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EXECUTIVE SUMMARY
Nurse leaders control the largest part of a hospital labor budget, in some cases the largest part of the overall budget.
The effectiveness of overseeing this responsibility can mean the difference between an organization's financial stability and financial turmoil.
The nursing department at Northwestern Memorial Hospital took ownership of its financial performance.
Over the past 2 years, their financial performance saved $4.9 million in productivity while reducing nurses turnover costs by $7.6 million.
Valuable lessons from their experience are offered for improving health care's financial and operational outlook.
THE CALL FOR DEEPER understanding of finance among nurse leaders has been long and loud and for good reason. Nurse leaders control the largest part of a hospital labor budget, in some cases the largest part of the overall budget. The effectiveness of overseeing this responsibility can mean the difference between an organization's financial stability and financial turmoil. And yet, nurse leaders and managers well-versed in finance seems to be more the exception than the rule. Why is this so elusive for so many? How can such a fundamental part of the role of a nurse leader be so underdeveloped? There could be many reasons but whatever they may be, today's environment, more than ever before, is demanding nurse leaders be competent financial and business leaders as well.
Thoughts on Reasons for the Gap Between Nursing and Finance
* The role of the nurse leader has evolved to require greater business and financial skills.
* Nursing's ownership, or lack thereof, of financial performance.
* How well or not our education systems prepare nurses to become part of leadership in business, the business of health care.
* How we orient and educate nurses as they are promoted into positions with greater business responsibilities.
* The conflict some nurses feel between being a caregiver and patient advocate with embracing the business and money side of care delivery.
* Nurses not understanding the language of finance.
* Finance not understanding the role and realities of nursing.
* Retrospective reporting of business analytics, decreasing value, and relevance.
* Surely there are more...
So how do we shift this situation? The answers must be multifaceted as today's nurse leaders can support, but not wait for, longer-term solutions. For example,...