NR 711 Week 6 Financial Analysis

NR 711 Week 6 Financial Analysis

Name

Chamberlain University

NR-711: Fiscal Analysis & Project Management

Prof. Name

Date

Financial Analysis Discussion

Purpose

The primary aim of this discussion is to examine the critical role of the Doctor of Nursing Practice (DNP)-prepared nurse in supporting the organization’s mission through effective financial planning, accurate budgeting, and strategic allocation of resources. By engaging in these responsibilities, DNP-prepared nurses ensure that healthcare initiatives remain sustainable, cost-effective, and aligned with organizational goals.

Instructions

This week’s activity focuses on developing a budget estimate for the practice change project. A practice change project requires careful identification of necessary resources, calculation of associated expenses, and estimation of potential revenue streams. Importantly, the project’s budget should conclude with either a positive balance or zero. A negative balance signals inadequate planning and insufficient revenue allocation, potentially jeopardizing project success.

The assignment encourages reflection on course readings and professional experience while creating a detailed budget plan.

Step 1: Download and Complete the Budget Table

The first step is to download the provided budget table template and enter project-specific details. Once completed, the table should be saved and submitted as an attachment.

Step 2: Identify Resources

What resources are needed for the project?

The project requires identification of all essential resources. These may vary depending on the project’s scope but typically include:

• Staffing requirements and roles

• Staff education and training hours

• Office or clinical supplies

• Marketing and educational materials

• Consultant services (e.g., statistician support)

• Meeting spaces and related overhead

• Miscellaneous project-specific resources

These resources ensure that the project is well-supported, adequately staffed, and equipped with the necessary tools to succeed.

Step 3: Estimate Expenses

How are expenses calculated for the budget?

Each resource identified must be assigned an estimated cost. Expenses are calculated by multiplying staff hours, wages, and benefits or assigning direct costs for supplies and services.

Example:
If 20 nurses participate in a three-hour training, with an average wage and benefit rate of $50/hour, the expense calculation is:
20 nurses × 3 hours × $50 = $3,000.

This approach allows for a realistic projection of overall financial requirements.

Step 4: Identify Revenue Sources

What revenue sources will cover the expenses?

Every expense in the budget must be linked to a revenue source. Possible sources include:

• Institutional Budget Support: Organizational funds that cover salaries, supplies, or services.

• In-Kind Donations: Contributions such as pro bono consulting or department-paid meeting costs.

• Billing for Services: In certain cases, reimbursement for new procedures or treatments (following state and federal billing regulations).

• Grant Funding: External grants targeted to support specific project activities. Grant documentation should explicitly cover the listed expenses.

Example Equation:

Encounter charge × Number of patients per day × Days per week × Weeks = Revenue estimate

Revenue planning ensures that all project activities are financially sustainable.

Step 5: Balance the Budget

How do you ensure the budget balances?

The budget must conclude with either a zero-dollar balance or a positive outcome:

Equation: Revenues – Expenses = Zero or Positive

A balanced or positive budget demonstrates sound planning and financial accountability. A negative balance, however, suggests gaps in financial strategy that need correction.

Step 6: Monitoring and Controlling Resources

What is the nurse leader’s role in monitoring project finances?

The DNP-prepared nurse plays a pivotal role in continuously monitoring expenses and resource allocation. This includes:

• Ensuring staff hours and training remain within budget

• Avoiding unnecessary supply or service expenditures

• Verifying that revenues align with projected expectations

• Adjusting the financial plan as challenges arise

Such oversight maintains the financial health of the project and reinforces accountability.

Budget Example Table

Resources	Estimated Expenses	Revenue Source
20 nurses, 3 hours training	$3,000	Institutional Budget Support
Statistician consultation	$1,500	In-Kind Departmental Support
Office/medical supplies	$800	Institutional Budget
Marketing materials	$1,200	Grant Funding (Educational Outreach Grant)
Meeting room rental	$500	In-Kind Donation
Overhead costs	$700	Institutional Budget
Total Expenses	$7,700	Total Revenues: $7,700

Final Balance: Revenues – Expenses = $0 (Balanced)

Program Competencies

This discussion supports the following program competencies:

1. Integrates scientific principles into daily clinical practice (POs 3, 5).

2. Uses analytic approaches to translate evidence into practice improvements (POs 3, 5).

3. Evaluates information systems and technologies to optimize healthcare delivery (POs 6, 7).

4. Analyzes healthcare policies to advocate for equitable access and social justice (POs 2, 9).

5. Demonstrates leadership in professional identity, systems thinking, resilience, and accountability (POs 1, 4).

Course Outcomes

This discussion enables students to:

1. Assess the financial leadership role of DNP-prepared nurses in healthcare organizations (PCs 5, 8; POs 2, 4, 9).

2. Develop strategies for project planning, management, and evaluation to ensure high-value care (PCs 1, 3, 4; POs 3, 5, 7).

References

American Association of Colleges of Nursing (AACN). (2023). The essentials: Core competencies for professional nursing education. AACN.

Health Resources and Services Administration (HRSA). (2022). Grant funding opportunities in nursing practice and education. U.S. Department of Health and Human Services.

NR 711 Week 6 Financial Analysis

Centers for Medicare & Medicaid Services (CMS). (2023). Telehealth services and billing guidelines. https://www.cms.gov

Zaccagnini, M., & Pechacek, J. M. (2021). The doctor of nursing practice essentials: A new model for advanced practice nursing (4th ed.). Jones & Bartlett Learning.