Question 1

Business Plan Development

Part 1

The main purpose of the heath facility is to provide the public with health services. Since it’s a public good, the government needs to ensure that the citizens get the best services by putting in place the best facilities in the health centre. It thus should be a concern of the government to fund the dementia service facility to be put in place. The health centre needs to prepare a business plan showing the benefits of the facility and the expenses as well as the exact amount of money expected to be used. This will be presented to the government for financing. The local people and environment in general is also very relevant in this. Local citizens will be required to support the project; therefore, as a way of making them feel part of the project the management should make efforts to explain to them the purpose of the project and also convince them and make them understand the benefits the facility will have. In this way the public will offer any help required since they know they are the ones to benefit in the long run (Marquis and Huston, 2009).

Part 2

The documents and data needed are the population statistics, nation’s revenue and the statistics of people suffering from the disease.  Dementia being mostly associated with the elderly, it is necessary to have the demographic information of the area population. This will help to have a clear picture of the elderly and young population in the area. The population statistics in general is also required so that the number of people living in the area is known. It should be noted that the nation’s revenue is divided according to the population and thus with the population details the manager can be able to convince the government on the facility importance. Another important needed data is the statistics of people who are having the dementia problem and the death rate as a result of the dementia problem. This will make one to come up with an objective of the additional facility, for instance, to stop or reduce the deaths associated with dementia. It should be noted that currently more than 300,000 people are living with dementia. This number is expected to rise, especially if nothing is going to be implemented in terms coming up with facilities to cater for the same. It is known as the third disease causing deaths in Australia. The disease also causes disability. All these show how important services facilities are for dealing with dementia.

The number of nurses require in the new facility will mainly depend on the dementia cases expected. It is approximated that in the area of operation five cases of dementia are reported weekly. It should also be noted that patients with the problem of dementia need close monitoring all the time and thus more nurses are required in the facility. Dementia also causes disability and thus the patients are not in a position to take themselves to the washrooms; therefore, there is the need for more nurses. For instance, it would be recommended that the nurse-to-patient ratio should be 2:1 for better services to the patients (Morton, 2007).

As said above the patients with dementia problem will need more attention since the disease can even cause disability. The nurses, therefore, need to be aware of that. The nurses are expected to have at least some exposure with people of such conditions so as to enable them be in a position to attend the patients. Communication skills are also very crucial for the nurses since they need to talk to the patients. The nurses’ education level should also be recognized in the country and the nurses should have some experience gained in other places with patients of dementia as said earlier. The manager should also consider employing a specialist in the area of dementia. This has to be put in place since the nurses cannot treat the patients. The specialists need to have the required education level, past experience and records (Hogan, 2007).

Question 2

Cost Centre Budget Development

The main aim of any business or institution is to achieve its goals and objectives. The manager needs to ensure that the health facility has achieved its goals and objectives as in the business plan. The manager also needs to ensure that the budget in the business plan is not exceeded. The manager will do this by preparing or developing a cost centre budget for specific area of responsibility. This will be used to compare the planned revenues and the actual revenues used. The manager will, therefore, know whether there was overspending or not and thus take the necessary steps. The manager will ensure that the organization is moving towards the planned destination and at the end, it will achieve its goals and objectives as in the business plan (Gordon, 2004).

Part 2

Flexible budgeting is where the firm makes comparisons with what has been achieved so far but not what exactly was planned. For instance, if a firm expected to produce 20,000 units and it produces 30,000 instead, then the firm will work with the 30,000 units. The flexible budgeting technique allows changes and alterations in the management and this makes the firm to find the way forward for itself rather than forcing it to move in a direction that is not possible. Zero-based budgeting is where the budget is prepared again from scratch in each and every financial period. This is of great advantage to the firm since not all the financial periods are the same and thus efficiency is achieved. However, it is characterized by the problem of time. It is time consuming as compared to other budgeting techniques. Output based budgeting technique is where the budget is prepared on the basis of the output expected. This budgeting technique is preferred especially in Australia, because the organizations goals are achieved in most cases. In the development of the new facility of the dementia services provision, the manager needs to use the output based budgeting. The manager needs to know the number of nurses needed and the services to be offered to the patients, (Willis, Reynolds, and Keleher, 2009).

Reason for the budget technique choice

The output based budget technique fits the project since the manager already knows the number of patients the facility will be serving at once and also the number of beds to be in the facility. With the number of staffs, the expectations of the patients and the community as well as the government the manager can come up with the budget (Courtney, 1997).

Various expenditures will be needed for the facility of the dementia services to be put in place and for it to be operational. One and the most major is the construction expenditure. In this the building materials and the labour expenditures must be included. This can be funded by the government through the tax revenues. The construction should meet the required standards and the choice of the contractor should be made wisely. Consequently, this will maximize quality and minimize the cost. The second main area of the expenditure is equipment expenditure. The facility will require to be installed with the advanced necessary equipment for it to start operating, (AIHW, 2009).

Facilities and equipment include beds and other furniture as well as the other facilities needed to enhance provision of services in the facility. The third expenditure is the labour expenditure. The manager needs to put aside and plan for the employees’ remuneration, especially the new employees to be hired in the dementia facility and the amount of salary to be paid to each employee. The time period of their contact should also be considered in the budget. Provision for commissions and the motivation of employees should also be considered when coming up with the budgets. This way the firm will not have a budget deficit (Finkler, 2007).

As discussed above, the major costs in the development of the project will be the construction expenditure, the equipment costs and the labour costs. The three will be considered in the budget calculations and if the funds are not allocated carefully then the whole project may fail and thus keenness is needed in the allocation, (Hogan, Clark, McCann, 2004).

Question 3

Sample Salaries and Wages Budget

The salaries and wages given below are on monthly basis.

Nurse Manager - $7500

Nurse Manager is expected to have a high salary, therefore, he/she will have full time employment and thus he/she does not get additional income. The nurse also needs to be motivated to do his/her job and thus the high salary will do that. The high salary will make the nurse financially satisfied, appreciated and thus the services he/she will offer will be of high quality. The nurse will also not be tempted to steal since he/she is financially satisfied. He/she will work as if the organization was his/her own and this will help to the organization to achieve its goals and objectives, (Briggs, Courtney, Cormack, smith and Sadler 2004).

Education and Quality Improvement - $6000

The salary is lower than that of the manager since he/she is reporting to the manager. The department is very sensitive having in mind that they are dealing with the health and lives of human beings. It is thus very important to guarantee that quality is ensured. The salary will act as a motivation and consequently, the quality of services will be high. It should also be noted that creativity is required in the area and thus motivation should be there, (Royal College of Nursing 2009). 

Salaries and wages budget

category

salary

Registered Nurses

 $800 (A total of $4000 for the five nurses) per month

Enrolled Nurses

 $500 (A total of $1000 for the 2 enrolled nurses) per month

Assistant in Nursing

 $400 dollars per month

$800 (A total of $4000 for the five nurses) per month

Explaining the salary

The work done by the nurses is not easy especially with the dementia patients and thus they need to be appreciated. However, it is important to consider the resources available and the budget constraints. This thus gives the best wage that can be given to the registered nurses. The nurses also have lower salaries as compared to the top management since they are on rotating basis thus they do not have much workload and they are assisting one another, (Aged Care in Victoria 2010).

$500 (A total of $1000 for the 2 enrolled nurses) per month

Explaining the salary

The salary is lower than that of registered nurses since they are going to be working on shifts unlike the other registered nurses. They, however, need to be motivated and thus the salary is only relatively low but not very low as compared to the registered nurses (Day, 2004).

Assistant in Nursing - $400 dollars per month

Explaining the salary

The assistant is getting a lower salary than the other nurses since his/her work is only to assist or replace a nurse if not present on a particular day. He/she is also working from Monday to Friday and this explains the low salary. He/she is expected to do less work in comparison to the other nurses. Since he/she has some free time the assistant nurse can have other sources of income and this also explains the low salary, (Australia Department of Health and Ageing. 2008).

Conclusion

If the new facility of the dementia services with proper budgeting start functioning in place, then it is going to be of great importance to the country and the people living in the area. The health facility as a whole will expand and there will be creation of employment inform of nurses, contractors and casual workers. The manager of the general health organization should ensure that the budgeting techniques and the business planning are efficiently done. Time constraint should be put in consideration in all the process of coming up with the facility. In future, the manager should even consider expanding the facility and increasing the number of beds in the dementia facility. This is due to the rise in numbers of people with dementia problem in the country and also rise in deaths of people in the country from the same problem. The project may not show results immediately since it will take a lot of time to construct and to install the required equipment but it will have long term positive effects to the society and the country as a whole where the citizens with the problem of dementia will be the beneficiaries (Beechy, 2007).

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