NURS FPX 6216 Preparing and Managing a Capital Budget Paper Example
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
NURS FPX 6216 Preparing and Managing a Capital Budget Paper Assignment Brief
Course: NURS-FPX 6216 Advanced Finance and Operations Management
Assignment Title: NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Assignment Overview
In this assignment, you will be tasked with preparing a capital budget for a major capital acquisition within a healthcare facility. The primary focus will be on enhancing the work environment for nursing staff, addressing issues such as turnover rates, morale, and workplace satisfaction. As a nurse leader, you will be required to develop a comprehensive budget that not only justifies the need for the capital acquisition but also outlines the process for managing the budget effectively and assessing its impact on the organization’s financial health.
Understanding Assignment Objectives
This assignment aims to evaluate your ability to develop a capital budget that aligns with the strategic goals of the organization while addressing specific challenges within the nursing workforce. You will need to demonstrate competency in developing a budget, justifying the need for capital acquisition, applying financial principles to strategic planning, and communicating effectively through clear and accurate presentation of budget data.
The Student’s Role
As the unit manager of a 50-bed step-down unit, you are responsible for preparing the annual capital budget. You have identified a significant turnover in nursing staff and poor morale attributed to an outdated and uninspiring work environment. Your role involves proposing a renovation of the nurses’ lounge as a quality improvement investment to address these issues and improve overall staff satisfaction and retention rates.
Competencies Measured
This assignment will assess the following competencies:
- Develop a capital budget: Describe a capital acquisition, prepare a capital budget, and explain the process for calculating costs.
- Determine the equipment and services needed to maintain seamless patient or client care: Justify the need for a capital acquisition.
- Apply financial principles to a strategic plan for achieving organizational goals and fiscal success: Present a plan for budget management and explain how a capital acquisition will affect the financial health of the organization.
- Communicate effectively with diverse audiences: Present budget data and information clearly and accurately, and integrate relevant and credible sources of evidence using APA style.
You Can Also Check Other Related Assessments for the NURS-FPX 6216 Advanced Finance and Operations Management Course:
NURS FPX 6216 Assessment 1 Instructions: Mentor Interview
NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget
NURS FPX 6216 Assessment 3 Budget Negotiations and Communication
NURS FPX 6216 Preparing and Managing a Capital Budget Paper Example
Introduction
The task at hand pertains to a 50-bed healthcare facility grappling with significant nursing turnover attributed to a dreary workplace ambiance, resulting in diminished morale and job satisfaction. The objective entails addressing these concerns while formulating a budget earmarked for staff training initiatives and the refurbishment of their lounge area. This endeavor delves into capital acquisitions, budget administration, and justifications. As a nursing leader, the intention is to establish a revitalized nurses’ lounge to invigorate and uplift the staff. The aim is to construct a capital budget to assess the availability of resources and achieve favorable outcomes (Bosch-Badia et al., 2020).
Capital Acquisition and Assumptions
In healthcare organizations, capital budgeting holds significant importance as it guides decisions about allocating resources to various projects. These investments are made with a long-term perspective in mind, ensuring sustainability and effectiveness (Bosch-Badia et al., 2020). Within smaller facilities like ours, productivity and staff morale play crucial roles. As a step-down unit situated between intensive care and general surgery, our aim is to create an innovative environment where nurses can relax and have easy access to facilities.
The renovation project stems from the need to address the dismal working conditions that have led to nurse turnover. Research underscores the importance of a positive work environment in motivating nurses, fostering a sense of value, and improving facilities, ultimately resulting in better patient care outcomes (Maassen et al., 2021). Our plan involves revitalizing the lounge area by introducing comfortable seating options, lockers for secure storage, and vending machines to cater to nutrition and hydration needs.
Additionally, we prioritize the use of hygienic products to ensure nurses feel safe from occupational infections. The project timeline spans approximately eight months, considering the necessary infrastructure changes and renovations. We also assess the adequacy of space for our nursing staff and aim to provide a supportive environment conducive to optimal performance. Our assumption is that by addressing their needs and enhancing comfort, we can boost nurse satisfaction levels, leading to improved patient care quality.
Justification for the Capital Acquisition
Research underscores the critical role of nurses’ motivation in ensuring quality healthcare and staff retention (Karaferis et al., 2022). Therefore, it is imperative for nurse leaders to renovate facilities to foster a sense of belonging among nurses. These renovations aim to provide a conducive environment for nurses, enabling them to feel comfortable and engage positively with colleagues. Studies have shown that a positive work environment enhances staff productivity and overall organizational outcomes (Zhenjing et al., 2022).
Moreover, these changes are expected to enhance nurses’ productivity and empower them to deliver patient-centered care aligned with organizational goals. A study has highlighted that neglecting nurses’ emotional, physical, and psychological needs compromises their ability to support patients effectively (Pedrosa et al., 2020). Therefore, renovating lounges is a step towards meeting nurses’ needs and ensuring their well-being.
Improving employee satisfaction ultimately translates into enhanced care quality, aligning with the organization’s mission of providing patient-centered care. By providing a designated lounge area, nurses can unwind after demanding shifts, fostering a positive work environment and reinforcing their value within the organization. Additionally, executives are encouraged to view this budget positively, as it aims to reduce turnover rates and improve patient outcomes and satisfaction.
Alternative approaches, such as performance reviews and incentives, may assist in staff recruitment and retention. However, these strategies primarily address external motivation factors. According to feedback from nurses, the primary reason for leaving their jobs is the depressing work environment. Therefore, solely increasing pay may offer temporary retention, whereas a comprehensive approach targeting both intrinsic and extrinsic motivations can yield lasting effects.
Preparing a Capital Budget
The implementation of the current budget is scheduled over the next eight months. To kickstart the budgeting process, we begin by collecting data and assessing the needs of our nursing staff through interviews and surveys. Our goal is to create a supportive, less stressful, and positive environment to enhance nurse comfort and motivation. The budget breakdown, detailed in Table 1 (see Appendix 1), outlines our financial allocations.
However, there are uncertainties that need to be addressed. Firstly, issues related to leadership and workload may have contributed significantly to the high turnover rate among nurses. Secondly, the effective maintenance of the renovated lounge area poses another concern. Without proper maintenance, additional costs may arise, posing a potential threat to our budgeting process (Bosch-Badia et al., 2020).
Process of Calculating Cost
Data collection commenced by gathering information from various vendors and conducting market surveys to comprehend and evaluate the current prices of proposed alterations. Subsequently, vendors were invited to submit their quotations for the proposed changes, and the most suitable vendor quote was chosen by the CFO and CEO. The method employed for cost calculation was based on the payback period (PP) approach, aimed at estimating the time required to recoup the initial investment (Mollah et al., 2021). Cost calculations will be overseen by the finance team. This expedient capital budgeting technique facilitates comparisons based on revenue generation.
The projected duration determined in this assessment was one year, considering that savings from retention, hiring, and training can offer insights into trends and the requisite timeframe for completion. It is pertinent to highlight that this one-year timeline pertains to post-implementation. Data for the previous annual budget was sourced from cost-related information provided by the finance department, stakeholders, and external sources. Subsequently, the executive team, finance department, and administration collectively analyzed the data, formulated cost assumptions, and delineated implementation timelines, with input from the accounts department.
Budget Management Plan
The budget management plan emphasizes the importance of inter-professional collaboration to ensure the effective execution of the plan. Research indicates that positive collaboration among healthcare professionals significantly influences the successful implementation of healthcare projects (Schmidt et al., 2021). In the current budgeting process, collaboration will be sought with the finance director, head of accounting, and administration director to gather historical trends, approve the budget, and kickstart the process. Additionally, collaboration with an outsourced vendor, selected through a structured procedure, will be essential for construction purposes. Oversight of the implementation process will be managed by the administration director, while the IT department head will be tasked with ensuring the availability of bandwidth and technological support. The maintenance team will collaborate to provide ongoing maintenance services.
Effective budget management relies on meticulous planning, continuous monitoring of expenses, and adherence to deadlines to assess the effectiveness of the work. Cost control measures will be implemented to minimize expenses while maintaining operational standards. These measures include identifying and executing strategies to reduce costs and addressing budget variances promptly through analysis and corrective action.
Impact of Capital Acquisition on Financial Health
Initially, the renovation project would exert financial pressure on the organization due to immediate expenses, potentially impacting its cash flow and reducing short-term liquidity. However, the long-term benefits are substantial, as the renovation aims to decrease turnover rates, thereby mitigating the costs associated with recruiting and training new employees. These savings can then be reinvested into increasing staff wages and offering monetary incentives, further addressing turnover and enhancing staff productivity (Awosoga et al., 2023).
Moreover, the renovation contributes to enhancing the organization’s financial stability, enabling it to better navigate market fluctuations. The current budget anticipates a 50% return on investment, projecting that the benefits accrued will offset the total renovation costs within the first six to eight months. However, it’s crucial to consider depreciation values, including asset descriptions, replacement or maintenance costs, and tax implications, to formulate a comprehensive financial budget that facilitates informed decision-making.
Conclusion
In conclusion, the process of preparing and managing a capital budget for a healthcare facility involves meticulous planning, collaboration, and strategic decision-making. Capital acquisition and assumptions underscore the significance of allocating resources effectively to address pressing concerns such as nursing turnover and workplace ambiance. Justification for the capital acquisition emphasizes the pivotal role of nurse motivation in ensuring quality healthcare and staff retention. The budget management plan highlights the importance of inter-professional collaboration and cost control measures for successful execution. Additionally, the impact of capital acquisition on financial health acknowledges initial financial strains but anticipates long-term benefits in terms of reduced turnover rates and enhanced financial stability. By implementing these strategies, healthcare organizations can optimize resource allocation and improve overall operational efficiency.
References
Awosoga, O., Tetteh, E. K., & John, P. (2023). The impact of employee turnover on the performance of the Nigerian banking sector: A case study of Wema bank PLC. Journal of Business and Management Sciences, 1(1), 23-34.
Bosch-Badia, M. T., Tarrazon-Rodon, M. A., & Gomez-Vilchez, J. J. (2020). Evaluation of the capital budgeting methods: An overview. Journal of Business and Management, 26(3), 45-58.
Karaferis, A., Vargas, S., & Lopez-Gamero, M. D. (2022). Influence of leadership style on nursing staff satisfaction: A systematic review. Nursing Management, 29(1), 12-22.
Maassen, S. H., Schiller, P., & Moeller, M. (2021). Impact of work environment on nurses’ well-being and patient satisfaction in small healthcare facilities: A qualitative study. Journal of Nursing Management, 29(4), 521-532.
Mollah, M. M., Farhana, K., & Hoque, A. (2021). A comprehensive analysis of capital budgeting techniques. International Journal of Financial Management, 11(2), 78-91.
Pedrosa, I., Dantas, I., & Leal, I. (2020). Burnout syndrome and job satisfaction in nurses: Implications for healthcare professionals. Journal of Nursing Management, 28(3), 313-322.
Schmidt, K., Görig, T., & Drexler, A. (2021). Inter-professional collaboration in healthcare: A systematic review of interventions and outcomes. Healthcare Management Review, 46(2), 86-97.
Zhenjing, S., Mengting, L., & Ru, Z. (2022). The influence of the work environment on job satisfaction and patient care quality: A survey of nurses in Chinese hospitals. International Journal of Nursing Practice, 28(1), e12946.
Appendix
Table 1a: Expense Categories and Required Amounts
Categories | Amount Required ($) |
Expenses of construction | 400,000 |
Infrastructural changes | 200,000 |
Labor expense | 175,000 |
IT development expense | 250,000 |
Maintenance charges | 90,000 |
Hygiene management charges | 50,000 |
Miscellaneous | 60,000 |
Total | 1,225,000 |
The table above outlines various expense categories along with the corresponding amounts required for each expense. These categories include expenses related to construction, infrastructural changes, labor, IT development, maintenance charges, hygiene management charges, and miscellaneous expenses.
Detailed Assessment Instructions for the NURS FPX 6216 Preparing and Managing a Capital Budget Paper Assignment
Description
Prepare an 4–5 page capital budget for a major capital acquisition.
Introduction
Note: Complete the assessments in this course in the order in which they are presented.
In today’s health care environment, the focus on major purchases, as part of the capital budget, has emphasized the need for newer and better technology. Although the need to invest in capital equipment and technology has been ongoing, the nursing workforce must also have a safe and pleasant work environment.
This assessment provides an opportunity for you develop a capital budget for a major facility improvement that will benefit patients, nurses, and the organization.
Most nurse leaders work with operating budgets, but will also have input into capital budgets. A capital budget is typically developed separately from the operating budget and is usually developed to purchase items that are often referred to as big-ticket items that will enhance the capacity or services of an organization. For example, capital budgets may cover land purchase for the future site of a new outpatient surgical center, construction of a new building or build-out for renovation of an already existing building, or replacement of old equipment.
It is important to remember that health care is also a major business. While for health care providers, patient care and safety are priorities, health care institutions must operate from a business model in order to survive financially. As nurse leaders or executives, you often have a role to play in developing a capital budget to improve care at some level. In addition, a rapidly changing health care environment requires nurse leaders who have the financial management and budgeting skills to ensure that large capital expenditures further the mission and goals of the organization.
Note: Complete the assessments in this course in the order in which they are presented.
PREPARATION
You are the unit manager of a 50-bed, step-down unit, and it is time for you to prepare your annual capital budget. You have seen a significant turnover in your nursing staff in the past three years; a review of exit interviews and patient surveys indicates low nurse satisfaction, poor morale, and complaints of an antiquated and depressing work environment. You have researched the impact of a positive working environment on staff productivity and morale and decided to request a renovation of the nurses’ lounge as the main purchase in your capital budget. You will present your request as a quality improvement investment.
As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.
- How would you approach the process of designing a capital budget? For example:
- What steps would you need to take?
- What resources would you access?
- Will you collaborate with other executives or staff?
- How will you tie the vision for the capital expenditure to the organization’s mission and goals?
- What challenges do you anticipate in justifying a capital budget to administrative leaders in an organization?
- What criteria might a particular health care organization or service provider apply to evaluate the return on a capital investment?
MSN PROGRAM JOURNEY
Please review this guide for your degree program. It can help you stay on track for your practicum experience, so you may wish to bookmark it for later reference.
The following resources are required to complete the assessment.
- APA Style Paper Tutorial [DOCX]. Use this tutorial for the written portion of your capital budget.
Note: Remember that you can submit all of, or a portion of, your draft to Smarthinking for feedback, before you submit the final version for this assessment. However, be mindful of the turnaround time of 24–48 hours for receiving feedback, if you plan on using this free service.
REQUIREMENTS
Note: The requirements outlined below correspond to the grading criteria in the assessment scoring guide. Be sure that your budget addresses each point, at a minimum. You may also want to read the Guiding Questions: Preparing and Managing a Capital Budget [DOCX], linked in the Resources under the Suggested Resources heading, to better understand how each criterion will be assessed.
Prepare a capital budget for a facility renovation. Assemble your budget figures in a table, using a format of your choice. You may use either Microsoft Word or Excel to create your budget table.
Note: You may use the budget in the Vila Health: Preparing a Capital Budget multimedia exercise from the Resources as an example of how you might format your table. You may also use a budget format used in your organization or a format you find in any of the course resources or on the Internet.
-
- Describe the capital acquisition.
- Justify the need for the capital acquisition.
- Prepare the capital budget.
- Describe the process for calculating costs.
- Present a plan for budget management.
- Explain how the capital acquisition will affect the financial health of the organization.
- Present budget data and information clearly and accurately.
- Integrate relevant and credible sources of evidence to support your budget data and information, correctly formatting citations and references using current APA style.
ADDITIONAL REQUIREMENTS
If you used Microsoft Excel to create your budget table, submit the Excel file along with your budget narrative. You may also add the Excel file to your Word document as an embedded object.Format your budget using APA style.
-
- Use the APA Style Paper Template [DOCX], linked in the Resources under the Required Resources heading. An APA tutorial is also provided in the Resources to help you in writing and formatting your budget. Be sure to include:
- An APA-formatted title page and reference page. An abstract is not required.
- A minimum of five properly formatted citations and references.
- Your budget should be 4–5 pages in length, not including the title page and reference page.
- Use the APA Style Paper Template [DOCX], linked in the Resources under the Required Resources heading. An APA tutorial is also provided in the Resources to help you in writing and formatting your budget. Be sure to include:
Portfolio Prompt: You may choose to save this learning activity to your ePortfolio.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 3: Develop a capital budget.
- Describe a capital acquisition.
- Prepare a capital budget.
- Describe the process for calculating costs.
- Competency 4: Determine the equipment and services needed to maintain seamless patient or client care.
- Justify the need for a capital acquisition.
- Competency 5: Apply financial principles to a strategic plan for achieving organizational goals and fiscal success.
- Present a plan for budget management.
- Explain how a capital acquisition will affect the financial health of the organization.
- Competency 6: Communicate effectively with diverse audiences, in an appropriate form and style, consistent with applicable organizational, professional, and scholarly standards.
- Present budget data and information clearly and accurately.
- Integrate relevant and credible sources of evidence to support your budget data and information, correctly formatting citations and references using APA style.
- Note: Complete the assessments in this course in the order in which they are presented.
Feeling Overwhelmed? Let Us Lighten Your Assignment Load with Our Expert Nursing Paper Writing Services!
Are you finding the demands of nursing essays and assignments overwhelming? Are tight deadlines causing you unnecessary stress? Fear not, because ReliablePapers.com is here to offer you a solution. Our expert nursing writing services are tailored to make your academic journey smoother and more manageable, ensuring not just survival, but success in your nursing studies.
Expertise That Sets Us Apart
At ReliablePapers.com, we understand the unique challenges faced by nursing students like you. That’s why we’ve assembled a team of seasoned nursing writers who are ready to assist you in acing your essays and assignments. With years of experience in the field, our writers possess the knowledge and skills to tackle any nursing research topic with precision and proficiency. Whether you need to buy a nursing research paper, buy a nursing assignment, or get a custom nursing essay, we deliver original, custom-made papers that reflect your understanding and individual voice.
Why Choose ReliablePapers.com for Your Nursing Essays?
Our commitment to excellence sets us apart. Here’s why you should trust us with your nursing papers:
- Experienced Nursing Writers: We only hire seasoned nursing professionals with vast academic writing experience, ensuring your assignments are in capable hands.
- Direct Communication with Writers: You have direct communication with your assigned writer, allowing you to track the progress of your order and maintain transparency throughout.
- Affordable Prices: We understand the budget constraints of nursing students, offering our online nursing papers starting at just $10 per page, making quality paper writing services accessible to all.
- Guaranteed Originality: Plagiarism is unacceptable to us. Our expert writers craft custom papers that are 100% original, reflecting your unique voice and understanding.
- Timely Support: We understand the importance of deadlines. With our fast turnaround times and dedicated support team, you can rest assured that your papers will be delivered on time, every time.
- Hassle-Free Ordering: Ordering a custom nursing paper from ReliablePapers.com is quick and easy. Simply visit our website, provide your details, and let our experts take care of the rest.
Why Struggle When Help Is Just a Click Away?
Don’t let nursing assignments overwhelm you. With ReliablePapers.com’s nursing writing services, you can reclaim your time, achieve top grades, and stay ahead of the curve. So why wait? Order your custom nursing paper today and unlock your full potential with ReliablePapers.com!
Don’t Let Stress Define Your Nursing Academic Journey
Don’t waste another minute stressing over nursing assignments. Contact ReliablePapers.com today and let us help you succeed in your nursing studies!
Hire an Expert Paper Writer on Any Subject, Any Topic, Any Deadline! Submit your paper instructions by placing your order here to get started!