Course
NR 533 Financial Management In Healthcare Organizations
Week 4 Assignment: Staffing Budgets/FTEs/Variance Analysis
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.
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.
Key points related to Calculations:
1. When performing calculations, standard rounding rules apply. If the number to the right of the decimal is less than 5, round down to the nearest whole number, e.g., 33.4 = 33 If the number to the right of the decimal is 5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
2. Read the question carefully. Pay close attention to the units be asked and keep them consistent. For example, hours vs FTEs; days vs months vs years.
3. Provide ALL formulas with references. Designate which formula associates with which source. It is not sufficient to simply list the source at the beginning of the section. Write out the formula used BEFORE filling in the numbers. Example: Efficiency Variance + Volume Variance + Cost Variance = Total Variance Rundio, A. (2016). The nurse manager’s guide to budgeting and finance. 2nd. Ed., Indianapolis, IN: Sigma Theta Tau International.
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
- Download the Assignment Word Document and submit your answers directly onto the form.
- When completed, upload into the assignment portal in your course.
- WRITING: For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references.
- MATH: For the questions requiring calculations, show all your work including the formula used. Include the references for formula chosen.
PREPARING THE ASSIGNMENT
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 to determine if the current FTEs for the unit will be sufficient to ensure quality and safe care continues to be provided, and if not, what is the number of FTEs that will be needed to cover a 20% increase in volume……continue
Section Two—Variance Analysis
Variance Analysis Case Study
During the month of February, an outpatient surgery clinic has incurred a significant unfavorable variance. The director of the clinic is quite concerned, as this has never occurred before. The director gathers information on [a.] total nursing care hours, [b.] average hourly rate of the employees, and [c.] total patient visits to determine what caused the variance. In addition, the director receives the patient acuity levels for the month of February.
ANSWER
FTE/Variance Analysis
This document shows the administration of money in the order of a Western unit, a nursing unit in St. Joseph’s Hospital. 1 West is a 32-bed nursing unit designed to manage the client. Linda Watson, the new partner manager, will examine all the data she will request to organize the spending plan for the fiscal year for the West.
Section One: Calculate Full-Time Equivalents
The information that will be needed for Linda as she prepares for the fiscal year is the normal length of stay, the patient care, the recruiting network, the number of vacancies, the number of opportunities for employees in each dimension, the use and the expenses of office personnel and the salaries and expenses related to the required managerial staff (benefits,, Not fortunate deficit), educational requirements for staff, unprofitable time and any projected change in employment (Chamberlain College of Nursing, 2017 ). The data provided on 1 West includes public services:
Patient Data:
| Daily Census | 30 |
| Unit Capacity | 32 |
| Average Hour Per Patient Day | 8.8 |
| Care Hours Total | 96360 |
Staff Data:
| Productive hours per employee per year | 1780 |
| Non-productive hours per employee per year | 300 |
| Hours total per employee per year | 2080 |
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