NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

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Capella university

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Budget Negotiations and Communication

This paper presents an executive summary justifying the operating budget prepared for St. Anthony Medical Center (SAMC) previously, where a comprehensive financial plan for a 35-bed unit was developed. The aim is to secure funding within an environment of limited resources by outlining a strategic plan, addressing staff productivity goals, and justifying costs. This summary will demonstrate how the proposed budget aligns with SAMC’s mission and goals, ensuring both fiscal responsibility and high-standard patient care.

Strategic Plan for Profitability and Success

The strategic plan for SAMC’s 35-bed unit ensures profitability and fiscal success by meticulously balancing operational costs (net revenue: $1,350,000, Total expenses: $202,000) with revenue-generating initiatives. SAMC is facing high turnover, leading to increased workload and inefficient shift management. The unit majorly handles elder patients, where care provision is careful and critical, requiring adequate staff, minimizing burnout and maintaining high care standards. A key component of this plan is optimizing staff productivity through targeted training and efficient resource allocation, which directly impacts patient care quality and operational efficiency (Bhati, 2023). Moreover, implementing advanced data analytics to monitor financial performance and patient outcomes allows for real-time adjustments to the budget, ensuring alignment with SAMC’s mission and goals. However, to refine this strategic plan further, we must address several knowledge gaps and areas of uncertainty. For instance, detailed patient demographic data is necessary to predict service demand accurately, which influences staffing and supply chain management (Geiger et al., 2023). There is also a need for comprehensive benchmarking data against similar units in comparable healthcare facilities to validate our financial assumptions and identify potential areas for cost savings. Moreover, the plan requires clear metrics for measuring the impact of staff productivity initiatives on both financial performance and patient satisfaction, which are currently underdeveloped (De Rosis et al., 2022). By addressing these gaps and uncertainties through targeted data collection and continuous feedback mechanisms, SAMC can enhance its strategic plan, ensuring not only fiscal responsibility but also the delivery of high-quality patient care.

Plan for Staff Productivity Goals

A comprehensive workforce management plan will be executed to meet staff productivity goals while adhering to budget constraints at SAMC. Firstly, This plan focuses on reducing staff turnover, optimizing scheduling, and enhancing staff development, which collectively ensures efficient resource use without compromising the quality of care (Koruca et al., 2023). SAMC recognizes that high staff turnover and reliance on overtime can strain the budget and impact staff productivity. To address this, the SAMC will implement workforce management software to automate scheduling and forecast potential overtime scenarios. This advanced scheduling tool will help allocate shifts more efficiently, ensuring that staff levels align with patient needs while minimizing unnecessary overtime costs. Studies show that work-life balance for hospital staff, including physicians, nurses and technicians, is essential for careful and consistent care delivery (Koruca et al., 2023). The rationale is that automated scheduling reduces manual errors and ensures optimal shift distribution. Better scheduling improves work-life balance, reducing burnout and turnover (Sánchez et al., 2020).

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Secondly, SAMC will align staff development initiatives with organizational needs, focusing on educational and certification activities to enhance staff competencies. This includes specialized training in critical care, nursing specialities, and surgical operations. These initiatives are designed to improve patient care outcomes and support the hospital’s strategic goals. Studies show that continuous training equips staff with the latest medical knowledge and techniques, fostering loyalty and reducing turnover (Xuecheng et al., 2022). It helps enhance competencies that contribute to better patient outcomes and align with SAMC’s mission to provide high-quality healthcare services. Lastly, to further improve operational efficiency, SAMC will invest in digital solutions such as electronic health records (EHR) and telehealth. While these technologies involve initial costs, they are expected to streamline operations and improve patient care in the long run. The rationale behind this is that EHR and telehealth simplify operations, cut costs through improved data accuracy, and enhance patient outcomes by providing better access to data and remote care options (Paul et al., 2023).

Rationale for Rejecting Alternative Approaches

One alternative approach would be to increase staffing levels to meet productivity goals. However, this approach is not feasible within the current budget constraints, therefore rejected.. Hiring additional staff would significantly increase salary and benefits expenses, putting a strain on the budget without necessarily guaranteeing a proportional improvement in productivity. The focus should be on optimizing existing staff through better management and development rather than simply increasing numbers (Gal et al., 2022). Another alternative is to outsource more clinical services. While outsourcing can offer short-term cost savings, it compromises the quality of care and is therefore rejected due to potential issues with consistency and patient trust. For instance, patients prefer continuity of care from familiar staff rather than outsourced personnel (Berry et al., 2021).

Equipment and Service Cost Justification

Justifying equipment and service costs in SAMC’s budget involves several critical considerations based on the projected figures. For instance, the budget allocates $30,000 for medical supplies and $8,000 for facility rent, which are essential for maintaining operational efficiency and high-quality patient care. Studies show that an inefficient system costs 10% of patient-generated revenue, so investing in modern equipment and services is expected to improve operational efficiency and patient outcomes (Bravo et al., 2021). The $13,000 for outsourced services, including cleaning and IT services, supports essential functions that enhance service delivery and operational reliability. These costs are not merely operational necessities; they are integral to supporting the unit’s capacity to meet patient needs effectively (Bravo et al., 2021). It aligns with SAMC’s mission of providing quality healthcare. While these costs might seem substantial, they contribute significantly to maintaining a clean, efficient, and technologically advanced environment, which is pivotal for both staff performance and patient satisfaction. For instance, modern IT services streamline data management, reduce administrative burdens, and facilitate better access to patient information, thereby improving care coordination and reducing errors (Cabán et al., 2022). Assumptions underlying these projected costs include stable patient volumes and market conditions, which are crucial for accurately forecasting expenses. Additionally, investing in modern equipment and services is expected to improve operational efficiency and patient outcomes. For instance, these expenditures contribute to staff productivity by reducing administrative burdens and improving access to patient data, thereby enhancing the overall quality of care and supporting long-term cost savings (Cabán et al., 2022).

The Linkage Between the Organization’s Mission and the Project

The organization’s mission is to provide high-quality, patient-focused care and support its strategic goals. The financial goal of SAMC is to maintain fiscal responsibility while the strategic goal is to deliver high-quality, patient-centered care through optimal resource allocation and staff development. The operational budget for SAMC is closely aligned with the organization’s mission. For instance, by investing $30,000 in medical supplies and $8,000 in facility rent, SAMC ensures that its 35-bed unit, which primarily serves the older population, is equipped to deliver optimal care. This budget allocation supports the centre’s commitment to providing comprehensive medical services and maintaining a high standard of care (Homauni et al., 2023). The inclusion of $13,000 for outsourced services, including cleaning and IT support, underscores SAMC’s dedication to maintaining a clean, efficient, and technologically advanced facility. These investments are essential for reducing administrative burdens and enhancing operational efficiency, thereby allowing staff to focus on patient care, which directly aligns with the organization’s mission (Bhati, 2023). Moreover, the budget’s focus on addressing staff issues such as turnover and overtime by strategically allocating resources for training and development reinforces SAMC’s goal of improving staff retention and competency. This ensures that the hospital can consistently deliver high-quality healthcare services, meeting both the immediate and long-term needs of its patients (Vries et al., 2023). SAMC’s budget effectively supports its mission by ensuring that resources are allocated to key areas that enhance patient care, operational efficiency, and staff productivity. This strategic approach not only addresses current challenges but also positions SAMC to achieve its goals of providing exceptional healthcare and sustaining organizational excellence.

Conclusion

In conclusion, the proposed budget for SAMC is strategically developed to align with the organization’s mission of delivering high-standard, patient-focused care. By investing in key areas such as staff development, advanced technologies, and essential services, SAMC ensures both operational efficiency and superior patient outcomes. The plan’s focus on optimizing existing resources and addressing staff turnover supports long-term sustainability and excellence in healthcare delivery. This budget not only meets immediate needs but also positions SAMC for future success.

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. (2023). Improving patient outcomes through effective hospital administration: A comprehensive review. Cureus, 15(10), e47731. https://doi.org/10.7759/cureus.47731 Bravo, F., Braun, M., Farias, V., Levi, R., Lynch, C., Tumolo, J., & Whyte, R. (2021). Optimization-driven framework to understand health care network costs and resource allocation. Health Care Management Science, 24(3), 640–660. https://doi.org/10.1007/s10729-021-09565-1 Cabán, T. Z., Okubo, T. H., & Posnack, S. (2022). Priorities to accelerate workflow automation in health care. Journal of the American Medical Informatics Association, 30(1), 195-201. https://doi.org/10.1093/jamia/ocac197

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

De Rosis, S., Ferrè, F., & Pennucci, F. (2022). Including patient‐reported measures in performance evaluation systems: Patient contribution in assessing and improving the healthcare systems. The International Journal of Health Planning and Management, 37(S1), 144–165. https://doi.org/10.1002/hpm.3596 Gal, H. C. B., Forma, I. A., & Singer, G. (2022). A flexible employee recruitment and compensation model: A bi-level optimization approach. Computers & Industrial Engineering, 165, 107916. https://doi.org/10.1016/j.cie.2021.107916 Geiger, I., Schang, L., & Sundmacher, L. (2023). Assessing needs-based supply of physicians: a criteria-led methodological review of international studies in high-resource settings. BMC Health Services Research, 23(1), 564. https://doi.org/10.1186/s12913-023-09461-0 Homauni, A., Moghaddam, N. M., Mosadeghkhah, A., Noori, M., & Abbasiyan, K. (2023). Budgeting in healthcare systems and organizations: A systematic review. Iranian Journal of Public Health, 52(9), 1889–1901. https://doi.org/10.18502/ijph.v52i9.13571 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, 1–28. https://doi.org/10.1007/s10479-023-05244-2 Paul, M., Maglaras, L., Ferrag, M. A., & Almomani, I. (2023). Digitization of healthcare sector: a study on privacy and security concerns. ICT Express, 9(4), 571–588. https://doi.org/10.1016/j.icte.2023.02.007

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Sánchez, J.-L. R., Torres, T. G., Navarro, A. M., & Losada, R. G. (2020). Investing time and resources for work–life balance: The effect on talent retention. International Journal of Environmental Research and Public Health, 17(6), 1920. https://doi.org/10.3390/ijerph17061920 Vries, N. de, Lavreysen, O., Boone, A., Bouman, J., Szemik, S., Barański, K., Godderis, L., & Winter, P. de. (2023). Retaining healthcare workers: A systematic review of strategies for sustaining power in the workplace. Healthcare, 11(13), 1887–1887. https://doi.org/10.3390/healthcare11131887 Xuecheng, W., Iqbal, Q., & Saina, B. (2022). Factors affecting employee’s retention: Integration of situational leadership with social exchange theory. Frontiers in Psychology, 13, 872105. https://doi.org/10.3389/fpsyg.2022.872105

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Budget Negotiations and Communication

Strategic Plan for Profitability and Success

Plan for Staff Productivity Goals

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Rationale for Rejecting Alternative Approaches

Equipment and Service Cost Justification

The Linkage Between the Organization’s Mission and the Project

Conclusion

References

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

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