Nursing Leadership and Financial Responsibilities

NursingLeadership and Financial Responsibilities

NursingLeadership and Financial Responsibilities

Effectivefinancial strategies and quality nursing is the ultimate goal ofevery nurse manager. Therefore, there is a need to provide a qualitybudget management technique since every economic system has amanagement insinuation. It is important to review a budget after aregular period since historical data is always affecting the currentand the future budget. Factors such as productivity will tell whethera budget may be a flexible budget or a static one (Penner, 2013). Anadequately trained manager should be able to decide whether a budgetshould be static, that is, one that never changes during thereporting of the budgets or a flexible one, which changes during thereporting of the budget.

Abudget is a financial forecast and, therefore, it is crucial for oneto be well educated on the past reports, the current, and the futureones for the best budget. The first and crucial step to be taken isputting forward a clear analysis. Information on the time horizon ofthe budget is critical, thus reducing the risks of a possibleshortfall (Penner, 2013). Reports on the patient census and themedical equipment purchases are of importance to the budget makingprocess, and thus, every nurse manager should provide the relevantreports. The financial statement of every nurse manager is also anessential document for the budget making process.

Thechief nurse officer (CNO) should provide the overall reports of allthe transactions carried out within their departments. Specialreports on the interdepartmental operations and the previous budgetsplay a crucial role in the making of the new budget. The CNO shouldprovide the personal analyses of all the nurse managers for thetransparency of the managers and the proper forecast, thus avoidingthe shortfall risks.

Allrisks involved in the making of a budget should be discussed properlyand well defined by the masters for a good understanding by the nursemanagers (Penner, 2013).. All the past budgets should be analyzed,including all the risks taken together with the shortfall incurred,if any. Therefore, the nurse managers should not repeat the mistakesmade in the past, and thus, proper masters should do proper analysesbefore presenting their skills to the nurse managers. Patient censusincluding the population growth over a period should also beconsidered an important factor by the masters before thepresentation. The summary of all the reports should be made,including the unusual ones for a better budget.

Agood budget requires proper information from the nurse managers.Staffing is an important aspect of the budget making process. Theneed to know the number of staff in every department is an essentialaspect since units such as the intensive care will need a higherstaff-to-patient ratio than the assisted living floor. Equipmentsupplies and intermediate charges are relevant information thatdirectly affects the budget making process. The amount of revenuecollected from the patients is also a critical aspect of the budgetmaking process. Thus, this information should be provided by thenurse managers during the budget-making process. A dashboard helpsmonitor and give you a track about your current status. It should becreated during the budget-making process since it provides a quickguide on the metrics and the KPIs.

Tosum up, for a better budget plan, there should be proper reports anda good understanding by the nurse managers. Regular meetings betweenthe nurse managers, the CNO, and the budget experts should beconducted for the reviewing, thus providing the best budget. A goodrecord keeping is also an important aspect of a nurse leader andshould therefore, be encouraged.

References

Penner,S. J. (2013). Economicsand financial management for nurses and nurse leaders.