NURS FPX 6216 Assessment 3 Budget Negotiations and Communication
Budget Negotiations and Communication
Negotiations and communication are integral components of financial management within organizations. Communicating budgetary information effectively and negotiating budgetary decisions can profoundly influence an organization’s financial performance. The present study examines the significance of effective communication skills during budget negotiations in organizational settings, particularly emphasising the St. Anthony’s Medical Center’s (SAMC) fiscal stability plan for 2023.
Outlines of the Strategic Plan
The SAMC has encountered a significant decrease in operating revenue, amounting to $9,753,215 for the fiscal year 2022 (Capella University, n.d.). In order to ensure fiscal stability and success in the upcoming fiscal year, a strategic plan has been devised. This plan aims to enhance operating revenue and optimize operating expenses.
The strategic plan is composed of several components. Firstly, implementing a content marketing strategy will be sought to amplify patient referrals and cultivate a patient-focused approach to healthcare services. The content marketing strategy will involve creating and disseminating valuable and relevant content to engage and educate patients. This will encompass various channels, such as social media, email marketing, and blogs, to reach a wider audience and establish the organization as a thought leader in the healthcare industry. This approach will incorporate personalized care, improved patient experiences, and an overall enhancement of the quality of care. This, in turn, is expected to increase inpatient revenue (Al Thabbah et al., 2022).
NURS FPX 6216 assessment 3 Budget Negotiations and Communication
Moreover, all operating expenses will be evaluated to identify cost-cutting measures while maintaining high-quality patient care. This will include exploring opportunities to reduce employee benefits costs by renegotiating insurance contracts, streamlining supply chain management to decrease supply costs, and examining energy-saving solutions to minimize utility costs (Hecht et al., 2022).
Similarly, process improvements will be implemented to enhance operational efficiency, reduce wastage, and optimize patient throughput. This will entail streamlining patient registration procedures, implementing electronic health records, and optimizing staff schedules to increase productivity (Adedeji et al., 2022). Finally, service offerings will be expanded to attract a wider patient base. This will be accomplished by broadening the range of healthcare services offered and exploring opportunities for partnerships with other healthcare providers.
The Chief Financial Officer will be responsible for overseeing the strategic plan’s implementation, working closely with the Chief Medical Officer, Director of Operations, and Director of Marketing.
Areas of Uncertainty
The plan to increase revenue and optimize expenses has several areas of uncertainty. These include the effectiveness of marketing strategies, the potential impact of cost-cutting measures on patient care, the success of process improvements to enhance efficiency, and the expansion of service offerings. Addressing these uncertainties will ensure the plan’s effectiveness and financial success.
Case Study Supporting the Plan
The University of Utah Health’s Primary Care Transformation Program (PCTP) demonstrated the effectiveness of the strategic plan by implementing process improvements, optimizing operating expenses, and expanding service offerings. The PCTP also developed marketing strategies focused on enhancing patient experiences and patient-centric approaches to increase patient referrals and revenue (Glover et al., 2019). These initiatives resulted in a 12% increase in net patient revenue and a reduction in operating expenses of approximately $4 million annually (Glover et al., 2019).
Plan to Meet Staff Productivity Goals
The plan includes analyzing current staffing levels to identify areas of understaffing based on patient acuity levels, patient volumes, and other factors that may impact staffing needs (Smokrović et al., 2022). A comprehensive recruitment and retention strategy will be developed to attract and retain qualified nurses, including offering competitive salaries and benefits, providing opportunities for professional development, and creating a positive work environment (Davison & Blackburn, 2022). A plan for managing overtime costs will be established, including guidelines for when overtime is allowed, how overtime is scheduled, and how overtime costs will be managed within the budget. A cross-training program will be developed to ensure that all nurses have the skills and knowledge needed to work across different units within the hospital, which can help to address staffing shortages and reduce the need for overtime (Yu et al., 2022).
NURS FPX 6216 Assessment 3 Budget Negotiations and Communication
To bolster the effectiveness of this plan, staffing metrics and case studies will be employed to showcase the triumph of similar strategies executed in other healthcare organizations. For example, the American Nurses Association (ANA) conducted a case study, which revealed that implementing a cross-training program in a large urban hospital led to a 10% decrease in staffing shortages and a 5% increase in productivity in the initial year (ANA, 2018). This study underscores the significance of cross-training initiatives in optimizing nursing staff utilization and enhancing patient care outcomes.
The Rationale for Rejecting Alternative Approach
The alternative considered but rejected approaches included outsourcing staffing to a third-party agency and reducing salaries and benefits to cut costs. These approaches were deemed unfeasible due to the potential impact on patient care quality and staff morale (Davison & Blackburn, 2022).
Justification of Equipment and Service Costs
In order to justify the equipment and service costs for SAMC’s Budget for FY 2023, it is important to consider how they will contribute to the organization’s goals, how the costs were calculated, and what information can be gathered from stakeholders to ensure that available resources are maximized.
Equipment and services are essential to the operations of a healthcare facility, and SAMC is no exception. The equipment and services identified in the budget are necessary for providing quality care to patients and ensuring the smooth functioning of the unit. For example, medical equipment, medications, and consumables are necessary for patient care. In contrast, professional fees and purchased services (utilities, others) are necessary for the unit’s day-to-day operations (Hinrichs-Krapels et al., 2022).
NURS FPX 6216 Assessment 3 Budget Negotiations and Communication
The costs for this equipment and services are based on previous usage and projected needs for the upcoming year. Assumptions about patient volume and acuity, staff turnover rates, and changes in regulations and guidelines have also been considered when calculating costs. According to research, it is suggested that by reducing the workload of staff, enhancing healthcare technologies, and offering sufficient medical services, it is possible to improve cost-effectiveness and turnover while also enhancing patient satisfaction (Arage et al., 2022).
To ensure that available resources are maximized, gathering input from stakeholders, including staff, patients, and community members, is important. Staff members can provide insight into equipment and service needs based on their experiences working in the hospital. In contrast, patients can provide feedback on the quality of care and the availability of necessary equipment and services. Community members can provide input on the unit’s role and potential areas for improvement or expansion (Durrance-Bagale et al., 2022). By gathering information from these stakeholders, SAMC can ensure that its equipment and service costs are justified and optimized to meet the needs of the organization and the community it serves.
- The healthcare facility has experienced consistent patient volume and acuity levels and expects similar levels in the upcoming year.
- The cost calculations consider any changes in regulations and guidelines that may impact the cost of equipment and services.
- The staff turnover rate is expected to remain consistent with previous years.
- The healthcare facility prioritizes patient satisfaction and cost-effectiveness in its budget planning process.
Alignment of Budget with Organizational Mission and Goals
St. Anthony’s Medical Center’s mission is to provide its community with high-quality, compassionate healthcare services. The medical center aims to lead healthcare innovation, patient-centered care, and community health.
The budget aligns with St. Anthony’s Medical Center’s mission and goals. Primarily, the budget allows for investment in new equipment and technology to improve patient care and outcomes. This investment aligns with St. Anthony’s goal of being a leader in healthcare innovation. The medical center can deliver the best possible care to its patients by providing state-of-the-art equipment and technology.
Moreover, the budget includes expenses for staff salaries, benefits, and professional fees. This resource allocation aligns with St. Anthony’s commitment to providing patient-centered care. A well-compensated and qualified staff can provide the best care possible, essential for achieving positive patient outcomes. Additionally, the budget includes supplies and other direct expenses necessary for maintaining patient care quality (Santos-Jaén et al., 2022). This allocation of resources is consistent with St. Anthony’s goal of being a community health leader.
The proposed strategic plan for SAMC addresses the decrease in operating revenue by implementing marketing strategies, evaluating expenses, enhancing efficiency, expanding services, and managing staffing shortages. The plan’s success can be justified by considering its contribution to the organization’s goals, cost calculation, and stakeholder feedback. The University of Utah Health’s success with a similar program provides data supporting the plan’s effectiveness, and addressing uncertainties will be crucial for success. The plan provides a roadmap for SAMC to achieve its objectives, ensure fiscal stability, and provide quality care.
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