Discussion: Making the Case for Capital BudgetExpendituresAs a nurse, you are probably veryaware of and can speak to the emotional reasons behind the need for certainmajor expenditures such as a new nurse’s lounge or replacing the currentpatient information system with a new digital system. You would love to seeyour nurses have a comfortable area where they can rejuvenate from a stressfulday with patients. Alternatively, nurses carrying around PDAs would certainlyease the recording and transmission of vital patient information. However, as anurse manager you need to be able to support those emotional appeals withreliable financial data. Having a place to refresh will help nurses be moreefficient, and could reduce sick days and nurse errors. Being able to quicklyaccess doctor’s orders and previous nurse’s comments allows for a more timelyresponse to patients. As your responsibilities expand, you may find yourself atthe table when decisions about capital expenditures are being debated. It istherefore to your advantage to understand the workings of a capital budget.In this Discussion, you consider theimpact of both financial and emotional factors in making a capital budgetdecision,To prepare:Review the information on capital budgets in thisweek’s Learning Resources.Consider why it is important for nurse managers tounderstand the capital budget of an organization. How are capital budgetsused in your own organization (or one with which you are familiar)?Reflect on the importance of thinking strategicallywhen developing this type of budget.Identify a new piece of equipment you would like to seepurchased by the organization. Consider how knowledge of capital budgetingcould influence your approach to making the request.Develop strategies for demonstrating the need for thiscapital expenditure that take into account both financial and emotionalconsiderations.ByDay 3Post an analysis of why it is important for nurse managers tounderstand principles of capital budgeting. Describe a costly new piece ofequipment you would like your organization (or one with which you are familiar)to purchase. Explain strategies for demonstrating the need for this equipmentto decision makers. Briefly outline how you could use financial data andemotional appeals to demonstrate the benefits of this purchase.
