NURS FPX 6226 Assessment 4 Budget Negotiations and Communication

NURS FPX 6226 Assessment 4

Budget Negotiations and Communication

Student name

Capella University

NURS-FPX6226 Advanced Operations and Finance Management

Professor Name

Submission Date

Introduction

• Slide 1

Hi everyone. Today, I will defend the stakeholders on the proposed need and importance of my presentation on the budget.

• Slide 2

Healthcare financial budgets form the central source of funds that support quality medical services to the patients. The healthcare budgets control how the organizations distribute their resources and workforce, and also make their decisions towards investment in technology that defines the patient care level. From a financial perspective, healthcare institutions are forced to implement a budgeting system because they must perform efficiently and cater to their societies (Zhang and Bohlen, 2023). In case budgetary management is not performed properly, healthcare systems are exposed to service disruption, along with staff shortage and poor quality services. There is an increased need for strategic budgeting regarding high healthcare costs because it assists the organizations in balancing between financial accountability and life-saving and life-enhancing services.

Strategic Plan

• Slide 3

Through efficient use of the available resources in terms of budget estimates on the strategic plan, financial prudence and quality medical services are achieved. The organization has enjoyed the full operating and capital budgets, which have been focused on ensuring the sustainable development and infrastructure development and improvement of the quality of service. The projected revenue of 46.2 million will help to cover the staffing costs (30.4 million) and the supply costs (11.8 million) in order to generate 1.38 million in profits in a particular year and 2.35 million in profits in the next year. Priority capital budget expenditures will be involved with critical infrastructure development, which entails purchasing land requirements and positioning money in the development of building equipment upgrades, in addition to upgrades of electrical systems. Financial resources that this scheme avails are closely linked to the goals of strategies, and patient outcomes can be realized as well as good financial position of the organization.

Criteria for Identifying and Prioritizing Stakeholders

• Slide 4

The systemic approach of identification and prioritization of the stakeholders considers the assessment of the degree of impact and interest of the stakeholders along with their impacts on the healthcare organization. The financial decision-makers, who are patients, clinical staff, board members, and major payers, are considered to be at the top of this process. Using the stakeholder matrix, it is possible to identify the correlation between the decision power and the control of the funding and activity of operations, and the impact of the success of the implementation (SixSigma, 2024). The organization listens to the stakeholders holding high authoritative power and having a high interest in the budget management process (Chernyi and Uotila, 2024). The stakeholder analysis would help the organizations to listen to the most important voices and engage in positive communication throughout the financial planning processes.

Vision and Ambition for Future Engagement

• Slide 5

The primary stakeholder engagement goal is to create clear operational mechanisms that will unite the budget management and the amazing healthcare delivery, and the financial burden. It is premised on the notion that the effectiveness of the financial resources allocation will depend on the feedback mechanisms that are always in place between the nurse leaders and financial teams and clinical departments (Bhati et al, 2023). Monthly variance evaluation, quarterly performance evaluation, and annual strategic evaluations will result in the reaction of the budgeting system to the healthcare changes. An organizational culture that is financially literate can both raise clinical leaders to the reality about the financial outcomes of their choices and train financial teams on clinical needs, which are the basis of the request for resources (Raftery et al., 2021). The combined strategy will lead to the synergistic realization of quality care for patients and economic sustainability, thus ensuring organizational survival.

Capital and Operating Budgets

• Slide 6

Financial management tool: Capital and operating budgets play an important role in the performance of healthcare institutions. Organizations finance facilities that involve equipments and infrastructure to assist with service delivery, in addition to organizational development using capital budgets (Homauni et al., 2023). Budgets are used to guide the day-to-day financial activities of the organization since it aid in paying salaries, acquiring supplies, utilities among others and other operating expenses. A combination of these budgeting mechanisms leads to bringing financial stability, the ability to plan strategies, optimization of the use of the resources, regulations compliance, and the final ability to deliver quality care to patients. Proper budgeting activities can help healthcare organizations establish a balance in operations and invest in a long-term strategic level in their complex resource-constrained environment (Zhang and Bohlen, 2023).

Components of the Capital Budget

• Slide 7

A capital budget is composed of six very critical components that organizations require in their strategic infrastructural growth and the evolution of the organization. Physical expansion relies on land purchasing, as the budget is planned to spend 4.6M on purchasing the property. The 6.26M to construct equipment will aid the necessary medical systems, along with physical plant infrastructure and improvement of facilities to comply with healthcare delivery. The total cost of professional fees amounting to $512K is used to acquire architectural services, conduct engineering consultations, and project-specific management services. The electrical systems program is a project that involves a $56K budget to improve infrastructure consistency, along with patient safety. The 12M tax budget will be in the form of payments to regulatory requirements and other expected evaluation costs. According to accounting standards, the institution has expended $48K in expenses to amicably apportion asset expenses over their useful life rates.

Key Line Items Within the Budget

• Slide 8

The largest expense is the purchase of land of $4.6M to sustain its services growth and expansion of facilities in the future. The healthcare service delivery at the hospital necessitates both operational and clinical systems vital to the hospital, and the allocation of the funds will be done for building equipment that will be allocated to the tune of $6.26M. Professional services with specifications are procured at professional charges of value $512K that are associated with the acquisition of architectural engineering and project management skills required to ensure successful implementation. The costs of funding the electrical systems up to $56,000 cover the reliable infrastructure and compliance with the safety requirements. According to the financial accounting standards, we are obliged to spread the asset costs in the form of depreciation cost, which is 48K. The strategic capital investment distribution leads to the development of organizational capabilities due to the improvement of service functionality and the emergence of new sources of income (Ullah et al., 2022). A proper capital budgeting process ensures reasonable medical service outcomes in terms of financial stability (Homauni et al., 2023).

Components of the Operating Budget

• Slide 9

Various elements cannot be ignored in the operations budget and which are essential to the daily healthcare functions and delivery of services in an organization. The organization spends 25 million of expenditures in compensating employee salaries and remuneration to fill the staff positions and making use of elaborate staffing models to calculate the accurate compensation rate. The summative employee benefits amount to $6.26 million, which equates to 25 percent of the salary expenses to provide the required insurance programs, retirement contributions, and paid time off accruals. The organization has also budgeted professional fees of amounting to 515K by taking into consideration the frequency of sourcing expert services of specialists in service agreements. The supply costs will be computed using consumption-based algorithms that estimate the volumes of services and multiply them by the use rates per procedure. Indirect costs also include administration charges and maintenance fees on facilities, utility expenses, insurance cover, and IT support and which are based on pre-established techniques using variables such as the square footage, intensity of services, and the number of employees.

Key Line Items Within the Budget

• Slide 10

The largest point of expenditure on operations that can enable quality staff to continue patient care services is the 25 million on salaries and wages. The workforce is safeguarded by the employee benefits at 6.26 million compensation plans that are used to avoid staff turnover. The total amount of money allocated to professional fees is to hire specific specialists who will enhance operational performance as well as clinical outcomes. The supply expenses of $12.1 million are projected using projected service volumes because it is effective in managing inventory and reducing waste. The administrative overhead costs with the indirect costs, are necessary to support the clinical operations. When medical facilities use proper budgeting techniques by implementing the operating budgeting method, the gains in efficiency are higher compared to incremental budgeting (Zhang and Bohlen, 2023). The analytics of the supply chain that integrates clinical utilization data can provide better control of cost estimates to allocate amounts of supply budget (Nuaimi & Awofeso, 2025).

Budget Alignment with An Organization’s Mission and Goals

• Slide 11

The operating and capital budgets are a direct support of the mission of the healthcare organization by engaging the resources strategically to balance both the financial responsibility and quality care delivery to patients. Staffing assignment of 30.4 million that takes into consideration proper clinical expertise is provided to ensure service excellence whilst responding to regulatory demands on patient safety. The land acquisition capital of 4.6 million dollars facilitates the expansion of the services in the future, as the community healthcare demands may increase. Its supply budget of 11.8 million ensures that the necessary medical supplies are present to continue with direct patient care activities. The positive net revenue forecast of 1.38 million and 2.35 million, respectively, next year and this year, ensures it is financially viable to maintain continuous improvement activities. Professional fee assignments, in their turn, enable the expertise needed to address clinical outcomes, whereas operational budgeting of technology and infrastructure maintenance cannot fail to provide reliable care delivery platforms that are vital in meeting the primary obligation of the organization to patient-centered care (Bhati et al., 2023).

Impact of Profitability and Fiscal Success on Organizational Strengths and Weaknesses

• Slide 12

Profitability levels will be followed by organizational strengths and weaknesses since the profitable nature depicts opportunities to formulate operational superiority as well as new strategic development plans. Strong profitability helps organizations to create technologies and employ the highest quality talent, and maintain the latest infrastructure that achieves higher penetration in the market (Farida and Setiawan, 2022). Organizations that fail to achieve sufficient financial success become weak since they are reduced to update equipment, retain their personnel, and enhance their capacity to enhance quality and sustain competitive advantages in the market. Financial stability modulates the attitude of the lending institutions on the trustworthiness of the organization, the bargaining power of the vendor, and economic endurance (Dainelli et al., 2024). Companies that perform well in the financial field can give money back to prevention-based healthcare programs and social health determinant mitigation programs, which enhances both the image of the community and outreach programs. Scarcity of financial resources compels the organization to make difficult decisions to distribute resources, and this results in lower quality of service delivery and low staff motivation, and decreased competitiveness in the healthcare markets.

Fiscal Sustainability Benefits

• Slide 13

This holistic budgeting system promotes fiscal sustainability with a systematic distribution of resources, factual decision-making, and incessant financial tracking systems. The positive net revenue forecasts of the balanced operating budget (1.38M in this year and 2.35 M in the next) result in the necessary financial reserves, without the reduction of the service quality. Strategic capital investment by the organization is used to develop infrastructure, which results in long-term growth of revenue possibilities. The organization conducts a quick financial risk identification to eliminate the possible threat to the organizational stability through the monthly variance analysis and a quarterly performance review (SolveXia, 2020). Having nurses as budget managers enables the organization to have financial control and clinical accuracy of all the sectors of operation (Bayram et al., 2022). The strategy boosts the credibility of the organization in the market and enables it to adapt to any change in the regulation and reimbursement levels in the healthcare services.

Budget Implementation, Sustainability, and Impact on Patient Care Outcomes

• Slide 14

The intended budget implements the strategies of sustainability by mobilizing strategic funds that provide better patient care outcomes and quality continuous improvement measures. Such funds will enable appropriate staffing allocations to suit the needs of the patients and hence reduce medical errors and improve the number of treatment sessions, and reduce repeat hospitalizations. The medical institution is allocated $6.26M of capital investment in the construction of infrastructure and equipment modernization that create the healing environments complying with current healthcare standards. The optimization plans in the $11.8M supply budget will result in the continuous availability of the essential medical supplies. Funding of professional development offered by the operating budget enhances both the implementation of the standards of practice and clinical competency growth (Flaubert et al., 2021). It is a monthly performance system that monitors financial data and clinical outcomes to preserve the quality standards by avoiding the deterioration of operational efficiency (Elten & Kolk, 2024).

Staff Wellbeing and DEI Considerations

• Slide 15

Budget framework is the allocation of specific funds to improve the health of the employees as well as augment the productivity, besides diversity programs and inclusion programs reflecting the needs of organizational sustainability. The assigned budget of $6.26M addresses the employee benefit provisions through the creation of full-scale wellness programs that offer mental health solutions alongside work-life balance programs that help to fight burnout and retain the clinical staff members in their respective positions. The capital allocated to employee career development allows providing equal career prospects to all employees, and this will create more diversity in leadership across the different types of population. The competitive salary frameworks of $25M that are used assist the organization in recruiting employees who are similar to the patient groups that they serve, resulting in enhanced cultural competence in care delivery. To make workplaces inclusive and accessible, organizations and institutions should invest in workplace infrastructure that promotes the different abilities (Join the Collective, 2023). Constant employee involvement indicators, which are connected to the productivity data, provide relevance in keeping the organizational culture program in line with the organizational performance goals (Govender and Bussin, 2020).

Conclusion

• Slide 16

A budget framework that integrates both the operating and the capital financial management strategies helps organizations to maintain sustainability and offer high-quality care. The strategic resource allocation system provides the appropriate balance between the tactical needs in the workplace and the long-term construction projects. The proposed operating budget of 46.2 million has positive financial margins, and this supports the essential staffing, supplies, and professional services, and capital budget funds the key organizational growth. The organization creates financial stability by instating a comprehensive strategy, which reinforces healthcare services and employee welfare through diversity-based programs and enhances operational capacity to facilitate further leadership in the market in the fields of medical care.

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