Student name
Capella University
NURS-FPX 6226
Professor Name
Submission Date
Budget Negotiations and Communication
Slide 1:
My name is _______ and today I will share our strategic plan we developed on our budget and how we are going to help our organization become financially stable for the long term and excel in patient care.
Slide 2:
Nurse managers play a key role in negotiating and communicating effectively in seeking funds for their organizations and need this skill to be effective. Nurse managers must be clear in their communication when it comes to the development of their priorities for the budget; they must be able to supply data to support their budget requests, as well as use transparent and evidence-based communication to engage stakeholders. Ismail et al. (2025) found that successful negotiation for budgets by the nurse managers with organizational leaders is related to the financial communication skills of the nurse managers. There’s also stakeholder trust that can be built up with communication around budgets, which is important to the long-term sustainability of the fiscal viability of the organization.
Stakeholder Identification and Prioritization
Slide 3:
This means that all stakeholders need to be on board and work together, including nurse leaders, executive leaders, nurse finance committees, nurse department heads, nurses, and nurse community representatives, who will provide input into the organization and direct the strategic plan (Velnampy, 2024). With stakeholder engagement aligned with strategic priorities, there is a higher probability that the organization will show commitment to its common financial and operational goals and will have appropriate resources that can support implementation of its strategic plan. The people who can have the biggest impact on the success of the strategic plan will be engaged, and the organization will be better equipped to have the support and resources that will be necessary for successful implementation of the strategic plan.
Vision and Ambition for Future Engagement
Slide 4:
Part of long-term strategic budget planning is the need to develop clarity in terms of direction on stakeholder engagement. Nurse managers need to set goals that are ambitious and realistic in terms of stakeholder confidence, and that will ensure sustained performance and improvement will take place over time. From these results, Suwarno et al. (2023) found that organizations that have a clear vision are more likely to have strategic priorities aligned with the allocation of resources. With a vision of future stakeholder engagement, the organization can grow, become financially stable, and improve patient care delivery.
Components of Capital and Operating Budgets
Slide 5:
Make simple, direct, short, and accurate written presentations to all parties in the presentation of the capital and the operating budgets. These two types of budgets have different aspects and motives, which must be carefully explained when presenting them. The operating budget will include all of the expenses incurred in operating an organization, such as people, supplies, and utilities, while the capital budget will include all expenses associated with the acquisition of an asset that will last beyond a single accounting period. Combining the two, the Operating and Capital Budgets, Ebhota et al. (2024) reported: “When used together, these two budgets provide an overall picture of the financial position of the organization. This will enable stakeholders to understand the whole organization based on the components of the Operating Budget and Capital Budget, which can support the organization’s mission and sustainability.
Key Line Items in Both Budgets
Slide 6:
Describing the major budget line items helps to make the budget comprehensible to the stakeholders on how the budget is spent and the rationale behind it. The largest line item in the operating budget is for salaries and wages, which has a total of $27,300,000; the second largest line item is for supplies, which is more than $12,600,000. According to Tolzmann et al. (2024), personnel costs have traditionally been the biggest resource allocated for healthcare facilities. Defining each key line item fosters assurance among stakeholders that the budget is correct and transparent, and in line with the priorities of the organization.
Budget Alignment with Organizational Mission
Slide 7:
Ensuring that the proposed budget is aligned with the organization’s mission and goals ensures that stakeholders support the proposed budget and helps to build loyalty of the organization with respect to the proposed budget. The proposed budget for each line item must be consistent with the organization’s written commitment to safety, quality care, and access to care: Research has demonstrated that organizations with budgets aligned to their strategic goals have improved accountability and financial performance (Chenaa et al., 2024). Further, mission-driven budgets ensure that all financial decisions made by the organization take into consideration the organization’s core values and long-term goals.
Slide 8:
Stakeholders’ confidence and trust in an organization’s financial ability will be bolstered by showing how this budget will help support the organization’s objectives. The organization is dedicated to being financially responsible and providing quality services, as seen in the proposed operational revenue of $52 million and controlled growth of expenses in the coming year. In fact, Connor (2023) reported that organizations that apply an evidence base to strategically invest over time have enhanced patient outcomes and financial viability. This budget is, therefore, more specific in helping to produce clinical excellence and the long-range mission of an organization.
Profitability and Organizational Strengths
Slide 9:
As is so clearly demonstrated here, it is the operation of people, programs, or services and what is earned and spent each year (revenue versus expenses) that determines good operating and clinical results. A good example of these is the proposed operating budget for next year (2023) with an anticipated $2,282,500 in “net revenue.” Both indicators reflect the financial status of the organization and indicate an improved level of “business” (financial) stability to operate effectively. van et al. (2023 said that healthcare organizations that continue to make profits on an ongoing basis have enhanced the chances of continuing to invest in programs like workforce development, technology enhancements, and quality of care. Thus, sustained achievements will help any entity to be competitive and deliver high-quality healthcare services.
Profitability and Organizational Weaknesses
Slide 10:
An organization can be highly vulnerable because of financial problems and a lack of budgetary capability, which can adversely affect the overall operational capability in the organization due to their impact on service delivery. The capital budget: there is enormous capital constraint or capital pressure, as the total net projected capital expenses are (297,640,487), thus requiring very deliberate financial and strategic management. In addition, Kaihlanen et al. (2022) said that organizations that have faced a fiscal loss are at a much greater risk of declining services, skills shortage, and loss of long-term competitive advantage. By pinpointing financial gaps promptly and then formalizing the action plan to help provide for those gaps in the future, nurse leaders can help assure that resources will be available in the future of the community.
Effectiveness and Fiscal Sustainability
Slide 11:
The thinking around this proposed budgeting architecture is to deliver long-term financial sustainability (long-term) but not to compromise on the high quality of services to our patients. Within its strategy, Pee Wee Hockey has future income forecasts and ways to cut costs, such as through documentation and best practices, and there’s the data analysis capability for making decisions based on those plans. A systematic way of developing the budget will be used to demonstrate evidence of the organization’s fiscal stewardship by planning for future financials based on projected trends and risk factors as opposed to budgeting based on the trend history of past activity. The literature review has revealed that those organizations that have put in place a strategic budget framework are going on to show long-term sustainability and have improved overall financial viability (Margiutomo et al., 2025). In addition, this will contribute to developing an organization that fulfils its mission as expressed in its mission statement, and enable organizations to build and maintain service development and financial sustainability.
Impact on Patient Care Outcomes
Slide 12:
Being financially sustainable is crucial for the ability of a health care organization to sustain its capacity to provide and continue to improve the outcome of patients’ care. Staffing, medical supplies, and equipment are all crucial and need adequate funding for clinical teams to provide effective and safe care to their patients, who have the need these resources. Lebea et al. (2024) have found that those health care organizations with a proper operating budget have better patient safety measures and better clinical performance outcomes than those health care organizations without an operating budget. This budget mirrors the organization’s dedication to offering resources to help care for patients in accordance with our goal of excellence in clinical care and our dedication to the health of the community.
Staff Wellbeing and Productivity
Slide 13:
The proposed budget framework for 2023 is mainly to facilitate the productivity and well-being of staff. Included in the proposed budget is an amount of $27,300,000 for Salaries/Wages, a sign that the organization is dedicated to achieving its objective to pay its employees fairly and to keep them on board. Speicher and Francis (2022) highlighted that the benefits of investing in the overall well-being of an employee are less employee turnover, boosted initial productivity, and better patient results, meaning that an employer’s focus on the financial well-being of their employees via competitive salaries and/or wages will lead to an improved overall outcome for the organization, thereby contributing to a motivated and dedicated staff.
Inclusive Work Environment and DEI Considerations
Slide 14:
The Racial Equity Action Plan, which devotes a $1.4 million portion of the budget to DEI, will aid in achieving DEI goals, including staff training on cultural competency, equitable compensation and pay systems, and enhancing the context for culturally competent care. Some of the benefits of inclusive workplaces cited by Algumeeyn and Mrayyan (2025) are that it improves cooperation among team members, employee satisfaction and morale, job retention rates, and the quality of patient care due to successful teamwork. Incorporating specific DEI programs into your budgets, therefore, is a sign of an organization’s commitment to building a diverse workforce and providing a supportive and inclusive environment for all members of the community.
Conclusion
Slide 15:
A properly developed strategic budgeting process, participation of stakeholders, and financial management that is in line with the mission of the organization are important for sustaining the organization. The creation of an operating budget and capital budget can reveal how the organization is able to balance the financial responsibility necessary to deliver quality patient care while also guaranteeing that there are investments made in a diversified workforce. The strategic priorities will be put in writing with suitable financial planning, which will help the organization to continue to achieve success over a period of time. Finally, the budget will be a chance for the organization to continue to do its job better, get stronger, and offer quality care to all patients.
References
Algunmeeyn, A., & Mrayyan, M. T. (2025). Nursing leaders’ humble leadership and nursing team performance: Quality and accreditation project success in nursing schools – A qualitative study. British Medical Journal Open, 15(6), e096926. https://doi.org/10.1136/bmjopen-2024-096926
Chenaa, T., Abonwi, Teno, M. N., Roland, N. O., & Manjenpo, T., Robinson. (2024). The Nexus between the budgetary process and financial performance: Evidence from SMEs in Douala – East Asian archive. Go2articles.com. http://authors.go2articles.com/id/eprint/1403/1/Takwa3082024JEMT120114.pdf
Connor, L. (2023). Evidence‐based practice improves patient outcomes and healthcare system return on investment: Findings from a scoping review. Worldviews on Evidence-Based Nursing, 20(1), 6–15. https://doi.org/10.1111/wvn.12621
Ebhota, O. S., Hongxing, Y., & Sampene, A. K. (2024). Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs. Scientific African, e02429. https://doi.org/10.1016/j.sciaf.2024.e02429
Ismail, H. A., Kotp, M. H., Basyouny, H. A. A., Abd Elmoaty, A. E. E., Hendy, A., Ibrahim, R. K., Abdelaliem, S. M. F., Hendy, A., & Aly, M. A. (2025). Empowering nurse leaders: Leveraging financial management practices to foster sustainable healthcare – A mixed-methods study. BioMed Central Nursing, 24(1), 1–12. https://doi.org/10.1186/s12912-025-02981-6
Kaihlanen, A.-M., Virtanen, L., Buchert, U., Safarov, N., Valkonen, P., Hietapakka, L., Hörhammer, I., Kujala, S., Kouvonen, A., & Heponiemi, T. (2022). Towards digital health equity – A qualitative study of the challenges experienced by vulnerable groups in using digital health services in the COVID-19 era. BioMed Central Health Services Research, 22(1). https://doi.org/10.1186/s12913-022-07584-4
Lebea, M. J., Agumba, J. N., & Adebowale, O. J. (2024). Critical success factors in the maintenance strategies of public healthcare facilities. International Journal of Building Pathology and Adaptation, 42(7), 55–75. https://doi.org/10.1108/ijbpa-02-2024-0038
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