week 10 discussion reply 1

Many nurses are creative and come up with innovative ideas to improve the areas in which they work. Nurses can identify which supplies are unnecessary and maybe go unused for long periods of time, and possibly even eliminate certain supplies from stock. In addition, nurses can help influence organization costs is by advocating against unnecessary treatments or medications (Writers, R. N. S. 2020). A budget is simply a financial plan for the future (Lewenson & Truglio, 2015). The major components of the operating budget for a nursing unit include revenues and expenses. What is revenue? monies an organization receives for patient visits, procedures, or inpatient hospitalization from Medicare, Medicaid, HMO’s, private insurance, and patients paying out of pocket. What constitutes an expense? An expense may be in the form of salary and non-salary expenses as well as expenses incurred by another department such as pharmacy and central supply (Danna, 2020). Nurses need to know how to use this economically driven information as they make decisions and provide care within the environment context in which they practice (Lewenson & Truglio, 2015).

Danna, D. (2020). Learning and mastering the operating budget. Retrieved from http://www.strategiesfornursemanagers.com/ce_detail/213520.cfm

Lewenson, S. B., & Truglio-Londrigan, M. (2014). Decision-making in nursing. Jones & Bartlett Publishers.