Chat with us, powered by LiveChat As Nurse Manager for a large operating room (OR) and post-anesthesia care unit (PACU), you have been asked to prepare for the fiscal budgeting process. Your Director has asked you to speci - Wridemy Bestessaypapers

As Nurse Manager for a large operating room (OR) and post-anesthesia care unit (PACU), you have been asked to prepare for the fiscal budgeting process. Your Director has asked you to speci

Cost-effectiveness Discussion
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Cost-effectiveness Discussion
Understanding how ‘the bottom line’ can affect the nursing cares given is a key element in being an effective leader and manager. Cost-effectiveness is not just saving money, but is also spending the funds appropriately and timely to secure good care and a positive working environment.?
Student Learning Outcomes
This assignment is important because to be a leader/manager, every nurse must understand how costs affect healthcare.
Module Objective:
Explain how costs affect healthcare?
Student Course Learning Outcomes:
Read Chapter 9, Time Management and Chapter 10, Fiscal Planning and Health-Care Reimbursement in the class textbook, Leadership Roles and Management Functions in Nursing Theory and Application? (Marquis, B. L., & Huston, C. J, 2020).
Read the scenario, below.?
Discuss the?embedded?questions in your initial post.
Managing Cost and Budget Scenario
As Nurse Manager for a large operating room (OR) and post-anesthesia care unit (PACU), you have been asked to prepare for the fiscal budgeting process. Your Director has asked you to specifically focus on labor and equipment costs for both of your areas.
1. Your hospital resides in a seasonal community that has a fluctuating population depending on the time of year. As a result, you must flex the staffing of your OR and PACU to coincide with the time of year the population changes.
a) Identify and discuss which budget process to use for labor costs and which is appropriate for equipment cost.
b) Describe the steps you would follow in the budgeting process.
2. During your budget meetings, the Chief Financial Officer informs you that a decrease in revenue is expected in your areas based on changes in?reimbursement. You have been asked to propose a plan to reduce labor and supply costs; justify the best budgeting method to achieve this goal.
a. The budget process most appropriate to use in the OR and PACU is a direct cost basis. Labor costs of the OR ?and PACU are directly tied to patients that enter the department, therefore using this method results in the greatest accountability and control. Equipment costs do not vary with patient throughput, they can be covered under the fixed overhead.
The budget process is most appropriate to use in the OR and PACU because their cost structure is so variable by day, patient and procedure.
The correct budget process for an OR and PACU is a direct cost. ?The main reason is that the materials used to accomplish tasks in the OR and PACU are accounted for directly, unlike the indirect costs of a hospital facility. ?Indirect costs are not specific to a single department or service; they encompass everything from a building’s heating-cooling system to janitorial services and employee benefits.
b. In order to do so, there are several steps that need to be taken during the budgeting process. Firstly, I would gather information about the population data for each month according to census data provided by the US Census Bureau. This data would help me more clearly understand how many patients need to be admitted into my hospital during each seasonality and what type of procedures are most likely performed in each seasonality period. I would also look at historical data regarding previous years’ activity to get an idea of how much activity there was during each seasonality period and take into account any changing trends or patterns over time as well as outlying points on graphs and charts that may indicate systematic changes over time thereby allowing me to make more accurate predictions about future activity levels in my hospital.? Also as an administrator, your first step will be to analyze your financial statements to determine how much you have spent on operating expenses and general administrative expenses that cannot be decreased or changed. Next, you should determine how many admissions you expect to occur and what services need to be provided for each patient during their stay. Finally, add up all projected operating costs and subtract from them any projected profits; adjust as needed until the amount equals zero, or another set amount that is adequate for keeping your organization running smoothly.
2-?One possibility is to use a zero-based budget, which would require all expenses to be justified anew each year. This could be effective in reducing labor and supply costs, as it would force managers to carefully consider every expenditure and make sure it is absolutely necessary.
?Another option is to use an activity-based budget, which would allocate funds based on the specific activities that need to be carried out. This could be helpful in ensuring that labor and supply costs are only being incurred in areas where they are absolutely necessary. Whichever budgeting method is used, it is important to carefully consider all expenses and make sure that they are absolutely necessary in order to reduce costs effectively.
Murray Svidroňová, M., & Klimovský, D. (2022). Participatory Budgeting in Slovakia: Recent Development, Present State, and Interesting Cases. In?International Trends in Participatory Budgeting?(pp. 247-269). Palgrave Macmillan, Cham.
Bello, C., Urman, R. D., Andereggen, L., Doll, D., & Luedi, M. M. (2022). Operational and strategic decision making in the perioperative setting: Meeting budgetary challenges and quality of care goals.?Best Practice & Research Clinical Anaesthesiology.

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