Strategic Planning and Budgeting
Think about the budgeting process and its role in health care delivery systems and the provision of quality care. Discuss the skills and strategies you will use to effectively develop and manage a budget.
Strategic Planning and Budgeting
Making decisions is one of the most important characteristics that contribute to the long-term success of healthcare delivery systems. However, making decisions is not the only element that healthcare delivery systems need to consider with healthcare organizations who seek longevity and the improvement of patient outcomes requiring to take financial planning into account. Budgeting is important for healthcare delivery systems as it can help such systems to plan effectively for the future and what lies ahead. Budgeting helps significantly to address any uncertainty that may be related to the spending of funds in healthcare delivery systems and the balancing of capital budgets (Shrank et al., 2021). Budgeting helps healthcare delivery systems to explore different possibilities in the management of their finances in the future and to strategically plan such a financial future to not only allow for the survival of healthcare organizations but also the improvement of patient outcomes (Walsh, 2016).
Budgeting also allows healthcare facilities to cultivate financial security in that such healthcare delivery systems can look for areas to cut costs while also considering areas where more funds should be spent. Budgeting also allows healthcare delivery systems to avoid loss of finances and increase efficiency in the delivery of their services to patients (Mukherjee et al., 2016). Budgeting allows healthcare facilities to spend their finances on the most important areas first that will contribute significantly to improving patient outcomes. Through budgeting, healthcare facilities can be able to find ways of analyzing contracts, utilizing substitute devices, negotiating, and utilizing different strategies to reduce expenditure while at the same time increasing output (Mukherjee et al., 2016).
As a nurse manager, I will utilize various skills and strategies to effectively develop and manage a budget in my health care facility. These strategies will include reducing cash flow problems and evaluating the revenue cycle of the healthcare facility (Walsh, 2016). To reduce cash flow problems in the healthcare facility, I will prioritize the elements that matter most at the moment and only allocate funds to search elements of health care delivery. Acquiring vendors’ confidence is also important in resolving health issues in a healthcare facility. Remaining in close contact with the essential suppliers in negotiating flexible payment plans can therefore help to avoid cash flow issues in a healthcare facility (Mukherjee et al., 2016). Enhancing a positive relationship with vendors will open a bridge that can help a healthcare facility to remain operational during a crisis. It is also important for a healthcare facility to seek assistance from an insurance representative in the management of cash flow. Insurance companies have short-term flexibility to grant interruption or reductions in premiums which can help you care for facilities to maintain a positive cash flow during a crisis (Shrank et al., 2021).
Managing the revenue cycle in a healthcare facility is also an important budgeting strategy. In general, the revenue cycle refers to the management of funds, financial processes, and collection of payments after the delivery of health care in a healthcare facility. Adequate strategies to manage the revenue cycle in a healthcare facility include outsourcing pre-authorization, submission of claims, reporting, and mass registration (Walsh, 2016). Outsourcing can help healthcare facilities to manage seasonal demands for various services. On the other hand, pre-authorization of all patients in a healthcare facility helps to evaluate the importance of prescription medication or medical procedures on a patient and reduce wastage (Mukherjee et al., 2016).
Mukherjee, T., al Rahahleh, N., & Lane, W. (2016). The Capital Budgeting Process of Healthcare Organizations: A Review of Surveys. Journal of Healthcare Management, 61(1), 58–76. https://doi.org/10.1097/00115514-201601000-00011
Shrank, W. H., DeParle, N. A., Gottlieb, S., Jain, S. H., Orszag, P., Powers, B. W., & Wilensky, G. R. (2021). Health Costs And Financing: Challenges And Strategies For A New Administration. Health Affairs, 40(2), 235–242. https://doi.org/10.1377/hlthaff.2020.01560
Walsh, K. (2016). Managing a budget in healthcare professional education. Annals of Medical and Health Sciences Research, 6(2), 71. https://doi.org/10.4103/2141-9248.181841