Business acumen

Business acumen, including financial management skills, is a key competency for nurse leaders, and a primary
responsibility for many is the development and management of operating and capital budgets.
For this assessment, you will speak with a leader of your choice who has experience with creating and managing
budgets, learn about that person’s approach to budget management, and consider techniques or strategies you
may emulate when you create and manage budgets.
Nurse leaders must be well-versed in the fundamentals of health care economics. A firm understanding of these
concepts is essential in order to examine national trends and diverse health care organizations. At the organizational
level, health care economics operate in a manner very similar to other competitive industries and businesses.
Within any organization, regardless of size, nurse leaders must understand the purpose and complexity of building a
solid budget. Nurse leaders must be able to recognize the organizational or unit goals and then be adept and
competent in the planning, designing, and defending a budget to meet those needs.
Note: Complete the assessments in this course in the order in which they are presented.
Preparation
You are the nurse manager of a new urgent care clinic, and one of your first tasks is to prepare next year’s operating
budget. Like many nurses, you have had little or no direct experience with the budgeting process and realize that
financial management is not one of your strengths as a leader. Consequently, you have decided that you need to
reach out for help from someone in the facility with budgeting experience and financial management expertise who
can offer you help and insight.
As you prepare to complete this assessment, you may want to think about other related issues to deepen your
understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them
with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that
these questions are for your own development and exploration and do not need to be completed or submitted as
part of your assessment.
Capital and operating budgets each play a major role in the financial expenditures of nursing units.
What is the purpose of each type of budget?
How does managing these two types of budgets differ?
What financial management techniques are common to both types?
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Reflect on your experience with either type of budget.
How have one or the other of these two budgets affected the provision of care in your organization or unit?