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Step 1
Notify staff about impending budget cuts. When business is down and money is short in health-care, most staff members and nurses know it. Let everyone know that budget cuts are going to occur before you even decide what exactly is getting cut. This prepares them for staff reductions and cost-cutting measures that may be employed in the future.
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Step 2
Allow staff to provide suggestions for budget cuts. Nurses and other staff in a medical facility are often aware of excess spending that occurs in their specific area. They may be able to provide suggestions on purchases that can be cut or a way to reduce expenses that will have minimal effect on duties and performance while saving the organization money.
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Step 3
Make a short-term and long-term plan. Unfortunately, you don't always have a clear indication in nursing or health-care of how long a budget cut will last. You may only need to cut back on expenses for one year, or the deficit could last much longer and require cutting expenses for several years. As a health-care organization or nursing department, you need to determine a short- and long-term plan for making it through the budget woes you're currently facing.
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Step 4
Determine what types of cuts would be best to make. Look at services, staffing, hours, purchasing, employee benefits and any other expenses that may have room for reduction.
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Step 5
Make the tough decisions. One of the hardest budget cuts you may have to make in nursing is cutting staff or reducing the hours each employee can work. Be sure to consult with key people in the organization to ensure that your cuts do not have a detrimental effect on patient care. Also be sure to consult with your Human Resources department to be sure that the cuts you are making are fair and legal.
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Step 6
Make a plan for how the company will continue after the cuts are made. Your remaining nursing staff will be looking for reassurance and leadership and will want to know how their jobs might change.
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Step 7
Make a plan for notification and departure. If you are laying people off, notify them as quickly as possible so that word can not spread before people learn that their jobs were eliminated.
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Step 8
Announce the cuts. Be sure to plan meetings that are convenient for all effected. Invite key managers and Human Resources staff to attend to help answer questions your staff may have. Be honest, even if you have to tell the staff that you are not sure what the future holds. Trust is key when cutting a nursing budget.
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Step 9
Arrange for services of laid-off workers if you can afford it. Look for companies or government agencies that can provide counseling and placement services for people who have lost their jobs. Providing this type of package shows current and former staff members that your company cares about them.
