What does the labor budget primarily consist of?

The labor budget is primarily focused on the allocation and management of direct labor hours that are available for use within a healthcare organization. This budget specifically outlines the workforce needed to provide care, including the number of staff hours required for patient care activities. By concentrating on direct labor, the labor budget helps ensure that there are sufficiently trained staff members available to meet patient needs while also managing labor costs effectively.

The labor budget does not encompass costs associated with equipment and supplies or indirect labor expenses, as these fall outside the direct human resources allocated for patient care. Additionally, revenue generated from nursing services, while important for the overall financial health of the organization, does not directly relate to the budget set for labor, which focuses on the costs associated with employing staff to deliver those services.