NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Name
Capella university
NURS-FPX 6216 Advanced Finance and Operations Management
Prof. Name
Date
Preparing and Managing a Capital Budget
In today’s healthcare environment, investing in capital acquisitions is crucial for maintaining and enhancing technology and facilities..This paper focuses on creating a capital budget for a major facility renovation aimed at improving the nurses’ lounge in a 50-bed step-down unit. The goal is to enhance staff satisfaction, morale, and productivity. This capital budget will outline the costs, justification, and impact on the organization’s financial health, showcasing the importance of strategic capital investments in healthcare.Description of Capital Acquisition
I will follow a systematic approach to design a capital budget for the nurses’ lounge renovation, that includes needs assessment, feasibility analysis, cost estimation, implementation planning, and management plan. Studies indicate that an improved work environment significantly enhances staff morale and productivity by reducing stress, increasing job satisfaction, and fostering a sense of well-being among employees (Donley, 2021). I accessed resources such as financial reports, market analysis, and stakeholder feedback such as exit interviews and patient surveys. I collaborated with other executives, staff members, finance departments, and external consultants to ensure a comprehensive and inclusive planning process. I aimed at modernizing the lounge with comfortable seating, updated amenities such as kitchen facilities, new lockers, and high-speed internet access. Aesthetically, the lounge will feature soothing colors, ample natural light, and ergonomic furniture to create a relaxing atmosphere that help reduce stress (McCorquodale, 2022).The ergonomic furniture I plan to include is designed to offer ideal comfort and support, enhancing health and productivity (Mileski et al., 2024). The renovation will also expand the lounge’s capacity to accommodate at least 10-12 nurses simultaneously during their breaks comfortably. By doing so, I aligned the vision for the capital expenditure with the goal of improving the work environment ensuring the renovation meets the identified needs and contributes to organizational goals. I scheduled renovation in phases, with construction work primarily taking place during off-peak hours and utilizing temporary alternative break areas for the nurses to avert disruption. The project is scheduled to be finished within six months, ensuring minimal disturbance to the unit’s operations (Pomare et al., 2022).Justification of the Need for the Capital Acquisition
The nurses’ lounge renovation will profoundly benefit the nursing personnel by offering a modern, comfortable, and well-equipped space for relaxation and healing. A positive work environment reduces stress and burnout, leading to enhanced job satisfaction and higher staff morale (Monroe et al., 2021). Not renovating the nurses’ lounge will likely lead to continued low staff morale and increased burnout, negatively affecting nurse retention and productivity. Financially, it will cost recruitment and training costs along with excessive costs for treating adverse events due to errors. Improved staff well-being contributes to better patient care by increasing nurse productivity and reducing the likelihood of errors because nurses are able to take essential breaks and fulfill their nutritional needs (Dias & Dawson, 2020). The renovation aligns with the unit’s mission by fostering a supportive and efficient work environment, which is crucial for achieving the organization’s goals of excellence in patient care and staff retention. The enhanced lounge will serve as a tangible investment in the well-being of the nursing team, ultimately benefiting patient outcomes (Boudreau & Rhéaume, 2024). Lack of investment in the work environment could result in higher error rates and decreased quality of patient care, contributing to compromised patient satisfaction and organization’s reputation. The response from executive leaders regarding the budget is expected to be positive, acknowledging the long-term advantages of investing in staff wellness and the positive impact on patient care and organizational efficiency.Preparation of the Capital Budget
The capital budget for the renovation aims to enhance the work environment and support staff well-being in a step-down unit. By investing in a comfortable and functional space, the renovation seeks to improve nurse satisfaction and, consequently, patient care (Michelon et al., 2021). Renovating the nurses’ lounge will cost $75,800, covering furniture ($20,000), kitchen amenities ($8000), décor ($5000), lighting ($3000), flooring ($6000), lockers ($4000), miscellaneous items ($2000), labor ($12,000), and a contingency reserve ($5,800) for unexpected expenses. 71% of the staff that spend time in quiet, refreshing, and relaxing rooms feel renewed as per the survey (Mileski et al., 2024).NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
| Expense Category | Description | Estimated Cost |
| Furniture | Ergonomic chairs, adjustable desks, comfortable sofas, tables, and storage units | $20,000 |
| Amenities | Kitchen appliances, coffee machine, microwave, refrigerator, and dining area essentials | $8,000 |
| Paint and Décor | Soothing paints, wall art, and decorations | $5,000 |
| Lockers | Personal lockers for nurses with secure storage | $4,000 |
| Lighting | Energy-efficient, adjustable lighting fixtures | $3,000 |
| Flooring | Durable, easy-to-clean flooring | $6,000 |
| Miscellaneous | Curtains, rugs, and other minor items | $2,000 |
| Labor | Costs for contractors, construction workers, and installation services | $12,000 |
| Contingency | Reserved for unexpected expenses (10% of total) | $5,800 |
| Total Estimated Cost | – | $75,800 |