There are several constraints on funding in competitive environments, including hospital setup and care management, which makes the ability to win support for budget proposals acutely tricky. A compelling budget must cover several basic requirements, including accurate financial information that informs business care. The budget for the hospital setup included $219,310 for medical equipment and $2570 for every staff load by the end of the first quarter. Staff overtime estimate accounted for $9000 for the first quarter; medical waste disposal was estimated at $63,560. Other costs included laundry costs for $30600, food and drinks for staff and patients at $2700 and $50290, respectively, and team building events at $700. All these costs were estimated to have an increment of 20% in the subsequent quarters. This discussion explains why this budget is justifiable and how it links to the organization’s goals and objectives.
Justifying Budget to Executive Leaders
While allocating money for any strategic plan, it is wise to budget for the expenses whose absence would cripple the organization’s operations and probably wreck service delivery to clients. The hospital setup includes employee salaries and medical equipment. Each staff in the first quarter earns $2570 following the provisions of the labor sector as influenced by the human resources department. They earn $3084 and $3700.80 in the second and the third quarter respectively, owing to the increasing cost of living every financial period. In addition, increasing employee compensation has a direct influence on productivity. Increasing the nursing staff’s compensation would ensure they become productive in delivering quality service to clients (Faragalla, 2022). The nurse’ foods and drinks, as well as team building allocations, are pertinent to create an environment where the nursing staff is motivated to work.
The medical equipment allocation for the year is calculated at a lump sum of $219,310. The costs thereof have been determined by the population that the facility serves, a total of 35 patients and 20 nurses. Bahreini et al. (2019) indicate that in order to provide essential health services, it is crucial to have adequate equipment maintenance management. The maintenance cost away from purchasing costs is, in the present day, expensive, and many hospital settings ignore this aspect while budgeting, consequently weakening their service provision. The designated annual allocation will thus cater not only to new purchases required but also to service maintenance of existing equipment for good service delivery to clients.
The budget allocates relatively vast amounts of money toward laundry and waste disposal. Gilbert (2020) quotes Florence Nightingale and her nursing theory which dictates that all domestic interiors of the patient environment must be kept clean. According to Gilbert, Florence argues that all stagnant waters must be displaced to achieve the best patient results through cleanliness, according to Gilbert (2020). To achieve these cleanliness levels, the annual allocation towards laundry and cleaning services is justifiable at $111,384. There has been an increase in the harmful effect of medical waste disposal. Incorporating a medical supply chain network can efficiently reverse the biological dangers of medical waste disposal though it could be expensive (Alizadeh et al., 2020). If the weight of the cost of medical disposal is taken into consideration to avert further medical dangers, an annual budget of $231,358 is justified.
Linking Budget to the Organization’s Goals and Objectives
It is vital for the strategic plan for the budget to align with the mission, vision, and goal of the company. The hospital’s mission is to continue offering patients the highest-caliber services at the most reasonable prices. The facility aims to provide consumers with healthcare services that fulfill their needs by utilizing qualified physicians and nurses. The budget meets these goals and objectives since it ensures that quality medical equipment is stocked. In addition, the needs of the hospital staff are met in a manner that is consistent with ensuring that they are well-motivated to deliver quality services. The research was done by Ramli (2018) to investigate the impact of employee compensation on performance in a hospital setup. According to the research, salary has a favorable impact on both job happiness and employee performance, and job satisfaction positively influences employee performance.
How Budget Meets Productivity Goals while Staying within Budget
The majority of hospital expenses are supplied by deposits that patients make. This hospital is budgeting for 35 patients whose rough collection estimate is pegged at $1,041,750 in the current financial year. All the hospital’s expenses, as has been budgeted, are $932,204 for the three quarters of the financial year. Notably, there is a deviation of $109,546, which is reasonable enough to meet unseen costs, variances in the budget, miscellaneous expenses, and to maintain a petty cash account. The budget is, therefore, within the estimated financial abilities of the hospital, with an allowance for deviation and errors. As such, executing the budget as it has been structured helps to meet its productivity goals without necessarily running out of the budget. An oversight committee that overlooks the budget affairs should be instituted to help guide budget implementation.
References
Alizadeh, M., Makui, A., & Paydar, M. M. (2020). Forward and reverse supply chain network design for consumer medical supplies considering biological risk. Computers & Industrial Engineering, 140, 106229. Web.
Bahreini, R., Doshmangir, L., and Imani, A. (2019). “Influential factors on medical equipment maintenance management: In search of a framework,” Journal of Quality in Maintenance Engineering, Vol. 25 No. 1, pp. 128–143. Web.
Faragalla, H. (2022). An Evaluation of Influences of Employee and Customer Satisfaction on The Marketing Positioning of Consumer Products: A Case Study of Starbucks Coffee Company In Qatar(Doctoral dissertation, University of Wales Trinity Saint David). Web.
Gilbert, H. A. (2020). Florence Nightingale’s Environmental Theory and its influence on contemporary infection control. Collegian, 27(6), 626-633. Web.
Ramli, A. H. (2018). Compensation, job satisfaction and employee performance in health services. Business and Entrepreneurial Review, 18(2), 177–186. Web.