You are the unit manager of a 50-bed, step-down unit, and it is time for you to prepare your annual capital budget. You have seen a significant turnover in your nursing staff in the past three years; a review of exit interviews and patient surveys indicates low nurse satisfaction, poor morale, and complaints of an antiquated and depressing work environment. You have researched the impact of a positive working environment on staff productivity and morale and decided to request a renovation of the nurses’ lounge as the main purchase in your capital budget. You will present your request as a quality improvement investment.

QUESTION

You are the unit manager of a 50-bed, step-down unit, and it is time for you to prepare your annual capital budget. You have seen a significant turnover in your nursing staff in the past three years; a review of exit interviews and patient surveys indicates low nurse satisfaction, poor morale, and complaints of an antiquated and depressing work environment. You have researched the impact of a positive working environment on staff productivity and morale and decided to request a renovation of the nurses’ lounge as the main purchase in your capital budget. You will present your request as a quality improvement investment.

Prepare a capital budget for a facility renovation. Assemble your budget figures in a table, using a format of your choice. You may use either Microsoft Word or Excel to create your budget tAable.

Note: You may use the budget in the Vila Health: Preparing a Capital Budget multimedia exercise from the Resources as an example of how you might format your table. You may also use a budget format used in your organization or a format you find in any of the course resources or on the Internet.

Describe the capital acquisition.
Justify the need for the capital acquisition.
Prepare the capital budget.
Describe the process for calculating costs.
Present a plan for budget management.
Explain how the capital acquisition will affect the financial health of the organization.
Present budget data and information clearly and accurately.
Integrate relevant and credible sources of evidence to support your budget data and information

ANSWER

Annual Capital Budget for Nurses’ Lounge Renovation

Introduction

As the unit manager of a 50-bed, step-down unit, I have identified the need for a facility renovation to improve the working environment and address the low nurse satisfaction and morale within the unit. Through extensive research, it has been established that a positive working environment significantly enhances staff productivity and morale. This capital budget request aims to allocate resources for the renovation of the nurses’ lounge, which will contribute to improving the overall quality of care and creating a more uplifting and supportive atmosphere for the nursing staff.

Capital Acquisition

The capital acquisition for this budget is the renovation of the nurses’ lounge. This project involves remodeling and upgrading the existing lounge to create a comfortable, modern, and functional space that promotes relaxation, socialization, and rejuvenation for the nursing staff.

 Justification for the Capital Acquisition

Staff Satisfaction and Morale: The current outdated and depressing work environment has led to low nurse satisfaction and poor morale. Renovating the nurses’ lounge will demonstrate the organization’s commitment to improving working conditions, ultimately enhancing staff satisfaction and morale.

Retention and Recruitment: The turnover in nursing staff over the past three years has been significant. A renovated nurses’ lounge will not only help retain current nurses but also attract new talent, as a positive working environment is a crucial factor for nurses when considering employment opportunities (Hu et al., 2022).

Patient Experience: Nurses’ satisfaction directly affects patient care. By providing a rejuvenating and uplifting lounge, nurses will experience reduced stress levels, leading to improved patient interactions and enhanced overall patient experience.

Capital Budget

| Item                      | Description                            | Estimated Cost ($) |

|—————————|—————————————-|——————–|

| Renovation Materials      | Flooring, lighting, paint, furnishings | $15,000            |

| Furniture and Fixtures    | Comfortable seating, tables, cabinets  | $10,000            |

| Appliances and Equipment  | Refrigerator, microwave, coffee maker  | $5,000             |

| Audiovisual Enhancements  | Television, sound system                | $5,000             |

| Total Estimated Cost      |                                        | $35,000            |

Process for Calculating Costs

The estimated costs for the capital budget have been calculated based on thorough market research, obtaining quotations from vendors, and considering the specific requirements for the nurses’ lounge renovation (Themes, 2016). The costs are inclusive of materials, labor, installation, and any necessary permits or licenses.

Plan for Budget Management

Approval Process: The capital budget request will be presented to the senior management team for review and approval.

Project Management: A project manager will be assigned to oversee the renovation, ensuring adherence to timelines, quality standards, and budget constraints.

Cost Monitoring: Regular financial reports will be generated to track the actual expenses against the budgeted amounts (Watt, 2014). Any significant deviations or unexpected costs will be promptly communicated to the senior management team for appropriate action.

Documentation: All financial transactions, invoices, and receipts will be accurately recorded and maintained for auditing purposes.

Impact on Financial Health

The capital acquisition of renovating the nurses’ lounge will positively impact the financial health of the organization in the following ways:

Staff Retention: By creating a positive work environment, the organization will experience improved nurse retention rates, reducing recruitment and training costs associated with high turnover.

Recruitment: A modern and appealing nurses’ lounge will aid in attracting skilled nurses, reducing the time and expenses required for recruitment.

 Staff Productivity: Enhanced staff morale and satisfaction will lead to increased productivity, optimizing the utilization of nursing resources and potentially reducing overtime costs.

Patient Satisfaction: Improved nurse morale and engagement will positively impact the quality of patient care, leading to higher patient satisfaction scores and potential financial incentives.

Conclusion

The renovation of the nurses’ lounge is a crucial investment to address the low nurse satisfaction, poor morale, and antiquated work environment within the step-down unit. By allocating resources for this capital acquisition, the organization demonstrates its commitment to improving staff well-being, which ultimately enhances the quality of patient care and the financial health of the organization.

References

Hu, H., Wang, C., Lan, Y., & Wu, X. (2022). Nurses’ turnover intention, hope and career identity: the mediating role of job satisfaction. BMC Nursing, 21(1). https://doi.org/10.1186/s12912-022-00821-5 

Themes, U. (2016, August 7). Budgeting, productivity, and costing out nursing. Nurse Key. https://nursekey.com/budgeting-productivity-and-costing-out-nursing/ 

Watt, A. (2014, August 14). 12. Budget planning. Pressbooks. https://opentextbc.ca/projectmanagement/chapter/chapter-12-budget-planning-project-management/