Historically, nursing management played a limited role in determining resource allocation in healthcare institutions. Nurse managers were given budgets without any rationale and were not allowed input. During the last 20 years, healthcare organizations have grown to recognize the importance of nursing input in fiscal planning, and unit managers are now expected to be well versed in financial matters.
Unit managers play a critical role in forecasting trends in census and activity and supply and equipment needs at the unit level because they are involved in daily operations and see firsthand the unit’s functioning. Forecasting involves making an educated budget estimate using data from the past to enhance judgment. The unit manager also can best monitor and evaluate all aspects of a unit’s budget control. The unit manager also has a responsibility to communicate budgetary planning goals to staff just as they do other types of planning.