NR 630 Week 4 Assignment- Graded An A+

NR 630 Week 4 Assignment- Graded An A+ Chamberlain College of Nursing Week 4 Assignment Linda Watson accepted a position as the assistant administrator at St. Joseph Hospital. She is new to the position and w ...

NR 630 Week 4 Assignment- Graded An A+ Chamberlain College of Nursing Week 4 Assignment Linda Watson accepted a position as the assistant administrator at St. Joseph Hospital. She is new to the position and would like to assist the other nurse managers in preparing the budgets for the upcoming fiscal year. She has decided to first help the manager on 1 West, which is a nursing step-down unit. Linda wants to do an extensive data collect to help provide data for making the projects Information needed to be collected Linda needs certain data in order to help project the budget for the upcoming fiscal year. Some of the data that needs to be collected is: staffing ratios, hours per patient day, total care hours, salary and benefit costs, education costs or allotted education time, absences/sick leave/maternity leave/FMLA, non-productive staff hours such as education or meetings, the average length of stay, and average patient acuity, staffing mix of full-time, part-time, and per- diem (Pritchard, 2017). The data collected will have to be collected from the prior year, and a background on the unit would be helpful to Linda, so she knows what each unit does for the patients. Depending on where the hospital is at, there may be an increase in the patient census, so that will have to be measured by looking at the past few years and determining how much growth the organization is seeing. Linda has collected the following information, in addition to what was asked in question number one: Patient Data: Average Daily Census 30 Unit Capacity 32 Average HPPD 8.8 Total Care Hours 96,360 Staff Data: Productive hours/employee/year 1,780 Nonproductive hours/employee/year 300 Total Hours/employee/year 2,080 Skill Mix: RNs 80% LVNs 10% Nurse aides 10% Average Salary per Employee Category: RN $40.00/hour LVN $22.00/hour Nurses Aide $14.00/hour 2. Calculate the number of productive FTEs that would be needed Total care hours/number of productive ours = FTE requirements 96,360/1780=54.1 FTEs =54 FTEs 3. How many RNs, LVNs and nurses aides will be needed to staff this unit, assuming staff will be working 12 hour shifts? Total care hours/365=total care hours required per day 96,360/365= 264 hours of care per day 264/12= 22 shifts per 24 hour period RNs 80% 0.8 x 22=17.6= 18 RN shifts LVNS 10% 0.1 x 22=2.2= 2 LVN shifts Nurse Aides 10% 0.1 x 22=2.2= 2 Nurse Aide shifts 4. Assign staff by type and by shift RN: 18 total shifts per day/2= 9 day shift-9 night shift LVN: 2LVN shifts per day/2= 1 day shift-1 night shift Aide: 2 Aide shifts per day/2= 1 day shift-1 night shift 5. Convert staff positions to FTE positions Total FTEs/ daily staff shifts 54/22=2.45 Each person-shift calls for employing 2.45 FTEs. An adequate number of FTEs are needed to provide coverage for the other 3-4 days out of the week, vacation, sick time, and education time. Multiply 2.45 by the staff type needed per shift RN days: 2.45 x 9= 22.05 RN nights: 2.45 x 9= 22.05 (44.1 RNs) LVN days: 2.45 x 1= 2.45 LVN nights: 2.45 x 1= 2.45 (5 LVN) Aides days: 2.45 x 1= 2.45 Aides nights 2.45 x 1= 2.45 (5 Aides) 53.9 FTEs=54 FTEs Section Two—Variance Analysis 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 total nursing care hours, average hourly rate of the employees, and total patient visits to determine what caused the variance. In addition, the director receives the patient acuity levels for the month of February. Budgeted Bpi (price) $40.00 BQi (quantity patient) 5.0 hours per care per patient BQo (patient days) 340 visits Actual APi (per-hour nursing rate) $45.00 AQi (hours-per-care per patient) 5.6 hours per care per patient AQo (patient days) 400 visits 1. Compare the original budget to the flexible budget and calculate the volume variance. Original budget: Bpi x BQi x BQo Flexible Budget: Bpi x BQi x AQo 40 x 5 x 340= $68,000 40 x 5 x 400= $80, 000 Volume Variance= $12,000 U 2. Compare the flexible budget to the actual budget and determine the price and quantity variances. Actual Budget: APi x AQi x AQo Flexible Budget: Bpi x BQi x AQo 45 x 5.6 x 400= 100,800 40 x 5 x 400= 80,000 Variance= $20,800U Actual Budget: APi x AQi x AQo 45 x 5.6 x 400= 100,800 Flexible Budget: Bpi x BQi x AQo 40 x 5 x 400= 80,000 Original Budget: Bpi x BQi x BQo 40 x 5 x 340= $68,000 Flexible Budget Variance: $20,800U Volume Variance: $12,000U Total Variance: $32,800U Quantity: nursing care hours or added patient days Subcategory: BPi x AQi x AQo Flexible Budget: BPi x BQi x AQo 40 x 5.6 x 400= 89,600 40 x 5 x 400= 80,000 Quantity Variance: $9,600 Price variance Actual Budget: APi x AQi x AQo Subcategory: Bpi x AQi x AQo 45 x 5.6 x 400= 100,800 40 x 5.6 x 400= 89,600 Price Variance: $ 11,200 3. What factors caused the difference in the variances? The price variance of $11,200 along with the quantity variance of $9,600 for a total of $20,800 results from the fact that the average nursing time was $45 while it was originally budged to be $40. This could be higher because there was higher patient volume which therefore could cause overtime due to the influx of patients seen and the increased workload. References Pritchard, G. (2017). How to develop an operating budget for a nursing unit. Retrieved from http://smallbusiness.chron.com/develop-operating-budget-nursing-unit- 79824.html