Abstract
This paper discusses my role as the nurse manager in healthcare budgeting and financial management. Financial management can be defined as a series of activities that are designed to plan for various operations. In my capacity, I have allocated them in various departments for the efficient operation of our organization. As a nurse manager, I am responsible for understanding and knowing the various types of budgets in our organization that is; over time, personnel, travel, supplies, staff development and equipment. This operating budget is actually the main budget I maintain by controlling supply costs and personnel. As a planning function of financial management, I intend to translate operational plans of our organization in monetary terms using the right guidelines which are aimed at controlling allocated resources.
Introduction
Planning and budgeting are key disciplines for any organization. They are of paramount importance as they ensure cost effective utilization of resources to cut costs and maximize productivity and profit. Without budgets, our organization is incomplete; budgets are of paramount importance as they give a forecast of the relevant financial responsibilities that our organization ought to subscribe to. Budgeting therefore should take into consideration all resources available and adapt a defined approach in order to establish the very best practices by setting high and accurate performance budget and as well as managing expenses. In order to practice the best practice for budgets, I will employ tools such as setting forth corrective plans of action and establishing the screening of the variances (Marquis, 2009, p. 78). The overall purpose of this analysis is to try and hold down the cost.
Analysis
- Analyzing the requests based on the budget printout
Based on the presented analysis, I will first identify all expenses and their urgencies. To start with I will first address the issues of new RNs, this issue is urgent since it affects the entire operations of our organization. From the budget, this expense falls under the personnel category which has an accumulation of 125,000. This amount will be enough to finance the hiring of nurses and only a fraction of this amount will be used to hire more registered nurses to ease congestion and workload of the nurses. At most, hiring of the RN would cost us ¼ of the personnel fund allocation summing up to 31,250 total. After that amount is deducted, a sum of 93,750 is left (Penner, 2013, p. 114).
Dr. Robb’s request to purchase two new continuous limb movement machines is seemingly not in order for this reason; there is no amount remaining to purchase more equipment. Therefore, our organization cannot afford to purchase the limb movement machines at this particular time. Sometime in this month, I am looking forward to attending a national orthopedics conference in August. This conference is projected at $1,500 followed by a registration fee of $350. This activity is part of staff development and from the annual budget; I find that the remaining amount of staff development amounts to 200 which is not enough. Therefore, the next step is to cancel the invitation to the conference.
- Expenses to be deferred to the new fiscal year
There are a couple of expenses that should be deferred to the next fiscal year which include; purchasing of two new continuous limb movement machines that were requested by Dr. Robb for the postoperative orthopedic patients ron that amount to 6,000. Since the current fiscal year does not have enough money for this expense, it will therefore be carried forward to the next fiscal year. Another expense that will be deferred to the next fiscal year is the national orthopedics conference that I intend to attend; this event sums up to 1,150 which is inclusive of the registration fee at $350 (Roussel, 2013, p. 67).
- Budgeting area with the most accurate and most inaccurate projections
My most accurate projections in this budget are overtime whose annual budget is adjacent to the expended year today, supplies and equipment. Utilization of resources of these sections was proper and well planned. The most inaccurate projections on the other hand are personnel, travel and self development projected expenses. The most accurate expenses were as a result of a critical analysis of the expenditure that we had estimated. On the other hand, the worst accurate expenses were accrued from rough estimates which depicts that a keen analysis was not done. However, I am looking forward to cutting unnecessary costs which impact greatly on our budget.
- Factors contributing to inaccuracies
There are many factors that contribute to budget inaccuracies in our organization as some of the expenses were controlled while others were predicted. The first is misappropriation of resources. I have discovered that quite often, funds are allocated to the wrong areas leading to a shortfall or in certain areas in the organization this occurrence is due to rough estimates instead of having controllable projections. For instance, in this year's’ budget, certain areas like the travel area was not well allocated funds as expected, there were shortfalls. Similarly, other sectors are recorded to have been misappropriated resources and instead given more funds. Factors leading to these inaccuracies include; system error; there are times when our systems fail or in the process, wrong figures end up in the wrong areas (Finkler, 2013, p. 89). Wrong estimation of the expenditure appears to impede the estimated budget greatly. On different occasions, funds have been wrongly allocated which has led to a discrepancy in the total calculations.
- Patient acuity classification systems and approaches to resolve the issue
Patient acuity has many limitations; reliability and validity are most frequently monitored. Research evidences depict that patient acuity is a very important concept for the safety of patients. As acuity develops, more and more resources especially in nursing are required for safe care. Many reports have mentioned that patient acuity has been on the increase without support. Studies show that there actually is little empirical evidence on the relationship between patient safety and acuity. The Intellichart Classification meets standards set by the organization and I could suggest that use of this Intellichart Classification would resolve all issues underlying in the organization. It will allow for; patient classification on forecasting and an actual basis, real-time patient logging/ inventorying, calculation of the workload associated with discharge, admission or transfer of activities.
Strategies of communication, motivation, care delivery etc, need to be implemented to retain staff
One key strategy of harmonizing and motivating staff is by giving them good remuneration. A good income not only motivates the staff but also hastens their efforts in various capacities at work. In addition to that, recognizing the efforts of the most diligent staff will motivate them to a great extent. This however, can be done through offering them presents and awarding them honors as a reward for their hard work. Another key strategy that could be used to retain staff in the organization is by providing them with a conducive environment. A conducive environment will create a friendly setting that will make staff relate better with patients and even perform very well in all areas. Creating a good workmanship is coherent in laying a firm foundation in the management of the organization. Close to that, it will also be of much importance to enhance good communication skills within the organization, this will entail good etiquette and discipline among staff, patients and employees.
- The importance of staff involvement in providing consumer satisfaction
- Ensuring Customer satisfaction
It is the responsibility of staff to ensure satisfaction of the customer in many ways. The staff has a sense of responsibility and interact face-to-face with customers to ensure that they are contented. In order to do this however, staff needs to have a sense of ownership to make and make customers feel empowered and compelled to meet the needs of the customer.
Involving members of staff in providing consumer satisfaction are of importance particularly in creating cohesion at the place of work. This activity depicts that all parties must be involved in order to come up with a friendly work plan which every participant is comfortable with. Staff is very much aware of the issues faced by consumers; therefore it could be involved in these activities in order to create a bond that unifies the two parties. For instance, operation management needs to fully understand the ways in which the findings could be applied to their particular activities. At a tactical level, customer satisfaction measurement outwardly gives a sense of the consumers take and their preferences. Service providers with a different view ought to fully understand coherent ways they could use to identify underlying issues hitting consumers and how they can at different capacities be used to improve and deliver services.
- The most effective structure of making a plan for improvement of consumer satisfaction
There are a number of strategies that have been used to improve error reporting in order to improve consumer satisfaction. There is a new strategy that has been tested that uses anonymous and electronic paper report to increase consumer satisfaction by increasing close call. Improved reporting systems are found to encourage providers to misses easily, when identified it is then much easier to prevent errors. This structure involves all parties; managers, nurses, patients and other stakeholders.
- Listen and Learn
Listening is key in boosting an organization’s profitability; it is also key to effective customer service. The following structure is proof of that. One is “everyday customer interaction”. Gaining interest in customers are very important, shoeing customers that you are listening to them by repeating back what they say or taking notes will create a good environment for them. Secondly, facilitating feedback to the customers solicit a number of factors that will depict that you are concerned about them (Cherry, 2013, p. 112). Lastly, looking for unique ways to treat customers in the best way is of great importance, it is also a good way to instill good attitude among staff.
References
Marquis, B. L., & Huston, C. J. (2009). Leadership roles and management functions in nursing: Theory and application. Philadelphia: Wolters Kluwer Health/Lippincott Williams & Wilkins. Retrieved from http://books.google.com/books?id=38mzZLwcOe0C&printsec=frontcover&dq=Leadership+roles+and+management+functions+in+nursing:+%09Theory+and+application&hl=en&sa=X&ei=td1mUpv1OKuc4wS4zYCIAw&ved=0CEEQ6AEwAA#v=onepage&q=Leadership%20roles%20and%20management%20functions%20in%20nursing%3A%20%09Theory%20and%20application&f=false
Penner, S. J. (2013). Economics and Financial Management for Nurses and Nurse Leaders. Springer Publishing Company. Retrieved from http://books.google.com/books?id=mCIGLN6acxIC&printsec=frontcover&dq=Economics+and+Financial+Management+for+Nurses+and+Nurse+Leaders&hl=en&sa=X&ei=uN5mUtCxDoqm4gSo54CIBg&ved=0CEEQ6AEwAA#v=onepage&q=Economics%20and%20Financial%20Management%20for%20Nurses%20and%20Nurse%20Leaders&f=false
Roussel, L. (2013). Management and leadership for nurse administrators. Burlington, MA: Jones & Bartlett Learning. Retrieved from http://books.google.com/books?id=7KEyxKbRBj8C&printsec=frontcover&dq=Management+and+leadership+for+nurse+administrators&hl=en&sa=X&ei=TOBmUrDHCKmm4gT1_IHAAg&ved=0CD8Q6AEwAA#v=onepage&q=Management%20and%20leadership%20for%20nurse%20administrators&f=false
Finkler, S. A., Jones, C. B., & Kovner, C. T. (2013). Financial management for nurse managers and executives. St. Louis, MO: Elsevier/Saunders.
Cherry, Barbara, & Jacob, Susan R. (2013). Contemporary Nursing - Pageburst E-book on Vitalsource (Retail Access Card): Issues, Trends, & Management. Mosby Inc. Retrieved from http://books.google.com/books?id=OYN8MAEACAAJ&dq=Contemporary+nursing:+Issues,+trends,+%26+management&hl=en&sa=X&ei=v99mUoK1JMn74QTcs4H4CQ&ved=0CGMQ6AEwBw
