nsg 205 power point
TRANSCRIPT
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Strategic Planning andbudget concepts for Patient
Care
www.company.com
Wilfredo P. Laberinto II, RN
Masterand
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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.
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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
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Provide an overview of the budget
concepts for Patient care process
including
Budget development
Implementation
PerformanceBudget approval and
monitoring
Evaluation
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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
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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.
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Philosophy
Embedded in the mission statement.
It is the principles and beliefs that directthe organizations behavior.
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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
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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
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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
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Steps in
Strategic Planning Process
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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
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SWOT Analysis
Tool for conducting environmentalassessments
Identifies both strengths and weaknesses inthe internal environment and opportunities
and threats in the external environment
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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
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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.
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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
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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
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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.
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Other Methods of
assessment
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Survey and questionnaires
used when there is a large number of
stakeholders and there is a general idea
of options available.
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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.
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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.
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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.
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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,
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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.
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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.
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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.
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Key factors that influences patient care
is the
Cost involved in the delivery ofservice
Resources- people
Equipments
Time
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The challenges in health care are;
Ensure that the quality of care
Caliber of the staff should not becompromised
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Final Step
Evaluation
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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.
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Types of Budget
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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.
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Accounting
A process which is an activity that
managers engage in to record and report
financial transaction and data, assist withbudget documentation.
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Revenue generation
is based on billable services and
expenses associated with the;
Equipments Supplies Staffing
Other indirect cost
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Revenue came from;
Number of patients stay
Number of hour spent for a procedure
Types of procedure delivered to the
patient
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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.
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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.
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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
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Budget Preparation
Before beginning of the budget year most
organization devote approximately
6 months to preparing and developing
its budget allocation.
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Fundamental elements that
influences budget allocation
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Demographic Information
It identifies unique market
characteristics such as the following
Age,
Sex Race Income
Behavior
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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
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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
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Strategic Plans
That map out the direction for theorganization over several years.
Clearly defined steps to meet thegoals
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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.
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Goals may includes;
New technology or treatment Patient education
Special patient care environment Training of new service to beimplement to technical staff member
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BUDGET DEVELOPMENT
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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
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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.
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A. Direct expenses
Expenses direct associated with the
patient, such as ;
Medical and surgical supplies Medicine/drugs.
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B. Indirect expenses
For items such as ;
Gas,
Electricity
Phone lines.
They are not directly related to patient
care
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Fixed Cost
Constant and not related to productivity
or volume such as;
Cost of building Equipments depreciation,
Utilities
Administrative salaries.
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Variable Cost
Fluctuate depending upon the;
Volume or Patients census
Types of care required.
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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
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Labor
Expense associated with;
Medical Care
Nursing Care.
It includes salaries and benefits itaccounts for 50% to 60% of operational
cost.
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Staffing
The amount of staff and types of staff
are often accounted for.
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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
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BUDGET APPROVAL AND
MONITORING
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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
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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.
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End of Presentation
Thank You