Prepare a 4 page capital budget for a major capital acquisition. – Essaylink

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate

Preparing and Managing a Capital Budget

Overview

Prepare a 4 page capital budget for a major capital acquisition.

In today’s health care environment, the focus on major purchases, as part of the capital budget, has emphasized the need for newer and better technology.

Although the need to invest in capital equipment and technology has been ongoing, the nursing workforce must also have a safe and pleasant work environment.

This assessment provides an opportunity for you develop a capital budget for a major facility improvement that will benefit patients, nurses, and the organization.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Competency 3: Develop a capital budget.

• Describe a capital acquisition.
• Prepare a capital budget.
• Describe the process for calculating costs.

Competency 4: Determine the equipment and services needed to maintain seamless patient or client care.

• Justify the need for a capital acquisition.

Competency 5: Apply financial principles to a strategic plan for achieving organizational goals and fiscal success.

• Present a plan for budget management.

• Explain how a capital acquisition will affect the financial health of the organization.

Competency 6: Communicate effectively with diverse audiences, in an appropriate form and style, consistent with applicable organizational, professional, and scholarly standards.

• Present budget data and information clearly and accurately.
• Integrate relevant and credible sources of evidence to support your budget data and information, correctly formatting citations and references using APA style.

Most nurse leaders work with operating budgets, but will also have input into capital budgets. A capital budget is typically developed separately from the operating budget and is usually developed to purchase items that are often referred to as big-ticket items that will enhance the capacity or services of an organization. For example, capital budgets may cover land purchase for the future site of a new outpatient surgical center, construction of a new building or build-out for renovation of an already existing building, or replacement of old equipment.

It is important to remember that health care is also a major business. While for health care providers, patient care and safety are priorities, health care institutions must operate from a business model in order to survive financially. As nurse leaders or executives, you often have a role to play in developing a capital budget to improve care at some level. In addition, a rapidly changing health care environment requires nurse leaders who have the financial management and budgeting skills to ensure that large capital expenditures further the mission and goals of the organization. Consider

As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint.

You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community.

Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.

• How would you approach the process of designing a capital budget? For example:

• What steps would you need to take?
• What resources would you access?
• Will you collaborate with other executives or staff?

• How will you tie the vision for the capital expenditure to the organization’s mission and goals?

• What challenges do you anticipate in justifying a capital budget to administrative leaders in an organization?

• What criteria might a particular health care organization or service provider apply to evaluate the return on a capital investment?

Suggested Resources

Capital Budgeting

The following articles address capital budgeting and may help you with preparing your capital budget in this assessment.

• Jasuta, L. (2016). Rolling capital managing investments in a value-based care world. Healthcare Financial Management, 70(6), 82–89.

• Discusses the use of a rolling approach to capital budget planning in health care, similar to what is done in other industries.

• Maxwell, J. M., Cho, T., Rudkin, S., Wong, A., Almassi, N., & Barton, Erik. (2016). Mobile COWs (Computer on Wheels): Hamburger or VEAL? Western Journal of Emergency Medicine, 17(5), 527–530.

• A comparison study specific to purchase and implementation of Computer On Wheels (COWs) versus Very Efficient Agile Laptop (VEAL). The author discusses costs and benefits.

• Mukherjee, T., Al Rahahleh, N., Lane, W., & Dunn, J. (2016). The capital budgeting process of healthcare organizations: A review of surveys. Journal of Healthcare Management, 61(1), 58–77.

• Examines different capital budgeting practices.

• Rundio, A. (2016). Budget development for nurse managers. Reflections on Nursing Leadership, 42(3), 1–8.

• A step-by-step approach to budget workflow.

• Stroudt, R. L. (2013). 12 strategies for managing capital projects. Healthcare Financial Management, 67(5), 68–71.

• Suggests strategies for most successful program management.
Capital Budget Preparation

The following interactive exercise introduces you to the process of preparing a capital budget.

• Vila Health: Developing a Capital Budget | Transcript

Instructions:
You are the unit manager of a 50-bed, step-down unit, and it is time for you to prepare your annual capital budget. You have seen a significant turnover in your nursing staff in the past three years; a review of exit interviews and patient surveys indicates low nurse satisfaction, poor morale, and complaints of an antiquated and depressing work environment.

You have researched the impact of a positive working environment on staff productivity and morale and decided to request a renovation of the nurses’ lounge as the main purchase in your capital budget. You will present your request as a quality improvement investment.

Requirements

Note: The requirements outlined below correspond to the grading criteria in the assessment scoring guide. Be sure that your budget addresses each point, at a minimum.

 

You may also use a budget format used in your organization or a format you find in any of the course resources or on the Internet.

• Describe the capital acquisition.
• Justify the need for the capital acquisition.
• Prepare the capital budget.
• Describe the process for calculating costs.
• Present a plan for budget management.
• Explain how the capital acquisition will affect the financial health of the organization.

 

• Present budget data and information clearly and accurately.

• Integrate relevant and credible sources of evidence to support your budget data and information, correctly formatting citations and references using current APA style.

Additional Requirements

If you used Microsoft Excel to create your budget table, submit the Excel file along with your budget narrative. You may also add the Excel file to your Word document as an embedded object.
Format your budget using APA style.

• Use the APA Style Paper Template [DOCX], linked in the Resources under the

Required Resources heading. An APA tutorial is also provided in the Resources to help you in writing and formatting your budget. Be sure to include:

• An APA-formatted title page and reference page. An abstract is not required.
• A minimum of five properly formatted citations and references.
• Your budget should be 4 pages in length, not including the title page and reference page.

The post Prepare a 4 page capital budget for a major capital acquisition. appeared first on Essay Quoll.

"Is this question part of your assignment? We Can Help!"

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started