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DQ: What type of staff performance indicators would you monitor to ensure you were meeting your budget?

DQ What type of staff performance indicators would you monitor to ensure you were meeting your budget?

NUR 621 Topic 7 DQ 2

REPLY TO DISCUSSION

The healthcare industry is constantly changing, and healthcare organizations must ensure standards are maintained and monitored to thrive and function successfully. Healthcare indicators help monitor how well organizations are functioning and show areas that need improvement. “Key performance indicators are quantifiable measurements that show how well an organization, team, or individual is performing against a predetermined goal or objective” (Mind Tools, n.d.). Performance indicators measure how well healthcare organizations operate in managing utilization which is the demand for services by consumers (Penner, 2017). Financial indicators measure the monetary values in healthcare organizations (Penner, 2017). Healthcare facilities must create a balance in ensuring the best patient care while managing staffing, resources, and associated costs. Some significant performance indicators to consider ensuring facilities stay within budget are staff-to-patient ratio, bed occupancy rate, average hospital stay, treatment costs, patient satisfaction, and employee satisfaction. To monitor performance indicators, facilities must track records and progress, generate reports and compare to see if any improvement is needed; doing so helps to ensure positive patient outcomes and organizational success.

References

 

Mind Tools. (n.d.). Performance management and KPIs. https://www.mindtools.com/pages/article/newTMM_87.htm#:~:text=A%20Key%20Performance%20Indicator%20(KPI)%20is%20a%20quantifiable%20measurement%20that,a%20predetermined%20goal%20or%20objective.

 

Penner, S. J. (2017). Economics and Financial Management for Nurses and Nurse Leaders (3rd ed.). Springer Publishing Company. ISBN: 978-0-8261-6001-0

REPLY

I agree, healthcare is always changing. New discoveries are being made everyday. Healthcare organizations need to adopt this changes so as to provide up to date care that is effective to their patients and cost effective. This changes require a lot of resources to adapt to, and it is up to healthcare organizations to decide which changes are worth while to adopt. How well the company manages it finances does determine the pace to which change does take place.

Healthcare organizations should also aim to improve employee satisfaction by giving them a conducive place to work, and offer them competitive wages. Patient satisfaction should also be a priority for any healthcare organization. Patients should be made to feel that their healthcare needs are met, and they should be involved in their treatment plan. Healthcare organizations should always strive to make improvements on their service delivery to their patients and their workers as a whole (Selim et al.,2018)

Reference:

Selim Ahmed, Noor Hazilah Abd Manaf, & Rafikul Islam. (2018). Measuring Lean Six Sigma and quality performance for healthcare organizations. International Journal of Quality and Service Sciences, 10(3), 267–278. https://doi.org/10.1108/IJQSS-09-2017-0076

REPLY

Knowledge Check

Identify one staff performance indicator applicable to your place of work. Provide rationale for importance using link to budget.

REPLY

One performance indicator we use in my facility is productivity measurement. Productivity is measured by volume and hours worked (Hunt, 2019). In order to get the departments productive measurement, we must first do this formula: measurement of work multiplied by the budgeted hours per patient day (HPPD) for a defined period, and this period is usually 14 days (Hunt, 2019). We use a nurse-to-patient ratio for staffing, but also make sure we stay productive with that ratio on a daily basis. We actually use a program that helps us keep track of this called Laborlytics. With this we can often stay on track or see what areas we need to fix to get back on budget!

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Hunt, P., & Hartman, D. (2018, June). Meeting the measurements of inpatient staffing productivity. Nursing Management. https://journals.lww.com/nursingmanagement/Fulltext/2018/06000/Meeting_the_measurements_of_inpatient_staffing.8.aspx#:~:text=Key%20performance%20indicators%20The%20departmental%20performance%20or%20budget,patient%20day%2C%20and%20FTEs%20used%20to%20provide%20care.

REPLY

Most healthcare organizations require a lot of financial resources to operate. Since they provide services to their patients, they require a lot of human labor in order to provide adequate health care services to their patients. This normally requires a lot of financial planning in order to have these organizations continually running. A budget needs to be in place and adhered to, so as to keep the healthcare organization functioning and running efficiently with enough resources. One of the methods that most hospitals use is by using dashboard. Dashboard is used to show the number of unoccupied and occupied beds in the hospitals. By using this tool, the hospital is able to utilize all staffing and managed patients flow more effectively. The healthcare organization would also track the quality of care that is being provided in various units. This ensures that patients receive quality care and are satisfied with the care that they receive. The other method is to monitor the effectiveness of new treatments. This will ensure that the patients are getting better once they are admitted to the hospital. It will also give the opportunity to the hospital to identify which treatments have the best results. The other reason is to increase operational efficiency in the healthcare organization. This will not only increase savings, but it will also increase operational efficiencies (Selim et al., 2018)

Reference:

Selim Ahmed, Noor Hazilah Abd Manaf, & Rafikul Islam. (2018). Measuring Lean Six Sigma and quality performance for healthcare organizations. International Journal of Quality and Service Sciences, 10(3), 267–278. https://doi.org/10.1108/IJQSS-09-2017-0076

REPLY

Financial indicators are expense indicators such as supply costs and personnel and non-personnel expenses. Any compromise in any of these factors will harm the patient outcome. Continuous monitoring of staffing with quality metrics is important to detect the problems and to improve the quality of care. According to small et al. (2015) the limited resources and its allocation will affect the staffing model. So, the managers must select appropriate staffing models to produce a healthy outcome. It’s important to evaluate and implement current evidence-based practices to enhance their knowledge in latest practices. Continuous monitoring will help to ensure the outcome, staffing performance and the reliability of the staffing model. It’s important to provide training and continuous learning opportunities regularly to employees after the evaluation of quality metrics. It’s important to consider the years of their experience and educational background when preparing staff schedule.

 

References

 

Nurse staffing. (n.d.). ANA. Retrieved January 28, 2022, from https://www.nursingworld.org

Small, E. M., Burke, A., & Collins, K. L. (2015). An investigation of psychology staffing in Australian metropolitan acute public hospitals. Australian Psychologist51(1), 87–94. Retrieved February 1, 2022, from https://doi.org/10.1211/ap.12101

REPLY

Charles, you mentioned three significant points early in your post. You stated healthcare organizations require a lot of financial resources and human labor to provide adequate health care services as well as proper financial planning to have these organizations continually running. Budgeting and all the relevant factors such as resources, labor expenditure, healthcare services costs are significant aspects of any healthcare organization. The USA has the costliest healthcare system worldwide, with healthcare being the largest industry and is projected to become the largest employing sector by 2024 (Penner, 2017). Proper budgeting and keeping within budget limits can make or break a unit’s or an organization’s optimal functioning and overall outcomes.

Charles, you also spoke about dashboards. Dashboards are modern analytic tools that empower healthcare professionals to make real-time, data-driven decisions by compiling information from multiple sources into one view (Anguilm, 2021). Some essential factors about dashboards are that they are easy to use and understand, easy to update, continuously pull and display information into one overview, and show an organization’s performance (Anguilm, 2021). With dashboards helping to identify and track a healthcare organization’s performance, improvements in operations and financial areas are ultimate end products.

I work as a case manager for an insurance company, and I initially was not completely familiar with the budget process for the organization. Because this insurance company has countless clients, they design funding strategies that are unique and meet the needs of the client. On the insurance company’s website, they claim that they will assist with keeping health benefit costs under control through strategic planning of budgeting, funding, and cost control. The strategy to control costs involves partnering with the client to determine cash flow and risk, offer payment options to achieve sustainable and real-time savings, create opportunities to increase overall savings while utilizing health and wellness programs, provide access to data driven design choices, and ultimately, make It easy for clients to track their spending so that they can plan for performance. In a controlled study, it was estimate that utilizing this insurance company could cause clients to decrease their medical cost spending by 12% in the first year (2023).

Overall, I feel that this strategy for the company I work for is highly successful but must continuously change and evolve to keep up with competing insurance corporations that are offering the same if not better strategies for their clients. To improve the process, I would suggest communicating early and often from leadership to those staff members driving change from the front-lines because ultimately, they are responsible for statistics such as those previously mentioned. The 12% decrease of medical spending is a direct correlation to registered nurse case managers outreaching insurance company patients to ensure they are staying in-network when seeking care, getting established with primary care providers, outreaching customers post discharge to ensure they are educated about expectations, etc.

 

References

Controlling costs and improving quality. Cigna. (2023). https://www.cigna.com/employers/why-cigna/plans-networks