Prepare a 4-5 page capital budget for a major capital acquisition.

Rubric

Competencies Measured

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 styl

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Preparing and Managing a Capital Budget

Kelly Hise

Capella University

NURS-FPX6216 – Advanced Finance and Operations Management

Dr. Georgena Wiley

August 2, 2022

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Table of Contents

Preparing and Managing a Capital Budget…………………………………………………………………………..3

The Captial Acquisition…………………………………………………………………………………………………….3

Need for the Capital Acquisition………………………………………………………………………………………..4

Capital Budget…………………………………………………………………………………………………………………6

Calculating Capital Cost……………………………………………………………………………………………………6

Plan for Budget Management…………………………………………………………………………………………….7

Financial Health of Renovation for Organization…………………………………………………………………7

References……………………………………………………………………………………………………………………….8

This study source was downloaded by 100000855641916 from CourseHero.com on 01-28-2023 10:04:19 GMT -06:00

https://www.coursehero.com/file/184832961/NURS-FPX6216-HiseKelly-Assessment4-1docx/

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Preparing and Managing a Capital Budget

Capital budgets are a means of funding allocated for the department and used for

expenditures involving equipment, information technology, furniture, facility improvements or

renovations, and new construction. The nurse manager of a 50-bed step-down unit is preparing

the capital budget and has noticed the staff turnover over the past three years. The manager

decides to gather data from exit interviews and patient surveys to gain better insight into the

department’s culture. The findings show low nurse satis

Prepare a 4-5 page capital budget for a major capital acquisition.

Introduction

Note: Complete the assessments in this course in the order in which they are presented.

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.

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.

Note: Complete the assessments in this course in the order in which they are presented.

Preparation

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.

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 o