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NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

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    NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

    Student Name

    Capella University

    NURS-FPX 6216 Advanced Finance and Operations Management

    Prof. Name

    Budget Negotiations and Communication

    Introduction

    The success of any healthcare organization is based on various aspects, one of which is the ability of the organization’s stakeholders to manage financial resources. This ability is evident in the form of the budget the organization creates to effectively manage its operations with limited available resources. Similarly, a budget is created for 35 bedded hospitals considering patients’ needs, and employees’ satisfaction and ensuring the hospital’s organizational mission and goals are fulfilled. This budget justification plan describes the strategic plan which is used to ensure profitability, explains how this budget improves staff productivity to meet the goals, justifies the cost of equipment and services, and presents a link between the budget and the organization’s mission. 

    Strategic Plan for Profitability and Success

    To ensure the profitability and success of the organization through budget planning, budgets must be aligned with the healthcare needs of the patient because ultimately the goal of a healthcare facility is to provide quality and effective care to the patients. Similarly, the goal of my unit is to ensure that healthcare quality isn’t compromised. To achieve this goal, strategic planning is done. Strategic planning is done through the SWOT analysis technique. A study mentions that SWOT analysis is an effective technique that helps in finding an organization’s strengths and weaknesses to improve their decisions for organizational operations which also include financial management (Benzaghta et al., 2021).

    The strategic plan provides a direction for leaders to focus on the goals, prioritize the needs, and achieve effective results. This budget plan included the analysis by using SWOT as follows: Initially, organizational goals and mission were kept in mind and data was gathered. Some of the aspects identified using the data were existing employees, the need for innovations and research, and the needs and preferences of the elderly population.

    NURS FPX 6216 Assessment 3 Budget Negotiations and Communication
    1. Existing employees were used as an opportunity to fulfill the demand for human resources. Allocating resources to increase salaries, initiating training and development programs, and releasing extra benefits and bonuses for existing employees assists in retaining them (Duru & Hammoud, 2021). Since the organization is already facing employee shortages due to a high turnover rate, it is significant to include these retention techniques in the budget. 
    2. Research and innovations have been granted a part of the budget due to their importance in improving healthcare quality. Innovations and technologies assist in improving the quality of care by providing evidence-based and effective care to consumers. These technologies generally improve healthcare delivery in innovative ways (Ngoc Dinh et al., 2020). Although research and technologies can be associated with increased costs, most healthcare organizations receive research grants and donations if the outcome is to improve the quality of care. Our hospital is also looking for such grants and donations in its revenues budget. 
    3. To fulfill the needs of the elderly population, the budget included a patient satisfaction program that included strengthening the patient-provider relationship, rehabilitation for patients with chronic diseases, and patient satisfaction surveys and implementation of their feedback. These programs enable patients to be committed to the hospital as well as their health by developing trust in the quality of healthcare provided (Durmuş & Akbolat, 2020). 

    These aspects were identified using hospitals’ data, and by analyzing the needs of the patient population. However, some of the uncertainties were changing healthcare needs of the elderly population, increasing staff brain drain, and healthcare trends worldwide. Thus, there is a need to constantly evaluate the operational budget so that current circumstances can be included in the plan. 

    Plan for Staff Productivity Goals

    Employee productivity is defined as the efficiency of employees to produce excellent results. These results are dependent on the work environment, the facilities provided, and, most importantly, the relationship with their managers. Improvement in the work environment and maintaining positive employee-manager relationships require non-financial efforts. However, the purpose of this budget plan is to provide employees with accurate, equitable, and effective facilities so that their productivity goals are met. Some of the staff productivity goals that were developed are: a) staff provides error-free care to the patients, b) staff is equipped with essential knowledge and skills to provide patient care, and c) improvement in healthcare quality is observed.  The plan to remain within the budget parameters and effectively achieve the desired goals is divided into two steps: 

    1. The budget plan must be shared among stakeholders. Throughout the process of budget creation and management, all stakeholders must be involved. This enables the decision-makers to learn about available financial resources within the organization and thus remain accountable for any excess (Abreu & Gomes, 2018).  
    2. The allocation of expected expenditures should be continuously monitored, and constant changes should be made as per the results of the desired goals. Operational budgets are successful with constant monitoring as it identifies the profits that are gained using the financial assets of the hospital, thus enabling decision-makers to identify loopholes and work within the parameters (Zhang & Bohlen, 2023). 

    Equipment and Service Cost Justification 

    To successfully run a healthcare organization, budgeting for medical supplies and utilities are as important as the allocation of resources to the workforce. Medical supplies and utilities are expensive thus after employees’ salaries the major chunk of financial resources is used for these supplies. A study claims that accurate management of medical devices and supplies is essential so that patients have access to effective, safe, and quality materials which consequently improve the care quality and service delivery (Gamessa et al., 2022). The amount allocated to the medical supplies and utilities, $200,000, will be divided into machines, hygiene supplies, medicinal supplies, and all other items which are required for patient care.

    To provide quality care, the materials procured will be from high-quality suppliers and the machines will be the latest developed so that patients are provided care with recent technologies. This also requires the development of a strong procurement team and strong policies so that the net revenue generated is higher than the expenses and minimal cost is used. It is essential to avoid discretionary spending with the budget, which includes, nice-to-have items so that essential supplies are not missed. Moreover, along with buying the equipment and supplies, it is significant to provide employees with essential training related to the utilization so that materials are effectively and appropriately used preventing damage and malfunctions. Thus, it is justified to allocate finances to training and development. 

    Linkage Between the Organization’s Mission and the Project 

    The overall purpose of this project is to fulfill the organization’s mission of providing quality patient care and improving healthcare systems. This research-based project will show a substantial rise in the financial performance of the organization. Every aspect of the budget is designed to ensure that it improves consumers’ interaction with the hospital and maintains their satisfaction levels. For example, the first stage is to effectively and efficiently collect the data in terms of the hospital’s and patient’s needs. Another important aspect of healthcare organizational goals is to minimize the rising healthcare costs, which is one of the goals of budgeting to effectively manage costs thus improving outcomes (Sturmberg & Bircher, 2019).

    Moreover, budgets increase the efficiency of the hospital to work in a focused manner which enables it to achieve its goals by effectively managing the financial resources of the hospital. Lastly, effective cost and financial management is linked with improving the quality of care and patient safety. A study concludes that improved financial performance reported excellent patient experiences of care. Financially steady hospitals preserve trustworthy systems and provide resources for ongoing improvement (Akinleye et al., 2019). 

    Conclusion

    Budget management is essential for multiple reasons – to ensure financial resources are managed effectively and the organization is focused on its goals. There is always a need for strategic planning so that steps are clear and when the budget is evaluated for profitability and success, this strategic plan can be modified for further improvements. Furthermore, staff productivity goals must be considered while developing and managing a budget. Lastly, the budget should be linked specifically with the organizational goals so that effective and desired outcomes are achieved. 

    References

    Abreu, W. M., & Gomes, R. C. (2018). Measuring collaborative stakeholder influence and open budget actions. Revista De Administração Pública52(4), 593–609. https://doi.org/10.1590/0034-7612173451 

    Akinleye, D. D., McNutt, L.-A., Lazariu, V., & McLaughlin, C. C. (2019). Correlation between hospital finances and quality and safety of patient care. PLOS ONE14(8). https://doi.org/10.1371/journal.pone.0219124 

    NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

    Benzaghta, M. A., Elwalda, A., Mousa, M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights6(1), 55–73. https://doi.org/10.5038/2640-6489.6.1.1148 

    Duru, D. C., & Hammoud, M. S. (2021). Identifying effective retention strategies for front-line nurses. Nursing Management29(1), 17–24. https://doi.org/10.7748/nm.2021.e1971 

    Durmuş, A., & Akbolat, M. (2020). The impact of patient satisfaction on patient commitment and the mediating role of Patient Trust. Journal of Patient Experience7(6), 1642–1647. https://doi.org/10.1177/2374373520967807 

    Gamessa, T. W., Abebe, S. T., Abate, L. D., Abo, M. K., Mekonnen, A. A., Tadesse, Z. K., Woyesa, A. F., Obse, R. B., Ibrahim, M. A., & Simegn, G. (2022). Planning and budgeting of medical devices among Ethiopian Public Hospitals. ClinicoEconomics and Outcomes ResearchVolume 14, 405–413. https://doi.org/10.2147/ceor.s363376 

    NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

    Ngoc Dinh, M., Nygate, J., Hoang Minh Tu, V., & Thwaites, C. L. (2020). New technologies to improve healthcare in low- and middle-income countries: Global Grand Challenges Satellite Event, Oxford University Clinical Research Unit, Ho Chi Minh City, 17th-18th September 2019. Wellcome Open Research5, 142. https://doi.org/10.12688/wellcomeopenres.16008.2 

    Sturmberg, J. P., & Bircher, J. (2019). Better and fulfilling healthcare at lower costs: The need to manage health systems as complex adaptive systems. F1000Research8, 789. https://doi.org/10.12688/f1000research.19414.1 

    Zhang, R., & Bohlen, J. (2023). Healthcare business budgeting. In StatPearls. StatPearls Publishing. http://www.ncbi.nlm.nih.gov/books/NBK589707/