NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Preparing and Managing a Capital Budget 

The current assessment is based on a 50-bed facility that is dealing with a nursing turnover problem as a result of a dismal work environment and low employee satisfaction and morale. In order to overcome the difficulties, a budget will be made for staff training and lounge reconstruction. It is based on justifications, budget management, and capital purchases. In my capacity as a nurse leader, I intend to establish a nurses’ lounge where employees can rejuvenate and feel inspired. The goal is to create a capital budget that will enable me to evaluate the resources at my disposal and accomplish successful results. 

Capital Acquisition and Assumptions 

One of the most important organizational components for planning and assessing decisions about resource allocation across various projects is capital budgeting. The resource allocation is carefully considered and managed because these projects are one-time investments with long-term sustainability (Bosch-Badia et al., 2020). The quality of care in the tiny facilities depends on employee morale and productivity. The innovation aims to be state-of-the-art, with a lounge for nurses working in such a high-inductive environment to unwind in and have easy access to, as it serves as a step-down facility between the intensive care unit and the general surgery floor.  

The renovation’s scope is centered on improving the depressing workplace that is causing nurses to leave. According to research, nurses who work in a positive environment are more motivated because they can connect with others, feel appreciated, and have better facilities. This leads to fewer medical errors, better patient care, and fewer readmissions (Maassen et al., 2021). The current strategy is centered on giving the lounge a fresh appearance and making the employees comfortable. Convertible medicated chairs and couches as well as comforters will be added to achieve this. In a similar vein, providing lockers for nurses to keep their personal belongings safe and water and vending machines to meet their nutritional and hydration needs. 

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget  

Using sanitary products to promote relaxation and protect nurses from infections at work. Due to the need to modify and renovate the infrastructure, the project will take about eight months to finish. We also looked at whether there was enough space for fifty to sixty nurses and whether the nurses believed they had the kind of encouraging atmosphere they required to perform at their highest level. The plan is predicated on the idea that giving nurses a comfortable environment and attending to their needs will raise their level of satisfaction, which will ultimately improve the standard of care they give patients. 

Justification for the Capital Acquisition  

According to research, one of the key components of high-quality healthcare and a factor in staff retention is nurses’ motivation (Kara Ferris et al., 2022). Therefore, one of the nurse leader’s most important duties is to renovate the facility so that the nurses feel like they belong there. The staff-centered changes that these renovations will bring about will help the nurses feel at ease and engage with their coworkers in a positive setting. According to research, a positive work environment helps employees be more productive and perform at their highest level, which improves the organization’s overall outcome rate (Zhenjing et al., 2022).  

Additionally, this change will increase nurses’ productivity, give them the confidence to take patient care more seriously, and help them match their practices with the objectives of the organization. As a result, nurses who are composed and confident will be better equipped to listen to patients with empathy, give patient-centered care, and deliver the best care possible. According to a study, nurses’ capacity to assist and care for patients and their families is hampered if their emotional, physical, and psychological needs are not satisfied (Pedrosa et al., 2020). For this reason, lounge modifications are an attempt to accommodate nurses’ needs. 

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget 

Employee motivation boosts productivity and results in more proactive and patient-centered care for patients, which in turn supports the organization’s goal and mission of providing patient-centered care.Employee satisfaction also improves the quality of care. A lounge gives nurses a place to unwind after a long day. Moreover, having a space reserved for staff members can make them feel appreciated by the company, which promotes a productive and cooperative work environment. Additionally, it is anticipated that the executives will approach this budget in a positive manner, focusing on improving patient outcomes and satisfaction and lowering the turnover rate.  

This would help with hiring and keeping employees, but the alternatives would be focused on staff incentives and performance reviews. These changes, like offering incentives or performance-based incentives, only address their external motivations. However, nurses have stated that the depressing work environment is the main reason they leave their jobs, so raising pay alone would only keep employees on board for a short time. Instead, a comprehensive effort that addresses both intrinsic and extrinsic motivations can have long-lasting effects.  

Preparing a Capital Budget 

Over the next eight months, the current budget will be implemented. Gathering information and determining the nurses’ needs through surveys and interviews is the first step in creating the budget. The plan was predicated on the idea that the budget seeks to create a positive, encouraging, and less stressful environment that makes nurses feel at ease and inspired. Table 1 (Appendix 1) gave the budget total and division as follows. The workload and leadership, however, are some areas of uncertainty that might have contributed significantly to the high turnover. Effective lounge maintenance is another unknown since it could necessitate extra expenses if it is not maintained properly, endangering the budgeting process.   

Process of Calculating Cost   

The CFO and CEO chose the best vendor quote after gathering information from various vendors and conducting market surveys to comprehend and evaluate the current costs of the proposed changes. The vendors were then asked to submit quotes for all of the changes that were attributed. The payback period (PP) approach, which estimates the number of years needed to recoup the initial investment, served as the foundation for the cost calculation process (Mollah et al., 2021). Cost calculations will be handled by the finance department. The organization can compare the outcomes based on the amount of revenue it has generated thanks to the fastest capital budgeting technique.  

Retention, hiring, and training savings can give a clear understanding of the trends and the number of years needed to complete them, so the current assessment estimated that one year would be needed. It is important to remember, though, that the one-year timeline follows implementation. Data for the most recent annual budget was gathered from external sources, stakeholders, and the finance department’s cost information sources. With help from the accounts department, the executives, finance head, and administration examined the data, estimated costs, and assigned the years for implementation. 

Budget Management Plan 

For the budget management plan to be managed and carried out effectively, interprofessional collaboration is required. Additionally, studies have indicated that effective interprofessional collaboration has a major impact on how healthcare projects are carried out (Schmidt et al., 2021). In order to gather past trends, approve my budget, and start the process, I want to work with the finance director, head of accounting, and administration director in the current budgeting process. For the construction, I would work with an outside vendor chosen through a formal process. The head of the IT department will be in charge of providing technological support and bandwidth availability, while the administration director will also supervise the implementation process. To deliver maintenance services, the maintenance crew will work together.  

The foundation of budget management is the idea that effective planning, cost tracking, and deadline management aid in assessing the quality of the work. Cost-cutting techniques will be applied in order to control expenses. These will include determining and implementing strategies to reduce expenses while preserving the status quo. Cost control requires the identification, analysis, and correction of budget variances, such as cutting costs and altering the change strategy.  

Impact of Capital Acquisition on Financial Health 

The organization would first experience financial strain as a result of the renovation’s immediate costs. In the short term, it can lower liquidity and affect the organization’s cash flow. However, because it attempts to lower turnover, which eventually lowers the cost of hiring and training new employees, it has a long-term return on investment effect. Another strategy to lower turnover and boost employee productivity is to use this expense to raise salaries and offer financial benefits to employees (Awosoga et al., 2023). 

It also aims to improve the organization’s financial stability so that it can compete with market trends. In order to recover the cost of the renovations, the current budget projects a 50% return on investment by calculating the benefits of the changes over the first six to eight months. Depreciation values, on the other hand, include asset description, cost of replacement or maintenance, and tax implementation. Implementing an efficient financial budget that can assist the organization in making well-informed decisions necessitates analysis.  

References  

The authors of the study are Awosoga, O. A., Odole, A. C., Onyeso, O. K., Ojo, J. O., Ekediegwu, E. C., Nwosu, I. B., Nord, C., Steinke, C., Varsanyi, S., & Doan, J. (2023). A qualitative study of professional caregivers’ perceptions of methods to improve retention, well-being, and staff turnover in Alberta’s continuing-care facilities. Quarterly for Home Health Care Services, 42(3), 193–215. https://doi.org/10.1080/01621424.2023.216688

Tarrazon-Rodon, M.-A., Montllor-Serrats, J., and Bosch-Badia, M.-T. (2020). Corporate social responsibility capital budgeting. 3542 in Sustainability, 12(9). https://doi.org/10.3390/su12093542

Dash, S., Sharma, M., Kaushik, S., & Shakyawar, S. K. (2019). The management, analysis, and prospects of big data in healthcare. Big Data Journal, 6(1), 54. https://doi.org/10.1186/s40537-019-0217-0

Aletras, V., Raikou, M., Karaferis, D., & Niakas, D. (2022). elements affecting healthcare workers’ motivation and engagement at work. 216–224 in Materia Socio-Medica, 34(3). https://doi.org/10.5455/msm.2022.34.216-224

Weggelaar, A. M., Vermeulen, H., van Oostveen, C., and Maassen, S. M. (2021). A Delphi study was conducted to define a positive work environment for healthcare professionals working in hospitals. 16(2), e0247530, PLoS ONE. https://doi.org/10.1371/journal.pone.0247530

NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Rouf, A., Mollah, A. S., and Rana, S. M. S. (2021). an analysis of the capital budgeting procedures used by a few chosen Bangladeshi businesses. 137–151 in PSU Research Review, 7(2). https://doi.org/10.1108/PRR-10-2020-0035

Campos, R. G. B., de Brito, S. B. C. S., Pedrosa, A. L., Bitencourt, L., Fróes, A. C. F., Cazumbá, M. L. B., Simões e Silva, A. C. (2020). effects of the COVID-19 pandemic on personality, behavior, and emotions. Frontiers in Psychology, 11. https://www.frontiersin.org/articles/10.3389/fpsyg.2020.566212

 Schmidt, J., Klatthaar, M., Neugebauer, F., Manser, T., Güß, T., Gambashidze, N., & Hammer, A. (2021). Do doctors and nurses’ opinions of safety culture and communication practices change as a result of interprofessional team training? A pre-post survey study’s findings. https://doi.org/10.1186/s12913-021-06137-5 BMC Health Services Research, 21(1), 341

Nassani, A. A., Ku, K. Y., Zhenjing, G., Chupradit, S., & Haffar, M. (2022). A multi-mediation model of how the work environment affects employees’ performance. Public Health Frontiers, 10, 890400. https://doi.org/10.3389/fpubh.2022.8

Appendix

Table 1a

Showing the Expense category and the Amount Required for the Expense.