final Flashcards
A hospital may plan its annual budget to maintain staffing and supplies to operate its current number of beds, provide a raise for all staff, and open a new outpatient surgical care. What is this an example of ?
Budgeting
What is Health care organization budgeting?
A document that details how financial resources will be allocated to ensure that the organization is able to conduct its daily business ans achieve strategic goals.
What are the four budgeting functions ?
- ) Planning
- ) coordinating and communicating
- ) monitoring progress
- ) evaluating performance
What is the most important function of the budgeting process?
Planning
What is the first thing managers do during the planning phase ?
Decide on the goals to achieve for a specified period and identify resources needed.
(ex: staff, supplies, equipment)
What is the second thing managers do during the planning phase ?
Predict revenues and expenses based on those goals
What allows the managers to answer various questions that will have an affect on the budget?
Budget Assumptions
What should nursing salaries be in the coming year to reward and retain nurses and to remain competitive with other health care organizations in the area? What is this example of ?
Planning
Budgets are most often developed for how long ?
1 year
Who is responsible for financial planning and development of the organizations budget?
Historically, nurses didn’t have any part. Now, the nurse leaders make the decision with the help the of the staff nurses.
The comparison of actual budget and expected that the manager deals with on a daily basis.
Monitoring Progress
The difference between planned budget and actual results. Favorable when results are better than expected.
Variance
The process by which deviations from budgeted amounts are examined.
Variance analysis
What can budget results also be a part of ?
Manager’s performance evaluation
ex: Staff bonus structure
What are the three types of budgets that a nurse manager is responsible for?
operational, labor and capital budgets
Represents revenues and expenses for an operational unit such as product line, unit, department, and overall organization.
Operational budget
Intensive care unit or medical-surgical unit
Example of nursing unit
dietary or human resources
Example of department
Expenses
Are those necessary to operate on a daily basis
What is a revenue?
Those paid to the organization from various payer sources
A subset of the operational budget
Labor budget
What is the labor budget purpose?
to provide detailed documentation of salaries, wages, and benefits with respect to the operational unit
What are the factors that affect the personnel budget?
Salary rates, overtime, benefits, (paid time off, health insurance), staff development, training, and employee turnover.
What is operating budget?
Allocates funds for daily expenses, such as salaries, utilities, repairs, maintenance, and patient care supplies