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NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Student Name

Capella University

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Preparing and Managing a Capital Budget

Capital Acquisition and Assumptions

Capital budgeting plays a pivotal role in organizational planning and decision-making, especially concerning resource allocation for various projects. Such investments are long-term and require meticulous management to ensure sustainability (Bosch-Badia et al., 2020). In the context of a 50-bed facility grappling with nursing turnover due to workplace dissatisfaction, the proposed plan entails creating a budget for staff training and refurbishing their lounge. As a nurse leader, my objective is to establish a rejuvenating nurses’ lounge to boost morale and motivation, thereby necessitating a comprehensive capital budget for resource analysis and effective outcomes.

The renovation scope aims to alleviate the bleak work environment contributing to nurse attrition. Studies underscore that fostering a positive workplace environment fosters staff motivation, reduces medical errors, and enhances patient care (Maassen et al., 2021). The envisioned lounge makeover entails installing comfort-enhancing amenities such as medicated furniture, lockers for secure storage, and vending machines for nutritional needs. Additionally, prioritizing hygiene management ensures a safe and relaxed environment for the nursing staff. The projected timeline for completion is eight months, incorporating infrastructural changes to accommodate the needs of fifty to sixty nurses. The underlying assumption is that catering to nurses’ comfort and needs will augment their satisfaction levels, ultimately enhancing healthcare quality.

Justification for the Capital Acquisition

Research emphasizes the pivotal role of nurse motivation in ensuring quality healthcare delivery and staff retention (Karaferis et al., 2022). Renovating the facility to cultivate a sense of belonging among nurses is imperative for nurse leaders. Such enhancements not only prioritize staff well-being but also augment productivity and organizational outcomes (Zhenjing et al., 2022). By providing a conducive work environment, the proposed changes aim to empower nurses, thereby fostering patient-centered care and improving overall service quality. Failure to address nurses’ holistic needs can compromise patient care quality, underlining the significance of lounge renovations (Pedrosa et al., 2020).

Improving employee satisfaction correlates with enhanced care quality, aligning with the organization’s patient-centered care mission. Establishing a designated lounge acknowledges staff contributions, fostering a collaborative and positive workplace culture. Moreover, executives are urged to view this budget positively, recognizing its potential to mitigate turnover rates and elevate patient satisfaction.

Preparing a Capital Budget

The implementation timeline for the current budget spans eight months, commencing with data collection and needs assessment through interviews and surveys. The budget’s premise revolves around creating a supportive and stress-free environment conducive to nurse comfort and motivation. Table 1 in the Appendix delineates the budget allocation across various expense categories. However, uncertainties surrounding leadership dynamics and workload necessitate careful consideration to mitigate budgetary risks.

Process of Calculating Cost

Cost estimation entails collating data from vendors and market surveys to ascertain pricing for proposed changes. Vendor quotations are evaluated based on the payback period method, facilitating informed decision-making (Mollah et al., 2021). The finance team spearheads cost calculations, leveraging capital budgeting techniques to ensure optimal resource allocation.

Budget Management Plan

Effective budget management hinges on inter-professional collaboration and proactive cost-control measures. Collaborating with stakeholders ensures alignment with organizational goals, while vigilance in expense monitoring enables timely adjustments. Positive inter-professional collaboration correlates with successful project execution, highlighting the significance of teamwork in healthcare projects (Schmidt et al., 2021).

Impact of Capital Acquisition on Financial Health

The initial renovation phase may strain the organization’s finances, albeit with long-term benefits such as reduced turnover costs and enhanced staff productivity. A projected 50% return on investment within six to eight months underscores the financial viability of the proposed changes. However, prudent analysis of depreciation values and tax implications is imperative to optimize financial decision-making.

References

Awosoga, O. A., Odole, A. C., Onyeso, O. K., Ojo, J. O., Ekediegwu, E. C., Nwosu, I. B., Nord, C., Steinke, C., Varsanyi, S., & Doan, J. (2023). Perceived strategies for reducing staff-turnover and improving well-being and retention among professional caregivers in Alberta’s continuing-care facilities: A qualitative study. Home Health Care Services Quarterly, 42(3), 193–215. https://doi.org/10.1080/01621424.2023.2166889

Bosch-Badia, M.-T., Montllor-Serrats, J., & Tarrazon-Rodon, M.-A. (2020). The capital budgeting of corporate social responsibility. Sustainability, 12(9), 3542. https://doi.org/10.3390/su12093542

Dash, S., Shakyawar, S. K., Sharma, M., & Kaushik, S. (2019). Big data in healthcare: Management, analysis and future prospects. Journal of Big Data, 6(1), 54. https://doi.org/10.1186/s40537-019-0217-0

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Karaferis, D., Aletras, V., Raikou, M., & Niakas, D. (2022). Factors influencing motivation and work engagement of healthcare professionals. Materia Socio-Medica, 34(3), 216–224. https://doi.org/10.5455/msm.2022.34.216-224

Maassen, S. M., van Oostveen, C., Vermeulen, H., & Weggelaar, A. M. (2021). Defining a positive work environment for hospital healthcare professionals: A Delphi study. PLoS ONE, 16(2), e0247530. https://doi.org/10.1371/journal.pone.0247530

Mollah, A. S., Rouf, A., & Rana, S. M. S. (2021). A study on capital budgeting practices of some selected companies in Bangladesh. PSU Research Review, 7(2), 137–151. https://doi.org/10.1108/PRR-10-2020-0035

Pedrosa, A. L., Bitencourt, L., Fróes, A. C. F., Cazumbá, M. L. B., Campos, R. G. B., de Brito, S. B. C. S., & Simões e Silva, A. C. (2020). Emotional, behavioral, and psychological impact of the covid-19 pandemic. Frontiers in Psychology, 11. https://www.frontiersin.org/articles/10.3389/fpsyg.2020.566212

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Schmidt, J., Gambashidze, N., Manser, T., Güß, T., Klatthaar, M., Neugebauer, F., & Hammer, A. (2021). Does interprofessional team-training affect nurses’ and physicians’ perceptions of safety culture and communication practices? Results of a pre-post survey study. BMC Health Services Research, 21(1), 341. https://doi.org/10.1186/s12913-021-06137-5

Zhenjing, G., Chupradit, S., Ku, K. Y., Nassani, A. A., & Haffar, M. (2022). Impact of employees’ workplace environment on employees’ performance: A multi-mediation model. Frontiers in Public Health, 10, 890400. https://doi.org/10.3389/fpubh.2022.8

Appendix

Table 1a: Expense Categories and Amount Required

CategoriesAmount required ($)
Expenses of construction (lockers, bathrooms, etc.)400,000
Infrastructural changes (furniture, equipment, etc.)200,000
Labor expense175,000
IT development expense250,000
Maintenance charges90,000
Hygiene management charges50,000
Miscellaneous60,000
Total1,225,000