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NUR-621 Operational Budget Presentation Assignment

NUR-621 Operational Budget Presentation Assignment

NUR-621 Operational Budget Presentation Assignment

Introduction

´Budget – a written formal financial statement of a hospital’s plan for future operations

qit is a management control tool developed annually.

´Development of a budget is a team work which involves all departments including nursing units –

qensure development of an effective strategy for a given facility(Contino, 2001).

´There are different types of financial budgets – in hospital setting, most important ones are –

qcash budget – reflect cash flow metrics in a hospital – enables management to foresee cash shortages so as to seek alternative sources (Mukherjee, Al Rahahleh & Lane, 2016),

qcapital budget – summarizes future plans for procuring plant facilities and equipment and

qoperating budget – comprise of a list of financial activities in a given year- enlists income sources and anticipated expenses

´Subsequent slides is an operational budget for a 20-bed capacity nursing unit.

Nurse Managers are tasked with setting goals and operation objectives in a given nursing units under their own responsibility.

NUR-621 Operational Budget Presentation Assignment
NUR-621 Operational Budget Presentation Assignment

However, they are also involved in the design of budgets. For the latter to happen, nurse managers collaborate with the finance department of a health facility. Following the development of a budget, it is updated and submitted to the hospital administration for its approval from the board of directors. At this point, the budget proposed can either be accepted or rejected based on its effectiveness to address the prevailing hospital revenue and expenditure. Development of a concise budget is vital to ensure that it is approved in a care facility.

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Key Components of Budget Costs: Staff

The budget on staff involves payment of salaries to professionals providing care to the facility. In an overview the facility has 10 physicians, 100 nurses and 30 Pharmacists as key frontline professionals. In addition, the facility has staff from other cadres of health whose roles ensure adequate services to patients. However, about 5 physicians providing specialized care will be hired on contract since retaining them will be costly to the facility (Contino, 2001). Other than salaries, employees especially those retained on permanent basis will receive benefits such as health coverage, health risk allowances, housing and commuter allowances. The rates will be reviewed based on the prevailing income generated by the facility.

Key Components of Budget Costs: Activities

The premise relates to activities the facility anticipates to undertake. The outlined tasks are crucial for the daily operations of the facility. In a preview of the activities, it is anticipated that charges made on in-patient (IP) and out-patient (OP) services are likely to reach 8% which will increase the total revenue to the facility (Mukherjee, Al Rahahleh & Lane, 2016). Payments made by third-party payers is also believed to yield a bundle of evidence in increasing income to the hospital. All these will improve the overall income to the facility as they are activities sought by many patients. These activities also determine the future growth of the hospital.