NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Employee satisfaction improves care quality, which holistically serves the organization’s goal and mission of providing patient-centered care, as staff motivation increases productivity and leads to more proactive and patient-centered care for patients. Providing a lounge provides nurses with an area where they can relax after a hectic day; moreover, having a space designated to the staff can help them feel valued by the organization, fostering a positive and cooperative working environment . Furthermore, the executives are expected to approach this budget positively, based on reducing the turnover rate and improving patient outcomes and satisfaction.

The alternatives to this would be centered on performance reviews and incentives for the staff; however, this would assist in recruiting and retaining staff members. These changes, such as providing incentives or performance based incentives, only cater to their external motivation aspects; however,  as reported by the nurses, the core reason for leaving the job is the depressing environment, thus, only increasing pay would only temporarily retain the staff, while a holistic effort targeting the intrinsic and extrinsic motivations can have lasting effects. 

Preparing a Capital Budget

The current budget’s implementation is planned for the next eight months. The preparation of the budget begins with data collection and identifying the needs of the nurses through interviews and surveys. The plan was based on the assumption that the budget aims to provide a supportive, less stressful, and positive environment that helps the nurses feel comfortable and motivated. The following budget total and division were provided in Table 1 (Appendix 1). However, a few areas of uncertainty are related to the leadership and workload that may have been a significant factor in high turnover. Another uncertainty is regarding the effective maintainence of the lounge as it may require additional costs if the lounge is not adequately maintained, posing a threat to the budgeting process.  

Process of Calculating Cost

  The data was collected from different vendors and market surveys to understand and analyze the current prices of the suggested changes, then the vendors were invited to put in their quote for all the ascribed changes, and the best suited vendor quotation was selected by the CFO and CEO. The process of calculating costs was based on the payback period (PP) method which aims to estimate the number of years required to take back the initial investment (Mollah et al., 2021). The finance team will be responsible for cost calculations. The quickest capital budgeting technique allows the organization to compare the results based on the amount of revenue it has provided.

The estimated number of years required in the current assessment was one year, as retention, hiring, and training savings can provide a clear understanding of the trends and the number of years required to complete them. However, it is essential to note that the timeline of one year is after implementation. The data for the last annual budget was collected from cost information sources from the finance department, stakeholders, and external sources that were involved. The executives, finance head, and administration analyzed the data, made cost assumptions, and allocated the years for implementation with assistance from the accounts department.

Budget Management Plan

The budget management plan requests inter-professional collaboration for effective management and execution of the plan. Research has also suggested that positive inter-professional collaboration significantly affects the execution of healthcare projects (Schmidt et al., 2021). In the current budgeting process, I aim to collaborate with the finance director, head of accounting, and administration director to help me gather the previous trends, approve my budget, and initiate the process. I would collaborate with an outsourced vendor selected through a protocoled procedure for the construction. The administration director will also oversee the implementation process, while the IT department head will be responsible for providing bandwidth availability and technological support. The maintenance team will collaborate to provide maintenance services.

Budget management is based on the assumption that proper planning, monitoring of expenses, and deadline management help evaluate the efficacy of the work. Methods of cost reduction will be utilized for the purpose of cost control. These will consist of the identification and execution of measures designed to minimize costs while maintaining the status quo. Identifying, analyzing, and correcting budget variances, such as reducing