Content in Chapter 5 of Penner, Susan J. (2013). Economics and Financial Management for Nurses and Nurse Leaders, 2nd ed. New York: Springer Publishing Company. http://www.springerpub.com/product/9780826110497#.UOtV2axCrTo
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Nursing Unit Budget Reports
1. Penner, 2013, Chapter 5:
Reporting Budgets, Part 1 of 2
• Budget reports and
reporting
• Operating expense
budget:
– Personnel expenses
– Non-personnel
expenses
2. Why focus on the operating expense
budget for an acute care nursing unit?
• Operating expenses are assumed to be
under the control and supervision of the
nurse manager.
• Your understanding of acute care nursing
unit budgets will transfer to the review of
other health care budgets.
3. Components of Budgets
• Budget time period:
– Budgets often reported monthly
– Fiscal year (FY) or budget year, quarterly budget
reports
– Weekly or daily if more detail on performance is needed
– More than one FY in the past or future for budget
planning
– Budgets reporting several time periods show trends in
performance
• Line items: budget table rows
– See “Reasons for Rows” presentation
• Columns
– See “Consider the Columns” presentation
4. Budgets and Budget Reports
• There is an overall operating budget that
includes volume (statistics), expense and
revenue budget
• These sections may be reported separately
– Utilization reports (volume, statistics)
• Why is a line for volume usually included in expense and
revenue reports?
– Expense reports
• Why are personnel (staffing) reports used?
– Revenue reports
• Why are revenue reports often missing from nursing unit
budgets?
5. Fixed vs. Flexible Budgets
Fixed:
• Budgeted amounts
are set regardless of
changes in volume
over FY
• Examples--rent,
equipment, full-time
or permanent staff
Flexible:
• Adjustments made
over the year based
on volume variance
• More complicated to
prepare but more
useful and accurate
• Examples: on-call or
other variable staff,
medical supplies
7. Personnel Expense Budget Report
• High costs so require close monitoring
• Nurse manager often able to control these
costs
• Personnel expenses:
– Straight time and overtime hours
– Differentials and premiums for shifts,
weekends and holidays
– Benefits, paid leave
– Travelling and per diem nurse hours
8. Thinking About Personnel Expenses
• Staffing standards:
– Nurse-patient ratio
– Staff mix (RNs, LVNs, CNAs)
• Full-time equivalents (FTEs)
– Direct care measured in hours not positions
• Absenteeism
– Costly
– Reduces productivity
10. Key Points
• Nursing unit budgets can include the statistics,
expense and revenue budgets as the operating
budget.
• Nursing unit budgets often only report statistics
(volume) and expenses.
• Staffing costs are often the most closely
monitored as they are typically the highest costs
and require supervision and control.
• Expenses might be fixed or flexible, depending
on their link to direct patient care (volume).
Hinweis der Redaktion
Penner, Susan J. (2013). Economics and Financial Management for Nurses and Nurse Leaders, 2nd ed. New York: Springer Publishing Company. http://www.springerpub.com/product/9780826110497#.UOtV2axCrTo
This is a simplified nursing unit budget report. The dollar values are in thousands, so the productive personnel expense budgeted for June 2013 is $200,000 Look this over for a minute. What does this report tell you?