Importance of Nurse Manager Role in Budgeting

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Table of Contents

Nurse Manager Role in Budgeting: Budget Planning Process
Role of Nurse in Budgeting: Sources of Income
Role of Nurse Leader in Budgeting: Personnel Budget
Nurse Manager Role in Budgeting: Supply and Equipment Budget
References

Nurse Manager Role in Budgeting: Budget Planning Process

Nurse managers set objectives and outline the budget (typically in association with the finance division) for their own duty center or nursing team. Next, when the budget has been established and efficiently restructured, it is given in to the management and, at last, to the Board of Directors for consent. When the budget is accepted and the fiscal year starts, the hospital has to deliver the premeditated services and plans (Rundio, 2012). Budget planning process consists of six steps gathering appropriate data, scheduling services, scheduling activities, executing the plan, scrutinizing the budget, taking corrective actions when needed. Nurse managers take on some of the most serious functions in financial planning and the governing process. They act as the connection between the strategies of management and the performance of the organizations personnel. If they fail to reach the aims and objectives of the budget, the anticipated outcomes will not be achieved (Rundio, 2012).

Role of Nurse in Budgeting: Sources of Income

In healthcare, there are numerous sources of income that are relevant to the nurses. Most probably, one would primarily pay attention to the patient-related revenues. These incomes are mostly characterized by the direct payments that came from the patients or other organizations (E.g., insurance companies). The top sources of nursing revenue are grants, community visibility, unions, industry, healthcare students and staff, third-party payments, and professional companies. In the majority of the situations, nurse managers are responsible for the elaboration of the budget and in charge of assessing and generating the revenues (Rundio, 2012). Nursing managers constantly concentrate on the issues related to revenues. This is rather important because the incomes should be acceptable in order to cover the expenses (both expected and unexpected) related to the healthcare and services provided by the organizations staff. The money that is gained is used to recover the deficient funds for replacements and development.

The efficiency of a healthcare organization is usually assessed on the basis of the quality of its services and the profit that it makes throughout the fiscal year (Penner, 2013). Another key component of the nursing managers budget responsibilities is the tracking of payers and their involvement in the healthcare system. This is important because the revenues are typically projected by the payer types (Penner, 2013). The budget of the healthcare organization is recurrently affected by the following types of payers direct payers (patients) and third-party payers (E.g., organizations that pay for their employees medical insurance) (Penner, 2013).

Role of Nurse Leader in Budgeting: Personnel Budget

When it comes to the major expenses comprised by the nursing budget, staff budget is the main expenditure in the nursing sector. In reality, wages regularly make up more than a half of clinic budgets. The staff budget limits the number of workers that is needed to constantly run the unit throughout the whole year (Bateman, 2012). The staff budget outlines the wage costs that will be remunerated. It represents the overtime hours, shift variances, positioning, working hours, bonuses and rewards, and salary rises. The employee budget contains genuine hours of work and the non-productive time. Non-productive time embraces the cost of profits, new worker training, staff turnover, holiday/ sick leaves, and briefings (Rundio, 2012).

Nurse Manager Role in Budgeting: Supply and Equipment Budget

Supply and equipment costs contain such day-to-day expenditures as the cost of electrical energy, maintenance, and therapeutic/ surgical provisions (tube feedings, catheters, syringes). The supplies in clinic comprise medications, medical goods, chemicals, disinfectants, food supplies, notepads and pencils, and uniform. The notion of equipment can be divided into two types immovable and movable. Immovable equipment is not a structural part of the construction, but it is attached to the floors or walls. The movable equipment contains furniture and utensils.

References

Bateman, N. (2012). The business of nurse management: A toolkit for success. New York, NY: Springer.

Penner, S. J. (2013). Economics and financial management for nurses and nurse leaders (2nd ed.). New York, NY: Springer.

Rundio, A. (2012). The nurse managers guide to budgeting & finance. Indianapolis, IN: Sigma Theta Tau International.

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Importance of Nurse Manager Role in Budgeting

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