Overview of the Functions of Management: Budgeting
1. Fiscal Planning
Definition:
A systematic approach of forecasting, allocating, and controlling financial
resources to achieve organizational goals.
Importance in Nursing:
a. Ensures optimal utilization of resources
b. Supports quality patient care
c. Aligns financial decisions with healthcare priorities
Key Principles:
a. Accountability
b. Efficiency
c. Equity
d. Transparency
2. Types of Budget
Operating Budget
a. Covers daily expenses (e.g., salaries, supplies, utilities).
b. Short-term, usually annual.
Capital Budget
a. For long-term investments (e.g., new hospital wing, surgical equipment).
b. Requires cost-benefit analysis.
Cash Budget
a. Projects cash inflows and outflows.
b. Ensures liquidity to meet immediate financial needs.
Program/Service Budget
a. Allocates resources to specific nursing units or programs.
b. Example: Maternal and Child Health Program budget.
Flexible Budget
By: ROMMEL LUIS C. ISRAEL III
Clinical Instructor
a. Adjusts according to patient census or workload variations.
3. Costing Out of Nursing Services Definition: Process of determining the cost of
nursing care and services delivered to patients.
Components:
a. Direct costs: Salaries, supplies, medications
b. Indirect costs: Utilities, administrative support
Methods:
a. Cost per patient-day
a. Cost per nursing procedure
a. Activity-based costing
Significance:
a. Demonstrates value of nursing services
b. Supports staffing decisions
c. Guides policy formulation and resource allocation
References
Huber, D. (2018). Leadership and nursing care management (6th ed.). Elsevier.
Marquis, B. L., & Huston, C. J. (2021). Leadership roles and management functions in
nursing: Theory and application (10th ed.). Wolters Kluwer.
Sullivan, E. J. (2017). Effective leadership and management in nursing (9th ed.). Pearson.
Whitehead, D. K., Weiss, S. A., & Tappen, R. M. (2019). Essentials of nursing leadership &
management (7th ed.). F.A. Davis.
Yodr-Wise, P. S. (2019). Leading and managing in nursing (7th ed.). Elsevier.
By: ROMMEL LUIS C. ISRAEL III
Clinical Instructor
