Joint Replacement Unit Implementation 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. Budget Proposal for New Program Overview of the organizations financial performance and its ability to invest in establishing a new unit will enable the ... ... middle of paper ... ...Havelin, L., Furnes, O., Overgaad, S., & Engesaeter, L. (2012). Increasing risk of prosthetic joint infection after total hip arthroplasty. Acta Orthopaedica, 83(5), 449-458. Dunham-Taylor, J., & Pinczuk, J. (2010). Workload management. Financial management for Nurse managers: Merging the heart with the dollar (2nd Ed.). Boston: Jones and Bartlett. Finkler, S. A. & McHugh, M. (2008). Budgeting concepts for nurse managers. (4th Ed.). Philadelphia: W.B. Saunders. Roussel, L. (2013). Budgeting Principles for Nurse Managers. Management and Leadership for Nurse Administrators, (6th Ed., p. 340). Burlington: MA: Jones & Bartlett. Räsänen, P., Paavolainen, P., Sintonen, H., Koivisto, A., Blom, M., Ryynänen, O., & Roine, R. P. (2007). Effectiveness of hip or knee replacement surgery in terms of quality-adjusted life years and costs. Acta Orthopaedica, 78(1), 108-115.
1. Explain the differences between operating budgets and capital expenditure budgets. How are they used?
Rubak, T., Svendsen, S., Søballe, K., & Frost, P. (2013). Risk and rate advancement periods of total hip replacement due to primary osteoarthritis in relation to cumulative physical workload. Scandinavian Journal Of Work, Environment & Health, 39(5), 486-494. doi:10.5271/sjweh.3365
...elly, P., & Crawford, H. (2013). Nursing leadership & management. In Nursing leadership & management(2nd ed., pp. 168-177). Canada: Nelson Education.
There is a range of criteria relevant for a decision of financing a new venture. To construct my list for the evaluation of a new company as an opportunity I have selected to refer to t...
According to Gapenski, Fundamentals of Healthcare Finance, the primary role of finance in health care is to plan for, acquire, and use resources to maximize the efficiency of the enterprise (Gapenski, 2013). The role of finance in healthcare is divided in to different sections that play a specific role in a healthcare organization. One of the sections that are first and foremost is planning and budgeting, which involves evaluating the financial effectiveness of current operation and planning
The use of budgets in the healthcare sector have several benefits and serve several purposes. For example, budgets set the performance agenda for the year ahead through estimation of revenues and expenditures (Byrne, 2007). Additionally, a budget allows a health care organization (HCO) to provide a forecast of income and expenditure or profitability, can be used as a tool for decision making, and as a means to monitor business performance (Leo Issac, n.d.). Forecasting allows HCOs to predict whether a profit will be made or not (Leo Issac, n.d.). Moreover, budgets aid in decision making or determining if a potential expenditure has been planned for or not (Leo Issac, n.d.). Lastly, budgeting allows HCOs to
As а leader for а small health care organization, you need to follow steps to help you develop the budget. There are ten steps will help in developing and managing the budget. First
Operating budget is the most appropriate budget for managing unit cost. The operating budget is a financial plan that takes into consideration all of the day-to-day activities that involve taking care of patients. A units revenue, which is the actual charges, are based off of the total number of days patients spend on the unit or the average daily census. Expenses include all of the cost for paying nursing staff to work, the cost of all supplies that are necessary to provide patient care, and the cost of any additional resources that may be necessary for patient care. The unit expenses can be broken down into two main types of expenses. One, is the employment cost. The employment cost is the largest part of any units budget. This is due
Top-down budgeting is listed in Towards a Metatheory of Budgeting as a normative theory of budgeting. Normative theories are defined as complete theories of budgeting that incorporate the budget, appropriations, preparation, and decision events. Normative theories are not intended to describe what occurs in the budgeting process but prescribe considerations for future implementation as a best practice (Williams & Calabrese, 2011). However, with the evolution of organizational complexity, top-down budgeting has become a positive theory. Positive theories explain an observation of the budgeting process and attempt to analyze why that behavior exists as an aspect of organizational culture (Williams & Calabrese, 2011). Top-down budgeting is not a desired best practice and therefore not a normative theory, because the methodology does not include key stakeholders in decision making. Top-down budgeting is used as a way to save time, centralize decision making, and limit the amount of controls given to lower levels of the organization. As organizations become flatter and remove excessive layers of management to become more nimble, the centralization of budget decisions has evolved (George, 2012). The traditional top-down budgeting approach is dated. Under the category of positive theory, top-down budgeting is a descriptive theory that explains an aspect of the budgeting process. It is an observation of practice. In an evolved definition, decisions from leadership are not the end of a process. Instead, they are a factor considered in the decisions for a final budget and department goals.
Budget based staffing occurs when nursing staff is divided up according to nurse hours per patient days. This type of staffing grid accounts for census at midnight each night. It does not take into concern admissions or discharges per day. For example, if a medical unit has ten patients at midnight and staffing calls for one nurse for every five patients. This would mean two nurses are staffed each shift. However, throughout the day patients come and go and at five pm there are fifteen patients on the unit. Now, two nurses have seven or eight patients each versus the five they staffed for. This type of budget is too risky when looking at nurse overload and patient safety.
The scenario provided calls for an action plan to reduce annual nursing turnover following the implementation of staffing ratios, adding to the current problem of nursing shortage and unsuccessful recruitments. As a nurse administrator, the first action I would to is hold informal meetings, which provides an opportunity to evaluate the staff’s satisfaction rates, and determine and increase the factors that enhances satisfaction. Daily rounds is then implemented in an attempt to know the staff one-on-one,
Staffing methods can play a large role in risk management. For instance, if there is not enough staff to take care of patients, it can be a very dangerous situation. The nurse will not be able to give the type of patient-centered care that each deserves. There is an increased for medical errors when the unit is understaffed and the nurses are overwhelmed. If the unit is overstaffed with nurses, it can be an issue too. However this issue involves finances. It can cause a negative variance in the budget. According to Yoder-Wise (2014), “Nurse managers must make skilled staffing and scheduling decisions to ensure that safe and cost effective care is provided by the appropriate level of caregiver” (p. 275).
Nurse managers play an important role for evaluation and maintaining the unit's allotted yearly budget. According to Yoder-Wise (2014), the budget process begins with information gathering. The second step of the process involves developing the unit budget, which is then followed by setting a cash budget (Yoder-Wise, 2014). The last step of the process involves continuously reviewing and editing the set budget, and making changes accordingly (Yoder-Wise, 2014). Furthermore, variance analysis can assist a nurse manager in figuring out which categories spent more money than previously budgeted, and which ones did not require all funds that were set aside (Yoder-Wise, 2014). Some unforeseen costs have arose on the cardiac unit.
I know firsthand how important budgeting is, I own a business and being a small business owner, I have learned how to be efficient in my business. I also believe that budgeting is a must for any size business to succeed and become profitable. In fact, I am an income tax professional, and I have advised many of my clients in their business as well as, their personal finances when it comes to budgeting. Budgeting refers to the process of planning on expenditure and aids in determining the availability of capital to fund a project. In a human resource management context, it helps management forecast on the human resources required to accommodate the future goals of the firm (Dudin, 2015). Some of the steps are undertaken in the budgeting