lamu county, Kenya. International Academic Journal of Arts and Humanities |, 1(3), 85–101. http://www.iajournals.org/articles/iajah_v1_i3_85_101.pdf 

Michelon, P. de S., Lunkes, R. J., & Bornia, A. C. (2020). Capital budgeting: A systematic review of the literature. Production, 30(2). https://doi.org/10.1590/0103-6513.20190020 

Paarima, Y., Kwashie, A. A., & Ofei, A. M. A. (2020). Financial management skills of nurse managers in the eastern region of Ghana. International Journal of Africa Nursing Sciences, 14, 100269. https://doi.org/10.1016/j.ijans.2020.100269 

Pereno, A., & Eriksson, D. (2020). A multi-stakeholder perspective on sustainable healthcare: From 2030 onwards. Futures, 122. https://doi.org/10.1016/j.futures.2020.102605 

NURS FPX 6216 Assessment 1 Instructions: Mentor Interview

Sheikh, A., Anderson, M., Albala, S., Casadei, B., Franklin, B., Richards, M., Taylor, D., Tibble, H., & Mossialos, E. (2021). Health information technology and digital innovation for national learning health and care systems. The Lancet Digital Health, 3(6), e383–e396. https://doi.org/10.1016/S2589-7500(21)00005-4 

Zarzà, I. de , Curtò, J. de, Roig, G., & Calafate, C. T. (2024). Optimized financial planning: Integrating individual and cooperative budgeting models with LLM recommendations. AI, 5(1), 91–114. https://doi.org/10.3390/ai5010006