The success of an organization depends heavily on effective budget planning, preparation, and management. A budget is a calculation of the resources required to deliver services. It describes the organization’s financial objectives and how to accomplish them while controlling expenses. A budget is based on an organization’s mission and strategic plan, and if it is carefully designed, the actual results will match the projected results (Butler et al., 2019). Operating revenue and costs are included in the budget. The hospital’s incoming income is known as operating revenue. Operating costs include, but are not restricted to, salaries, wages, employee benefits, supplies, utilities, professional fees, licenses, taxes, insurance, supplies, equipment, and overtime.
An emphasis of the current budget is a 45-bed medical-surgical facility. The unit is staffed with 25 full-time equivalents (FTE) workers. Several staff has been working extra as a result of recent turnover. The older population that the unit census tends for incurs costs. To prevent a detrimental effect, the nurse manager has to bring the budget under control (Dort et al., 2018). Direct and indirect patient care expenditures are the two areas of expenses for the department. Salaries, medical supplies, and equipment are examples of direct costs. Seminars, conferences, continuing education, office supplies, and shared expenses are indirect costs, including lighting, heating, administrative, and staff costs.
Variable and fixed costs are included in the departmental budget. Expenses like employee salaries, rent, and telephone are fixed expenditures independent of the degree of activity (Gabardine et al., 2022). Variable costs, on the other hand, are more changeable. Personnel, medical supplies, linen, staffing, and food are variable costs that fluctuate according to patient acuity and census. The budget for staffing must account for wages, costs associated with hiring new personnel, per diem workers, shift differentials, and overtime. The unit will have the necessary resources and be effective if budgeting and management are done correctly.
">The success of an organization depends heavily on effective budget planning, preparation, and management. A budget is a calculation of the resources required to deliver services. It describes the organization’s financial objectives and how to accomplish them while controlling expenses. A budget is based on an organization’s mission and strategic plan, and if it is carefully designed, the actual results will match the projected results (Butler et al., 2019). Operating revenue and costs are included in the budget. The hospital’s incoming income is known as operating revenue. Operating costs include, but are not restricted to, salaries, wages, employee benefits, supplies, utilities, professional fees, licenses, taxes, insurance, supplies, equipment, and overtime.
An emphasis of the current budget is a 45-bed medical-surgical facility. The unit is staffed with 25 full-time equivalents (FTE) workers. Several staff has been working extra as a result of recent turnover. The older population that the unit census tends for incurs costs. To prevent a detrimental effect, the nurse manager has to bring the budget under control (Dort et al., 2018). Direct and indirect patient care expenditures are the two areas of expenses for the department. Salaries, medical supplies, and equipment are examples of direct costs. Seminars, conferences, continuing education, office supplies, and shared expenses are indirect costs, including lighting, heating, administrative, and staff costs.
Variable and fixed costs are included in the departmental budget. Expenses like employee salaries, rent, and telephone are fixed expenditures independent of the degree of activity (Gabardine et al., 2022). Variable costs, on the other hand, are more changeable. Personnel, medical supplies, linen, staffing, and food are variable costs that fluctuate according to patient acuity and census. The budget for staffing must account for wages, costs associated with hiring new personnel, per diem workers, shift differentials, and overtime. The unit will have the necessary resources and be effective if budgeting and management are done correctly.
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