Introduction
A firm’s budget is an essential tool for managing and coordinating its financial resources. Conversely, budgeting pertains to the synchronization of both monetary and non-monetary planning to achieve the objectives of the organization. The basis of the budgeting process in healthcare institutions is grounded upon the coordination of financial and physical health resources. Therefore, before deciding on the amount of money to be allotted to each department, healthcare managers should first identify the fields that deserve the utmost priority (Brown & Leger, 2021). The patient-centered operation, being the key objective of healthcare facilities, is greatly intertwined with the capital budgeting process which provides an opportunity for improved decision-making by reducing misappropriation.
Different levels of management in the healthcare framework have the chance to monitor the organization’s plans through the budgeting process in nursing. By focusing on the results that differ favorably from the anticipated financial estimates, a well-prepared budget enables the healthcare system to strictly adhere to the established principles. However, different variables implicitly affect the budgetary process for nurses. A breakdown of these factors which include but are not limited to healthcare and nursing trends, reforms, accreditation agencies, consumer groups, nursing education, hospitals, and nursing organizational culture form the basis of this paper.
Internal and External Factors
The factors influencing the formulation of a nursing budget may emanate from the healthcare system itself or third-party forces acting on it within the marketplace. It is crucial to remember that an organization can always exert control over internal factors, whether they are material or immaterial. These elements are categorized as either strengths (hence exert positive effects on the organization) or shortcomings (if they negatively affect the healthcare system). The accessibility to financial tools, competency of the human resource, accuracy of assessment criteria, and the level of engagement between the healthcare stakeholders and nursing staff are some of the internal elements that affect the nursing budgeting process. The segment that follows discusses how the level of competence of the human resource affects the Nursing Budgeting Process (NBP).
Competency as an Internal Factor
A healthcare organization must have human resources that are competent, skilled, and knowledgeable about budgetary processes and procedures to facilitate effective operations. If deployed in their nursing budgeting process, healthcare systems with inept personnel are more likely to face adverse consequences resulting from poor financial planning. Similarly, the level of accuracy used to formulate these aims at the beginning determines whether the goals and objectives of the system will be reached. Since accuracy assessment is a major component of effective performance, human resource competency has evolved into a crucial facet of the nursing budgeting process. The section below highlights additional factors that impact the nursing budgeting process.
Present Healthcare and Nursing Trends
Healthcare trends should always be taken into consideration during a financial analysis as it is one of the key variables influencing the nursing practice. The identification of the nature of services to be provided to a specific community requires nurses to consider variations in demographic and generic health data in the region when creating their budgets. Concurrently, to determine whether their financial resources will be sufficient for a given fiscal span, it is necessary to analyze trends such as the rise in the elderly population and mortality rates.
Healthcare Reforms
Financial planning requires adequate time to define what the business and its employees may demand and expect in the future because of the uncertainties associated with the impacts of healthcare reforms on the nursing budget. As a result of the recent reforms that redefined integrated budgets and demanded the development of adaptable financial systems, the healthcare industry is significantly dependent on permitted payment models. Hence, budget cuts across departments may be necessary to ensure that all healthcare systems are prepared for unforeseen miscellaneous expenditures.
Accreditation Agencies
The influence of accreditation agencies is apparent in the development of high standards and the enhancement of nursing education and training. Professional organizations establish care guidelines and ensure that all facilities adhere to the same requirements. While creating a budget, it is crucial to assess the healthcare professional education that will be practiced. This is due to the necessity of early planning, and recognition of the relationship between such agencies and the general budget. The section that follows discusses how consumer groups affect the NBP.
Consumer Groups
Consumer groups include advocacy cohorts such as AARP, the National Kidney Foundation, and the American Diabetes Association. These institutions generally comprise patients, their families, and the local community. The plan chosen for the nursing budgeting process directly determines the extent of financial strain that patients and other entities in such groups (that would need nursing services) have to bear. Consumer groups express their approbation and concerns when they perceive how nursing budget constraints affect their access to care, impacting the nurses’ ability to plan their budgets. The section below highlights how nursing education affects NBP.
Nursing Education
Many schools that offer nursing education prefer receiving external funding from governmental agencies or professional associations. Therefore, the nursing budget must be established according to the demands of education and other curriculum activities that raise the level of nurses’ professionalism and competency. Although such demands are related to nursing research and certification, it is crucial to monitor conformity to the set budget to facilitate proper financial planning (Brown & Leger, 2021). The section that follows illustrates how the culture of the healthcare system influences NBP.
Hospital’s Organizational Culture
The conditions within which patients receive medical attention and the suitability of the workplace setting for nurses are determined by the organizational culture of a healthcare system. In severe circumstances, organizational culture rather than regulatory services may be the source of professional hurdles (Brown & Leger, 2021). Although administrators might not always have sufficient funds for unexpected bills and emergency services, it is advised that managers set aside money for speculative expenditures that may arise from cultural contexts. Additionally, to ensure adequate planning for the nursing budget, a detailed examination of the hospital’s culture is required.
Nursing Organizational Culture
Lastly, developing an organizational culture in nursing calls for specialized knowledge and expertise from all shareholders. It is critical to note that nurses serve as crucial gatekeepers who deliver competent care services and build trustworthy rapport with patients, doctors, and their families. Understanding the nursing culture, responsibilities, and resources is important since the trio has a direct impact on the general budget (Brown & Leger, 2021). This is because they act as sources of both internal and external elements affecting the NBP in its entirety.
Conclusion
As highlighted in the introductory paragraph, a budget is an essential element for monitoring and coordinating financial resources in any healthcare system. Although nurses today are more knowledgeable about quality assurance and healthcare service provision, the impacts of internal and external factors on NBP are significantly evident. Internal factors, classified as either strengths or weaknesses, include but are not limited to the competency of the human resource, accessibility to financial instruments, and the firm’s accuracy assessment criteria. External factors that have a substantial impact on the nursing budgeting process, on the other hand, focus on reforms and standards that establish outward frontiers within which nurses must operate. The study of various factors influencing the budgeting process can be beneficial to students pursuing healthcare-related courses by broadening their understanding of aspects that nursing administrators must address to avoid unforeseen financial crises.
Reference
Brown, P., & Leger, J. M. (2021). Healthcare finance: A view from 30,000 Feet. Financial Management for Nurse Managers: Merging the Heart with the Dollar, 71. ISBN: 978-1284127256
