Overview
You are the Chief Nursing Executive at Community Regional Medical Center, a 300-bed nonprofit hospital. Due to decreases in reimbursement rates from major payers over the past two years, the hospital is facing a projected $8 million budget shortfall for the upcoming fiscal year. As the leader of the largest department in the hospital, comprising over 50% of staff, the CEO has asked you to develop a cost reduction plan to cut $2 million from your operating budget without negatively impacting patient care and outcomes.
When developing your plan, keep in mind that 60% of your expenses come from staff salaries and benefits. The remaining expenses include medical supplies, services, equipment leasing, education/training, travel, and other smaller categories. Your department’s total operating budget this past fiscal year was $45 million.
Based on this case study, develop a new budget [using the provided template] Download [using the provided template]write a 3-4-page paper addressing the following questions:
- What process would you undertake to determine cost-saving measures? Who would you engage and collaborate with?
- Identify at least five specific initiatives or areas where expenses could potentially be reduced in your department while preserving staff jobs.
- Choose one of those initiatives and describe the implementation plan, including timelines, those responsible, resources needed, and how outcomes will be measured or evaluated.
- Describe how you would communicate these cost reductions to your nursing staff. What strategies would you use to gain buy-in?
Submission
- Budget Table Template w/ memo style justification of changes
- APA7th ed. Microsoft Word Paper with Title and Reference page.
Refer to the rubric for details on how this assignment will be graded.