Interview a leader of your choice who has experience with creating and managing budgets, and write a 3 page analysis of your findings from the interview.
Introduction
Business acumen, including financial management skills, is a key competency for nurse leaders, and a primary responsibility for many is the development and management of operating and capital budgets.
For this assessment, you will speak with a leader of your choice who has experience with creating and managing budgets, learn about that person’s approach to budget management, and consider techniques or strategies you may emulate when you create and manage budgets.
Nurse leaders must be well-versed in the fundamentals of health care economics. A firm understanding of these concepts is essential in order to examine national trends and diverse health care organizations. At the organizational level, health care economics operate in a manner very similar to other competitive industries and businesses.
Preparation
You are the nurse manager of a new urgent care clinic, and one of your first tasks is to prepare next year’s operating budget. Like many nurses, you have had little or no direct experience with the budgeting process and realize that financial management is not one of your strengths as a leader. Consequently, you have decided that you need to reach out for help from someone in the facility with budgeting experience and financial management expertise who can offer you help and insight.
As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.
Capital and operating budgets each play a major role in the financial expenditures of nursing units.
What is the purpose of each type of budget?
How does managing these two types of budgets differ?
What financial management techniques are common to both types?
Reflect on your experience with either type of budget.
How have one or the other of these two budgets affected the provision of care in your organization or unit?
Requirements
Interview
Conduct an interview with your site supervisor, or other nurse leader whom you consider to be a mentor in the area of health care finance. Discuss their experience with operations and capital budgets in their current or previous role. Explore the following topics in your interview:
Their experience managing an operating budget.
Their approach to managing productivity within the parameters of the budget.
Their approach to oversight of the appropriate use and availability of equipment and supplies.
The experience of managing a capital budget.
How managing a capital budget differs from managing an operating budget.
Their application of finance principles to fulfill the organization’s mission and goals.
Analysis
Prepare a written analysis of your findings from the interview, supplemented by your own research and evaluation of budget management techniques.
Compare the process of managing an operating budget to that of managing a capital budget.
Describe the process of allocating resources for labor, equipment, and services.
Describe an effective approach that contributes to planning for profitability and fiscal success.
Evaluate the nurse leader’s approach to budget management.
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 current APA style.
Additional Requirements
Format your analysis using APA style.
Use the APA Style Paper Tutorial [DOCX] linked above. Be sure to include:
A title page and reference page. An abstract is not required.
A running head on all pages.
Appropriate section headings.
A minimum of five properly formatted citations and references.
Your analysis should be 3 pages in length, not including the title page and reference page.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 2: Develop a plan for managing the labor force, within the parameters of the budget and productivity.
Evaluate a nurse leader’s approach to budget management.
Competency 3: Develop a capital budget.
Compare the process of managing an operating budget to that of managing a capital budget.
Competency 4: Determine the equipment and services needed to maintain seamless patient or client care.
Describe the process of allocating resources for labor, equipment, and services.
Competency 5: Apply financial principles to a strategic plan for achieving organizational goals and fiscal success.
Describe an effective approach that contributes to planning for profitability and fiscal success.
Competency 6: Communicate effectively with diverse audiences, in an appropriate form and style, consistent with applicable organizational, professional, and scholarly standards.
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.