N487 Leadership in Nursing: Fiscal Planning and Responsibility

¡Supera tus tareas y exámenes ahora con Quizwiz!

Define a personnel budget

(most expensive) Accounts for the majority of health-care organization's expense this is why understaffing or overstaffing is looked at so often throughout the day

Explain Zero based budgeting

(used the most) Start over "at zero" and re-justify your programs or unit needs each year Pro: budget is current Con: Takes a lot of time

What are the Budgeting Principals for the nurse manager

Fixed Expenses Variable Expenses Controllable Non-controllable

Define fixed, variable, controllable, and non-controllable expenses

Fixed Expenses-do not vary with volume Variable Expenses- vary weekly, hourly Controllable- can be controlled by the manager Non-controllable - cannot be controlled by the manager

What are the two types of managed care

Health Management Organization (HMO) - covers many services, but must remain in network and focus on preventative medicine Preferred Provider Organization (PPO) - must see doctor in network (gets discounts for doing so) or pay a higher co pay, has more independence for the patient

Explain productivity

In staffing models, you are using the appropriate number of staff

What are 4 types of budgeting methods

Incremental budget Zero based budgeting Performance Budget Flexible budget

What is a Chargemaster

Used to bill items to patients. Used to negotiate payments from private insurance companies Not regulated (markup items) average markup is 432%

explain the steps in the standard staffing model (will be on FINAL EXAM)

1. add up all of the work hours (total for all staff) 2. divide by the census at midnight

what is the FTE staffing model

1.0 FTE = 40 hours 0.9 FTE = 36 hours 0.8 FTE = 32 hours

What is a budget?

A plan that uses numerical data to predict the activities of an organization over a period of time (yearly)

using the FTE model, how does a manager determine how many FTE RN's they need

Add total number of RNs estimate to need each shift based on last years counts. Average shift showed need as ...

Value is determined by what two things

Cost and Quality

What is meant by cost effectiveness

Cost-effective means producing good results for the amount of money spent

What is the goal of a budget? A. To predict an organization's activities B. To maximize the use of resources C. To help with planning and control D. All of the above

D. All of the above

What are 4 methods everyone can use to reduce cost and improve quality

Education: Preventative care, proper discharge teaching Understanding: How much do our services/supplies cost? Feedback: What do nurses & patients/family find value added Processes: Walk the process

Explain Performance Budget

Emphasis placed on outcomes to justify continued funding. If outcomes aren't met, you will have to re-justify your budget and come up with another plan. Goal focused Pro: makes manager focus on outcomes Con: fiscal impacts can effect care

Explain the nurse/patient (ratio) staffing model

Example: 1 nurse to 4 patients in emergency rooms 1 to 2 in ICUs ...

What is an operating budget

Expenses needed to provide health care services (Electricity, supplies, maintenance, repairs)

What (6) things are needed for fiscal planning and controlling cost

Need to be aware of type of budgets used on unit Need to be able to forecast fiscal needs Need to be cost effective when possible Need to look for ways to decrease costs in both the short term and long term Need to be flexible, creative and provide vision But most of all needs to make sure that cost containment does not jeopardize patient safety

Explain the standard staffing model

Nursing Care Hours (NCH) per patient-day (PPD) Average given "budget" to an inpatient manager is 6 NCH/PPD

What are the types of budgets

Personnel Operating Capital

What is a capital budget

Plans for the purchase of buildings or major equipment

What does cost containment refer to?

Refers to effective and efficient delivery of services while generating needed revenues

Explain value based purchasing

Requires transparency in hospitals and open declaration of the cost of a surgery Forces hospitals to perform better b/c patients will shop for the better deal

Explain incremental budgeting

Simplest method for budgeting Multiply current year expenses by inflation (1.3 - 1.5%) Pro: more money each year Con: gets less reimbursement from the gov

Explain patient acuity staffing model

Take into consideration patient acuity. Still somewhat based off of the "average patient" to nurse ratio. Uses a points system (more points, more acuity) example: PCU assigns 8 points to a nurse, based on the score of a patient, the nurse could have 8 level one patients, or 2 level 4 patients

Why do nurses make a beter CFO in healthcare organizations?

They have that "front line view"; they know what is needed for care

Explain flexible budget

Works well for difficult to predict census areas (ER) Continually changes throughout the year based on census, calculated at time budget for staff, supplies. Justifies staff needs based on "now" vs historical data

What are 3 cost effective strategies

anticipated length of service need for such a service availability of other alternatives

Cost containment is who's responsibility

every health-care professional

What was the overall goal of the affordable care act

healthcare for all

Explain a prospective payment system

hospitals paid for a specific amount of days based upon the care/surgery required makes hospitals focus care and discharge

What is the desired outcome of budgeting

maximal use of resources to meet organizational short- and long-term needs

Explain a bundled payment system

similar to prospective payment system, but gives a lump amount for a patient's care out to 90 days Hospitals can acquire a lot of money if they don't spend the entire lump sum

fiscal planning includes what (5)

staff patients budget types budget methods government decisions

What is the second most significant component to a hospital's budget

supplies

ANAs posistion on healthcare reform

supportive of reform and ACA


Conjuntos de estudio relacionados

3.16 Unit Test: Circles - Part 1

View Set

costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed or variable & whether they are most likely period costs or product costs under full absorption costing.

View Set

Disease Mechanisms II Exam 2 Material Part 1

View Set