The SWOT analysis helps identify the organization’s strengths, weaknesses, opportunities, and threats to help evaluate the use of monetary funds. The yearly expenses are based on staff salaries, the allocated budget for new hiring, overtime compensation training, appraisal, medical supplies, medication assessment, research, technology maintenance, hygiene protocol management, and patient surveys. At the same time, revenue is based on patient care, research grants, charity funds, medical aid, and staff retention. However, during the preparation, management, or execution of the operating budget, there can be a few uncertainties regarding the expenses associated with adverse events, emergent dealings, lack of motivation or brain drains, and patient influx issues, which may lead to an unexpected expense increase or require immediate allocation of resources.
Table 1 (a):
Budget category and the Expense per year (USD$)
|
Budget Category |
Expense Per Year (USD $) |
| Staff Salaries | 800,000 |
| New hiring | 300,000 |
| Compensation of Budget | 200,000 |
| Appraisal and bonuses | 300,000 |
| Assessment funds | 100,000 |
| Medical supplies | 200,000 |
| Medication | 400,000 |
| Research and training | 300,000 |
| Maintenance of Technology | 150,000 |
| Hygiene management | 200,000 |
| Total expense | 2,950,000 |
Table 1(b)
Budget Category and the Revenue per Year (USD$)
|
Category |
Revenue Per Year (USD$) |
| Patient care | 900,000 |
| Research grants | 350,000 |
| Charitable Funds | 900,000 |
| Medical aids | 700,000 |
| Staff retention | 500,000 |
| Total Revenue | 3,350,000 |
The current estimation of the expense and revenue highlights the revenue outpacing the expense. The budget helps explain how the revenue outpaces the estimated expenses, such as hiring and compensation, which can be quickly recovered through staff retention and keeping the money safe. Similarly, the money gathered through training can be overcome through grants and donations, helping the organization to have a better return on investment (ROI).
Budget Creation and Designing
The design and creation of a budget is a systematic and structured process that involves careful planning, analysis, and decision-making while separating the conflicting data to maintain consistency and transparency while ensuring that the data is based on actual information and is financially reliable. The budget is designed through strategic planning and budgeting. In particular, the budget objectives are defined by gathering information from previous trends and highlighting factors that play a significant role in budget creation and design. Research has highlighted organizations’ economic conditions, available resources, and patient expectations as significant factors in creating and designing a healthcare budget (Nilsen et al., 2020).
As the economic conditions of the organization are kept in mind while designing the budget, it is solely based on the availability of research that can be allocated or outsourced and how much expense would be incurred. The need analysis conducted before resource allocation can help in the correct allocation of the resources. Similarly, expectations and patient and staff retention play a massive role in highlighting the organization’s strengths, weaknesses, threats, and opportunities to grow. Similarly, it is essential to understand that, with changing economic demands, the budget may differ due to the availability of these resources.
NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget
Our budget is designed by gathering data from resources such as baseline assessments and need-based analysis. Then, the data is analyzed through SWOT analysis, which helps to create a division on th
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