1. Discuss with the nurse executive/mentor in your practicum how various costs are managed.
2. What happens when personnel costs exceed the operating budget for the year?

Solution:

Management of Healthcare Costs

In a healthcare setup, managing healthcare costs constitute a fundamental avenue through which healthcare operations are enhanced and improved. According to Daniels (2016), a healthcare setup that effectively manages its costs has a greater potential of realizing care efficiency and optimal allocation of resources. A healthcare setting comprises several costs including labor, costs related to poor patient workflow, and costs of employed physicians among others relevant costs. Labor costs encompass one of the healthcare overheads, which are managed by ascertaining labor expectations to determine the precise staff level, needed. Besides, labor costs necessitate the healthcare organization to adjust its staffing levels and correspondingly dividing the prevailing labor costs by the institution’s available units. The poor patient workflow cost is another critical cost evident in a healthcare setting…….Please click the icon below to purchase full solution at $5