Running Head: ZERO BASED BUDGET 1

Zero Based Budget

Katie B. Webb, RN

Bon Secours Memorial College of Nursing

Dr. Mikelaites

NUR 4240

July 30, 2018

Honor Code “I Pledge.”

ZERO BASED BUDGET 2

Zero Based Budget

Process

The research methods used for the proposal of the Neo-Tee, a Mercury Medical (2018), a

respiratory ventilation device for infants were research studies, discussion with the brand

representative and the neonatal intensive care unit (NICU) manager. The per unit and bulk

product costs were obtained from the unit manager following discussion with the Mercury

Medical brand representative. According to the brand representative, a single Neo-Tee was

quoted at forty dollars. The Neo-Tee is single patient use and can be used the duration of the

hospital stay. Other products such as the Neo-Puff, an emergency respiratory ventilation device,

costs were obtained from the Materials Management representative for the neonatal intensive

care unit.

The challenges that were experienced while researching the product included finding

product costs, finding comparable equipment, and overall effort invested in researching Neo-Tee

outcomes. The manufacturer website did not disclose the cost per Neo-Tee, rather the website

directs the researcher to contact a distributor. In order to gather the necessary information and

overcome such challenges, the NICU manager and materials management were contacted to

reach out to the product distributor for a price quote. Materials management possessed the

current cost for a Neo-Puff, a device that is currently utilized in the NICU for emergency

respiratory management. The cost for repairs for a damaged Neo-puff were obtained and

evaluated. The NICU nurse manager was also helpful in determining how many Neo-Puffs were

repaired or replaced in one year. The Neo-Tee website was utilized for outcome evaluation and

benefit to the patient.

Presentation
ZERO BASED BUDGET 3

When preparing for the presentation to the Nursing Director of Women’s and Children

and materials management representative special considerations were made in order to deliver an

effective presentation on the Neo-Tee. First, all of the necessary information such as price, cost

to patient, availability of resources, alternative solutions, education time for staff, studies of

outcomes and comparable equipment were obtained. I also considered that the materials

management attendee in the presentation may have limited knowledge on the respiratory

equipment, therefore a brief explanation of the equipment’s purpose and benefit were discussed.

Along with pictures of the Neo-Tee in the presentation, I wanted to given the attendees a hands-

on experience. In order to do this, the brand representative sent a single Neo-Tee sample.

Following the presentation, time was allotted to practice using the Neo-Tee in a training setting,

which had access to an oxygen flow meter. I also had to take into consideration that the unit

already has operating Neo-Puffs in use and needed to discuss how to phase out the current

equipment as it becomes damaged. Discussing current practices and alternatives was important

to fully explain to zero based budget proposal. I wanted to be prepared for any questions that

arose during the presentation therefore diligent preparation was conducted.

Reflection

This exercise was very interesting to complete. I initially had a hard time deciding on a

topic, as I wanted to instigate and research something that was both cost effective and reflected a

passion for improving patient care and the current budget. During this process, I was able to

collaborate with many different people both within and outside of the health care system. I felt at

times that I had to jump through hoops in order to obtain the information such a price per unit of

both current and proposed equipment required to present the zero based proposal. Upon

reflecting on the process of creating a zero based proposal I value the experience of looking at all
ZERO BASED BUDGET 4

aspects of the budget and outcomes of patient care. I constantly thought about how it can or

cannot benefit to patient and staff, and how outcomes can be evaluated during a financial cycle.

While reading about zero based budgets, I feel that I gained a better understanding and

appreciation for the effort that management puts forth when determining current or proposed

objectives and the cost per patient. Not only does the unit manager have to evaluate current

processes but also alternative activities, costs, and pros and cons for the continuation of such

processes (Marquis & Huston, 2017). This is not an easy task and involves many variables.

Healthcare is not just about taking care of people it is about finding creative solutions and

equipment that will allow staff to do their job efficiently, at lower costs while utilizing evidence

based practices. This whole process starts with an idea that can then be turned into reality. There

is a balancing act that occurs when managing a zero based budget and I found that collaborating

with people to gather the necessary information was a key to success. I feel that this is a

challenging but rewarding method of budgeting, as it requires management to be on top of all

aspects of finance while evoking strong leadership skills that allows for the staff and patients to

benefit.
ZERO BASED BUDGET 5

Reference

Marquis, B. L., Huston, C. J. (2017). Leadership roles and management functions in nursing:

Theory and application (9th ed.). Philadelphia, PA: Wolters Kluwer.

Mercury Medical. (2018). Neo-Tee infant T-piece resuscitator. Retrieved from

http://www.mercurymed.com/search