Assignment Topic: Basic Financial Concepts to Evaluate Healthcare Performance Purpose

The purpose of this assignment is to gain experience applying the concepts of capacity, utilization, performance, and other financial indicators, as well as basic budget concepts, to healthcare (or academic) work units.

Discuss three examples of expenses in your Healthcare organization's operational budget.

Provide two examples of capital budget items in your healthcare organization, and how the capital expenses may constrain the budget

Cite source citations and give in-text citations and references.

Other Resources that can support this assignment are below.

American Nurses Association. (n.d.). Financial management skills for nurse managers. ANA Enterprise. Retrieved October 18, 2025, from https://www.nursingworld.org/content- hub/resources/nursing-leadership/nursing-financial-management/ An overview of the nurse manager's guide to budgeting and finance, 2nd edition (operating and capital budget) American Organization of Nurse Executives (AONE) executive competencies Emergency department boarding and crowding Elaborates further on the challenges with ED boarding Key indicators affecting hospital efficiency: A systematic review Efficiency is an indicator metric. Massive growth in expenses and rising inflation fuel continued financial challenges for America's hospitals and health systems An article that discusses some of the concepts more broadly. Value analysis and nursing leadership: Powerful collaboration in the new financial paradigm: Incorporates the nurse leader perspective. How US health systems can build capacity to handle demand surges. Discusses opportunities and challenges An overview of hospital capacity planning and optimization. Healthcare Financing Overview for Nursing. (40-minute YouTube presentation]. Value analysis and nursing leadership: Powerful collaboration in the new financial paradigm (healthcare value analysis with revenues and expenses and a staffing example, and a supply utilization example) Meeting the measurements of inpatient staffing productivity. (monitoring a budget, key performance indicators, including equivalent patient volume or units of service, hours per patient day (HPPD), salaries per patient day, supplies per patient day, and FTEs used to provide care) Creating a culture of financially savvy nurse leaders (Finance core competencies of nurse managers, including unit of health service (UOS), average daily census (ADC), full-time equivalent (FTE), average length of stay (ALOS), hours per patient day (HPPD), cost per unit of service (CPUOS), and productivity, what nurse managers have control over, and do not have little control over). Do you speak finance? (Budget, revenue, costs, market share, payor mix, and staffing) Talking the talk: Financial skills for nurse leaders. (The nursing process with financial management AND includes discussion of various financial concepts. Budgets). Taking action to close the nursing-finance gap. Learning from success. (Cooperative ownership of healthcare financial performance). The bottom line: Financial management skills for nurse leaders. (Measuring organizational performance, reading income statements, balance sheets, statement of cash flows, planning and monitoring a budget, analyzing the budget, and variances from budget targets)