NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Name
Capella university
NURS-FPX 6216 Advanced Finance and Operations Management
Prof. Name
Date
Preparing and Managing a Capital Budget
Capital acquisition plays a crucial role in enhancing an organization’s infrastructure and operational efficiency. It involves the procurement of significant tangible assets, such as real estate, machinery, and renovations, to promote long-term growth and productivity (Ployhart, 2021). At St. Anthony Medical Center, the renovation of the nurse lounge aims to create a more comfortable and functional space for nurses to relax and recharge. This project is expected to have financial and operational impacts, with assessments focused on costs, benefits, and long-term savings. Additionally, the initiative is designed to enhance nurse well-being, leading to improved patient care and staff retention.
Definition of Capital Acquisition
Capital acquisition refers to the investment in essential infrastructure to enhance workplace functionality and efficiency. The renovation project at St. Anthony Medical Center will focus on upgrading the nurse lounge, which currently lacks adequate seating, modern amenities, and a relaxing environment. The updated lounge will include comfortable furniture, coffee stations, snack dispensers, and designated quiet areas to create a peaceful atmosphere (Ployhart, 2021). Additional features such as phone charging stations, personal lockers, improved air circulation, and soundproofing will contribute to a more restorative space for nurses.
The project will be executed in three main phases. The first two months will be dedicated to planning, material selection, and securing necessary approvals. The following three months will involve construction, including structural enhancements and furniture installation. The final month will focus on quality checks and minor adjustments before the lounge is fully operational. This investment is expected to improve nurse satisfaction, reduce burnout, and enhance patient care quality. The hospital leadership, architects, and contractors will collaborate to ensure the project is completed on time and within budget.
Justification of the Need for Capital Acquisition
Renovating the nurse lounge at St. Anthony Medical Center is a strategic investment aligned with the hospital’s mission of delivering high-quality patient care while prioritizing nurse well-being. Nursing is a demanding profession, both physically and emotionally, necessitating a supportive environment for staff recovery and relaxation (St. Anthony Medical Center, n.d). A well-designed lounge can contribute to reduced stress, lower nurse turnover rates, and improved job satisfaction. These outcomes, in turn, enhance patient care quality, decrease absenteeism, and minimize the financial burden associated with recruiting and training new nurses.
While some may argue that funds should be allocated to medical equipment or larger treatment areas, research indicates that a well-supported nursing workforce directly correlates with improved patient outcomes (Roth et al., 2022). A comfortable and well-equipped break area enables nurses to perform their duties more effectively, reducing medical errors and enhancing overall hospital efficiency. The renovation project is not merely about comfort but about fostering a healthier and more productive work environment for both nurses and patients.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Budget Allocation for Assets
| Item | Quantity | Costs (USD) |
|---|---|---|
| Lounge Furniture (Chairs, Sofas, Tables) | 10 sets | $25,000 |
| Lockers for Personal Storage | 20 units | $10,000 |
| Kitchenette (Microwave, Refrigerator, Coffee Maker) | 1 set | $8,500 |
| Flooring Replacement | 1,000 sq. ft. | $15,000 |
| Wall Paint & Aesthetic Enhancements | 2,000 sq. ft. | $7,500 |
| Lighting Fixtures (LED, Ambient) | 15 units | $5,000 |
| HVAC System Upgrade | 1 unit | $12,000 |
| Noise Reduction Panels | 500 sq. ft. | $6,500 |
| Smart TV & Entertainment System | 2 units | $4,500 |
| Wi-Fi & Charging Stations | 5 stations | $3,500 |
| Contingency Fund (10% of Total) | N/A | $9,500 |
| Total Capital Cost | N/A | $107,000 |
Budget Allocation for Project Activities
| Activity | Costs (USD) |
|---|---|
| Contractor & Labor Fees | $20,000 |
| Design & Consulting Fees | $7,000 |
| Permits & Compliance Fees | $3,500 |
| Cleaning & Post-Renovation Setup | $2,500 |
| Total Activities Cost | $33,000 |
Overall Capital Budget Summary
| Category | Cost (USD) |
|---|---|
| Assets | $107,000 |
| Activities | $33,000 |
| Grand Total | $140,000 |
Budget Management and Financial Planning
Managing a capital budget requires careful planning and strategic resource allocation to ensure financial stability and project success. The budgeting process involves identifying necessary assets, evaluating cost-effectiveness, and securing funds through hospital financing, grants, or donations (Serrano, 2023). Cost estimations rely on vendor quotes, market comparisons, and consultations with financial experts to maintain accuracy and compliance with budget constraints.
Uncertainties such as fluctuating material costs, labor shortages, and unexpected delays may affect the budget. To mitigate these risks, contingency funds are allocated, and financial tracking tools, such as You Need a Budget (YNAB), are utilized to monitor expenses and prevent budget overruns (Agarwal & Ann, 2024). Regular financial reviews, stakeholder consultations, and transparent reporting ensure that financial adjustments align with the project’s objectives while maintaining fiscal responsibility.
Impact on Hospital Financial Health
The capital acquisition for renovating the nurse lounge will have both immediate and long-term financial implications. Initially, the hospital will experience significant expenses related to construction, equipment, and labor. However, the long-term benefits—such as improved nurse satisfaction, reduced turnover rates, and lower recruitment costs—are expected to generate a positive return on investment (ROI) (Roth et al., 2022). Well-rested nurses contribute to better patient outcomes, fewer medical errors, and enhanced operational efficiency.
Cost recovery depends on factors such as staff retention, decreased absenteeism, and long-term operational efficiencies. While some financial benefits will emerge within the first few years, full cost recovery may take longer due to depreciation and ongoing maintenance needs (Xie et al., 2022). Careful financial planning and strategic cost management will be essential in ensuring that the hospital maximizes its investment in the nurse lounge renovation.
Conclusion
Renovating the nurse lounge at St. Anthony Medical Center is a strategic decision that will enhance nurse well-being, improve job satisfaction, and elevate patient care quality. Although the project requires a substantial upfront investment, its long-term benefits outweigh the costs. By prioritizing the health and comfort of nursing staff, the hospital fosters a more productive and efficient work environment, leading to financial sustainability and improved healthcare outcomes.
References
Agarwal, S., & Ann, T. C. (2024). Personal finance applications of fintech. Emerald Publishing Limited EBooks, 235–248. https://doi.org/10.1108/978-1-83753-608-520241029
Nunden, N., Abbana, S., Marimuthu, F., & Sentoo, N. (2022). An assessment of management skills on capital budgeting planning and practices: Evidence from the small and medium enterprise sector. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2136481
Ployhart, R. E. (2021). Resources for what? Understanding performance in the resource-based view and strategic human capital resource literatures. Journal of Management, 47(7), 014920632110031. https://doi.org/10.1177/01492063211003137
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Roth, C., Wensing, M., Breckner, A., Mahler, C., Krug, K., & Berger, S. (2022). Keeping nurses in nursing: A qualitative study of German nurses’ perceptions of push and pull factors to leave or stay in the profession. BMC Nursing, 21(1). https://doi.org/10.1186/s12912-022-00822-4
Serrano, W. (2023). Smart or intelligent assets or infrastructure: Technology with a purpose. Buildings, 13(1), 131. https://doi.org/10.3390/buildings13010131
St. Anthony Medical Center. (n.d.). Our mission – St. Anthony Regional Hospital. www.stanthonyhospital.org. https://www.stanthonyhospital.org/about-us/our-mission/
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Xie, W., Deng, B., Yin, Y., Lv, X., & Deng, Z. (2022). Critical factors influencing cost overrun in construction projects: A fuzzy synthetic evaluation. Buildings, 12(11), 2028. https://doi.org/10.3390/buildings12112028