Nursing

The Expense Budget The expense budget consists of salary and nonsalary items. Expenses should reflect patient care objectives and activity parameters established for the nursing unit. The expense budget should be comprehensive and thorough; it should also take into consideration all available information regarding the next year’s expectations. Described in the next section are several […]

The advantage of zero-based budgeting is that every expense is justified. The disadvantage is that the process is time-consuming and may not be necessary. For that reason, organizations may not use this process every year. An adaptation of the zero-based budget is to start the budget with a lower base, for example, 80 percent of

MANAGING RESOURCES ● Wage increases of market adjustments ● Price increases, including inflation rate, for supplies and other costs ● Costs for new equipment or technologies (e.g., wound vacs, sequential compression devices, monitoring equipment) ● Staff mix (e.g., RNs, LPNs, UAPs) ● Regulatory changes (e.g., legislation mandating nurse-to-patient ratios, state board of health regulations) for

Budgeting is a process of planning and controlling future operations by comparing actual results with planned expectations. Planning first involves reviewing established goals and objectives of both nursing and the organization. Goals and objectives help identify the organiza- tion’s priorities and direct the organization’s efforts. To plan, the organization must know the following: ● Demographics

The Budgeting Process A budget is a quantitative statement, usually in monetary terms, of the plans and expectations of a defined area over a specified period of time. Budgets provide a foundation for managing and evaluating financial performance. Budgets detail how resources (money, time, people) will be acquired and used to support planned services within

try various strategies to minimize the effect of interruptions. Budgeting is performed by business, government, and individuals. In fact, nearly everyone budgets, even though he or she may not identify the process as such. Even if a budget exists only in an individual’s mind, it is nonetheless a budget. Anyone who has planned how to

Do you use a planner or other scheduling device? budget Indirect costs Nonsalary expenditure variances Operating budget Position control Profit Rate variances Revenue budget Salary (personnel) budget Variable budget Variable costs Variance Volume variances Zero-based budget CHAPTER 14 • BUDGETING AND MANAGING FISCAL RESOURCES 185 B udgeting is the process of planning and controlling future

What is keeping you from accomplishing your goals? 14 Budgeting and Managing Fiscal Resources The Budgeting Process Approaches to Budgeting INCREMENTAL BUDGET ZERO-BASED BUDGET FIXED OR VARIABLE BUDGETS The Operating Budget THE REVENUE BUDGET THE EXPENSE BUDGET Determining the Salary (Personnel) Budget BENEFITS SHIFT DIFFERENTIALS OVERTIME ON-CALL HOURS PREMIUMS SALARY INCREASES ADDITIONAL CONSIDERATIONS Managing the

What action steps can you take to realize your goals? Pearson Nursing Student Resources Find additional review materials at www.nursing.pearsonhighered.com Prepare for success with additional NCLEX®-style practice questions, interactive assignments and activities, Web links, animations and videos, and more! References Carrick, L., Carrick, L., & Yurkow, J. (2007). A nurse leader’s guide to managing priorities.

What are your major time wasters? Questions to Challenge You 1. What are your major time wasters? Keep a time log for one week. Compare how you thought you wasted time with what your time log revealed. 2. Write down your goals for the next week. What action steps can you take to realize your