Administration in Health Care Institutions: Budgeting

Administration in Health Care Institutions: Budgeting
Administration in Health Care Institutions: Budgeting

Administration in Health Care Institutions: Budgeting

Order Instructions:

All health care organizations have complicated budgeting policies and procedures. The more the nurse understands the process, the more effectively they can participate in the process. The budget process usually starts with an interdisciplinary approach.
1.Describe the potential members of the interdisciplinary team for budget development and the role of each individual.
2.What are the specific responsibilities of nursing in the development of the budget?
Are the responsibilities for budget specific only to the leadership of the nursing department or are they found throughout the organization


Administration in Health Care Institutions: Budgeting

The health sector requires considerably large amounts of financing. The management of funds in institutions within the sector calls for strategic budgeting plans. In most organizations, the executive formulates financing plans, and different departments implement them. At times, budgets may not concur with the financial status of health care firms. Under such circumstances, managers have an extra responsibility to match budgetary needs to organizations’ financial resources. Involving interdisciplinary participation in organizations’ budgeting is a common approach that managers consider in easing management. Involving members of varied disciplines helps organizations to develop an integrated budget.

Financial budgeting teams should constitute of the management as well as clinical practitioners. The management controls funding and should, therefore, play centrally in budgeting. Practitioners from different bodies require presenting their requirements to the managerial body for consideration. Nurses, pharmacists, and physicians are the lead clinicians in matters of budgeting. When the three departments communicate, appropriate budgets would be easy to design (Edwards, 2011). Financial experts are also important in budgeting as they would advise other team members on the profitability of the approaches they propose.

Nursing practice predominates the activities undertaken in hospitals. Also, hospitals spend most of their resources through nursing activities. Nurse leaders manage most of the activities within healthcare especially the workforce (Douglas, 2010, Pg. 270). Therefore, they could identify most of the budgetary needs of their hospitals and present them to interdisciplinary teams. As such, the professionals should enjoy representation in management committees.

Though budgeting mainly involves leaders, nurses are also important in budget development. Nurses should communicate their suggestions to their leaders who may in turn forward them to the interdisciplinary financial management teams. Nurses interact with patients more than does other professionals, and they could help connect budgeting with patient care. Nurses should also implement budgets in manners that reduce the costs of care provision (Sherman & Bishop, 2012).


Douglas, K. (2010). Taking action to close the nursing financial gap: learning from success. Nursing Economics, 28(4), 270-273

Edwards, R. (2011, November 1). In struggle to cut expenses, hospitals eye the pharmacy. Hospitals and Health Networks. Retrieved from

Sherman, R. & Bishop, M. (2012). The business of caring: what nurses should know about cost cutting. American Nurse Today, 7(11), n.p

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