Budget Negotiations and Communication
Write a 3-5 page executive summary that justifies the operating budget you prepared in Assessment 2.
Introduction
Note: Complete the assessments in this course in the order in which they are presented.
Negotiating budgets and communicating financial needs to stakeholders are vital skills for nurse leaders. Given
today's numerous constraints on funding and a highly competitive environment, the ability to win support for your
budget proposals hinges on being able to present a compelling argument based on well-documented needs,
accurate financial information, and a justifiable business case.
This assessment provides an opportunity for you to examine the mission and goals of a health care organization, in
order to justify a budget proposal. A persuasive argument requires thoughtful justification and rationale for the
expenses required to support your proposal. A proposal that supports the organization's mission and goals
strengthens your argument and is much more likely to get you what you need.
In every health care organization, dollars are scarce and the budget process is carefully scrutinized at every level.
Nurse leaders must be business-savvy. They must be able to make a compelling case for why every budget line item
and every dollar on a budget supports the mission and goals of the unit and the organization. This means that nurse
leaders must be able to think in terms of the business of health care and be able to present a business proposal or
plan with thorough and thoughtful justification and rationale for expenses. The business plan should present
accurate, factual data and costs, and should also be concise and clearly organized.
Note: Complete the assessments in this course in the order in which they are presented.
Preparation
The financial department has reviewed your unit's operating budget and has asked you to submit an executive
summary that provides support for your budget proposal. Your challenge is to position your unit favorably within an
environment of competing demands for limited funding.
As you prepare to complete this assessment, you may want to think about other related issues to deepen your
understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them
with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that
these questions are for your own development and exploration and do not need to be completed or submitted as
part of your assessment.
Consider the operating budget you developed in Assessment 2.
How would you justify your budget to executive leaders?
How would you link your budget to the organization's goals and objectives?
How would you propose to meet productivity goals while staying within budget?
Sample Solution
The operating budget for the [Unit Name] unit is a critical component of the overall budget for the [Organization Name] health care organization. The budget is designed to support the unit's mission and goals, which are to provide high-quality, patient-centered care in a safe and efficient environment.Full Answer Section
The budget includes funding for a variety of expenses, including staffing, supplies, and equipment. The staffing budget is based on the number of patients that the unit expects to see each year, as well as the acuity of those patients. The supply budget includes funding for items such as medications, medical equipment, and personal protective equipment. The equipment budget includes funding for items such as beds, monitors, and ventilators. The budget also includes funding for a number of quality improvement initiatives. These initiatives are designed to improve the quality of care that the unit provides, as well as the safety of the environment. The quality improvement initiatives include things such as patient satisfaction surveys, medication reconciliation, and fall prevention programs. The budget is a necessary investment in the future of the [Unit Name] unit. The funding will allow the unit to continue to provide high-quality care, as well as to implement new quality improvement initiatives. The budget is also a sound investment for the [Organization Name] health care organization. The unit is a valuable asset to the organization, and the budget will allow the unit to continue to thrive. Justification for the Budget The budget for the [Unit Name] unit is justified by the following factors:- The unit's mission and goals: The unit is committed to providing high-quality, patient-centered care in a safe and efficient environment. The budget will allow the unit to continue to meet these goals.
- The unit's patient population: The unit serves a diverse patient population, including patients with complex medical needs. The budget will allow the unit to provide the care that these patients need.
- The unit's quality improvement initiatives: The unit is committed to continuous quality improvement. The budget will allow the unit to implement new quality improvement initiatives that will improve the quality of care that the unit provides.
- The unit's financial performance: The unit has a history of financial success. The budget is based on the unit's historical financial performance, as well as its projected future financial performance.
- What are the challenges of budgeting in a health care organization?
- How can nurse leaders make a compelling case for their budget proposals?
- What are the benefits of quality improvement initiatives?
- How can health care organizations invest in the future of their nurses?