The purpose of this discussion is to explore the DNP-prepared nurse’s role in meeting the organization’s mission through effective planning, budgeting, and determining the allocation of resources.(Financial Analysis Discussion Essay for Nursing Students)
This week, you will have an opportunity to estimate the budget for your practice change project. The practice change project includes the estimated resources with associated expenses and the estimated revenues. The practice change project budget must balance to a positive number or to zero. (A negative balance reveals there is insufficient planning and revenues needed for the project to be successful.)(Financial Analysis Discussion Essay for Nursing Students)
Reflect upon your readings and professional experience and complete the budget for your practice change project.
- Start by listing all of the Resources needed for your budget. Some resources that may be needed in your budget are listed here and some items may not apply to your project:
- number of staff and their roles
- education time for staff (how many and how long)
- office and/or medical supplies
- marketing materials
- statistician consult(Financial Analysis Discussion Essay for Nursing Students)
- meeting rooms(Financial Analysis Discussion Essay for Nursing Students)
- overhead (if renting the room)
- any other resources not covered in this list
- Next, estimate the Expense for each of the resources. The expenses in your budget can be estimated.
- Example: When estimating the salary and benefits for staff, first calculate the number of hours X the hourly salary (adding in the estimated cost of employee benefits) X the number of individuals. An example is 20 nurses for 3 hours at an average salary and benefit of $50 hour: 20 x 3 x 50 = $3000.
- Next, discuss the Revenue sources that will pay for the expenses. All expenses in the budget must have a revenue source. Examples of revenue sources include the following:
- Institutional Budget Support (if the hospital or facility is paying the costs of salary, supplies, and/or services).
- In-Kind Donation (If you, or a department, or both are paying the statistician consult or out-of-pocket payment for the refreshments for meetings, etc.)(Financial Analysis Discussion Essay for Nursing Students)
- There are limited projects in which billing for a new procedure or new treatment type is applicable.
- Equation: encounter charge X # patients per day X # days per week X # weeks
- If the organization is currently billing for the visit or treatment or procedure, then do not include this in your budget. Check the state laws for rules regarding billing and reimbursement for services such as telehealth.
- Link (website): Medicaid and Medicare Billing for Asynchronous TelehealthLinks to an external site.
- Link (website): Billing for Telehealth During COVIDLinks to an external site.(Financial Analysis Discussion Essay for Nursing Students)
- Grant money: If grant money is used, state the name of the grant and the specific elements within the budget that the grant is paying for. Add the revenues for the exact elements of the budget. Please ensure that the grant funding states it will pay for that specific expense(s) in your budget.
- Balance the Budget. Add the expenses and the revenues then subtract the expenses from the revenues. The result should be a zero-dollar balance or a positive dollar balance.
- Equation: revenues – expenses = 0 or positive $$(Financial Analysis Discussion Essay for Nursing Students)
- Examine your role in monitoring and controlling your practice change project expenses and resources.
Please click on the following link to review the DNP Discussion Guidelines on the Student Resource Center program page:
- Link (webpage): DNP Discussion GuidelinesLinks to an external site.
This discussion enables the student to meet the following course outcomes:
- Examine the role of the DNP-prepared nurse in leading financial planning and management across healthcare settings. (POs 2, 4, 9)(Financial Analysis Discussion Essay for Nursing Students)
- Develop strategies to lead project planning, implementation, management, and evaluation to promote high-value healthcare. (POs 3, 5, 7)
- Initial Post: By 11:59 p.m. MT on Wednesday
- Follow-Up Posts: By 11:59 p.m. MT on Sunday
Financial Analysis Discussion Essay for Nursing Students
Resources for Budgeting and Expenses (annual expenses)
A. Number of staff
Number of Hours X Hourly Salary X Number of Individuals
4 X $45 X 48 = $8640(Financial Analysis Discussion Essay for Nursing Students)
B. Training Staff= $1000
C. Office/medical Supplies= $55000
D. Marketing materials= $1400
E. Statistician consult= $800
F. Meeting rooms= $1200(Financial Analysis Discussion Essay for Nursing Students)
G. Repair and Maintenance =$3500
H. Licenses= $700
I. Transport= $2500
J. Legal fees= $1500
K. Rent/mortgage= $6500
L. Membership in healthcare organizations= is $300
M. Auditing= $1500(Financial Analysis Discussion Essay for Nursing Students)
Total Expenses =$(8640+1000+55000+4000+800+1200+3500+700+1500+2500+6500+300+1500)
Institutional Budget Support(Financial Analysis Discussion Essay for Nursing Students)
The hospital pays for all the expenses, except staff training, statistician consult, and $30000 worth of medical supplies. It will use part of the revenue it generated in the previous year to fund the current budget(Financial Analysis Discussion Essay for Nursing Students).
Total institutional Budget =$(30000+8640+4000+1200+3500+700+1500+2500+6500+300+1500)
The Pfizer Foundation will fund part of the hospital’s expenses throughout the year. The grant money will cater for staff training and statistician consult. It will also reimburse $25000 worth of medical supplies.
Total grant money = $(1000+800+30000) = $31800
Total Revenue= Grant + Institutional Budget
Revenues – Expenses = $87140-87140 = 0(Financial Analysis Discussion Essay for Nursing Students)
Roles of DNP-Prepared Nurses
Zaccagnini and Pechacek (2021) observe that Doctor of Nursing Practice (DNP) prepared nurses monitor and control project expenses and resources by interpreting financial statements and ensuring the accuracy of financial billing. Financial statements and billing accuracy are vital in reducing unnecessary spending and fraud within the organization. Besides, in the management and administration capacity, a DNP-prepared nurse can negotiate contracts with physicians and other service providers (Zaccagnini & Pechacek, 2021). These negotiations aim to ensure that the agreed contracts are within the organization’s budget. In addition, the DNP-prepared nurse can also monitor cash flow drivers and facilitate their organization’s expenditure decision-making. McFarlan (2020) explains that they are equipped with the skills necessary to oversee budget development and account for the financial performance of every organizational department.(Financial Analysis Discussion Essay for Nursing Students)
McFarlan, S. (2020). An experiential educational intervention to improve nurse managers’ knowledge and self-assessed competence with health care financial management. The Journal of Continuing Education in Nursing, 51(4), 181-188. DOI: https://doi.org/10.3928/00220124-20200317-08(Financial Analysis Discussion Essay for Nursing Students)
Zaccagnini, M. E. & Pechacek, J. M. (2021). The doctor of nursing practice essential: a new model for advanced practice nursing (4th ed.). Burlington, MA: Jones & Bartlett Learning. ISBN: 9781284167078(Financial Analysis Discussion Essay for Nursing Students)