Nursing Leadership and Management Week 13
Budgets are important for managing and tracking down the business resources. Some of the types of budgets include: master budget which comprise of factors such as operating expenses, income streams, sales, and assets (Gilani, 2004).There is also the operating budget and the account for various factors like material costs, manufacturing costs, administrative expenses, and labor costs. The third type of budget include cash flow budget which include factors like accounts receivable that determines the amount of cash that a company holds at the moment. There is also financial budget which comprise of the public stock offering of a company. Lastly, there is static budget which comprise of factors as storage costs.
The process by which a company uses to create a plan of spending its money is known as budgeting.
Direct cost is the price which is attributed to specific goods and services produced by the company. On the other hand, indirect costs cannot be assigned or attributed to specific products or services and they may include costs for administrative expenses (Plus, 2010).
A non-productive hour is the time that the employee in a company spends as they await to be assigned duty. For instance, the period when a receptionist has to do some crossword jobs while they are waiting for an important phone call to direct them on their next assignment is considered as non-productive hours (Compass Clinical Consulting, 2010). On the other hand, productive hour is the time that an employee spends on productive labor and is considered as an expense for the company.
HMO means health maintenance organization and an example in my city is a primary care physician
PPO means preferred provider organization and an example in my city is the Harvard Pilgrim
POS means point of service and an example in my city is Corner Mall
DRGs is the statistical system that is used for classifying inpatients as they are grouped for the purposes of payment.
Some of the strategies that the Nursing unit use mainly to lower the medical care costs include: having an increased understanding of the health care costs such as operation costs of every unit. They also ensure that all the healthcare costs have been paid for including those who do not have health insurance for safety net purposes (Sherman, 2012). It is one way in which the nurses ensure that all the expenses are within the budgetary limits that had been projected.
Compass Clinical Consulting. (2010, Jan 1). Productive and non-productive hours-the New Normal. Retrieved from http://www.compass-clinical.com/wp-content/uploads/2010/01/New-Normal.pdf
Gilani, N. (2004). Five of the different types of budgets. The finance Base. Retrieved from http://thefinancebase.com/five-different-types-budgets-3736.html
Sherman, R. (2012). The business of caring: What every nurse should know about cutting costs. American Nurse Today 7(11), 1. Retrieved from https://www.americannursetoday.com/the-business-of-caring-what-every-nurse-should-know-about-cutting-costs/
Plus, D. (2010). Finance. DavisPlus.