nsg 205 power point

8/8/2019 NSG 205 Power Point

1/65

Strategic Planning andbudget concepts for Patient

Care

www.company.com

Wilfredo P. Laberinto II, RN

Masterand


2/65

www.company.com

Objectives

Described the importance of anorganizations mission and philosophy

and the impact of these on the structureand behavior of the organization.

Define the purpose and identify the stepsin the strategic planning process.


3/65

www.company.com

Be able to articulate the importance ofaligning the organizations strategicvision both with the goals and values of

the communities served by the

organization.

Have the basic understanding ofcommon organizational structures and a

framework for examining the purposeand the advantages and the

disadvantages of each


4/65

www.company.com

Provide an overview of the budget

concepts for Patient care process

including

Budget development

Implementation

PerformanceBudget approval and

monitoring

Evaluation


5/65

www.company.com

Mission

Expression of the purpose or reasonfor existence of the organization.

Declaration of its primary driving forceor its vision.

A Mission statement

tells the fundamental purpose of the

organization. It defines the customerand the critical processes. It informs

you of the desired level of performance


6/65

www.company.com

VISION

Desired or intended future state of an

organization or enterprise in terms of its

fundamental objective and/or strategic

direction.

A Vision statement outlines what theorganization wants to be, or how it

wants the world in which it operates to

be. It concentrates on the future. It is a

source of inspiration. It provides clear

decision-making criteria.


7/65

www.company.com

Philosophy

Embedded in the mission statement.

It is the principles and beliefs that directthe organizations behavior.


8/65

www.company.com

Values

May be formally stated and explicit, ormay be implicit and part of the

organizational culture

Its is always become part of theorganizational cultures.

Norms , traditions


9/65

www.company.com

Strategic Planning

Sum total or outcome of the processes byan organization.

Provides unified vision and goals for theorganization

Helps ensure that the needed resourcesare available to carry out initiatives


10/65

www.company.com

Purpose of Strategic Planning

It is important that everyone has the sameidea or vision for where the organization is

headed.

A good plan can help to ensure that theneeded resources are available to carry out

the initiatives that have been identified as

important to the unit

A clear plan allows the manager to selectamong seemingly equal alternatives


11/65

Steps in

Strategic Planning Process


12/65

www.company.com

Step 1

Environmental Assessment

A situational assessment requiring a broadview of the organizations current

environment

An external assessmentAttempts to view trends and future issues and

needs that could impact the organization

An internal assessment Seeks to inventory the organizations assets

and liabilities


13/65

www.company.com

SWOT Analysis

Tool for conducting environmentalassessments

Identifies both strengths and weaknesses inthe internal environment and opportunities

and threats in the external environment


14/65

www.company.com

S - Strength

Those things that you do well, the high

value or performance points

It can be tangible:

Loyal customers

Efficient distribution channelsVery high quality products

Excellent financial condition


15/65


16/65

www.company.com

W - Weakness

Those things that prevent you from doing

what you really need to do

Since it is internal, they are within yourcontrol it includes:

Bad leadership, Unskilled workforce, Insufficient resources, Poor product quality, Slow distribution and delivery channels, Outdated technologies, Lack of planning.


17/65

www.company.com

O - Opportunity

Potential areas for growth and higher

performance

External in nature marketplace,

unhappy customers with competitors,better economic conditions, more open

trading policies,

Internal opportunities should beclassified as Strengths

Timing may be important forcapitalizing on opportunities


18/65

www.company.com

T - Threat

Challenges confronting the organization,

external in nature

It can take a wide range bad presscoverage, shifts in consumer behavior,substitute products, new regulations, . . .

Useful to classify or assign probabilitiesto threats

More accurate in identifying threats, thebetter position you are for dealing with

the sudden ripples of change


19/65

www.company.com

Step 2

Community and stakeholder

assessment

Stakeholder person, group, ororganization that has vested interest in

the program or project under review.

Stakeholder Assessment a systematicconsideration off all potential

stakeholders to ensure that the needsof each of these stakeholders are

incorporated in the planning phase.


20/65

Other Methods of

assessment


21/65

www.company.com

Survey and questionnaires

used when there is a large number of

stakeholders and there is a general idea

of options available.


22/65

www.company.com

Focus group interview

A group of individuals selected because

of their common characteristics.

They respond to question about a topic in

which they are expected to have interest

or expertise.


23/65

www.company.com

Advisory Board

Selected from various constituencies

affected by a proposed program.

They dont have formal authority over the

program, but it is instrumental in reviewing

the planned program and making

recommendations and suggestions.


24/65

www.company.com

Step 3

Reviews on Literature to Identified

program

Completed prior to strategic planning or

beginning any new project or program,

Allow to identify similar programs, theirstructures and organization, potentialproblems and pitfalls success.

To have an understanding of themethods and strategies identified in the

literature.

Searching of best practices and bestevidence of how to conduct a program.


25/65

www.company.com

Step 4Relationship of Strategic planning to the

organizations Planning the organizations

Mission

It must be examined with an eye to thepurpose or mission of the organization.

Sometimes organization gets intotrouble when they move too far afield of

their core mission,


26/65

www.company.com

Each new project needs to be evaluatedon light of its congruence with the main

mission that has been identified.

New projects should be in line with themission, Otherwise, there is a risk that

the new programs will drain energy from

the main mission.


27/65

www.company.com

Step 5

Planning Goals and Objectives

Once identified, they need to beprioritized according to:

a.Strategic Importanceb.Resource requiredc.Time and effort involved

d.Time line should be set.


28/65

www.company.com

Step 6

Developing a Marketing Plan

Communicated to all involvedconstituencies.

-When planning to implement a newinformation system to ensure that itremains competitive in the market.

If there has not been adequate thoughtto communication across the

organization about the project, there is;

Less chance of success

Greatest risk of poor cooperation.


29/65

www.company.com

Key factors that influences patient care

is the

Cost involved in the delivery ofservice

Resources- people

Equipments

Time


30/65

www.company.com

The challenges in health care are;

Ensure that the quality of care

Caliber of the staff should not becompromised


31/65

www.company.com

Final Step

Evaluation


32/65

www.company.com

BUDGET

- Income generated as compared to the

expenses needed to deliver the services

offered.

- Connection between operational planningand allocation of resources.

Profit Is determined by the

relationship of income to expenses,

profitability result when the income is

higher than the expenses.


33/65

Types of Budget


34/65

www.company.com

A. Operational Budget

Accounts for the income and expenses

associated with day by day activity within

a department or organization.

A financial tool that outlines anticipated

revenue and expenses over a specific

period.


35/65

www.company.com

Accounting

A process which is an activity that

managers engage in to record and report

financial transaction and data, assist withbudget documentation.


36/65

www.company.com

Revenue generation

is based on billable services and

expenses associated with the;

Equipments Supplies Staffing

Other indirect cost


37/65

www.company.com

Revenue came from;

Number of patients stay

Number of hour spent for a procedure

Types of procedure delivered to the

patient


38/65

www.company.com

B. Capital Budget

Accounts for purchase of major new or

replacement equipment.

Equipments is purchased when newtechnology becomes available

When older equipment needs to beupdated

Growing maintenance of equipmentsbecause of age-related factors.


39/65

www.company.com

Capital purchase

are based upon the equipment costand the life expectancy

(Also known as shelf life).

How long the equipments is expected

to perform over time.


40/65

www.company.com

C. Construction Budget

It is developed when renovation ornew structures are planned for

improvements of facilities and services

offered.Generally include;

Labor

Materials Building permits Inspections Equipments needed


41/65

www.company.com

Budget Preparation

Before beginning of the budget year most

organization devote approximately

6 months to preparing and developing

its budget allocation.


42/65

Fundamental elements that

influences budget allocation


43/65

www.company.com

Demographic Information

It identifies unique market

characteristics such as the following

Age,

Sex Race Income

Behavior


44/65

www.company.com

Competitive Analysis

It probes into how the competition is

performing as compared to other

health care organization.

Location New or existing services

Technology Examines other hospitals or practices ,strength and weaknesses


45/65


46/65

www.company.com

Regulatory Influences

Changes are influenced by several

governing bodies.

Play a role in reimbursement byensuring states law are adhered tothrough approval and accreditation.

A government agency that ensure; Health care security for beneficiariesAdminister Federal control Quality assurance Fraud and abuse prevention


47/65

www.company.com

Strategic Plans

That map out the direction for theorganization over several years.

Clearly defined steps to meet thegoals


48/65

www.company.com

Scope of Services and Goals

It is important to examine theindividual department thoroughly

It is helpful because it providesinformation related to the types ofservice and the sites at which services

are offered like;

Usual treatment procedures

Hours of operation

Types of patient/customer groups.


49/65

www.company.com

Goals may includes;

New technology or treatment Patient education

Special patient care environment Training of new service to beimplement to technical staff member


50/65


51/65

BUDGET DEVELOPMENT


52/65

www.company.com

Revenue

Is income generated through a variety of

means like;

Billable patients services

Laboratory Drug therapy Physical therapy Surgical procedures

In patients units

Investment Donation to the organization Third Party payer


53/65

www.company.com

Third Party payer

Private Health Insurances another form of payment shouldered by

agencies who covers payment for room,

board, test and therapy during apredetermined length of hospital stay.

Public health Insurance Like PHILHEALTH shoulder a portion of

amount to be paid by the patient.


54/65

www.company.com

A. Direct expenses

Expenses direct associated with the

patient, such as ;

Medical and surgical supplies Medicine/drugs.


55/65

www.company.com

B. Indirect expenses

For items such as ;

Gas,

Electricity

Phone lines.

They are not directly related to patient

care


56/65

www.company.com

Fixed Cost

Constant and not related to productivity

or volume such as;

Cost of building Equipments depreciation,

Utilities

Administrative salaries.


57/65

www.company.com

Variable Cost

Fluctuate depending upon the;

Volume or Patients census

Types of care required.


58/65

www.company.com

Supplies

Purchased in bulk and sold inquantity.

Expenses of the items has to becalculated and backed out of the bulk

figure to accurately depict the expense


59/65

www.company.com

Labor

Expense associated with;

Medical Care

Nursing Care.

It includes salaries and benefits itaccounts for 50% to 60% of operational

cost.


60/65

www.company.com

Staffing

The amount of staff and types of staff

are often accounted for.


61/65

www.company.com

Unproductive time

it is also calculated in the budget

because there has to be a staff coverage

when nurses or other staff members are

not working. It includes Sick leave Vacation leave Holidays Continuous education/ Trainings


62/65

BUDGET APPROVAL AND

MONITORING


63/65

www.company.com

Once developed, Budget aresubmitted to administration for review

and final approval. The approval process may take

several months as the unit budgets

are combined to determine the overall

budget for the health careorganization.

Senior management oftenrepresenting finance and operations

makes the final decision regarding

acceptance of budget


64/65

www.company.com

The purpose of monitoring is to ensurethat the revenue is generated consistent

with projected productivity andstandards.

If volumes decreased and the expensesincrease then thats the time manager

needs to determine actions arenecessary to bring the cost down.

The entire health care team isresponsible for ensuring that the

expenses are kept within the budgeted

amount and that the volume or census

is maintained.


65/65

End of Presentation

Thank You

nsg 205 power point

Documents