Stressed Out By Your Budget? Let’s Reframe the Budget From Stressor to Most Valuable Tool
Are you a nurse leader who gets stressed by your budget? You are not alone. The unique position of a nurse leader combines business management with clinical expertise. Often, nurse leaders are as uncomfortable incorporating financial and operational strategies into patient care as visiting a new country一the language is new, the culture is different, and the landscape is unfamiliar.
Nursing leadership requires understanding the financial and business aspects of healthcare and then translating this knowledge into decisions surrounding the delivery of exemplary care. Over 80% of nurse leaders report feeling unprepared for the financial demands of the role. The movement to transformational leadership allows nurse leaders to engage their team in creating goals and participating in the decision-making process. With staffing decisions and resource allocation being top stressors for both nurse leaders and frontline staff, following these steps can lead to the successful launch of initiatives that incorporates the voice of all staff, engaging them and making a positive impact in staff satisfaction and retention. Transformational leadership has been directly linked to improved patient safety and satisfaction outcomes, a universal goal of nursing leadership and healthcare organizations.
To reduce stress related to business finances, nurse leaders must seek finance education that is customized, relevant and so much more valuable than “on-the-job training.” Financial education and knowledge provide nurse leaders with the opportunity to reframe stressors associated with budgets and ensure success in the following areas:
1. Increase financial literacy for nurse leaders.
The first step to financial literacy is a self-assessment. There are several self-assessment tools, such as the American College of Healthcare Executives (ACHE) Competencies Assessment Tool. This tool measures financial and operational abilities in addition to other managerial competencies. Once you identify your (and your teams) gap in financial literacy seek out training and education customized for nursing and healthcare. We recommend programs taught by executive nurse leaders who have walked in your shoes, speak a common language and teach from a place of shared and lived challenges & experiences.
2. Reduce the turnover rates of both nurse leaders and nurses.
The transactional style of leadership in healthcare has been shown to be less effective in retaining and engaging front line staff. A transformational leader creates a teamwork culture, engages all members, and is transparent about budgets and needs. It’s important to foster a culture that is focused on a shared responsibility to meet financial goals. Transparency regarding the details of budgeting with staff members fosters an understanding of finances, develops camaraderie, and builds trust and respect. This type of communication, shared understanding, and teamwork supports improved efficiency and healthier work environments.
3. Connect the nurse staffing budget to patient outcomes.
Research studies have demonstrated that increased nurse staffing is directly related to fewer patient care errors, lowers the risk of falls and other hospital-acquired conditions, and ultimately leads to increased reimbursement rates. Availability of increased number of competently trained staff has also been shown to increase both patient and nurse satisfaction outcomes.
Nurse leaders must arm themselves with this research, customize to their organizations own data, and clearly articulate the link between staffing and patient, family and staff outcomes. The data will be compelling and the story powerful. Budgeting effectively is so much more than numbers on a report.
4. Reduce conflict and focus on the patients.
Decreased stress surrounding the budget allows for optimal communication between nurse leaders and c-suite executives. Increased financial literacy enables leaders to feel confident when partnering with the Chief Financial Officer and other financial leaders. It is the nurse leader’s role to advocate for resources needed to deliver exemplary patient care while simultaneously practicing good financial stewardship. When nurse leaders have higher levels of financial acumen the ability to advocate for financial resources is less stressful and partnerships with financial colleagues are less confrontational. When armed with financial literacy and the ability to connect the “patient care dots” the story is compelling, and the nurse leader becomes more influential.
Nurse leaders must realize that organizational budgets should not be feared, but are a tool and vehicle to:
Nurse leaders must take a lead role in healthcare’s post pandemic financial recovery. To do so, nurse leaders must identify and address financial knowledge gaps and implement best practice strategies as outlined in this blog. Nurse leaders are well positioned to fulfill the global call to action to lead and transform healthcare.
Lori Armstrong DNP, RN NEA-BC
CEO & Chief Clinical Officer
Interested in learning more about the cost and business of healthcare? Check out Inspire Nurse Leader’s video/course here.
