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NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Student Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Preparing and Managing the Operating Budget

Healthcare management involves continuous efforts to enhance the quality of care through effective planning, organization, and evaluation within organizational settings. Nursing leaders play a crucial role in overseeing operational budgets, improving staff and patient satisfaction, and fostering innovation and empowerment within their teams (Brennan & Wendt, 2021). Successful budget planning and allocation require a blend of business acumen, understanding of healthcare management, and resource allocation expertise.

Research indicates that equipping nursing leaders with business skills enhances their effectiveness, allowing them to navigate complexities, make informed decisions, and deliver patient-centered care (Alsadaan et al., 2023; Sonmez-Cakir & Adiguzel, 2020). This integration of business knowledge enables leaders to drive innovative changes while prioritizing staff and patient needs, thereby improving clinical outcomes.

Effective nursing management not only enhances patient outcomes but also boosts morale and productivity organization-wide (Specchia et al., 2021). This article examines the preparation and management of an operating budget for a 35-bed hospital with 20 full-time equivalent employees, focusing on staff retention, patient-centered care, and fiscal responsibility.

Operating Budget

An operating budget outlines an organization’s anticipated expenses and revenue for a specific period, guiding financial operations. In a healthcare setting, this budget typically includes costs such as medical supplies, staff salaries, training, and technology maintenance, alongside revenue sources like patient care fees, research grants, and charitable funds (Abdulsalam & Schneller, 2019).

The proposed operating budget aims to enhance staff retention and patient-centered care by strategically allocating resources. It spans one year, divided into quarters for ongoing analysis and adjustment. Emphasis is placed on initiatives such as performance reviews, bonuses, and telehealth integration to improve staff retention, while infrastructure upgrades and enhanced medical supplies aim to enhance patient care.

Table 1 (a): 

Budget category and the Expense per year (USD$)

Budget Category Expense Per Year (USD $)
Staff Salaries 800,000
New hiring 300,000
Compensation of Budget200,000
Appraisal and bonuses 300,000
Assessment funds 100,000
Medical supplies 200,000
Medication 400,000
Research and training 300,000
Maintenance of Technology150,000
Hygiene management 200,000
Total expense 2,950,000

Table 1(b)

Budget Category and the Revenue per Year (USD$)

Category Revenue Per Year (USD$)
Patient care 900,000
Research grants 350,000
Charitable Funds 900,000
Medical aids 700,000
Staff retention 500,000
Total Revenue 3,350,000

Budget Creation and Design

Budget creation involves meticulous planning and analysis, incorporating insights from previous trends and organizational goals (Nilsen et al., 2020). SWOT analysis helps identify internal strengths and weaknesses, as well as external opportunities and threats, informing budget allocation.

Data gathered from need assessments and SWOT analysis inform budget allocation, ensuring alignment with organizational objectives. Investments in staff retention, patient-centered care, and training and development are prioritized, with regular monitoring and evaluation to track progress and adjust as needed.

Strategic Plan and Evaluation Criteria

A strategic plan is developed to align budgetary goals with organizational objectives, focusing on staff retention and patient-centered care. Initiatives such as competitive compensation packages and patient engagement strategies aim to achieve these goals (Kwame & Petrucka, 2021).

Evaluation criteria include measures of staff satisfaction, patient feedback, and clinical quality indicators, ensuring ongoing assessment and adjustment to optimize budget performance. Flexibility is maintained to address unforeseen challenges and opportunities.

Conclusion

In conclusion, effective preparation and management of an operating budget are essential for healthcare organizations to achieve their objectives. By prioritizing staff retention and patient-centered care, and employing strategic planning and evaluation, nursing leaders can drive positive outcomes and enhance organizational success.

References

Abdulsalam, Y., & Schneller, E. (2019). Hospital supply expenses: An important ingredient in health services research. Medical Care Research and Review76(2), 240–252. https://doi.org/10.1177/1077558717719928 

Alsadaan, N., Salameh, B., Reshia, F. A. A. E., Alruwaili, R. F., Alruwaili, M., Awad Ali, S. A., Alruwaili, A. N., Hefnawy, G. R., Alshammari, M. S. S., Alrumayh, A. G. R., Alruwaili, A. O., & Jones, L. K. (2023). Impact of nurse leaders behaviors on nursing staff performance: A systematic review of literature. INQUIRY: The Journal of Health Care Organization, Provision, and Financing60, 004695802311785. https://doi.org/10.1177/00469580231178528 

Brennan, D., & Wendt, L. (2021). Increasing quality and patient outcomes with staff engagement and shared governance. OJIN: The Online Journal of Issues in Nursing26(2). https://doi.org/10.3912/OJIN.Vol26No02PPT23

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Kwame, A., & Petrucka, P. M. (2021). A literature-based study of patient-centered care and communication in nurse-patient interactions: Barriers, facilitators, and the way forward. BMC Nursing20(1), 158. https://doi.org/10.1186/s12912-021-00684-2 

Nilsen, P., Seing, I., Ericsson, C., Birken, S. A., & Schildmeijer, K. (2020). Characteristics of successful changes in health care organizations: An interview study with physicians, registered nurses and assistant nurses. BMC Health Services Research20(1), 147. https://doi.org/10.1186/s12913-020-4999-8 

Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of leader effectiveness in organization and knowledge sharing behavior on employees and organization. SAGE Open10(1), 215824402091463. https://doi.org/10.1177/2158244020914634

Specchia, M. L., Cozzolino, M. R., Carini, E., Di Pilla, A., Galletti, C., Ricciardi, W., & Damiani, G. (2021). Leadership styles and nurses’ job satisfaction. Results of a systematic review. International Journal of Environmental Research and Public Health18(4), 1552. https://doi.org/10.3390/ijerph18041552

Weyman, A. K., Glendinning, R., Costa, J., O’Hara, R., Roy, D., & Nolan, P. (2023). Should I stay or should I go? NHS staff retention in the post COVID-19 world: Challenges and prospects. https://doi.org/10.5281/zenodo.7611656 

Wong, K., Chan, A. H. S., & Ngan, S. C. (2019). The effect of long working hours and overtime on occupational health: A meta-analysis of evidence from 1998 to 2018. International Journal of Environmental Research and Public Health16(12), 2102. https://doi.org/10.3390/ijerph16122102

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget