The nurse manager needs to buy six new hospital beds for the unit. What type of budget will be used for this expenditure?

Appeared in: AIIMS Jodhpur SNO-2023

Explanation

the Capital budget, which is designated for purchasing major, long-term assets.
Hospital beds are considered capital assets because they are expensive, have a useful life of more than one year, and represent a significant investment for the healthcare facility.
This type of expenditure is planned and budgeted for separately from routine, daily operational costs.
Source SRC_2 explicitly states that capital budgeting includes the purchase of durable goods like 'bedding'.

Option B: The revenue budget deals with forecasting income and cash inflows from patient services and other sources. It is not used for expenditures or purchasing assets.
Option C: The operating budget covers short-term, day-to-day expenses like disposable supplies, utilities, and minor equipment. Hospital beds are a major, long-term asset, not a daily operational cost.
Option D: The salary budget is a specific part of the operating budget allocated for paying employee wages, benefits, and overtime. It is not used for purchasing equipment.

Visual 1: Flowchart - A flowchart illustrating the different types of budgets in a healthcare organization (Master, Operating, Capital, Revenue) and the categories of expenses or income that fall under each.
Visual 2: Diagram - A diagram comparing the Capital Budget and Operating Budget side-by-side, highlighting key differences in purpose, timeframe, and examples of items covered.

Clinical Relevance

Nursing practice connection: Knowing Healthcare Budgeting: Capital vs. Operating Budgets helps nurses interpret findings accurately and avoid errors in routine assessment, medication administration, and patient teaching.
Nurse managers must understand different budget types to effectively manage their units, advocate for necessary resources, and ensure quality patient care.
Knowing the difference between capital and operating budgets allows a nurse manager to follow the correct procedure for requesting new equipment (like beds) versus daily supplies.
This knowledge is crucial for long-term planning and ensuring the unit is well-equipped to meet patient needs, directly impacting patient safety and quality of care.

How to Approach the Question

First, identify the item being purchased in the question: 'six new hospital beds'.
Next, analyze the nature of this item. Are hospital beds a short-term, consumable supply or a long-term, expensive piece of equipment?
Recognize that hospital beds are a major investment with a long lifespan (many years).
Recall the definitions of the different budget types provided in the options.
Match the nature of the purchase (major, long-term asset) with the correct budget definition. The capital budget is specifically for such purchases.
Eliminate the other options: operating (for daily supplies), revenue (for income), and salary (for wages).

Concept Tested & Keywords

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