NR-533 Week 3 Discussion: Process of Budget Preparation (100% GUARANTEED PASS)

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NR-533 Week 3 Discussion: Process of Budget Preparation NR 533 week 3 discussion After exploration of the types of budgets and the processes for their development at your institution. H... ow and from whom is input into the budgets acquired and used? Where does control of the budget lie? What influence do unit and midlevel managers have on the various kinds of budgets? A budget allows a facility to have a fiscal plan for the year, and allows for management to look back and see where the high and low costs are coming from in each department. The budgeting process will affectthe outcome of the departments (Walsh, 2016). At my facility, we have goal set up and managed by our Chief Financial Officer and Chief Managers. Part of my job is to ensure the staff for each unit is not over or under. I run reports every 8 hours, that break down each unit. Each unit has a benchmark and I look at what the staffing is related to what the benchmark indicated it should be. If the unit is over for the shift then I look at staffing to see if that unit is over staffed, or is there another unit that is low that I can send staff to and try to even things out. We also have an overtime budget allowed for individual units so I have to be sure that no overtime is being paid to a unit that is well over the expected benchmark numbers. I balance each unit as much as possible. If the Nurse Managers allow overtime where I would not and they were also over their benchmark, this is reflected in their proficiency report. At times the numbers just do not match the level of acuity. Depending on the care needed that increases the acuity (Nursing verses tech or ancillary care) then I can add nurses- take other staff, or take out a nurse and add more tech or ancillary help. This system often causes a lot of pushback from staff if not carefully applied. When the budget is balanced, the operation works easier and can be more efficient. When the budget is not balanced, taking form one area to help another can lead to additional issues. An example of this is nutritional services can be far over budget. To even things out, revenue is taken from another department such as central supply. If central supply then has a problem, there is no financial back up in the budget and will suffer unless another department then bails them out. A budget is part of a plan and is used for each unit, each department, and each facility. When comparisons over a certain period of time, financial leaders can see where finances are used the most, wasted, saved, and lost. This information is put together in a plan for the facility to better manage spending. This will affect the following years spending and budgeting. (Walsh, 2016). Walsh K. (2016). Managing a Budget in Healthcare Professional Education. Annals of medical and health sciences research, 6(2), 71-3. Dr. Coleman and class,Variances are comparing actual results with the budget, it is the difference between the budgeted and actual performance. Variances are calculated for three principal reasons. One reason is to aid in preparing the budget for the coming year, the second reason is to aid in controlling results throughout the current year, and the third reason for variance analysis is to evaluate the performance of units or departments and their managers (Finkler, Jones & Kovner, 2013). While reviewing monthly financial budgets one potential variance Debbie may notice is an unfavorable variance which means the unit is over budget. Debbie’s unit could have a monthly suggested budget of $40,000, the actual budget for the month is $45, 000. The variance is 5,000 which is over budget for the month. The variance will assist Debbie with early identification of negative variances which will allow clinicians to quickly intervene, implement alternative strategies, and increase the likelihood of a good outcome (Schub, 2016). Dr. Coleman and class,External reporting requires different information needed for different purposes which are usefulfor different reasons. External agencies are Medicaid/Medicare, blue cross and Blue Shield,Humana and many more which reimbursement may be cost based (Shapiro, 2014). Bothorganizations need cost information for different reason but end goal is the same, proper servicesproper reimbursement for services. External agencies need reporting of healthcare services toreimburse funds for services provided. If a patient was admitted for rule out chest pain, there aresome examinations which must be provided along with the nursing care. The external agenciesdetermine if the diagnosis was appropriate with the test ran and services provided beforereimbursement can take place. The nurse manager need reporting information based on patientdiagnosis, test ordered, test results, expected discharge date, and length of stay. The nurse Examine the differences between an original budget and a flexible budget. Discuss the purpose of both types of budgets.An original budget is the planned allocation of expenses and revenue for a specific time period. The budget can be generated based on forecasted need of the unit through a defined period of time (Ittner, 2016). As discussed on the previous discussion week on forecasting, we can calculate our budget for the unit through forecasting. We look at employment costs, supplies, or equipment. Flexible budget is a revised budget that is usually created at the end of the month due to changes in revenue and expenses. The flexible budget usually varies depending on the needs of the organization, such as staffing needs, workload, or patient census (Ittner, 2016). The purpose of an original budget is to provide an estimated amount [Show More]

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