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NURS FPX 6216 Assessment 4
Preparing and Managing a Capital Budget
Managing a capital budget entails forecasting, distributing, and controlling funds in the execution of a capital project. This process comprises defining and estimating the capital projects the organization intends to finance and ranking the projects based on its objectives and the available capital (Praveen, 2020).
Also, it entails assessing the cost of capital investments in the business, including its profitability. This paper covers practical aspects of compiling and controlling a capital budget with reference to Mercy Medical Centre’s renovation project.
Capital Acquisition
The purpose of the renovations is to provide Mercy Medical Centre’s lounge with updates to effectively serve as adequate space for the patients, visitors, and employees. Some of the areas to be renovated include the configuration of the lounge and increasing aesthetic values so as to enhance relaxation.
Those components include procuring new furniture, engaging the lighting and electrical systems, including the wiring of charging points, Wi-Fi connection, and entertainment systems like television, amongst others. The renovation will also incorporate access elements in order to enhance the fleshly layout and make the area compliant with all safety and health standards.
The overall design of the new lounge, together with comfortable and aesthetic furniture such as ergonomic chairs, will be given preference. There will be enough space for 100 people, and this capacity will be created so that guests have enough space. The renovation project will take six months to complete according to the management’s proposals.
The schedule has allocated one month for design finalization and purchasing of the required materials. This will be succeeded by five months for the actual renovation activities to be carried out. This schedule permits all of the foreseeable mishaps and anticipates what is necessary to finish the project without interfering with the normal operations of the hospital.
Underlying Assumption
The plan is contingent on the following assumptions. It presupposes that the funds set for the renovation of the building will be adequate for the exercise.
Also, it is considered that the materials and supplies will be efficient (Cai et al., 2021). It postulates one fact: the time that will be given for hospital renovation is relatively more minor and hence causes interferences that are easily manageable to the performance of the hospitals.
Need for Capital Acquisition
An appropriate assessment of the proposed renovation of the nurse’s lounge at Mercy Medical Centre is to understand the significance of such an alteration for the employees and the center’s productivity. The primary and direct recipients of the result will be the nursing staff because the well-equipped and comfortable environment will decrease stress levels and fatigue.
Any analysis of data relating to patient outcomes reveals that it is vital for the nursing staff to have adequate rest (Moore et al., 2020). Enhancements that will be performed to the living area will also enhance congeniality in the working environment, hence enhancing productivity and reducing turnover.
As a result, this will improve the delivery of patient care as nurses who are not exhausted and happy pay better attention to the patient’s needs. It will finally enhance the conditions of patients and their satisfaction. The renovation work meets the vision and core values state of Mercy Medical Centre.
After researching various hospitals, it is committed to delivering quality health care to its clients. It puts a lot of emphasis on prioritizing the needs of the patients as well as its staff. This is aligned with the hospital’s mission of providing adequate resources and facilities to improve the nurses’ effectiveness, hence the plans to upgrade the current nurse’s lounge (Moore et al., 2020).
On this account, the executive leaders are likely to embrace the budget for this project because of the potential long-term benefits of delivering staff welfare.
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Pros and Cons of Alternative Perspectives on the Proposed Improvements
The main benefit of renovating the proposed lounge is the massive improvement in the employees’ morale and performance, as postulated by Moore et al. (2020). By being concerned with the comfort and welfare of nursing staff, Mercy Medical Centre is possibly going to observe increased job satisfaction, staff turnover, and, eventually, an enhancement of the general health of the patients.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Nevertheless, there are possible weaknesses and other approaches to view the issue. The restoration process will be costly, and there exists a possibility that some of the activities may interfere with the functioning of the hospital during the construction period.
Process for Calculating Costs
The procedure used to arrive at cost at Mercy Medical Centre comprises several elements with the aim of covering the broad points that ultimately aim at providing an accurate and reliable copricePrimary methods of cost data acquisition are expenditure records, quotes from potential suppliers, data obtained from similar organizations, and balanced statements. These sources are updated from time to time to incorporate the current market data so as to get the cost data, which is t, to the extent possible, accurate (Kumar et al., 2022).
This data is imperative to the organization and is collected and analyzed by the finance department. Communication with other teams and people is helpful in knowing the actual cost estimates. They are the department heads, procurement officers, the clinical staff, and the external vendors (Kumar et al.,2022). It allows for the training of helpful information about the specific demand, working characteristics of the organizational and economic factors, and potential savings.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Service costing methods used in Mercy Medical Centre include direct and indirect cost charging. Variable costs like salaries, cost of consumables, and cost of equipment are the actual cost and cost per usage. Therefore, overhead costs such as lighting, water, and cleaning are distributed in accordance with consumption levels and departments.
requirementsAnalyzing methods like trend analysis and zero-based budgets are used to estimate costs in the future more correctly (Kumar et al., 2022). Anomalies in the cost factors l, such as a disparity in the quotation received from the vendors, if data have sometimes been collected back o, or changes in prices in the market c, could have a toll on the cost calculations. Some of these differences may result in cost inflation or resource allocation to focal areas (Kumar et al., 2022).
Conclusion
The activity of upgrading the look of the Mercy Medical Centre lounge has its benefits and drawbacks concerning organizational finance. Though it might result in higher staff morale and improved operation efficiency, it takes work to estimate the quantifiable financial benefit that will be incurred.
Issues like ROI and the realization of such anticipated benefits are also complex and, therefore, would need to be constantly assessed. Because of these considerations, the of practical assessment and evaluation of the post-renovation performances, systematic elimination of the conditionalities, and development of sturdy strategies to curb any uncertainties that may be evident in the course of the process shall go a long way in ensuring that the project is a success.
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References
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