Operating Budget for 35-Bed Hospital Unit

### Operating Budget for 35-Bed Hospital Unit

As the nurse manager of a 35-bed hospital unit serving an older population, it is critical to design an operating budget that is sustainable and meets the needs of both the patients and the staff. Below is an operating budget along with explanations on how it was created, a strategic plan, and an approach to ongoing budget management.

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**Operating Budget Table:**

| **Category** | **Monthly Cost** | **Annual Cost** |
|—————————-|——————|—————–|
| **Staff Salaries and Wages** | | |
| Full-Time Staff (20 FTE) | $160,000 | $1,920,000 |
| Overtime Pay | $25,000 | $300,000 |
| Additional Shift Pay | $15,000 | $180,000 |
| **Total Salaries and Wages**| **$200,000** | **$2,400,000** |
| **Patient Care Supplies** | | |
| Medications | $10,000 | $120,000 |
| Medical Supplies | $8,000 | $96,000 |
| Personal Care Items | $5,000 | $60,000 |
| **Total Patient Care Supplies** | **$23,000** | **$276,000** |
| **Facility Costs** | | |
| Utilities (Electricity, Water, etc.) | $5,000 | $60,000 |
| Maintenance and Repairs | $3,000 | $36,000 |
| Housekeeping | $4,000 | $48,000 |
| **Total Facility Costs** | **$12,000** | **$144,000** |
| **Administrative Costs** | | |
| Office Supplies | $1,500 | $18,000 |
| Staff Training and Development | $2,000 | $24,000 |
| **Total Administrative Costs** | **$3,500** | **$42,000** |
| **Total Operating Budget** | **$238,500** | **$2,862,000** |

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### Explanation of Budget Design and Creation

1. **Staff Salaries and Wages:**
– Calculated based on the average salary for nurses and support staff.
– Included additional costs for overtime and extra shifts due to staff shortages and high demand.

2. **Patient Care Supplies:**
– Estimated costs for medications, medical supplies, and personal care items needed for an older population with higher medical needs.

3. **Facility Costs:**
– Included utilities, maintenance, and housekeeping to ensure a safe and clean environment for patients and staff.

4. **Administrative Costs:**
– Office supplies and staff training and development to ensure efficient operation and professional growth of the staff.

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### Strategic Plan for Budget Management

1. **Staffing Efficiency:**
– Fill open positions promptly to reduce overtime and extra shift costs.
– Implement a flexible staffing model to adjust to patient census and acuity levels.

2. **Cost Control:**
– Monitor and control the use of patient care supplies to avoid waste.
– Negotiate with suppliers for better pricing on medications and supplies.

3. **Revenue Enhancement:**
– Explore opportunities for additional revenue streams, such as specialized services for older adults.
– Increase focus on quality care to improve patient outcomes and potentially higher reimbursement rates.

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### Ongoing Budget Management Approach

1. **Monthly Budget Reviews:**
– Conduct monthly budget reviews to compare actual expenses against the budgeted amounts.
– Identify variances and take corrective actions promptly.

2. **Staff Involvement:**
– Involve staff in budget discussions to ensure they understand the importance of cost management.
– Encourage staff to identify cost-saving opportunities and efficiency improvements.

3. **Continuous Improvement:**
– Implement a continuous improvement process to regularly review and enhance budget management practices.
– Use data analytics to forecast future budget needs and make informed financial decisions.

4. **Reporting and Accountability:**
– Prepare regular budget reports for senior management to ensure transparency and accountability.
– Set financial performance targets and track progress toward achieving them.

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### Conclusion

The operating budget for the 35-bed hospital unit is designed to manage expenses effectively while ensuring high-quality patient care. By strategically managing staffing, controlling costs, enhancing revenue, and maintaining rigorous budget oversight, the unit can achieve financial stability and continue to meet the needs of its older patient population.

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**References:**
1. American Nurses Association. (2020). *Nursing: Scope and standards of practice*. Silver Spring, MD: American Nurses Association.
2. National Institute on Aging. (2021). *Providing care and comfort at the end of life*. Retrieved from https://www.nia.nih.gov/health/providing-care-and-comfort-end-life

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This template should be tailored further based on specific organizational data and needs. Make sure to use actual data from your unit to complete the budget accurately.

 

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