Impact of Nursing Decisions on Financing of Healthcare

¶ … Nursing Decision on Financing Healthcare

The need to implement programs to improve the services provided by the nurses to their clients, forces the nursing organization to implement proper health promotion activity. One of the major health promotion activities required by the nursing fraternity is yearly training. The need for yearly training arises because of the consistent rising needs of the patient. Most of the other health care disciplines have worked towards having to improve their educational standards to meet the emerging trends in the contemporary world. Training is an important human resource practice, which helps in improving the skills of the employees in their work field (Balke, 2006). The need for training calls for appropriate budgeting for the yearly training, to ensure that there are unnecessary losses.

Fixed expenses

These refer to the expenses, which the organization cannot modify, once incurred. They include training providers' fee, travel and accommodation fee and training material costs.

Fixed expenses cost

Training providers' fee

Travel and accommodation

Training material cost

Variable expenses

These refer to the expenses that the nursing organization can modify, through changing the production rate. The variable expenses for the training include wage to the participants, replacement of staff cost, and the administrative costs. For instance, reducing the wage to the participants can help in reducing the cost of production.

Variable expenses cost

Wage to the participants

Replacement of staff cost

Administrative cost

Controllable expenses

These refer to the expenses that the health organization has the ability to change in the course of the production process. Some of the controllable expenses regarding training of the nurses include transportation cost, utility cost and labor cost.

Controllable expense cost

Transportation cost

Utility cost

Labor cost

Unrecoverable expenses

These refer to the expenses that the organization cannot reverse once incurred. The unrecoverable expenses for nurse training include labor cost, rents, transportation cost.

Unrecoverable expense cost

Labor cost

Rent

Transportation cost

Cost benefit analysis costs cost discount factor present value of costs pv cost benefits discount present value costs pv cost

PV Benefits + costs fixed expenses training providers fee

0.25

75

0.25

80

25

travel and accomodation

0.25

50

0.25

25

-125

training material cost

0.25

0.25

75

-125

Variable expenses

0

Wages to the participants