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Do you have a budget for your personal and professional income and expenses? care payment reform: Impli- cations for nurses. Nursing Economics, 28(1), 49–54. Dunham-Taylor, J., & Pinczuk, J. Z. (2009). Financial man- agement for nurse manag- ers: Merging the heart with the dollar. Burlington, MA: Jones & Bartlett. Finkler, S. A., & Kovner, C. […]

Questions to Challenge You 1. Do you have a budget for your personal and professional income and expenses? If so, how well do you manage it? If not, begin next month to track your income and expenses for one month. See if you are surprised at the results. 198 PART 3 • MANAGING RESOURCES 2.

Managing fiscal resources is a challenge for all nurse managers. This is even more true to- day as legislation and regulation of health care reform is implemented. Close attention to costs, balanced by awareness of quality and patient safety, is essential. Case Study 14-1 illustrates how one nurse manager handled his budget. What You Know

BUDGET MANAGEMENT Byron Marshall is a nurse manager for the surgical ser- vices department of a private orthopedic hospital. Byron has received notice from the vice president of clinical services that next year’s budget is due to her for review at the end of the month. Byron has kept careful records during the previous 12

Staff Impact on Budget Staff can acutely affect the organization’s finances. Misuse of sick time, excessive overtime or turnover, and wasteful use of resources can result in negative variance. The manager plays a key role in explaining the unit’s goals, the organization’s financial goals, and how each individual is responsible for helping the organization meet

Here are three alternative solutions: 1. Meet with the patient to discuss his case and explain that with his initial clinical presentation, the physician’s decision to place the PICC line was reasonable and the hospital will not waive charges. 2. Agree to negotiate charge with the patient because the PICC line was placed with reasonable

Problems Affecting Budgetary:Performance Reimbursement Problems The manager may be called upon to help with problems of reimbursement. Here are some examples: ● Insurance company disputes charges for a patient stay and refuses to pay them. The insurance company thinks patient should have been discharged a day sooner and refuses to pay for last day of

MANAGING RESOURCES:a price increase is to take the estimated total ending expense for the year and multiply it by the inflationary factor. a price increase is to take the estimated total ending expense for the year and multiply it by the inflationary factor. To determine projected price increases: Multiply current total line item expense $12,758

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

Premiums Some organizations offer premiums for certifications or clinical ladder steps. In this situation, a fixed dollar amount may be added to the base hourly rate of eligible personnel; for example, an CHAPTER 14 • BUDGETING AND MANAGING FISCAL RESOURCES 191 additional $1.00 per hour paid for professional certifications. This would result in the hourly