NHS FPX6216 Assessment 4 Capital Budget Healthcare

Capital Budget Healthcare

In today’s health care environment, the purchase of captain equipment is crucial for meeting needs. Organizational require better technologies to improve their outcomes and the need for a capital budget also increases because investing in capital budget and technology is anon ongoing process to create a safe and pleasant work environment. In this report, focus is given on the development of a capital budget to improve financial outcomes to benefit patients, nurses, and the organization (Amasova, 2019). Since many leaderships nurses work with operating budgets, but will also have input into capital budgets. There is a difference between the nature of capital budget and the operating budget. It does not relate to the purchase items that are often referred to as big-ticket items. For instance, the capital budget plays a crucial role in the organization in terms of purchasing land for the future site of a new outpatient surgical center. The formation of a new building or build-out for renovation of an already existing building also comprises the capital budget (Gyasi, 2018). 

The organization wants to replace the old equipment and it is vital for the nurses and financially-savvy managers to for a capital budget. While for health care providers, patient care and safety are priorities, the organization should work from a business standpoint to follow a model to thrive financially.

Capital Acquisition of the Organization

Being a nursing leader in the healthcare organization is both challenging and rewarding. Leading nurses have to play role to play in developing a capital budget to improve care at some level. Moreover, the healthcare environment in the 21st century is changing quickly day by day with more nursing leaders require building financial management skills and budgeting skills (White, 2021). This will make sure that they are able to handle large capital expenditures further the mission and goals of the organization. This will enhance the staff productivity by improving the positive environment of the organization. This means that requesting a renovation of the nurses’ lounge as the major purchase of the capital budget is necessary in these post-COVID-19 days. The current plan is being shared with the other fellow learners and workers in the nursing and management department. The collaboration with other staff members and executive is vital to develop criteria for the healthcare organization to measure the return of the capital investment. The capital budget will be created for the renovation in the current month to help the management get better financial insights. 

For example, capital investments of the firm include expansion of the already offered services at the medical healthcare facility. For instance, our organization offers imaging services to the patients and that includes providing radiology services to many patients. More patients have been served lately by offering MRI (Medical Resonance Imaging) services and ultrasound.  This means that the hospital is expanding its radiology services to include more sophisticated kinds of imaging lately in order for the customers to wait less and avail more health benefits. 

Moreover, some mandatory replacements are also needed in the hospital. More often than not, the leaders have top priorities for our organization that are necessary replacement projects and they need replacement of existing systems and facilities (White, 2021). The purpose of this kind of replacement is due to the fact that a service may or may not be fully functional or safe to use in the current time. The evidence-based research also shows that it is not up to date or in compliance (Gyasi, 2018). The hospital is in dire need of replacing its existing electronic medical record system. The reason is that the system is not significantly in compliance with or according to the standards of brand-new state guidelines. This means that technology is a vital component of healthcare and must be updated regularly or replaced that comprises the capital budget for the tech-related equipment. Therefore, the hospital needs a substantial investment in the technology to immediately prioritize it over other lower cost items. 

Moreover, the hospital also has to make decision to expand into new kinds of services that were not offered in the past. The supervisors have found that more referrals outside the hospital have been made lately for behavioral health. Patients revealed that they like to get primary care in our hospital to improve their mental health. Therefore, Dr. John and the hospital