Operational Budget Presentation Essay.

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Operational Budget Presentation Essay.

 

The purpose of this assignment is to create an operational budget presentation identifying key components of budgeting and possible capital purchases that may be required.Operational Budget Presentation Essay.

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Scenario: You have been asked to create an operational budget for a 20-bed nursing unit and present it to the senior leaders of your organization.
Create a presentation of 10-12 slides, including comprehensive speaker notes that detail the budget.
Provide the key components of budgeting, including the cost of staff, activities, services, and supplies.
Identify and describe a relevant capital purchase this unit may require, including the need, the return on investment, benefits, etc.
Use at least three references, including your textbook.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.Operational Budget Presentation Essay.

You are required to submit this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistanc

Budgets:

2 Components:

  • Revenue
  • Expenses

 

Revenue

  • Gross charges for all care, treatments and boarding charges
  • Contractuals: This is insurance adjustments or discounts due to insurance fee schedule (These $$s) are subtracted from Gross Charges
  • Net Revenue: Gross charges – Contractuals

Expenses:

  • FTEs
    1. FTEs: 1 FTE is equal to 40 hours a week – 2080 hours annually

 

  1. Number of FTEs: Total hours needed for the unit

Example 20 bed unit (1:5 ratio…)

4 RNs 24×7:  96×365 = 35040/2080=16.8 FTEs

2 PCTs 24×7:  48×365 = 17520/2080= 8.4 FTE

Manager:  1.0 FTE

Total (without non-productive time):  26.2

Non-productive time (you don’t need to include this, but in a real budget you would have a factor to multiply your FTEs by to give you the additional FTEs needed to cover time off

Example:

Factor of 11%:  26.2 x 1.11 = 29.0 ftes would be your budgeted amount * don’t do this in the assignment

 

  • Salary $$
    1. Take the total hours and multiply by an average salary:
      1. RN 35040 x 27.25 = $954, 840.00
  • Other expenses
    1. Supplies…etc: you can use 2 different approaches
      1. Determine a monthly amount and annualize
      2. Determine a expense by patient (you would need average daily census or total visits for department like ED

Operational Budget Presentation Essay.

  • Introduction
  • Need for budgeting
  • Operating budget
  • Capital budget
  • Thesis statement
  • Revenue
  • Nursing Care = $1,719,200
  • Treatments = $318,400
  • Boarding = $873,600
  • Contractuals = $60,000
  • Net revenue = $2,851,200
  • Variable Cost: Cost of Staff
  • 4 RNs/24 hrs = 96 x 365 = 35040/2080 = 16.8 FTEs
  • 2 PCTs/24 hrs = 48 x 365 = 17520/2080 = 8.4 FTEs
  • 1 Nurse Manager = 40 hrs x 52 = 2080 = 1 FTE
  • Total number of FTEs = 26.2 FTEs
  • Cost of Staff (cont’)
  • 4RNs = 35040 x $27.25 = $954,840
  • 2PCTs = 17520 x $16.42 = $287,678
  • 1 Nurse Manager = 2080 x $44.2 = $91,936
  • Total cost of labor = $1,334,454
  • Fixed Costs
  • Rent = $36,000
  • Insurance = $12,000
  • Telecommunications = $240
  • Others = $24,000
  • Total FC = $72,240
  • Other Costs
  • Non-cash expenses

1.Depreciation = $100,000

2.Amortization = $30,000

  • Non-operating costs

1.Interest = $15,000

2.Taxes = $570,240

  • Capital Cost
  • Electronic Health Record (EHR) = $30,000
  • Need
  • Benefits
  • ROI = ($60,000-$30,000)/$30,000 x 100 = 100%
  • Other Expenses
  • Surgical supplies = $72,800
  • Overhead costs

1.Electricity = $10,920

2.Water = $14,560

  • Projected Operating Budget (2021)
  • Conclusion
  • Need for a budget
  • Profitability for sustainability
  • The case of the 20-bed nursing unit
  • Projected profitability for 2021
  • References

Brown, P., Eubank, G. & Leger, J.M. (n.d.). Budgeting. 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]. http://dx.doi.org/10.13140/2.1.1226.5920

Waxman, K.T. (2015). Finance and budgeting made simple: Essential skills for nurses. Brentwood, TN: HCPro.

Thank you!

Operational Budget Presentation Essay.