The purpose of this paper is to discuss the steps involved in developing a budget for St. Louis Medical Centers’ (SLMC) new Cardiac Unit. Budget development steps will be identified to help develop a sound budget for the cardiac unit. A financially responsible budget will ensure the ability to provide quality care and distribution of nursing resources. Developing a sound budgeting process provides a solid foundation for organizational growth and development (Seetharaman, Patwa, Jadhav, & Saravanan, 2016). The development of a budget should be lead by what the organization plans to accomplish and how the organization is to go about meeting their goals (White, 2014).
Steps to Develop a Budget As a nurse leader prepares to complete a budget,
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Then patient care hours per day is figured in order to determine whether there are enough staff or full-time equivalents (FTE) to meet the needs of the patient population. At this point, the nurse leader will need to review acuity on the particular unit. This information will help the leaders determine budget information for amount of supplies that may be needed. This is where nursing leadership would be most benefited by including their front-line staff in financial discussions and decision making (Mukherjee, Al Rahahleh, Lane, & Dunn, 2016). Equipment needs also needs to be investigated to ensure adequate equipment such as vitals machines, patient beds, shower chairs are on hand to facilitate care. Equipment purchases and possible rental or leases are then included in the budget planning. Again, front-line staff is a good resource for this information. Listening to their frustrations at having to search for items or having to wait for equipment to carry out patient …show more content…
Buy in of the clinical staff is paramount in maintaining and meeting budget goals. Communication of financial goals to front-line staff will help to ensure that everyone is one the same page as far as goals and plans to meet them. Communication between nursing leadership and financial managers is also crucial. To nursing leadership, the topic of budget development is intimidating and support of their leadership and financial leaders is important. “Managers need to have a budget, control the budget and trust management to stand behind them” (Dean,
I attended the Saturday Lab 1 session discussing the Denison Specialty Hospital case study. In our session, we had a through discussion into the different budget terminology. I learned about the difference between accrual and cash accounting methods, which is based on the timing of when the revenue and expenses are recognized. I also learned about responsibility centers as an organizational unit under the supervision of a manager, who is responsible for its activities and results. In addition, the manager is accountable for the budget of the department that they head. Therefore, a centralized form of management in developing the budget because it makes easier to because the information for the department budget is located
The purpose of financial measurement in healthcare is to provide the community with the services it needs, at a clinically acceptable level of quality, at a publicly responsive level of amenity, at the least possible cost. This is done by providing healthcare finance managers with accounting and finance information to help accomplish the purpose of the organization (Nowicki, 2015). When making accounting decisions about budgeting and inventory control, an understanding of economics, statistics, and operations research is needed. Major Financial Measures
It is vital that the operating budget ties in with long-term strategies by planning, setting objectives, and forecasting the future. According to Mr. Wright, Robertwood Johnson University Hospital adopted the GE Model of “operation excellence” with long-term strategies in their operating budget. With the ” operations excellence” strategy, the organization has over the years transformed the operating budget by accurately tracking and constantly improving their revenue cycle yearly by setting payment practices to generate revenue to achieve specific financial objectives of greater demand with the maximum revenue margins along with eliminating waste and streamlining the budget by cutting expenses and prioritizing programs that do not give them a high return on investment (Langabeer II & Helton, 2016) (Jones, Joseph & Taylor, 2013). With the “operation excellence” strategy, Robertwood Johnson University Hospital has progressed continuously over the years by implementing long-term strategies that have made the organization financially successful.
Current health care systems exist in complex atmospheres that regularly change to meet the demands of health care personnel and consumers. Health care systems deal with many different cultures, values, and interests making it increasingly more difficult for management to provide their employees with a clear vision of the future (Lega, Longo, & Rotolo, 2013). Begun, Hamilton, and Kaissi (2005) explain health care centers utilize strategic planning to better understand their environments and ensure the organization’s structure, culture, and important decision-making are compatible within their current surroundings. Ginter, Duncan, and Swayne (2013) describe strategic planning as “the periodic process of developing a set of steps for an organization to accomplish its’ mission and vision using strategic thinking” (p.14). The goal of strategic health care planning is to improve performance throughout the organization (Begun et al, 2005). This paper discusses the strategic plan for Brooklyn Hospital Center including its long and short- term goals, its strategic thinking and key stakeholders, and the various strategies identified within the plan.
Two main staffing methods that are currently used in most nursing facilities are staffing by patient acuity using patient classification systems and staffing by mandated nurse-to-patient rations. Each method has an impact on patient outcomes, safety and overall satisfaction determined from different articles and studies done on each staffing method. There are pros and cons to each staffing methods. Nursing facilities look at many of these pros and cons when determining staffing methods that are used, cost, patient outcomes, and nursing
What is the manager 's responsibility in the budget preparation process? How is her/his input communicated? Am responsible for the nursing budget, we call it clinical budget meaning stuff that are directly related to clinical care, for example supplies, nursing staffing, patient revenue from skilled and non-skilled care etc. Normally I have the flexibility to set up my own budget based on past trends, so far my budgets have been on point. After the budget is drafted it’s then reviewed by the administrator who is ultimately responsible for final
Budgets are a resource that a nonprofit can utilize to develop strategic plans and tactical operational management plans to achieve their mission. Budgets can be used as a communications mechanism with internal and external stakeholders. “In most settings, budget and budgeting are overly feared exercises [however] with the proper knowledge they can be used as the management aids they are intended to be” (McLaughlin, 2016, p.176). The National Council of Nonprofits points to a budget as “a guide that can help a nonprofit plan for the future as well as assess its current financial health” (Council of Nonprofits, n.d.).
The ability of a unit to survive is largely dependent upon the hospitals internal financial budgetary performance and the external needs within the community. Developing a financial budget is a process that should use teamwork to plan and implement in order to be effective. The budget sets perimeters for administrators to follow throughout the year, allowing the director to report variances while providing guidance to maintain a minimum variance and adjust when possible (Finkler & McHugh, 2008). By using all department managers in the planning process of the new budget, the nurse executive is able to develop effective strategies for all departments while investing in the goals. This eliminates many problems associated with budget and identifies areas that need improvement or expansion. Because of the competition, declining margins, and other economic pressures, nurse executives need to take steps to control costs and increase revenues for this unit. The overall goal of the financial performance within the organization is to meet the total budgetary needs of the unit to produce favorable outcomes. My focus will be to propose the expansion of a new Joint Replacement Unit (JRU) within the hospital, while identifying the major operating components of the budget for this organization. The importance of reviewing the budget for a newly developed unit is to allow the nurse executive and administrative team to manage the existing organizational programs within in the facility, plan for goal accomplishments for the new unit, while controlling costs.
Finkler, S. A., Kovner, C. T. & Jones, C. B. (2007). Financial management for nurse
At Penrose Hospital in Colorado Springs, Colorado, the staffing is determined by the patient census. Ideally, on the Surgical/ Trauma unit, Registered Nurses will have approximately 4-5 patients, with a post-operative nurse that comes in at 10am to assume care of the post-operative patients that discharge from PACU to the floor. The post-operative nurse typically receives up to five patients per shift. The CNA’s on the unit will have anywhere between 7-13 patients depending on the staffing on the floor, with the help of a unit secretary that rovers the unit, and offers help as needed. In 2014 the unit grid for the 9th floor was re-vamped by the assistance of the unit practice counsel. After discussion with a nurse leader on the 9th floor, the clinical manager sat down with the unit practice counsel, and the unit practice counsel chair to discuss budget, and staffing. It was noted after slight changes, the increase in employee satisfaction. The staff members felt their voice was heard, thus they were able to make slight changes that the entire unit was able to agree upon, with staying within budget. Furthermore, with the ability for the unit practice council members to be able to visualize what goes into maintaining a budget, and getting budgets approved, there was a greater appreciation for decisions that were made. Finally, with the new changes, and tweaks there was a decrease in unapproved
...ills of the manager can be divided into simple categories of: leadership skills, people skills, budgeting and finance, quality of care skills, and information technology skills. According to Porter-O’Grady (1997, 1999), he observed that advanced knowledge of technology has provided and changed the traditional hierarchy of leadership (Susan O. Valentine, 2013). Today’s technology takes grammar, spelling, and punctuation to a new level of error prevention, which can help reach out to key individuals and other staff member’s. For nurse managers, people skills include interviewing new employees and conducting staff meetings with others on future employees. Understanding the financial state of a health care unit is vital in finding a way to help keep other nurses and to keep them satisfied. Managers should analyze the situation and the budget crisis of all employees.
A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.
Quantitative plans are called budgets. Budgets are prepared to impose cost controls on the activities of an organization (Chenhall, 1986).Budgets are then used to evaluate the performance of the management and budget itself is considered as a standard to evaluate the performance Solomon, 1956). The purpose of the budget is also to implement the strategy of the organization and communicate it to the employees of the organization Rickards (2006). The change in the external environment has led to the change in the budgeting approaches from the initial cash based budgets to the zerio based budgets (Bovaird, 2007).
Background on the Case Study Cardinal Health Care System (CHCS) is a for-profit organization that operates three health care subsidiaries— an acute care hospital, an outpatient clinic, and a long-term care nursing facility. The board of directors at CHCS are concerned with their inability to control overhead cost. The presidents of the three health care subsidiaries are complaining about the policy on allocating all corporate overhead cost based on the revenue generated by each of their departments 1. Fred Bird is the newly appointed chief financial officer (CFO) saddled with the task of solving the problem of increasing overhead cost of the health system.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support