UNIT-X FINANCIAL MANAGEMENT- planning, audit, .pptx

Description

UNIT X – FINANCIAL MANAGEMENT

Subject: Nursing Management & Leadership
Semester: VI
Author: Mr. Pradeep Abothu, PhD Scholar, Dept. of Child Health Nursing, ASRAM College of Nursing

Inside the Unit:

Definition, Objectives, Elements, Functions, Principles & Scope of Financial Management

Financial planning (budgeting for nursing department)

Proposal for staff, equipment, and supplies for hospital, patient care, and emergency/disaster units

Financial audit

Introduction

Financial management ensures proper planning, organizing, and controlling of financial resources in healthcare institutions. It promotes cost containment, efficient fund use, and better organizational performance to enhance service delivery.

Definitions

Planning, organizing, directing, and controlling financial activities for organizational goals.

Application of general management principles to financial resources – Howard & Upton

Raising and utilizing financial resources effectively – S.N. Maheshwari

Objectives of Financial Management

Ensure adequate funds for smooth functioning

Optimal utilization of resources

Maintain financial stability

Maximize profitability

Support organizational goals

Elements of Financial Management

Cash Flow Management: Track inflow/outflow to meet salaries, purchases, and operations.

Risk Management: Identify and minimize potential financial losses.

Debt Management: Plan and control borrowed funds responsibly.

Asset Management: Maintain and utilize assets efficiently.

Functions of Financial Management

Financial planning

Acquisition of funds

Investment of funds

Financial control (budgets, audits, statements)

Profit maximization

Ensuring liquidity

Risk management

Principles of Financial Management

Consistency, Accountability, Transparency, Viability

Risk-Return Balance, Simplicity, Control, Flexibility

Economy, Future Orientation

Scope of Financial Management

Investment decisions: Allocation for maximum returns

Working capital: Day-to-day cash, inventory, receivables

Dividend decisions: Profits reinvestment or distribution

Liquidity assurance

Profit management

Financing decisions: Loans, donations, grants, retained earnings

Financial Planning (Budgeting for Nursing Department)

Purpose:

Efficient resource utilization

Adequate staff, supplies, and equipment

Planning & control of activities

Reduce wastage

Promote accountability

Steps in Budgeting:

Assess needs (staff, equipment, supplies)

Forecast costs (salaries, training, consumables, maintenance)

Prepare budget proposal (fixed & variable costs)

Approval by administration/finance

Implementation and communication to staff

Monitoring & evaluation (compare actual vs planned expenses)

Factors Affecting Budget:

Patient census & acuity

Staffing & salaries

Cost of supplies/equipment

Hospital policies & financial constraints

Government regulations

Emergencies/pandemics

Role of Nurse:

Participate in budgeting & proposals

Maintain supply/staff records

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