NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Name

Capella university

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Budget Negotiations and Communication

The administration of an operating budget is vital to improving outcomes in a care organization. This paper provides an executive summary to support the previously established operational budget for Mayo Clinic, which involves a financial plan for a 35-bed unit and 20 full-time equivalent (FTE) personnel. The purpose is to gain funding in a context with scarce assets by developing a strategy plan, addressing worker productivity targets, and justifying costs. 

Strategic Plan for Profitability and Success

Budget planning should be based on the patient’s healthcare requirements and costs so that the hospital can be financially viable and efficient. The strategy plan is created using the SWOT assessment. It helps identify an organization’s strengths, weaknesses, opportunities, and threats (Karim et al., 2024). The strategic plan for Mayo Clinic’s 35-bed unit promotes sustainability and financial success by carefully reconciling operating expenditures (revenue: $27.5 million, net expenses: $202,000) with efforts that lead to revenue. The unit primarily cares for infants and women, which necessitates enough staffing, avoiding burnout, and upholding exceptional care quality. First, Mayo Clinic will start personnel retention measures aimed at increasing employee productivity through assessments and compelling bonuses or reward packages. Distributing assets for wage raises, supplementary compensation, training, and development initiatives enhance care standards by boosting medical services (Wahyuhadi et al., 2023). The total annual budget for these items is $14,000,000. Second, the Mayo Clinic will employ software for staff management to streamline scheduling and anticipate unexpected overtime occurrences. This advanced schedule system will assist in managing shifts effectively, guaranteeing that staff numbers meet patient demands reducing workload and additional costs related to overtime. Maintaining a work-life balance for staff is critical for providing reliable care. The rationale is that computerized scheduling avoids mistakes, ensuring adequate shift allocation. It promotes balance, lowering stress and staff turnover (Koruca et al., 2023). 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Third, Mayo Clinic will integrate initiatives for staff growth with organizational objectives, emphasizing educational and certification activities to improve employee competencies. This involves particular education in emergency care and nursing procedures. These efforts aim to enhance patient outcomes while also supporting the strategic objectives of the hospital. Ongoing training provides personnel with the most up-to-date clinical expertise, promoting engagement and lowering turnover (Shiri et al., 2023). It improves staff’s abilities, leads to improved patient results, and is consistent with Mayo Clinic’s mission of offering efficient medical care. Last, to increase operational effectiveness, the Mayo Clinic will invest in innovative technology. Technological innovations contribute to enhancing the standard of care. Tools like Electronic Health Records (EHRs) can lead to initial expenses, but in the long term, they will optimize processes and enhance patient treatment. The justification for this is that EHR streamlines operations saves expenses through information precision, enhances patient satisfaction, and integrated therapy (Butler et al., 2020).  A budget evaluation of the cost of supplies or equipment indicated that equipment depreciation costs $1,500,000, while supplies cost $6,000,000. To further enhance this strategy plan, we must address information gaps and uncertainties. For example, precise demographic information about patients is required to effectively forecast care demand, which affects personnel and production chain management. Extensive benchmarking information against identical units at comparative hospitals is also required to verify our economic assumptions and discover possible cost-cutting possibilities. Furthermore, uncertainty exists, which demands precise indicators to assess the effect of employee productivity measures on financial and patient outcomes (Enumah et al., 2022). By resolving these uncertainties through research and regular input, Mayo Clinic can refine its strategic plan and boost financial stability and care services.

Plan for Staff Productivity Goals

Workforce productivity is critical to providing efficient medical services because it fosters staff involvement and encouragement to collaborate for the benefit of patients. Staff productivity is measured using matrices like turnover and burnout rate and error percentage, which are influenced by the workplace environment, available assets, and executive interaction (Kwon et al., 2021). Mayo Clinic will implement an integrated personnel productivity plan to satisfy staff efficiency goals while staying under budget. Initially, this plan involves lowering employee turnover, optimizing the nurse-to-patient ratio, improving scheduling, and promoting staff development, which contributes to the efficient utilization of assets without affecting service quality (Koruca et al., 2023). Mayo Clinic acknowledges that poor patient-nurse ratio, turnover, and dependency on overwork can stress the budget and reduce employee performance. The Mayo Clinic plans to use personnel management systems to streamline scheduling and reduce workload. This innovative scheduling will handle the staff working schedule effectively. It will ensure that personnel levels meet patient requirements while reducing avoidable overtime expenses. The justification is that digital scheduling avoids human error while ensuring appropriate shift allocation. Efficient scheduling reduces burnout and improves care services, aligning with hospitals’ goals (Koruca et al., 2023).

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Second, Mayo Clinic will integrate initiatives for staff growth with organizational objectives, emphasizing training and certification programs to improve employee skills. Regular training will provide workers with the latest clinical knowledge and expertise, improving their satisfaction and retention (Shiri et al., 2023). The rationale is that it will improve skills that lead to improved patient care and is consistent with Mayo Clinic’s mission to offer outstanding services. Finally, involving staff in budget planning and receiving input from workers to solve productivity difficulties and improve the workplace environment and corporate culture leads to improved healthcare outcomes. The justification for the rejection of alternative strategies is that one approach can be enhancing staffing levels to improve productivity. However, this strategy is not practicable and rejected. Recruiting extra staff will raise wages and other costs, putting pressure on the budget without ensuring an adequate increase in productivity. The emphasis must be on managing current staff via improved leadership and advancement. Another option is outsourcing additional medical care. It can offer cost savings in the short term. It can cause undesirable effects, including discrepancies in quality care, detrimental medical mistakes, poor patient satisfaction, and harm to the hospital’s culture, credibility, and financial stability (Berry et al., 2021). 

Equipment and Service Cost Justification

Budgeting for amenities, supplies, and expenses is critical to ensure effective operations. Staff expenses, utilities, and healthcare supplies are all crucial budget factors. Optimizing supplies and equipment, such as surgical, diagnostic, and general care, staff training costs, helps to reduce turnovers while enhancing patient care. Healthcare instruments and utilities are expensive; therefore, after employee wages, the budget spends the majority of its monetary assets on supplies. The overall budget for healthcare supplies and technologies is $6,000,000 per year, which will be spent on equipment and all other items needed to treat patients. It covers surgical ($3,000,000), diagnostic supplies ($1,500,000), and general care ($1,500,000). It is consistent with the Mayo Clinic’s aim of offering outstanding care. These expenditures can be high, but they aid in upholding an organized, efficient, and cutting-edge setting, which is critical for staff productivity and patient satisfaction. Current technological tools such as EHR speed up data administration, minimize managerial duties, and enable improved accessibility of medical data, promoting coordinated care and mitigation of medical mistakes (Butler et al., 2020). To deliver quality care, supplies will be acquired from authentic vendors, ensuring that patients receive efficient services through these tools. To ensure that total revenue exceeds investments while incurring as few expenditures as possible, it is necessary to have a robust purchasing unit and standards. To minimize budget waste, it is crucial to invest in essential supplies, and staff training for efficient equipment management (Brown et al., 2020). These estimated expenditures are based on the assumption that patient influx and economic conditions will stay consistent, which is critical for effectively estimating spending. Investing in new tools and services is also assumed to enhance operational efficacy and patient results (Butler et al., 2020). Such expenses increase staff efficiency, care level, and cost savings.

Linkage Between the Unit and Organization’s Mission and the Project

The hospital’s goal and mission are to deliver top-notch patient-centered treatment and achieve its strategy objectives. Mayo Clinic’s financial goal is to remain economically viable, and its strategic goal is to provide outstanding care that prioritizes patients through the best utilization of resources and staff growth. Mayo Clinic’s operating budget is closely matched with its objective. For example, by investing $6,000,000 in healthcare equipment and $3,000,000 in rents and leases, Mayo Clinic guarantees that its 35-bed unit, which primarily treats infants and women, is well equipped to provide the best care. This budgetary allocation reinforces the Clinic’s dedication to delivering extensive healthcare while maintaining an exceptional level of care (Musiega et al., 2023). The provision of depreciation costs ($2,500,000), which includes both equipment and the building, reflects Mayo Clinic’s commitment to sustaining an efficient and cutting-edge setting. These expenditures are critical for lowering administrative challenges and increasing effectiveness in operations. It allows employees to improve patient services that are aligned with the hospital’s goal (Bhati, 2023). The budgetary planning emphasis on resolving workforce challenges like turnover and overworking through strategic utilization of resources for development and training promotes the clinic’s objective of boosting employee retention and performance. This guarantees the hospital is able to offer excellent medical care that satisfies the patients’ short- and long-term requirements (Wahyuhadi et al., 2023). The Mayo Clinic budget promotes its goal by allocating resources to crucial areas that improve treatment, operational effectiveness, and employee productivity. This strategic strategy also equips the Mayo Clinic to accomplish its goals of offering outstanding care and maintaining performance.

Conclusion

In conclusion, Mayo Clinic’s planned budget is carefully designed to match the organization’s objective and mission of providing top-notch treatment. By investing in employee growth and cutting-edge innovations, Mayo Clinic guarantees efficient operations and improved patient results. The plan’s emphasis on maximizing current resources and minimizing employee turnover promotes sustained profitability and efficiency in care provision.

References

Berry, L. L., Letchuman, S., Ramani, N., & Barach, P. (2021). The high stakes of outsourcing in health care. Mayo Clinic Proceedings, 96(11), 2879–2890. https://doi.org/10.1016/j.mayocp.2021.07.003  Bhati, D., Deogade, M. S., & Kanyal, D. (2023). Improving patient outcomes through effective hospital administration: A comprehensive review. Cureus, 15(10), e47731. https://doi.org/10.7759/cureus.47731 

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Brown, J., Pope, N., Bosco, A. M., Mason, J., & Morgan, A. (2020). Issues affecting nurses’ capability to use digital technology at work: An integrative review. Journal of Clinical Nursing, 29(15-16), 2801-2819. https://doi.org/10.1111/jocn.15321 Butler, J. M., Gibson, B., Lewis, L., Reiber, G., Kramer, H., Rupper, R., Herout, J., Long, B., Massaro, D., & Nebeker, J. (2020). Patient-centered care and the electronic health record: Exploring functionality and gaps. Journal of the American Medical Informatics Association Open, 3(3), 360–368. https://doi.org/10.1093/jamiaopen/ooaa044 Enumah, S. J., Resnick, A. S., & Chang, D. C. (2022). Association of measured quality with financial health among U.S. hospitals. PLoS ONE, 17(4), e0266696–e0266696. https://doi.org/10.1371/journal.pone.0266696 Griffiths, P., Saville, C., Ball, J., Jones, J., Pattison, N., & Monks, T. (2020). Nursing workload, nurse staffing methodologies and tools: A systematic scoping review and discussion. International Journal of Nursing Studies, 103, 103487–103487. https://doi.org/10.1016/j.ijnurstu.2019.103487 Karim, M., Akter, K., Debnath, M., Rahman, M. M., Johra, F. T., Akter, F., Das, D. C., Mondal, S., Das, N. M., Uddin, M. J., & Parvin, M. R. (2024). Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of artificial intelligence adoption in nursing care. Journal of Medicine Surgery and Public Health, 3, 100113–100113. https://doi.org/10.1016/j.glmedi.2024.100113

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Koruca, H. İ., Emek, M. S., & Gulmez, E. (2023). Development of a new personalized staff-scheduling method with a work-life balance perspective: Case of a hospital. Annals of Operations Research, 328(1), 793-820. https://doi.org/10.1007/s10479-023-05244-2 Kwon, C. Y., Lee, B., Kwon, O. J., Kim, M. S., Sim, K. L., & Choi, Y. H. (2021). Emotional labor, burnout, medical error, and turnover intention among South Korean nursing staff in a university hospital setting. International Journal of Environmental Research and Public Health, 18(19), 10111. https://doi.org/10.3390/ijerph181910111 Musiega, A., Tsofa, B., Nyawira, L., Njuguna, R. G., Munywoki, J., Hanson, K., & Barasa, E. (2023). Examining the influence of budget execution processes on the efficiency of county health systems in Kenya. Health Policy and Planning, 38(3), 351-362. https://doi.org/10.1093/heapol/czac098 Shiri, R., Metwally, A. E., Sallinen, M., Pöyry, M., Härmä, M., & Tanner, S. T. (2023). The role of continuing professional training or development in maintaining current employment: A systematic review. Healthcare, 11(21), 2900–2900. https://doi.org/10.3390/healthcare11212900 Wahyuhadi, J., Hidayah, M., & Aini, Q. (2023). Remuneration, job satisfaction, and performance of health workers during the COVID-19 pandemic period at the Dr. Soetomo Hospital Surabaya, Indonesia. Psychology Research and Behavior Management, 16, 701–711. https://doi.org/10.2147/prbm.s396717 ‌