Nurses play a crucial role in healthcare budgeting, which involves planning, allocating, and monitoring financial resources to achieve organizational goals. Understanding the budgeting process and its impact on nursing staffing is essential for effective resource management.
Key Facts
- Understanding the budgeting process: Nurses need to have a clear understanding of the budgeting process in their healthcare organization. This includes knowing the different types of budgets, such as capital and operating budgets, and how they impact nursing staffing.
- Personnel costs: Typically, a significant portion of the operating budgets of healthcare agencies, around 40%, is dedicated to nursing staffing. Nurses need to be aware of the personnel costs associated with their positions and how they contribute to the overall budget.
- Adapting to changes in staffing models: Nurses may experience changes in staffing models as healthcare agencies adapt to meet reimbursement models and deliver cost-effective care. This may include strategies such as acuity-based staffing, team nursing, mandatory overtime, floating, on call, and off with benefits.
- Acuity-based staffing: Acuity-based staffing is a patient assignment model that takes into account the level of care required based on the severity of a patient’s illness or condition. This model ensures that nurses have adequate time to care for complex patients and promotes efficient use of resources.
- Team nursing: Team nursing is a staffing pattern that involves a combination of registered nurses, licensed practical/vocational nurses, and assistive personnel working together to care for a group of patients. Effective communication and teamwork are essential for successful team nursing.
- Mandatory overtime: In situations where there is a lack of nursing staff, nurses may be required to work overtime beyond their scheduled shift. However, mandatory overtime is recognized as a dangerous staffing practice due to patient safety concerns related to overtired staff.
- Floating: Floating is a staffing strategy where nurses are temporarily assigned to work on a different unit to cover a short-staffed shift. Nurses should be aware of their rights and responsibilities when asked to float and ensure that they are adequately prepared to provide safe patient care in the new environment.
- On call and off with benefits: When staffing exceeds the number of clients admitted, agencies may decrease staffing by placing nurses on call or off with benefits. Nurses on call may have reduced wages and a required response time, while nurses off with benefits do not receive an hourly wage but still accrue benefits.
Budgeting Process
Healthcare organizations typically have different types of budgets, including capital budgets for long-term investments and operating budgets for ongoing expenses. Nurses should be familiar with these budgets and how they affect nursing staffing levels.
Personnel Costs
Personnel costs, particularly nursing salaries and benefits, often constitute a significant portion of healthcare operating budgets. Nurses need to be aware of the personnel costs associated with their positions and how they contribute to the overall budget.
Adapting to Changing Staffing Models
Healthcare agencies may adjust their staffing models to align with reimbursement models and deliver cost-effective care. Nurses should be prepared to adapt to changes in staffing patterns, such as acuity-based staffing, team nursing, mandatory overtime, floating, on call, and off with benefits.
Acuity-Based Staffing
Acuity-based staffing assigns patients to nurses based on the severity of their illness or condition. This model ensures that nurses have adequate time to care for complex patients and promotes efficient resource utilization.
Team Nursing
Team nursing involves a collaborative approach where registered nurses, licensed practical/vocational nurses, and assistive personnel work together to care for a group of patients. Effective communication and teamwork are crucial for successful team nursing.
Mandatory Overtime
In situations with insufficient nursing staff, nurses may be required to work overtime beyond their scheduled shifts. However, mandatory overtime is recognized as a risky staffing practice due to patient safety concerns related to fatigued staff.
Floating
Floating involves temporarily assigning nurses to work on different units to cover short-staffed shifts. Nurses should be aware of their rights and responsibilities when asked to float and ensure they are adequately prepared to provide safe patient care in the new environment.
On Call and Off with Benefits
When staffing exceeds the number of admitted clients, agencies may reduce staffing by placing nurses on call or off with benefits. Nurses on call may have reduced wages and a required response time, while nurses off with benefits do not receive an hourly wage but still accrue benefits.
Conclusion
Nurses play a vital role in healthcare budgeting and adapting to changing staffing models. Understanding the budgeting process, personnel costs, and various staffing strategies is essential for effective resource management and ensuring the delivery of quality patient care.
References
- Kenton, W. (2020, October 11). Capital budgeting. Investopedia. https://www.investopedia.com/terms/c/capitalbudgeting.asp
- American Nurses Association. (2021). Nursing: Scope and standards of practice (4th ed.). American Nurses Association.
- Cleveland, K. A., Motter, T., & Smith, Y. (2019). Affordable care: Harnessing the power of nurses. The Online Journal of Issues in Nursing, 24(2), Manuscript 2. https://doi.org/10.3912/OJIN.Vol24No02Man02
- NurseDash Staff. (2023, January 23). 5 steps to developing a cost-conscious nursing unit budget that prioritizes quality care & staff satisfaction. NurseDash. https://nursedash.com/blog/nursing-unit-budget/
FAQs
What is the role of nurses in healthcare budgeting?
Nurses play a crucial role in healthcare budgeting by participating in the planning, allocation, and monitoring of financial resources to achieve organizational goals. They provide valuable insights into staffing needs, resource utilization, and patient care costs.
What are the different types of budgets in healthcare organizations?
Healthcare organizations typically have two main types of budgets: capital budgets and operating budgets. Capital budgets are used for long-term investments in equipment, facilities, and technology. Operating budgets cover ongoing expenses such as personnel costs, supplies, and utilities.
How do personnel costs impact nursing staffing?
Personnel costs, particularly nursing salaries and benefits, often constitute a significant portion of healthcare operating budgets. Nurses need to be aware of the personnel costs associated with their positions and how they contribute to the overall budget. This knowledge helps them understand the financial implications of staffing decisions.
What are some common staffing models used in healthcare?
Healthcare agencies may use various staffing models to optimize resource allocation and deliver quality patient care. Common staffing models include acuity-based staffing, team nursing, mandatory overtime, floating, on call, and off with benefits.
What is acuity-based staffing?
Acuity-based staffing is a patient assignment model that considers the level of care required based on the severity of a patient’s illness or condition. This model ensures that nurses have adequate time to care for complex patients and promotes efficient use of resources.
What is team nursing?
Team nursing is a staffing pattern where registered nurses, licensed practical/vocational nurses, and assistive personnel work together to care for a group of patients. This model emphasizes collaboration, communication, and teamwork to deliver comprehensive patient care.
What is mandatory overtime?
Mandatory overtime occurs when nurses are required to work beyond their scheduled shifts due to a lack of nursing staff. While mandatory overtime can help address short-staffing issues, it is recognized as a risky staffing practice due to patient safety concerns related to overtired staff.
What are floating, on call, and off with benefits?
Floating involves temporarily assigning nurses to work on different units to cover short-staffed shifts. Nurses on call are available to work if needed, typically with reduced wages and a required response time. Nurses off with benefits do not receive an hourly wage but still accrue benefits while not actively working.