Capella 6216 Assessment 1

NURS FPX 6216 Assessment 1: Mentor Interview

Student Name

Capella University

School of Nursing and Health Sciences, Capella University

NURS FPX 6216 Assessment 1:

Advanced Finance and Operations Management

Prof. Name:

Date

Mentor Interview

Healthcare organizations must prioritize financial planning to secure their future and provide optimal patient care (Campbell et al., 2018). Organizations that establish long-term plans in the healthcare sector stand a better chance of navigating the inevitable changes (Campbell et al., 2018). This paper explores budgeting through an interview with Sam, who amassed seven years of experience in the finance department of US hospitals. This interview offers insights into effective budget management and resource optimization while avoiding wastage.

Comparison of Capital and Operating Budget

The operational budget outlines the company’s projected revenue and expenditures for the upcoming fiscal year (Eftekhar et al., 2021). This budget encompasses anticipated cash inflows and outflows resulting from the company’s transactions and their implications on the income statement (Eftekhar et al., 2021).

Sam provided an illustrative example of the capital budget: If the organization’s equipment is aging and maintenance costs are rising, investing $100,000 in new equipment might be necessary. A capital budget comes into play here, considering long-term investments like machinery and buildings. NURS FPX 6216 Assessment 1: Mentor Interview. These budgets provide a comprehensive view of projected returns, costs, and financing sources (Eftekhar et al., 2021).

Common Financial Management Techniques

Both budget types necessitate planning for ongoing expenses and acquiring new assets (Warren & Jack, 2018). Setting clear goals, planning meticulously, and adhering to the plan maximizes profits and reserves capital for growth.

Challenges for Nurse Leaders

Nurse leaders encounter resource allocation challenges due to delayed hospital payments by the National Health Insurance Authority. These managers require financial management skills to ensure efficient resource utilization (Waxman & Massarweh, 2018).

Areas of Uncertainties

Sam highlights inherent uncertainty in budget planning.Capella 6216 Assessment 1. Budgets depend on future projections, and errors in estimations and assumptions can lead to deviations.

Process of Allocating Resources

Nursing management, administrative records, and health registries provide accurate resource data. Consultation with physicians and nurses who deeply understand patient needs is crucial (Roberts et al., 2018).

Key Considerations

The equitable distribution of healthcare resources aligns with the ethical principle of valuing every individual. NURS FPX 6216 Assessment 1: Mentor Interview. Nurse managers must ensure fair access to health information and care based on transparent criteria (Emanuel et al., 2020).

Effective Approach for Profits and Fiscal Success

A robust budgeting system aids healthcare executives in prioritizing care, improving patient outcomes, and effectively utilizing resources (Chohan & Jacobs, 2018). Budget variance can be managed through flex budgeting, adjusting for volume variations (Sendi et al., 2021).

Potential Consequences of Discretionary Spending

While reducing discretionary spending might yield short-term benefits, it can hamper long-term growth (Wang et al., 2019).

Alternative Approach

Simplifying procedures and improving transparency can enhance productivity. Nurse leaders can lead fiscal audits to identify unauthorized spending (Roberts et al., 2018).

Nurse Leader’s Approach to Budget Management

Nurse leaders oversee both operational and capital budgets. Budgeting entails data collection, planning, implementation, and evaluation (Campbell et al., 2018). Resources required for projected services are included, aligning with organizational objectives and industry trends (Campbell et al., 2018).

Aspects of Approach to Adopt as Best Practices

Nurse leader-led audits involving stakeholders, enhance fiscal strategy. Collaborating with stakeholders ensures long-term facility benefits.

Improvements to Their Approach

Enhancing stakeholder cooperation improves strategy efficacy. Collaboration benefits the entire healthcare facility.

Evaluation

Periodic budget evaluation, comparing actual costs with projections, informs future spending decisions (Campbell et al., 2018).

Conclusion

In conclusion, healthcare budgeting is critical for efficient resource utilization and optimal patient care. Nurse leaders adapt to changing inputs, incorporating feedback, and collaborating with stakeholders to create adequate budgets. A well-structured budget enables health systems to plan for the future, deliver high-quality care, and ensure financial sustainability.

References

Campbell, M., Escobar, O., Fenton, C., & Craig, P. (2018). The impact of participatory budgeting on health and wellbeing: a scoping review of evaluations. BMC Public Health, 18(1). https://doi.org/10.1186/s12889-018-5735-8

Chohan, U. W., & Jacobs, K. (2018). Public value as rhetoric: A budgeting approach. International Journal of Public Administration, 41(15), 1217–1227. https://doi.org/10.1080/01900692.2017.1373673

Chung, I. H. (2018). Does the budget process matter for infrastructure spending? Capital budgeting in local government. Public Money & Management, 39(3), 193–200. https://doi.org/10.1080/09540962.2018.1536449

NURS FPX 6216 Assessment 1: Mentor Interview

Eftekhar, M., Jeannette Song, J.-S., & Webster, S. (2021). Prepositioning and local purchasing for emergency operations under budget, demand, and supply uncertainty. Manufacturing & Service Operations Management. https://doi.org/10.1287/msom.2020.0956

Emanuel, E. J., Persad, G., Upshur, R., Thome, B., Parker, M., Glickman, A., Zhang, C., Boyle, C., Smith, M., & Phillips, J. P. (2020). Fair allocation of scarce medical resources in the time of Covid-19. New England Journal of Medicine, 382(21). https://doi.org/10.1056/nejmsb2005114

Capella 6216 Assessment 1

Roberts, E. T., Hatfield, L. A., McWilliams, J. M., Chernew, M. E., Done, N., Gerovich, S., Gilstrap, L., & Mehrotra, A. (2018). Changes in hospital utilization three years into Maryland’s global budget program for rural hospitals. Health Affairs, 37(4), 644–653. https://doi.org/10.1377/hlthaff.2018.0112

NURS FPX 6216 Assessment 1: Mentor Interview

Sendi, P., Gafni, A., Birch, S., & Walter, S. D. (2021). Incorporating portfolio uncertainty in decision rules for healthcare resource allocation. Healthcare, 9(3), 325. https://doi.org/10.3390/healthcare9030325

Wang, X., Wu, Q., Lai, G., & Scheller‐Wolf, A. (2019). Offering discretionary healthcare services with medical consumption. Production and Operations Management, 28(9), 2291–2304. https://doi.org/10.1111/poms.13051

Warren, L., & Jack, L. (2018). The capital budgeting process and the energy trilemma – A strategic conduct analysis. The British Accounting Review, 50(5), 481–496. https://doi.org/10.1016/j.bar.2018.04.005

Waxman, K., & Massarweh, L. J. (2018). Talking the talk: Financial skills for nurse leaders. Nurse Leader, 16(2), 101–106. https://doi.org/10.1016/j.mnl.2017.12.008