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NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

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    NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

    Student Name

    Capella University

    NURS-FPX 6216 Advanced Finance and Operations Management

    Prof. Name


    Preparing and Managing the Operational Budget

    Healthcare management is a dynamic field focused on enhancing the quality of care through the planning, organization, and evaluation of progress within an organizational structure to achieve improved clinical outcomes. In this context, nursing leaders play a crucial role in overseeing the operating budget, enhancing staff and patient satisfaction, and fostering innovation and empowerment within the team (Brennan & Wendt, 2021). The leader’s capacity to plan and allocate finances, incorporate current trends, and develop a suitable budget relies on their business acumen, knowledge of healthcare management, and understanding of resource allocation.

    Research indicates that nursing leaders equipped with business skills can enhance their professional practices, leading to the growth of healthcare facilities, informed decision-making, and patient-centered care (Alsadaan et al., 2023; Sonmez-Cakir & Adiguzel, 2020). Such knowledge enables nursing leaders to introduce innovative changes while maintaining a focus on patient and staff needs, thereby ensuring satisfaction on both fronts.

    Moreover, effective nursing management has been shown to positively impact patient outcomes by reducing medical errors and fostering a positive organizational environment (Specchia et al., 2021). Strong leadership is essential for integrating high-quality, efficient, and safe patient care. This assessment focuses on preparing and managing the budget as a nursing manager for a 35-bed hospital with 20 full-time equivalent employees.

    Operating Budget

    The operating budget is a comprehensive projection of an organization’s expenses and revenue over a specific period, serving as a goal for expected financial outcomes. It guides financial operations based on fixed and variable costs, typically planned for a year, encompassing anticipated expenses and predicted revenue throughout the year (Abdulsalam & Schneller, 2019). In the context of a small hospital, essential expenses include medical supplies, utilization, bills, training and development, appraisals, bonuses, devices, and technology maintenance (Abdulsalam & Schneller, 2019).

    The current budget plan aims to improve staff retention and satisfaction, enhance patient-centered care, and align with the organization’s needs. The budget incorporates considerations for turnover, extra time, training, and new hiring expenses, with a focus on elderly population care.

    Table 1(a): Budget category and Expense per year (USD$)

    Budget CategoryExpense Per Year (USD $)
    Staff Salaries800,000
    New hiring300,000
    Compensation of Budget200,000
    Appraisal and bonuses300,000
    Assessment funds100,000
    Medical supplies200,000
    Research and training300,000
    Maintenance of Technology150,000
    Hygiene management200,000
    Total expense2,950,000

    Table 1(b): Budget Category and Revenue per Year (USD$)

    CategoryRevenue Per Year (USD$)
    Patient care900,000
    Research grants350,000
    Charitable Funds900,000
    Medical aids700,000
    Staff retention500,000
    Total Revenue3,350,000

    The current estimate shows revenue surpassing expenses, emphasizing the budget’s sustainability and potential for positive financial outcomes.

    Budget Creation and Designing

    The budget creation process involves strategic planning and analysis, considering economic conditions, available resources, and patient expectations (Nilsen et al., 2020). Data gathering from baseline assessments and SWOT analysis helps identify trends, opportunities, and threats, informing the budget’s design and allocation to different areas.

    Strategic Plan and Evaluation Criteria

    Strategic planning aligns the financial plan with the organization’s mission, defining measurable and attainable goals. The budget focuses on employee retention and patient-centered care as interconnected goals. The strategic plan includes initiatives for employee retention, patient-centered care, and training and development, aiming to reduce turnover, enhance patient satisfaction, and improve staff skillsets.

    Ongoing Budget Management

    Ongoing budget management involves cyclic analysis, development, and monitoring, with quarterly assessments and SWOT analysis to ensure long-term sustainability. The budget’s success is contingent on positive environmental changes, increased staff satisfaction, and improved clinical outcomes.


    This assessment outlines the development of an operational budget for a small facility, emphasizing staff retention and patient-centered care. The budget is designed through careful analysis, incorporating SWOT analysis and strategic planning. Ongoing budget management involves regular assessment and adjustment to ensure long-term success. The proposed strategic plan addresses employee retention, patient-centered care, and training and development to address turnover issues and enhance budget effectiveness.


    Abdulsalam, Y., & Schneller, E. (2019). Hospital supply expenses: An important ingredient in health services research. Medical Care Research and Review, 76(2), 240–252.

    Alsadaan, N., Salameh, B., Reshia, F. A. A. E., Alruwaili, R. F., Alruwaili, M., Awad Ali, S. A., Alruwaili, A. N., Hefnawy, G. R., Alshammari, M. S. S., Alrumayh, A. G. R., Alruwaili, A. O., & Jones, L. K. (2023). Impact of nurse leaders behaviors on nursing staff performance: A systematic review of literature. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 60, 004695802311785.

    NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

    Brennan, D., & Wendt, L. (2021). Increasing quality and patient outcomes with staff engagement and shared governance. OJIN: The Online Journal of Issues in Nursing, 26(2).

    Kwame, A., & Petrucka, P. M. (2021). A literature-based study of patient-centered care and communication in nurse-patient interactions: Barriers, facilitators, and the way forward. BMC Nursing, 20(1), 158.

    Nilsen, P., Seing, I., Ericsson, C., Birken, S. A., & Schildmeijer, K. (2020). Characteristics of successful changes in health care organizations: An interview study with physicians, registered nurses and assistant nurses. BMC Health Services Research, 20(1), 147.

    Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of leader effectiveness in organization and knowledge sharing behavior on employees and organization. SAGE Open, 10(1), 215824402091463.

    NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

    Specchia, M. L., Cozzolino, M. R., Carini, E., Di Pilla, A., Galletti, C., Ricciardi, W., & Damiani, G. (2021). Leadership styles and nurses’ job satisfaction. Results of a systematic review. International Journal of Environmental Research and Public Health, 18(4), 1552.

    Weyman, A. K., Glendinning, R., Costa, J., O’Hara, R., Roy, D., & Nolan, P. (2023). Should I stay or should I go? NHS staff retention in the post COVID-19 world: Challenges and prospects.

    Wong, K., Chan, A. H. S., & Ngan, S. C. (2019). The effect of long working hours and overtime on occupational health: A meta-analysis of evidence from 1998 to 2018. International Journal of Environmental Research and Public Health, 16(12), 2102.