Managing the Supply and Nonsalary
Expense Budget The supply and nonsalary expense budget identifies patient-related supplies needed to operate the nursing unit. In addition to supplies, other operating expenses—such as office supplies, rental fees, maintenance costs, and equipment service contracts—may also be paid out of the nursing unit’s nonsalary budget.
An analysis of the current expense pattern and a determination of its applicability for the next budget period should be performed first. Any projected changes in patient volume, acuity, and patient mix should also be considered because they will affect next year’s supply use and other nonsalary expenses. As an example, if patient days for a particular type of patient are projected to multiply and cause a five percent increase in the use of intravenous solutions, this increase should be addressed in the budget request by requesting an additional five percent for intravenous solu- tion supplies for the next year.
Increases due to an inflation rate index, or at a rate estimated by the finance or purchasing department, are included as part of the budget request. A simple way of calculating the effect of
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