NURSE MANAGER BUDGET ANALYSIS
Analysis of the Nursing Unit Budget by the Nurse Manager and the Formulation of a Future Plan of action Based on the Same
This budget presentation shows the budget allocation for the 20-bed nursing unit for the month of June in 2013 as USD 285,000. However, the cruel expenses for the unit in the same month came to USD 309,000. This gives a variance or shortfall of USD 24,000 for the month of June 2013. In the same month, the projected patient days were 360. However, the actual patient days came to a total of 347 for the month (less by 13 patient days). A patient day refers to the total number of patients in the unit’s beds by midnight (Waxman, 2015). There was also an increase in both the projected productive and non-productive (compared to the actual) by USD 20,000 and USD 3,000. The total personnel cost was therefore higher in the actual expenses of the unit by USD 23,000. The overheads and supplies expenses in the same month of June were also higher than projected by USD 1,000. In all, the total increment in expenses for the unit came to USD 24,000 higher than allocated for the month of June 2013.
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Productive time is time actually worked by the nurses and paid for. Non-productive time is time that is paid for by the organization while the nurse is not working, such as during sick time, holidays, and paid time off (Gealan, 2013; Brown et al., n.d.). Looking at the budget comparison between 2012 and 2013, it is clear that the patient days increased by 76 days from 3,164 to 3,240. The costs or expenses (personnel remuneration, overheads, and items) also rose, marginally, by USD 3,000 from USD 1,770,000 in 2012 to 1,773,000 in 2013.
The funding allocated to every nursing department is that department’s budget. There should therefore be an appropriate mix of nurses to match the actual patient care hours for quality and effective nursing care (Gealan, 2013; Brown et al., n.d.). In this unit, the future plan of action will be to properly titrate the personnel costs to the patient days every month to avoid having non-essential personnel on duty when the patient days are low. This will be achieved by properly making use of full-time equivalents or FTEs month by month. A full time nurse is taken to work for 8 hours a day and 5 days a week. This gives a total of 2,080 hours of personnel time a year (Brown et al., n.d.). If necessary, locum employees can also be used to reduce costs as they will only work when needed. Their cost will also be based on the FTE model. Lastly, there will also be need to increase efficiency in the use of overheads like electricity and supplies like syringes and catheters by preventing wastage.
References
Brown, P., Eubank, G. & Leger, J.M. (n.d.). Budgeting. Retrieved 22 March 2020 from http://samples.jbpub.com/9781284127256/Chapter_5.PDF
Gealan, R. (2013). Budgeting knowledge of nurse managers in selected units of Rumailah Hospital, Doha, Qatar [Thesis]. Doi: 10.13140/2.1.1226.5920
Waxman, K.T. (2015). Finance and budgeting made simple: Essential skills for nurses. Brentwood, TN: HCPro.
A nurse manager is responsible for overseeing monthly budget amounts for the unit, a duty that not only entails personnel but often also includes evaluating equipment and supply needs and expenditures. The manager may test new products and/or oversee demonstrations. A nurse manager will report to budget meetings with other department managers to share information, exchange ideas and engage in problem-solving for the health care facility.
This week you are being supplied a budget report showing projected expenses and actual expenses for the past two years. You are asked to present the report during this months budget meeting. After reviewing the budget report, write a description of what you would report at the meeting to explain the report and your plan of action for the following year. Use your text book to help guide you in developing your plan of action. NURSE MANAGER BUDGET ANALYSIS
Other resources that you may find helpful:
Learning and mastering the operating budget
(Links to an external site.)
An Overview of the Nurse Manager’s Guide to Budgeting and Finance
(Links to an external site.)
Rubric
Budget Report Analysis Rubric
Budget Report Analysis Rubric
Criteria
Ratings
Pts
This criterion is linked to a Learning Outcome
Conveys understanding of budget analysis
15.0 pts
Exemplary
Provides exemplary and thorough information conveying evidence of insightful thought on the topic budget analysis.
14.1 pts
Acceptable
Acceptable understanding
12.3 pts
Developing
Minimal understanding
11.0 pts
Unsatisfactory
No evidence of understanding assignment
0.0 pts
No Marks
15.0 pts
This criterion is linked to a Learning Outcome
Provides a relevant explanation of the budget. Thoughts are related to the report results including supporting evidence of resources, provides relevant solutions and ideas for improvements with attention to writing
15.0 pts
Exemplary
Exemplary description of the budget report Thoughts are related to the report results including supporting evidence of the use of resources, provides relevant solutions and ideas for improvements with attention to writing
14.1 pts
Acceptable
Detailed description of the budget report Thoughts are related to the report results including supporting evidence of the use of resources provides relevant solutions and ideas for improvements with attention to writing
12.3 pts
Developing
Limited description of the budget report Description with limited supporting evidence of the use resources. provides limited relevant solutions and ideas for improvements
11.0 pts
Unsatisfactory
Absence of or unclear description of the budget report With no supporting evidence of the use of resources. provides no relevant solutions and ideas for improvements
0.0 pts
No Marks
15.0 pts
This criterion is linked to a Learning Outcome
Writing Style
15.0 pts
Exemplary
Highly skilled presentation of ideas. Engages reading. Work exceeds expectations for this level of student. Absolutely no errors in the following areas: grammar, APA, punctuation, and spelling.
14.1 pts
Acceptable
Skilled presentation of ideas. Engages reading. Work meets expectations for this level of student. 1-2 errors in the following areas: grammar, APA, punctuation, and spelling.
12.3 pts
Developing
Able to present ideas. Comes close to expectations for work at this level. Greater than three errors in the following areas: grammar, APA, punctuation, and spelling.
11.0 pts
Unsatisfactory
Limited ability to convey ideas noted. Below expectations of work at this level. Not formatted in APA. Errors noted in spelling, punctuation, and grammar. NURSE MANAGER BUDGET ANALYSIS
0.0 pts
No Marks
15.0 pts
Total Points: 45.0
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