Budget Negotiations and Communication Discussion

Executive summary

Healthcare emerges as the most complex system with ever-changing practices, technologies, and the increasing demand for quality care. Such dynamics call upon strict healthcare funding and maintenance to ensure care organizations are constantly investing in change-oriented facilities for quality care delivery. Well-formulated financial management systems are therefore critical in managing care organizations and achieving economic benefits from care facilities (Zhang, 2023). In this light, nurse leaders are mandated with special roles of making sound financial decisions that see the provision of quality and safe healthcare services uninterruptedly. This means that the healthcare budgets should be optimal and able to adequately consider all the areas of concern and importance in a care facility. Using an operating budget brings into force the achievement of major milestones in terms of cost control efficacy. The budget negotiation is accompanied by strategic planning and communication that helps in boosting accountability and the operating budget (Musiega et al., 2023). The operating total budget for the entire year is $1,875,000 with personal costs taking the lion’s share of the budget. Budget Negotiations and Communication Discussion

Strategic Plan 

The developed budget reflects ideal cost minimization that is acquired via strategic planning, and efficient management. At present the healthcare sector is going through immense competition and instances of financial constraints. With strategic plans care organizations are able to meet financial success and profitability and overcome the competing demands. The organization will seize essential benefits by implementing this plan towards attaining opportunities and unlimited financial objectives and also in overcoming the existing challenges (Nuti et al., 2021). Further, this plan takes into consideration the care policies that encourage reimbursement, revenue generation, and healthcare spending. There is also a huge connection between departments in a care facility that requires huge funding for them to be adequately operational. The staff are however the biggest factor in coming up with a strategic plan as they can guarantee the level of services to be offered in a care facility (Musiega et al., 2023).

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Staff producing goals

The plan adequately addresses staffing and productivity with regard to employee engagement, workplace culture, work-life balance, communication and collaboration, and through evaluating workload management. Setting a functional budget is easy but ensuring the resources are used appropriately is the biggest challenge. This is the reason the staff must be motivated using all possible ways to meet their productive goals to ensure the facility remains on course. For instance, it will be crucial to encourage in-service training that will provide additional professional skills and knowledge to staff towards delivering better health services (Barry et al., 2021). Budget Negotiations and Communication Discussion

Training, in this case, will help in managing staff productivity and this will help minimize losses incurred due to medical errors, and malpractices. This also will translate to additional resources in terms of personal management for effective performance of duties. Further where there are enough staff delegation of duties will be easy hence work will be performed on time and patient waiting time will also be reduced. There will also be a balanced working platform in every department since staffing will be sufficient and more value for money will be achieved. Additionally, for better staffing there will be perverse scrutiny in staff recruitment (Musiega et al., 2023).

Equipment and services costs

The equipment and services will play a critical role in helping achieve the organizational goals. The types and levels of equipment are determined by the needs and the nature of the hospital. In this budget, the equipment has taken a huge chunk of the budget with an estimated $400,000. This demonstrates the need for equipment and services in delivering care to patients. The equipment to be budgeted includes those that are not available at the hospitals and also replacing others that are broken down (Musiega et al., 2023). Additionally, there will be maintenance of the equipment that is not working properly. Through the application of this proposed budget crucial, advantages will be harnessed towards improving patients’ outcomes. With better and more sophisticated equipment patients will be able to receive simple and complicated surgeries and this will improve the overall performance of the clinic. In addition, modern and well-working equipment reduces the instances of medical errors that may be caused by outdated systems (Barry et al., 2021).

To calculate the costs of equipment it is essential to evaluate the cost per unit, the total cost, and the total variable costs. The 35-bed capacity care facility will need about 20 staff to manage these patients effectively. This team will be remunerated using $900,000, benefits and allowances at $150,000, and overtime pay at $150,000. Budget Negotiations and Communication Discussion

The nurse leader can gather essential information from the stakeholders that ensures the project maximizes the readily available resources with regard to limitations, needs, and expectations. The leader will also need to gather information about sources of funding for equipment and labor when coming up with this budget (Ross, 2020). Also, there is a need to have more information about the opinions of stakeholders such as about the expectations when it comes to servicing the money borrowed or loans. The stakeholders need to explain the sources of funds and whether it is in the form of grants, or loans to effectively have concrete plans for managing these resources. The budget is only targeting the most pressing need of the organization and does not take account of every detail that can be sourced from the organization (Nuti et al., 2021).

Department analysis

The project is well aligned to the unit and takes into consideration all the needs of different departments. This is because the information utilized in coming up with this budget is retrieved from the facility’s records which highlights the areas that need more resources and others that are functional. Through the use of all the levels of management, it was possible to acquire all the information necessary to manage the unit. The most pressing needs of the unit were available and this included administrative expenses, personal costs, training and education, and equipment and supplies (Ross, 2020). These areas are central to the organization and bring to light the need for an optimal budget that is able to meet these competing needs. This project is critical because its planning and execution will bring an overall change to the organization’s performance. This is to mean that when the budgetary allocations are met in every department then the staff will be able to work effectively. With better performance of the staff then the unit will be able to meet its mandate of offering quality care to the patients. This will mean that the goal of the unit will be adequately met and the long-term mission will be achieved (Barry et al., 2021). Thus, the availability of an operation budget for the unit is a huge step towards bringing to life the functionality of every department and making sure the organization meets its target goals and mission. Budget Negotiations and Communication Discussion

References

Barry, H., Cylus, J., Patcharanarumol, W., Novignon, J., Evetovits, T., & Gupta, S. (2021). Do efficiency gains translate into more budget for health? An assessment framework and country applications. Health policy and planning, 36(8), 1307–1315. https://doi.org/10.1093/heapol/czab040

Musiega, A., Tsofa, B., Nyawira, L., Njuguna, R. G., Munywoki, J., Hanson, K., Mulwa, A., Molyneux, S., Maina, I., Normand, C., Jemutai, J., & Barasa, E. (2023). Examining the influence of budget execution processes on the efficiency of county health systems in Kenya. Health policy and planning, 38(3), 351–362. https://doi.org/10.1093/heapol/czac098

Nuti, S., Noto, G., Grillo Ruggieri, T., & Vainieri, M. (2021). The Challenges of Hospitals’ Planning & Control Systems: The Path toward Public Value Management. International journal of environmental research and public health, 18(5), 2732. https://doi.org/10.3390/ijerph18052732

Ross T. K. (2020). Budgeting for Results. The health care manager, 39(1), 24–34. https://doi.org/10.1097/HCM.0000000000000285

Zhang, R., & Bohlen, J. (2023). Healthcare Business Budgeting. In StatPearls. StatPearls Publishing.

Scenario

The financial department has reviewed your week’s operating budget and has asked you to submit an executive summary that provides support for your budget proposal. Your challenge is to position your unit favorably within an environment of competing demands for limited funding.

Instructions

Note: The requirements outlined below correspond to the grading criteria in the Budget Negotiations and Communication rubric, so be sure to address each point. You may also want to review the performance level descriptions for each criterion to see how your work will be assessed. Additionally, the Guiding Questions: Budget Negotiations and Communication document, linked in the Resources, provides additional considerations that may be helpful in completing your assignment. Budget Negotiations and Communication Discussion

Write an executive summary of the operating budget you designed in Week 5. Make a compelling case for why funds should be allocated for your budget.

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• Outline a strategic plan that ensures profitability and fiscal success.
• Present a plan to meet staff productivity goals, while staying within budget parameters.
• Justify equipment and service costs.
• Analyze department, unit, or project alignment with the organization’s mission and goals.
• Write clearly and concisely, using correct grammar and mechanics.
• Integrate relevant and credible sources of evidence to support your assertions, correctly formatting citations and references using APA style. Budget Negotiations and Communication Discussion