With healthcare organizations now focusing on efficient and effective patient care, business management is essential for their success and long-term sustainability. When healthcare professionals have sound knowledge and understanding of business management, they can apply business management principles and practices to healthcare settings. That, in turn, can help healthcare facilities to succeed and pave the way for career success, especially if you are a qualified and licensed nurse.
According to the National Health Expenditure Estimate summary report for 2021-30, the national health spending will be around $6.8 trillion by 2030. At the same time, it is important to note that the Affordable Care Act (ACA) has changed the way doctors and healthcare facilities deliver care. The ACA has incentivized care, so healthcare providers who fall within the Accountable Care Organizations have to now focus on quality care rather than volumes. As a result, patients look for high-quality care along with exceptional service and positive health outcomes at an affordable cost.
The role of business management in healthcare organizations
You may be wondering how business management can help healthcare organizations. Well, here are a few ways:
Manage budgets and financial resources
Business management teaches you how to manage budgets and financial resources effectively so that you can allocate funds to different departments based on their needs. It also enables the healthcare organization to undertake initiatives by budgeting for them.
When you have the knowledge of business management to back you up, you can focus on effective spenditure management. That ensures financial resources are distributed efficiently to support optimal patient care, invest in necessary equipment and technology, and maintain the financial stability of the healthcare organization.
Streamline procurement
Healthcare organizations require a lot of supplies, such as PPE, gloves, equipment, medication, and more. Hence, they need vendors who can ensure timely and cost-effective delivery. Business management helps you to negotiate contracts with vendors, standardize procurement processes, and implement an inventory management system.
When you streamline procurement, it becomes more efficient, allowing the organization to control costs, maintain adequate inventory to ensure high-quality care, and reduce waste.
Develop organizational strategies
While healthcare organizations provide patient care, they must also be aware of market strengths, analyze their strengths and weaknesses, and find opportunities to grow. That enables healthcare facilities to sustain even in a competitive market.
You can use your business management skills and knowledge to align organizational strategies with the changing healthcare landscape. That allows you and other decision-makers to make informed decisions. It helps in the long-term sustainability of the organization.
Set measurable goals
Even healthcare facilities have strategic goals. For instance, they may want to improve patient outcomes, boost operational efficiency, or increase patient satisfaction. But how can these facilities determine that they are meeting their goals? That is where business management comes into the picture.
It allows healthcare organizations to establish clear and precise objectives that are measurable. They can track the progress of these goals and make informed decisions to ensure the organizations meet the objectives. This drives continuous improvement.
Implement quality management systems
When it comes to the delivery of care, healthcare organizations need a system to monitor and improve the delivery of care. You can use business management skills to implement a quality management system. Here, you need to set up quality assurance processes, conduct regular audits, and implement evidence-based practices to ensure high-quality patient care.
When you have a quality management system in place, it promotes a culture of continuous improvement. As a result, healthcare organizations can increase patient safety, optimize clinical outcomes, and comply with industry standards and regulations.
Enhance operational efficiency
To be sustainable in the long term, healthcare facilities must focus on operational efficiency. Business management enables them to identify bottlenecks, streamline workflows, and optimize the usage of resources.
They can use process improvement initiatives, like Six Sigma or Lean. This can help healthcare organizations reduce waste, minimize patient wait times, and improve overall efficiency in the delivery of patient care.
Adhere to legal guidelines
Healthcare organizations have a lot of sensitive patient data. Hence, they need to ensure they comply with the legal guidelines regarding patient privacy, billing, and coding practices. In addition, these organizations need to adhere to healthcare accreditation standards and ethical codes of conduct.
Business management can help healthcare facilities comply with legal and ethical requirements. This helps to build trust with patients and protect their reputation as they can mitigate possible risks. Since many healthcare organizations have adopted technology, business management can help them implement robust data protection measures and train staff across the board on privacy protocols.
Improve patient experience
As strange as it may sound, business management can assist healthcare facilities in improving patient experience. It allows them to implement systems and processes that ensure seamless communication not just within teams but also with patients and their families. They can share information promptly and effectively, and when the need arises, they can address concerns without delay.
More importantly, it allows healthcare organizations to provide patient-centered care. This personalization leads to greater trust and satisfaction. Also, when processes and operations are optimized, it leads to reduced waiting times and improved access to care. Business management enables healthcare facilities to implement effective and efficient scheduling systems, manage patient flow, and optimize resource allocation.
High-quality care and patient outcomes
Business management focuses on the standardization of processes and protocols. As a result, this ensures that the delivery of care is always consistent and of high quality. When healthcare facilities use evidence-based guidelines and protocols and adopt the best practices, they can standardize diagnoses, treatments, and patient management. This reduces errors and improves the quality and safety of healthcare. It also helps to address healthcare disparities that may exist within the organizations.
Facilities can monitor and measure healthcare outcomes to identify areas that need improvement. They can use performance metrics, data analysis, and quality improvement initiatives. These enable healthcare organizations to pinpoint gaps in care delivery and track patient outcomes. They can use insights and data to implement targeted interventions to reduce readmission rates, manage chronic diseases better, and ensure higher patient satisfaction.
Higher staff satisfaction
The US is facing a major shortfall in healthcare workers. Data suggests that the country requires around 450,000 nurses and 120,000 doctors. When there is a shortage of healthcare workers in an organization, it affects the quality of care. Hence, healthcare facilities must retain their existing staff. To ensure nurses, doctors, and allied healthcare workers stay on, organizations need to improve employee satisfaction.
Using the principles of business management, healthcare organizations can provide clear organizational goals and expectations to staff. When employees know and understand the organization’s mission, vision, and strategic objectives, they are more likely to align their work and efforts with them. Here, effective communication plays a role as healthcare organizations need to convey their goals and expectations without ambiguity. This gives healthcare workers a sense of direction and purpose, leading to more employee engagement and satisfaction. Furthermore, business management can create a positive work environment by promoting open communication, teamwork, and mutual respect. Employees who have a positive working experience with their supervisors and team members feel engaged and satisfied in their work.
Understand the importance of professional development
Whether a healthcare organization or a for-profit organization, business management recognizes the importance of giving staff members opportunities for professional development. So, healthcare organizations can offer training programs, workshops, and continuing education opportunities. This enables healthcare employees to enhance their knowledge and skills. These opportunities demonstrate the organization’s commitment to employee growth and development. That leads to higher job satisfaction among healthcare workers.
Also, it is vital that healthcare facilities provide career advancement prospects for employees. These can be in the form of promotions or specialized roles. Business management enables organizations to have career advancement opportunities in each department. Doing this fosters a sense of loyalty and commitment among employees and enhances their levels of job satisfaction as they know they have opportunities to advance.
How can you develop business acumen as a nurse?
As you can see, business management can help healthcare organizations significantly. However, you should not feel that business management is just for managers. Even as a nurse, you can develop your business management expertise to play a role in shaping the healthcare organization you work in. Here are some ways to go about it.
The best way to learn and understand the nuances of business management is by enrolling in a Master of Business Administration degree program. The benefits of an MBA for nurses include expanding your skill set beyond clinical expertise and taking up leadership roles in healthcare management. When you have the knowledge and skills in finance, operations management, and strategic planning, you can make a meaningful contribution to a healthcare organization. You can become a director of nursing, a nurse manager, or assume an executive position within the organization.
Finding an MBA designed specifically for nurses is relatively easy. Spring Arbor University offers a dual program that allows you to earn MBA and MSN degrees simultaneously. The MSN/MBA program at the university is designed for working nurses, and that ensures it will not affect your work or personal life. It is online, and you can earn both degrees in about 2.5 years. The MBA part of the program ensures you receive specialized business training so that you can take senior leadership roles and have the knowledge to address the financial and organizational challenges that modern healthcare organizations face. The Master of Science in Nursing hones your clinical nursing skills and gives you an in-depth understanding of nursing administration.
Armed with dual degrees, you will have the right skills and knowledge to contribute to the overall success of the healthcare organization. At the same time, it will help you advance your career.
Importance of developing business expertise to boost your nursing career
If you are still wondering why you should choose the dual degree program, here are some reasons you should consider.
As mentioned earlier, having an MBA as a nurse ensures that you have broad skill sets that are not limited to clinical knowledge. This enhances your employability and opens up many career opportunities within healthcare management and administration. The MSN component allows you to understand the nitty-gritty of nursing administration. This knowledge helps you when you are working towards improved patient care and higher operational efficiency.
You can better understand the healthcare system and its organizational dynamics. You can work to align the delivery of care with the strategic goals and objectives of the organization. That will enable the organization to provide high-quality care and ensure optimal patient satisfaction.
Since you have already worked as a nurse, you understand the pain points of nurses. Business management helps you understand a healthcare organization’s business operations and financial implications. You also learn how policies influence the nursing staff. With this knowledge, you emphasize the importance and value of nursing and how it can help the healthcare organization meet its goals. This advocacy will allow you to ensure that the nursing department has adequate resources for better patient care, improved nurse-patient ratios, and greater recognition of the contributions of nurses in care delivery.
Furthermore, you will be able to analyze data and evaluable performance metrics. This will enable you to identify areas for improvement, monitor outcomes and make better decisions to enhance operational efficiency and patient care. You can make data-driven decisions for the success of the healthcare organization.
In today’s healthcare landscape, business management is essential, and healthcare facilities cannot ignore its importance. It can improve patient care and boost staff satisfaction. Being adept in business management as a nurse enables you to succeed in leadership roles. It also allows you to make a meaningful impact in the healthcare industry.
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