NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Name

Capella university

NURS-FPX 6216 Advanced Finance and Operations Management

Prof. Name

Date

Budget Negotiations and Communication

This plan focuses on achieving financial success by growing sustainably, reducing costs, and adapting to market needs. The strategies aim to optimize revenue, control costs, and utilize market data for smart investments. Through a clear, structured approach, the plan seeks to position the organization for long-term financial health and competitive growth. The objective is to align staffing, equipment, and service costs with the hospital’s goals to ensure financial sustainability. The assessment aims to streamline processes, improve patient care, and maintain fiscal responsibility.

A Strategic Plan

A strategic plan to ensure profitability and fiscal success must focus on sustainable growth, cost efficiency, and market adaptability while addressing knowledge gaps and uncertainties. The plan for St. Antony’s Medical Center presents a compelling statement highlighting the organization’s commitment to financial health and operational excellence. By embracing innovative practices and addressing operational inefficiencies, this plan positions the organization to achieve long-term fiscal sustainability while fostering growth in a competitive market (St. Anthony Regional Hospital, 2024). The strategic plan for St. Anthony Medical Center’s 35-bed unit incorporates three key strategies to address financial challenges: optimizing revenue, controlling costs, and leveraging market trends.

Optimizing Revenue

Revenue generation will be bolstered by expanding service offerings such as inpatient and outpatient care, with expected total revenue from patient services amounting to $37 million. However, after adjustments for insurance, charity care, and unpaid bills, net revenue is projected to be $31.3 million. This highlights the need for careful management of adjustments, including a projected $4.5 million in contractual modifications and $1.2 million in charity and uncompensated care.

Controlling Costs

The primary focus on cost control will involve managing the largest expense—staff salaries, which account for $18.5 million. Additional savings can be realized by minimizing waste in supplies, which total $7.2 million, and negotiating more favorable vendor contracts. Reducing overtime, a significant concern due to staffing shortages is critical to minimizing the overall $2.7 million budget deficit. Additionally, adopting lean management practices may lead to savings of approximately 15–20% annually across operational expenses, aligning with the goal of streamlining expenses without compromising care quality.

Leveraging Market Trends

The hospital will focus on high-growth areas in healthcare, such as preventative care, where demand is projected to increase by 12% annually. This aligns with the hospital’s efforts to manage its budget and prioritize essential services. The hospital must continue to monitor external market trends, such as changes in healthcare policies and insurance reimbursements, as these may directly affect both revenue projections and expense forecasts. By focusing on these strategies, the hospital aims to balance its budget while maintaining high-quality care for its patient population.

Knowledge gaps and uncertainties must be addressed systematically. These include identifying untapped market opportunities, understanding regulatory shifts, and ensuring workforce alignment with strategic goals. The executive summary emphasizes the need for comprehensive market analyses and data-driven decision-making to navigate these areas. Responsibilities for implementing this plan are clearly outlined, with leadership teams accountable for each phase. Case studies, such as the cost savings realized by Mercy Medical Center through digitized workflows, underscore the feasibility and success of these strategies (Malloy, 2024). This strategic approach aligns resources with objectives, ensuring profitability and fiscal resilience in a dynamic landscape.

Presenting the plan

A plan to meet staff productivity goals while staying within budget focuses on better scheduling, fair workload distribution, and efficient use of resources. First, flexible schedules can be used to ensure staff work during peak times without becoming overworked. For example, adjusting shifts to match the highest workload ensures productivity without the need for additional staff or overtime. Second, tasks should be shared evenly among the team to prevent burnout and maintain efficiency. Regular check-ins with staff can help assess workloads and make necessary adjustments (Lindsay, 2024).

Small changes can lead to significant improvements in operational flow. Third, productivity tracking tools can monitor the effectiveness of the plan. Metrics like hours worked, tasks completed, and employee feedback can show whether the plan is helping meet productivity goals. These metrics can guide any necessary adjustments to keep staff on track. Alternative approaches, such as hiring more staff or reducing hours, were considered but rejected. The rationale for rejecting these approaches includes increasing costs caused by adding more staff while reducing hours decreases productivity (Griffiths et al., 2021). The proposed plan balances cost control with effective staff performance. By focusing on better planning and communication, the plan helps meet productivity goals while staying within budget.

Equipment and Service Costs

Equipment and service costs are justified by the need to meet the hospital’s operational goals and improve patient care. The equipment and services chosen will help provide better care, streamline processes, and reduce long-term costs. For example, investing in more advanced diagnostic equipment can improve patient assessments and accuracy. This will help the hospital meet its goal of enhancing patient care and safety.

The cost calculations were made by looking at the prices of the equipment and services required, as well as the expected lifespan and usage (Kiran, 2022). Equipment costs include the initial purchase price, installation, and maintenance. Service costs include support and training for staff, which will ensure proper use and maximize the value of the equipment over time. For instance, purchasing new diagnostic machines costs $2,000,000, with an annual maintenance cost of $20,000. This amount includes regular checks, software updates, and emergency repairs. These costs are expected to reduce errors and the need for rework, which can save money in the long run.

Input from stakeholders such as department heads, medical staff, and finance officers is gathered to ensure that resources are used wisely. Their insights ensure that the chosen equipment and services meet the hospital’s needs while staying within budget. They can provide information about current challenges, needed improvements, and possible cost-saving ideas (Sharma et al., 2023). By aligning equipment and service choices with their feedback, the hospital can better achieve its goals of improving care and efficiency without overspending.

Mission and Goals

The operating budget for St. Anthony Medical Center expects $37 million in revenue but will only have $31.3 million after adjustments. Expenses are estimated at $34 million, creating a deficit of $2.7 million. The biggest costs are staff salaries, medical supplies, and equipment rentals. The goal is to manage costs carefully, focusing on essentials to ensure quality care. Non-essential items have been left out to keep spending within limits. This budget aims to improve patient care while managing finances effectively, with regular reviews to stay on track.

The department, unit, or project must align with the hospital’s mission and goals to ensure its success. The mission of St. Anthony Medical Center is to provide excellent care to patients, improve their well-being, and create a safe environment for everyone. All units, departments, and projects should support this mission by focusing on high-quality care, patient safety, and improving health outcomes (St. Anthony Regional Hospital, 2024). For example, the emergency department (ED) works directly toward this mission by providing quick and efficient care to patients in critical conditions. This department’s goal is to respond to emergencies quickly, reduce waiting times, and provide the best care possible. This supports the hospital’s goal of enhancing patient safety and improving care quality.

Davari et al. (2024) show that the ED’s improvements in care speed and patient flow have reduced emergency room wait times by 12 minutes. Previously, it was 56 minutes, but after improvements, it is 44 minutes. This shows how the department is contributing to the hospital’s overall goal of improving patient experiences and outcomes. Additionally, training staff and updating equipment in the ED align with the hospital’s mission to provide safe, effective care.

The project of upgrading medical equipment also supports the hospital’s goals by ensuring that staff has the tools needed to provide accurate, timely diagnosis (Davari et al., 2024). This helps reduce medical errors, improving patient safety and satisfaction, which aligns with the hospital’s mission. By focusing on these improvements, the department helps the hospital move closer to its goals of improving health outcomes and maintaining high standards of care.

Conclusion

The plan focuses on improving financial health while meeting patient care goals. It aims to reduce costs and increase efficiency through better planning and smart investments. By staying within budget and focusing on key strategies, the organization can grow and stay competitive. With careful management, this approach will help achieve long-term success and high-quality care for patients.

References

Davari, F., Isfahani, M. N., Atighechian, A., & Ghobadian, E. (2024). Optimizing emergency department efficiency: A comparative analysis of process mining and simulation models to mitigate overcrowding and waiting times. BioMed Central Medical Informatics and Decision Making, 24(1). https://doi.org/10.1186/s12911-024-02704-y

Griffiths, P., Saville, C., Ball, J. E., Jones, J., & Monks, T. (2021). Beyond ratios – flexible and resilient nurse staffing options to deliver cost-effective hospital care and address staff shortages: A simulation and economic modeling study. International Journal of Nursing Studies, 117(117). https://doi.org/10.1016/j.ijnurstu.2021.103901