Sample Essay Paper on Budget Concept for Patient Care

Budget Concept for Patient Care

  1. Review of the concepts and how the topic relates to the practice of registered nursing.

One of the leading factors that affect how patient care is delivered is the cost of delivering such services (Kelly, 322). Other factors that affect these services provided by the nurses include resources such as people, time, and equipment. Since these services are costly, there is need for the hospitals to make economically fit decisions and improve efficiency. Health reimbursement, escalating costs of goods, and increased competition have facilitated advanced changes in the health sector. Nurses must understand how to manage the cost of patient care; this is because they are concerned with the distribution and utilization of the resources. Based on this management, there is need of budgets for future planning. The budgets comprise allocations for capital, construction, and operational costs (Kelly, 324).

The operational budget takes care of the daily income and expenses of the organization (Kelly, 325). This may include the admission packet for a patient who may be undergoing a medical procedure. The capital budget relates to the main expenses incurred in the purchase of new or replaced equipment. Replacement is necessary when the price of maintenance is superior to that of new equipment. The capital cost is dependent on the shelf life and the cost of equipment. The construction budget accounts for the new and renovated buildings. The operational budget is an overview of the anticipated expenses and incomes. A manager engages in accounting to record and analyze data, and this translates to operational plan in terms of income and expenses. When the income is higher than the expenses, then a profit is realized.

Budgets connect the operational plan and resource allocation (Kelly, 327). This is essential as the organization measures the various main indicators of general performance. This comprises the fulfillment of the staff and the customers and patient outcomes. In the preparation of the budget, there is need to prepare and plan beforehand.  There is need to gather the fundamental elements that influence the organization. This embraces the demographic and marketing information, regulatory influence, strategic plans, and regulatory influences.

  • Example of a situation where I have been personally and professionally affected by each of these issues

The organization where I was working at one point had a majority of the patients uninsured. The management expected an increased profit margin because the hospitals had provided for the equipment to be used in service provision, and there were no anticipated bureaucracies. This was however not the case; the nurses who gave out the services did not fill in the records as required for the whole week. The error was realized to be from the records from the equipments used by the nurses to the patents. The management had to organize for training of the nurses to prevent further loss.

  • Impact of the factors on those on the nursing practice

            The cost of delivering services affects the efficiency of the service provision. Resources such as the staff, equipment, and time are essential. When one of these is absent, the rest of the factors cannot efficiently work. Maintenance of these resources is essential for service delivery. This maintenance cost has to be reflected on the fee charged. The higher the cost, the higher the fee, and hence the lower the number of patients in a given facility. This calls for patients to be frequently insured to reduce the cost of the services. The factor of budgeting is adversely affecting the nursing practice. In cases where hospitals do not receive insured patients, they have to experience higher profits. A case when the hospital is incurring losses needs to be evaluated. Nurses are therefore forced to be equipped with the budget preparation knowledge.

  •  The effects of these factors on nursing practice

These factors are essential; nursing services are risky without the resources. When there was no equipment in the hospital, we, the nurses could not work. The management could not cover the losses of the cost of services and we did not get our pay for the services rendered. This forced us to equip ourselves with the available equipment such as gloves when we rendered the services to patients. In addition, the patients could no longer receive personalized care.

  • How to address the situations in future

In future, the government can get involved with the cost sharing of these services. Nurses ought to be equipped with the budgeting knowledge. This calls for financial training to be incorporated in the nursing profession.

  • List the changes you would incorporate.
  • Introduce budgeting as a branch in the nursing profession. This should not be offered at managerial levels only.
  • Introduce policies through the state government to cater for the costs of the equipment and services rendered to the hospitals. This should include the private hospitals and the non-profit organizations in the health sector.
  • The non-governmental organizations can get involved in offering the equipment on behalf of the public hospitals. This can help reduce the cost of providing the service. The public will be the end benefactor.


Kelly, P. (2007). Nursing Leadership & Management. (3rd Ed). Chapter 14. U.S: Delmar Cengage Learning