The budget directorate refers to those responsible for planning and developing the budgeting of health organizations in their different sections. Therefore, they will be responsible for determining the resources needed, requesting reports on the different areas that justify them, analyzing expenditures, addressing new sources of resources, negotiating with providers, etc.
In Spain, budget management is an area outside of nursing management. However, it becomes fundamental to know its structure and function, since it will help us to better understand the integrated management of the organization and its different components.
Given the current situation of lack of resources, one of the characteristics that differentiate one health care organization from another is precisely its capacity to plan and execute strategies that allow it to adapt to the changing scenario faced by managers.
Budgetary management must be understood as another part of the organization, on whose capacity to adapt resources to the needs of the reference population will depend much of the success and quality of health care provided.
Within the budgeting and management direction we must differentiate the following aspects:
Policies. These are the norms, values, goals, objectives and purposes of the organization. Thus, the style of targeting the health needs of the population is a key aspect.
Forecasting. This includes planning for the organization’s future needs in the short, medium, and long term. Forecasting is different from goal setting. Forecasting is an estimate of what we expect to happen. On the contrary, an objective means reaching a desired scenario that we must achieve by carrying out a series of activities.
Objectives. It represents the most operational part of the planning process. They are the destination to which the company heads through the performance of different activities that lead us to it.
Strategic planning. It defines the objectives and long-term plans. It is a guide when configuring the organization’s budget planning.
Operational planning. These are the concrete actions that materialize the budgetary need in a short period of time.
Budgeting. It includes the evaluation of the programming carried out. It must be correctly integrated with the strategy and objectives of the organization in the medium and long term.
Control and execution. This is the part in which a detailed follow-up of each of the activities that involve the execution of the budget is carried out, so that comparisons can be made between what has been budgeted and the activities that have been carried out and what has been achieved.