Assessment and Leadership Skills Plan
MHA FPX 5012 Assessment 3 Attempt 1 Financial Leadership
Hello all, my name is Srinivasarao Variseri and today I will present my leadership plan for improving the financial strategy and condition of our organization. The current financial leadership planning report will analyze and communicate a leadership plan to address financial gaps within our healthcare organization. Financial targets in organizations are never easy to manage. Leaders are important people who play a crucial role in managing and planning adequate finances of hospitals. In Home Health Agency, financial goals always play a part in influencing leadership preferences. The hospital needs to create internal benchmarks with respect to available financial resources and try hard to maintain a fiscal clinical balance in the organization. In the light of the previously conducted analysis of PEST and SWOT analysis of the hospital, in the financial leadership planning context, this report will identify two vital financial targets for the healthare organization for the nursing department for understanding performance management and enhancement.
MHA FPX 5012 Assessment 3 Attempt 1 Financial Leadership
Financial Targets and Performance Indicators and Measurements
The goal of the organization is to analyze the financial leadership strategies using the information from the SWOT and PEST analysis. According to Cabral and Oram (2019), healthcare finance key performance indicators KPIs include financial and quantitative measures and statistics which can help the hospital’s financial leaders to efficiently plan the financial performance of the organization and set realistic goals (Beitz, 2019). Our nursing department first should enable finance leaders to determine the service lines or the revenue generation areas. Using an observation of these areas, the operational and financial improvement can be made possible. The Key Performance Indicators (KPIs) are used to measure the quality of effectiveness of activities in the financial areas of the nursing department. The organization uses key performance indicators that are derived from the national framework.
Strategic financial planning is the best way for the hospital to ensure that budgets are allocated adequately and the hospital gains long range financial success. The following steps are recommended by () as a part of financial planning goals and targets for Hope Medical Center.
- Formulating a holistic mission and a vision statement
- Create plans in the nursing department which integrate with mission and vision of the organization.
- Evaluate and analyze the external environment of the organization for new opportunities
- Develop a robust plan that resonates with the capital budget
These goals mean that after evaluating the financial performance of the organization, the leaders will analyze the company’s current performance with the past data and develop financial projections. This will help to better assess the financial status of the hospital and will help the leaders to integrate their strategic goals with financial objectives (Cabral, 2019). For achieving these goals, the steps will be taken to ensure an adequate financial planning such as assessing the risks associated with these new opportunities. The financial target is to invest $10 million on the construction of new premises. The major expenses of the organization and the purchase for the year 2022-2023 are expected to be $450 million. To promote education and nursing leadership and financial education, almost $25000 will be invested in the next three months. Moreover, the company also assumes that the assets will pay for themselves by generating more revenues by external funds receipts.
The donors have contributed almost $30 million in the past; therefore, in-patients’ admissions are supposed to be stable at 142, 00 annually. Finally, for the home and community-based services, fewer resources are required with lower costs and operating expenses to balance the budget (Gresh et al., 2021). Setting performance goals according to performance indicators by increasing total revenue by $750, 00 in the next calendar year. The goal of the nursing department is to obtain as much revenue such as 70% from only in-patient visits yearly. The KPI is to reduce the turnover rate of 10% to 3% in the next one year. The computer and the tablets for nurses are set to be 80% available for the nurses.
Gaps in Financial Targets Vs Performance or Goal Attainment
The year-to-date financial performance of the organization is different from the desired goals described in the above section. The provision of nurses with computers and tablets is only 55% that is significantly lower than the set target of 80%. The hospital has a goal of mentoring a newly hired nurse for 60 days that is exceeding to 90 days due to sluggish performance of mentors and lack of focus on training and learning-enhancement exercises. The average time the patient is taking more than 5 minutes to meet a nurse at the time of admission. Instead of $450 million, the major expenses of the organization are going up such as $560 million at the moment. In leadership trainings and investments, the company is under investing such as $15000 instead of $25,000. If the flexible learning programs are introduced through proper trainings and investments, 60% of nurse’s turnover will reduce. This means that the newly hired nurses’ assistants must be provided training instantly. To uncover the expenses of $5 million in one month, the management of Hope Medical Center has given this task to nursing leaders who are asked to recover the lost revenue due to environmental and performance factors. The organization currently hires 360 doctors. This number can increase in the future steadily as there are more patients admitted due to COVID-19 and rising mental health issues. The electronic health records show a gap of $65000 needed to hire and train new doctors and nurses. This data is vital for the teams to reduce their costs and focus on productivity and efficiency. The larger length of stay is also costing the hospital $3 million that also needs to be balanced with enhanced revenues. This gap shows that the hospital is still running and operating on higher costs and there is need for more capital and reducing supply chain and staffing costs. Nurse’s leaders can also bridge these gaps by controlling their department’s operating expenses.
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Leadership Plan for Closing the Identified Gaps for the Department
The previous report also identified nursing leadership gaps in the environment which need adjustment by using self-assessment conducted in the previous analysis. The most important and serious gap in nosing leadership is the lack of motivation to conduct and receive leadership education and training programs in the medical center. According to Lerman (2018), strong leadership qualities in nursing managers are required to maintain a good hospital financial performance. The goal of leadership planning is to improve the skill of leading nurses and executives to improve the work in teams. This implies that the leaders must strive hard to build a culture of collaboration and develop practices to deal more efficiently with the issues of employees (Pedersen, 2018). Moreover, the leadership development plan includes development of mandatory leadership strengths in nursing leaders. This will improve the ability to adapt to change and to meet business objectives of the organization.
The leadership plan included help the nursing leaders to develop ability to adapt to change. The skill ranked by many experts includes managers’ ability to understand their team members. This will help them improve the financial discussions and gain new insights and budget-related ideas from employees. Hence, the most important leadership strategy is to improve skills and attitudes of leaders to invest in the culture. Moreover, technical expertise of leaders is also very crucial to determine innovative and efficient solutions to complex challenges. The strategy includes focusing on resource stewardship that will help to create more patient-focused business professionals. To bridge the financial gaps, the leaders must hire and develop talented people with innovation and critical thinking (Waxman, 2018).
After the improvement and development of these leadership attributes and powers, the nurse managers must use their financial management wits and strategies such as creating a budget first for their department. They should submit the budget quarterly and analyze it with research capabilities. They must also track the vital expenditures and revenues. Moreover, nursing leaders must also forecast and evaluate the staffing needs. Assessing the staff’s needs requires nursing leaders to talk freely and openly with them about any work-related disparities and adjustments. Moreover, another strategy is to help the sharpest minds remain up to date with the knowledge through trainings (Pedersen et al., 2018).
MHA FPX 5012 Assessment 3 Attempt 1 Financial Leadership
Investing in education of nurses comes with a cost described above; however, the end results would be beneficial for the organization and nurses. Finally, nurses must also research the most recent healthcare trends to gain more reputation as a leader in the department. They must develop skills to anticipate industry progressions to control and plan cost-effectiveness of the organization and reduce budget (Lerman, 2018). That will also help to set the strategic direction of the organization. Finally, using Kiosks is a cost-effective way to help the patients avoid visiting the medical center. This can help to deliver the basic patient care and will save costs.
Evidence-Based Strategies for Effective team Leadership to Achieve Financial Goals
The organizational culture and strategic direction are vital to understand for improving leadership and achieving financial goals. The organization aims to go in a positive direction by utilizing green initiatives within the hospital which can lead to cost reduction. This includes upgrading the lighting system of the emergency wards and other areas of the hospital and reducing maintenance costs (Gresh et al., 2021). Moreover, team-based rewards and incentives are more important such as profit sharing or providing monthly bonuses to teams for improving financial performance. The rewards can also include a host of things such as offering free seminars to employees and junior nurses, providing them access to latest software to collaborate with their seniors and stakeholders. Improving the overall culture will also include motivating teams with the improved leadership skills and styles.
MHA FPX 5012 Assessment 3 Attempt 1 Financial Leadership
For instance, the evidence by the study done by Cabral (2019) shows that transformational leadership style becomes the most effective style that demonstrates passion, empathy, faith, innovation, team building, and risk taking. The team building skills involve managing and leading and building cohesive teams which create a bond and form strong relationships to avoid toxicity and high costs. These leadership skills will result in high levels of patient satisfaction to raise the financial performance of the hospital. This will raise the profit margin of the firm to at least 30% by fostering leadership qualities by making smart decisions. Moreover, leadership skills in nursing leaders will allow them to face challenges to improve operational efficiencies to ensure lower costs (Beitz, 2019). Applied in a consistent manner in the nursing department to plan budgets and improve teamwork, non-labor costs will also reduce with better optimization of staffing and financial resources. This will allow the organization to reduce gaps in its financial goals and actual YTD performance by incorporating nursing leadership skills.
References
Beitz, J. M. (2019). The perioperative succession crisis: A cross-sectional study of clinical realities and strategies for academic nursing. Nursing Economics, 37(4), 179-197.
Cabral, A., Oram, C., & Allum, S. (2019). Developing nursing leadership talent—Views from the NHS nursing leadership for south‐east England. Journal of Nursing Management, 27(1), 75-83.
Gresh, A., LaFave, S., Thamilselvan, V., Batchelder, A., Mermer, J., Jacques, K., … & Warren, N. (2021). Service learning in public health nursing education: How COVID‐19 accelerated community‐academic partnership. Public Health Nursing, 38(2), 248-257.
MHA FPX 5012 Assessment 3 Attempt 1 Financial Leadership
Lerman, C., & Jameson, J. L. (2018). Leadership development in medicine. The New England journal of medicine, 378(20), 1862.
Pedersen, A., Sorensen, J., Babcock, T., Bradley, M., Donaldson, N., Donnelly, J. E., & Edgar, W. (2018). A nursing leadership immersion program: succession planning using social capital. JONA: The Journal of Nursing Administration, 48(3), 168-174.
Waxman, K. T., & Massawa, L. J. (2018). Talking the talk: financial skills for nurse leaders. Nurse leader, 16(2), 101-106.
