NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

The budget will serve the organization during 2023 and it will align itself with the operating expenses of the Vila Hospital. The budget will also include recovery plans to improve profitability. In the post-COVID-19 era, there has been an increase in elderly patients above 7%. This has increased number of emergency visits per department as shown in the table below. 

Cost savings has already reduced non-labor expenses by 1.2%. The consumables cost is $106,500 while the purchase of new IT equipment relates to new physiotherapy systems and IP telephony equipment. Some equipment is near its expiration date that is unmeasureable; the proposed budget is created based on the assumption that the company has good income and it is able to increase wages according to more labor in the unit. Moreover, educational expenses are also included in the budget as it is important to train staff members (Cohen, 2018). Hence, the plan focuses on efficient working of the elderly patient nurses in the unit. It also helps to promote patient-focused services. It will also help the company to reduce bills’ costs. The budget will serve the company for one year.

Strategic Plan for Developing a Budget

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

As it can be seen from the budget, the first step is to examine the running costs of the hospital so they can give a better idea to management to budget plan in a robust manner. Knowing in detail what are the costs of the organization will provide managers and nurses a basic foundation you to create a successful budget. Making a rough budget would require nurses more funds for commercial activities that are necessary to meet the goals of the company. However, this can also jeopardize some long-term goals; therefore, the best strategy adopted by the company is to set up a budget to help the firm grow. This also implies that the current budget is formed keeping in mind the growth considerations of the firm. These times are harsh economically and the organization needs to increase its revenues; therefore, this budget will contribute towards increasing the profit of the company that will be ample to cover the increasing costs or expenses in the future (Smith & Hasan, 2019).

There is a need to align the hospital’s mission with budget planning. The management can reduce its costs and use resources efficiently for budget planning. The goal is to manage finances and reduce relevant costs. The hospital still needs more equipment to deliver the best healthcare services to the patients. The company can improve the sustainability of its current rescues by employing some new nurses who can possess better technological knowledge. For example, nurses must have expertise in the Electronic Medical Record (EMR) which is also a part of this budget. Shifting the dynamics of insurance payers is also important; for that purpose, the company is also focused on monitoring Medicare payments. The company is also focusing on price transparency of billing processes to allow customers pay hassle-free through price estimates. Therefore, planning of insurance payers’ dynamics is vital for monitoring Medicare that is also the major revenue source of the Vila Hospital.