Nursing Leadership/Management Role in Budgets
Holy Names University
NURS 151 10 FS
December 6, 2010
The following paper discusses the nurse manager’s/leader’s role in healthcare financial management and budgeting. The definition of a budget is a detailed financial plan. The nurse manager/leader is responsible in knowing and understanding the different types and budgets within the healthcare organization: operating, capital expenditure, and cash. The operating budget is the main budget the nurse manager/leader maintains an active role in for the healthcare organization by controlling personnel and supply costs. Collaboration with the nursing staff on the unit as well as other parties involved with the budget process helps create a powerful tool in controlling the day-to-day operations of the unit and providing quality care to the patients. Preparation is the key to a successful budget and to the success of the organization.
Introduction Budgeting refers to a detailed financial plan for carrying out the activities an organization wants to accomplish between a certain amount of time to ensure that quality and cost-effective services are provided to their patients (Stafford, 2007). Many nurse managers/leaders cringe at the word “budget” due to the lack of training and support for that position and in many cases they are left on their own to get up to speed on all the business aspects for their department within the organization (Clarke, 2006). With the various types of budgets healthcare organizations use to monitor their financial status, it is essential for the nurse manager/leader to take initiative to understand these budget types since they are the closest to the patients and know exactly what is needed to provide quality of care for their unit. Types of Budgets The operating budget is a financial plan for the day-to-day activities
References: Baker, J.J. & Baker, R.W. (3rd Ed.). (2011). Health care finance: Basic tools for nonfinancial managers Brennan, T., Hinson, N., & Taylor, M. (January, 2008). Nursing and finance: Making the connection, Healthcare Financial Management, pp Clarke, R.L. (January, 2006). Finance and nursing: The business of caring. Healthcare Financial Management, pp Foley, R. (August, 2005). Use key strategies for successful budget preparation: Learn to speak finance Stafford, T. (2007). Managing Costs and Budgeting. In Yoder-Wise, P.S. (4th ed.). Leading and managing in nursing (pp.91-108)