Economic and financial concepts seem to dwell in the distant realm of business. Committed medical staff care more about their patients than the numbers. How can these strategies help nurse leaders to develop their healthcare systems?
Applying economic concepts to nursing increases a medical team’s effectiveness. Nurse leaders learn to apply their skills to prevent overspending and inefficient resource allocation. Effective executives must cater to the needs of every nurse and patient under their care.
Nurse leader training programs hone students’ medical management abilities. Patient satisfaction metrics will improve. Management of resources and budget becomes second nature.
Nurses thinking about an executive position may be curious about their training options. This guide will help to clarify the value of professional development. In the following, specific economic and financial concepts are elucidated, outlining potential advantages for individuals pursuing a medical career.
Utilize Cost-Benefit Analysis
Cost-benefit analysis is the process of checking what a purchase costs relative to its potential benefits. It can help prevent unnecessary expenditures. The analysis applies a critical eye to proposals before committing to them to ensure a positive return on investment (ROI).
Imagine considering the purchase of new equipment for a health center. One step is to evaluate how essential this purchase is and whether it is of immediate importance. Can it wait until the next budget?
Cost-effectiveness works in tandem with cost-benefit analysis. Managers often review two or three alternatives to see which has the best cost-to-benefit ratio. Cost-utility analysis is similar, but it focuses on the usefulness of a purchase. This could be a practical application, an increase in efficiency or an improvement in patient experience.
Cost-benefit analysis can be difficult to implement. Not all goals are easily quantified, and prospective nurse leaders need to undertake training before using this method. A CCNE-accredited Nursing Executive Degree, such as the one offered by Baylor University, enables nurses to develop medical management skills.
Baylor’s online executive nursing program covers all the modules needed to be an effective leader: resource attainment and allocation, economic and financial concepts, and maintenance of professional environments. The program’s 100% online coursework lets nurses maintain a healthy work-life balance while completing their studies.
Tighten Budget and Resource Allocation
The 2023 National Health Expenditures (NHEs) report states that health spending is likely to exceed gross domestic product (GDP) by 19.6% by 2030. Increased costs mean that patients may expect higher service quality, and medical centers need to adapt to cater to this increased demand. Nurse leaders in executive training learn to evaluate their budgets, ensuring that every cent paid is accounted for and beneficial.
A nursing executive degree teaches nurses to manage their teams with greater efficiency. Graduates gain the knowledge to maintain medical capital, cut costs, and monitor all income and expenditure. A nursing executive degree teaches medical professionals to budget, predict and manage expenses.
Nursing executives set specific goals relative to their available capital. This links back to cost-benefit analysis, but budget design depends on approval and monitoring over the fiscal year. Nursing executives must collect data, plan services, plan projects, and implement and monitor progress.
To do this effectively, practicing nurses need to develop skills in financial analysis. Collected data can be vast: services, patient/case mix, pay mix, acuity indexes, care standards and care hours. It is essential to check historical data to compare current progress to prior periods.
Resource allocation requires similar skills and conscientiousness. Nurse leaders must know where their staff, equipment and resources are at all times. This ensures that all patients have care when they need it. Missed care cases are minimized or eliminated.
Strategize Workforce Management
Becker’s Hospital Review states that the cost of each nurse turnover in 2022 increased by 13.5% from 2021. The data was first published in the NSI National Health Care Retention & RN Staffing report. It took input from 273 hospitals in 35 states.
The NSI report also states that nurse turnover decreased by 4.6% to 22.5% in 2022. While this is positive news, the potential cost of staff resignations remains a risk. Nursing executives must manage their teams effectively to ensure that their staff feel comfortable in their roles.
The time to train new staff is of equal importance to the monetary investment. In times of high inpatient numbers, limited resources can put a strain on nursing teams. Executive training will help leaders to cater to the needs of their nurses and keep morale high in the team.
Nurse leaders also learn how to initiate strategic staff transfers. Nurses may be better able to help patients in a different department. Internal transfers are more cost-effective than fully retraining and ensure that all nurses under managerial care get full support.
Monitor Patient Satisfaction
Studying for a nursing degree enables practitioners to anticipate patient needs with greater acuity. They learn how to monitor and adapt to demands before issues arise. Quantification of patient services helps nurses keep track of essential metrics: wait times, diagnostic reports, quality of care, patient-staff communication, billing and treatment processes.
The National Council of State Boards of Nursing (NCSBN) regulates the industry and handles complaints. After studying, nurse leaders will have the knowledge to protect staff from potential issues, ensuring that every patient receives the care they deserve.
Satisfied patients reflect on the energy of the entire nursing team. Staff feel more secure in their roles. Their motivation is boosted by positive feedback from patients. Nursing management training makes it possible to reach this goal.
Nurse Leaders Help Their Teams Achieve Success
Studying as a nursing executive is the fast track to progression in healthcare. Flexible study means that students can continue to work while applying new knowledge to their practices.
Like all commitments, forethought is required before applying for a course. However, the benefits that graduates experience far outweigh the investment. After completion of executive training, nurses can help their teams progress while giving patients the best experience possible.
