NR 533 Week 4 Assignment; Staffing Budgets-FTEs-Variance Analysis Assignment (2 versions).

NR 533 Week 4 Assignment; Staffing Budgets-FTEs-Variance Analysis Assignment (2 versions). PURPOSE This assignment provides learners with the opportunity to apply budgeting knowledge and skills by calculating full-time equivalents for a nursing unit, projecting FTE needs related to census changes, and analyzing a variance scenario. DUE DATE: Sunday 11:59 p.m. MT at the end of Week 4 TOTAL POINTS POSSIBLE: 150 REQUIREMENTS Description of the Assignment This assignment is in two scenario-based sections each related to staffing budgets. In the first, the student will perform multistep calculations of FTEs and projection of future FTE needs for a selected nursing unit. The second section involves calculation of budget variance and its analysis. Each section requires supported written interpretation of findings. Criteria for Content Answer the questions and complete the calculations required for the two sections of the assignment. • Section One: Staffing Budget and FTEs o Calculations of full-time equivalents (FTEs) o Project FTE needs related to census changes • Section Two: Variance Analysis o Calculating variance o Variance analysis with explanation Chamberlain College of Nursing NR 533 Financial Management in Healthcare Organizations Section One—Staffing Budget and FTEs Personnel Budget Case Study Sandra Chambers has recently accepted the position of assistant administrator for the department of nursing at Potter Regional Medical Center where she will oversee the operations of five medical units. As she evaluates the budgets for the different cost centers, she finds that all are being used at near or full capacity. The activity in four of the five has remained steady over the past 2 years. A fifth unit has realized a steady increase in patient volume during that time and is currently at 88% capacity. It has been projected that within the next 12 months the volume of patients moving through that unit will increase by 20%. Sandra needs determine if the current FTEs for the unit will be sufficient to ensure quality and safe care continues to be provided. 1. Suggest all the information Sandra needs to collect in order to project the FTEs needed for the next fiscal year accounting for the projected increased capacity. Remember, she is new to her position so be sure to include background data on the unit itself as it relates to previous budgets, nursing staff, and the organization. In other words, summarize your approach to this Case Study. To correctly project the upcoming fiscal year’s personnel budget, Sandra will need to gather data on average daily census (average number of beds occupied every day), average patient days, hours of care per patient day, average length of stay and hours of care per for each patient day. Also, she needs to collect information regarding staffing mix, salaries and benefits offered for each position, vacation coverage needs, sick leave and unplanned absences, average productive and nonproductive hours per patient as well as the unit’s patient acuity. She will also need information regarding other expenses other than those based on staff remuneration such as clerical supplies, equipment maintenance, service contracts, and medical supplies. 2. Sandra has collected the following census information on all five units for the last month, in addition to what was asked in question number one. Calculate the ADC and Occupancy Rate for each unit using the Daily Census/Occupancy Rate table to determine which unit is at 88% occupancy rate and project to increase over the next year. Unit Beds 1 2 3 4 5 6 7 8 9 10 31 Total Patient Days A 34 0 941 B 15 0 424 C 13 0 372 D841 Chamberlain College of Nursing NR 533 Financial Management in Healthcare Organizations Average Daily Census/Occupancy Rate Unit ADC Occupancy (%) A 941/30=31.4 941/(35x30) = 90% B 424/30=14.1 424/(15x30) = 94% C 372/30=12.4 372/(13x30) = 95% D 841/30=28.0 841/(32x30) = 88% E 97/30=3.2 97/(6x30) = 53% The Unit with an 88% occupancy rate is D .