NURS FPX6216 Assessment1 Mentor Interview Comparison Between Managing an Operating Budget to that of Managing a Capital Budget
Throughout the interview with Dr. Duffie, I asked a few questions to gain understanding about different budgets and how it all applies to the day to day operations of the clinic. The first question was pertaining to the operating budget and what connection it aims to satisfy. Dr. Duffie stated that the operating budget helps to keep the practice/clinic cost and annual revenue under control while maintaining structure (Interview, 2023). Being that Augusta University Medical Center is a teaching institution, it allows residents to engage in patient care. For instance, a first-year resident has a budget that sets apart from the second and third year residents as far as costs and salaries. Each year residency is calculated to fit the operating budget and over goal of the clinic, which also correlates with the budget of the organization. Once the operating budget is set, Dr. Duffie explains that she can then purchase or regulate certain budgeting items necessary such as office supplies or clinic labeled scrubs for residents. I learned during the interview that the operating budgets are handled by the manager for approval, and any deviations from the anticipated costs and revenues are taken into account.
NURS FPX6216 Assessment1 Mentor Interview
When it comes to capital budgeting, it entails a long-term setting that most often fits the overall aspect of the practice as stated by Dr. Duffie. This is something Dr. Duffie states will be a major investment that will expand the needs to further residential placements and increase patient loads. For example, under the operating budget, the number of residents including faculty has been five or six, but when using a capital budget approach, the expansion has been at least ten to twelve residents including faculty. This will be beneficial for the organization as well as the community.
Process of Allocating Resources for Labor, Equipment, and Services
According to Dr. Duffie, growing budgetary constraints and expenditures have generated a significant amount of discussion about how best to allocate resources across different healthcare systems (Interview, 2023). Any organization’s main priority is viability. This could be accomplished through the utilization of resources. Evidence-based programs that target the limitation, abolition, or modification of certain healthcare and information systems are cited in research (Boggs et al., 2019). These are risky and offer little in the way of benefits to improve patient outcomes while adequately managing the resources at hand (Brennan, K., 2018).
Establish your total spending needs. Be it past spending or well-informed predictions, budgetary decisions should be founded as much as possible on facts and numbers (Ajam et al., 2020). Determine Funding Techniques as well as budget distribution per department. Create a System to Track Spending habits.
Effective Approach that Contributes to Planning for Profitability and Fiscal Success
It is impossible to emphasize the value of budget planning in business. Organizations currently cannot make sound decisions regarding long-term planning or even day-to-day choices without a proper budgeting strategy (Boggs et al., 2019).
NURS FPX6216 Assessment1 Mentor Interview
Unfortunately, many individuals are confused about the value of budgeting in corporations. It is considered a yearly obligation for the corporation but not a crucial aspect of daily operations. This is not true. As stated by Dr. Duffie, there are numerous factors that clearly demonstrate how important strategic planning is. It is frequently the most crucial element in deciding how successfully the organization achieves its objectives (Rundio, A., 2021). Budgeting, among other things, aids in the formulation of an organization ’s operations, enabling it to better understand priorities, determine how resources might be distributed, and identify which areas require reevaluation (Brennan, K., 2018).
Nurse Leader’s Approach to Budget Management
The operating budget and the capital budget are two budgets that nurses oversee daily. The budgeting process is constant, evolving, and offers input (Mojtaba, G., 2018). When nurse leaders start to create a budget, they gather information, plan services and activities, carry them out, and assess the results. The nurse leader and the institution’s finance department typically work together to create the budget (Rundio, A., 2021). Reports that are clear and timely must be available to nurse supervisors. When expenditures surpass revenues, a nurse manager must act immediately. During the interview, Dr. Duffie stated that she makes sure to have her plan written or typed into a PDF before presenting it to the administrative meeting. She allows feedback