Computerization of a nursing financial management system using continuous quality improvement as a framework

The Nursing Financial Management System, developed by the Department of Nursing Administrative Services (DNAS), depended on a manual data-retrieval and report process to integrate patient acuity, nursing resource, and hospital financial data. Manual processes proved to be extremely labor-intensive and cost inefficient. Approximately 52% of DNAS resources, totaling $45,542 annually, were dedicated to data re-entry functions and report generation. Additionally, time required to produce manual reports created a service gap in that delays caused inefficient management of nursing resources at the unit level. The DNAS used a continuous quality improvement framework to improve data management by automating data retrieval and report generation. Computerization increased department staff productivity with subsequent labor cost savings/avoidance. After computerization, the report process consumed 6% of department labor resources compared with 52% using the manual process. Redistribution of DNAS resources prevented hiring additional staff to manage expanding workload. Finally, timely reporting to unit management resulted in significant reduction in hospital costs, because nursing resource use was matched with patient care demands.