NURS 510 Budget Analysis: Millway University Nurse-Managed Clinic (MNC)

NURS 510 Budget Analysis: Millway University Nurse-Managed Clinic (MNC)

NURS510

Budget Analysis

Millway University Nurse-Managed Clinic (MNC)

The provided budget serves as an illustrative example of a statistics-based budget utilized for the strategic planning and forecasting of UOS (units of service) that signifies the utilization of healthcare services within a nurse-managed clinic. A statistics-based budget is prepared as a preliminary step preceding the development of an operational budget, given that healthcare revenues and expenditures predominantly hinge on the volume of services rendered. This principle holds true not only in nurse-managed clinics but also in acute care settings. The volume statistics are also intricately linked to the clinic’s capacity, which signifies the maximum UOS that can be effectively managed by the available healthcare staff. Given the inherent variability of healthcare environments, performance targets are frequently set below the established capacity to ensure optimal functioning.

The budget document herein reflects the historical budget performance for the years 2015 and 2016, as well as the anticipated budget for 2017 for the Millway University Nurse-Managed Clinic (MNC).

Background and Projections:

– The Nurse Practitioner (NP) capacity is founded on performance objectives, specifically, 4 encounters per day per NP for 2015 and an increase to 6 encounters per day per NP for 2016 and 2017. This augmentation in capacity is attributed to the inclusion of administrative support, which, in turn, enables NPs to concentrate more on patient care.

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– The daily encounters are multiplied by the 224 days allotted for each NP in the budget.

– Actual performance is reported in terms of the actual number of encounters per day and the total encounters, including those from ACO contracts and self-pay encounters.

– The performance target is set for the NPs to function at 95% of their capacity, as this is the level at which NPs operate most efficiently.

– The 2017 budget anticipates 3,830 patient encounters, which equates to 95% of the total capacity of 4,032.

– A decision was made by the nurse managers and NPs to continue the ACO contract for disease management and wellness care.

– A contract with the Bigtown school district for immunizations is expected to decrease the number of immunizations from 500 to 300 in 2017. The NPs will shift their focus to immunizing preschool children entering the school system, as opposed to school-age children.

– A rise in self-pay encounters is projected for 2017.

Analysis Questions:

1. Based on the aforementioned projections, please provide your analysis regarding the rationale behind the decisions made for this clinic. Do you concur or disagree with these changes? Why?

2. Assuming that the nurses working in the MNC receive a 5% salary increase for the upcoming budget year, calculate the impact on personnel expenses and assess its implications for total expenses and MNC profits.

3. Discuss at least one (1) internal and one (1) external change or event that might exert an influence on the MNC budget in the forthcoming year.

(For instance, consider factors like maternity leave for one of the NPs, the potential impact of a pandemic that closes schools, and other pertinent factors.)

Source: Adapted from Penner, S. (2017). Economics and Financial Management for Nurses and Nurse Leaders (3rd ed). New York: Springer Publishing Company. Order NURS 510 Budget Analysis Millway University Nurse-Managed Clinic (MNC)