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 $) |
| Staff Salaries | 800,000 |
| New hiring | 300,000 |
| Compensation of Budget | 200,000 |
| Appraisal and bonuses | 300,000 |
| Assessment funds | 100,000 |
| Medical supplies | 200,000 |
| Medication | 400,000 |
| Research and training | 300,000 |
| Maintenance of Technology | 150,000 |
| Hygiene management | 200,000 |
| Total expense | 2,950,000 |
Table 1(b)
Budget Category and the Revenue per Year (USD$)
| 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 Review, 76(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 Financing, 60, 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 Nursing, 26(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 Nursing, 20(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 Research, 20(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 Open, 10(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 Health, 18(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 Health, 16(12), 2102. https://doi.org/10.3390/ijerph16122102