Financial Management Case Study

FinancialManagement Case Study

FinancialManagement Case Study

Question1: The RNs, LVNs and NA were as follows as shown in the table below

RNs-23

LVN-7

NA-5

Total-35

Positions

Variable FTEs

% by position

FTEs by Position

RN

35

0.65

23

LVN

35

0.2

7

NA

35

0.15

5

Totals

1

35

Thecomputation for the FTE position is as follows

FTEof RN = VariableFTEs x % by position

=35% x 0.65

=(35/100) x 0.65

=23

FTEof LVNs = VariableFTEs x % by position

=35% x 0.2

=(35/100) x 0.2

=7

FTEof NA = VariableFTEs x % by position

=35%x 0.15

=(35/100) x 0.15

=5

Thetotal FTEs by position

=RNFTE+ LVN FTE + NA FTE

=23 + 7 + 5

=35

Question2: Annual salary budget

Thebudget for the entire year shall be as follows. They are shown in thetable below.

Positions

FTEs

Salary

Hours

Salary Subtotals

Benefits

Total

Manager

1

72999

72999

25550

98549

RN

23

34

782

273.7

1055.7

LVN

7

22

154

53.9

207.9

NA

5

12

60

21

81

US

2

10

20

7

27

Totals

38

xxxxxxx

xxxxxxxx

74015

25905.6

199787.2

Thebenefits for the outlined positions are as flows

Manager=

=35% x salary

=(35/100) x 72999

=25550

RN=

=15% x salary

=(35/100)x 782

=273.7

LVN=

=35% x salary

=(35/100) x 154

=53.9

NA=

=35% x salary

=(35/100) x 60

=21

computationsfor the total salaries are then put as follows

Manager

=salary + benefits

=72999 + 25550

=98549

RN

=salary + benefits

=782 + 273.7

=1055.7

LVN=

=salary + benefits

=154 + 53.9

=207.9

NA=

=salary + benefits

=60 + 21

=81

US

=Salary+ benefits

=20 + 7

=27

Question3: Average hours of care of care required per patient per day

3A.

Activity Mix

Average Hours of Care Required

Average Daily Census (ADC)

Total Hours of Care Per Day

I

1.4

3

4.2

II

3.9

18

70.2

III

5.6

16

89.6

IV

8.8

7

61.6

Totals

Totals

44

225.6

Hours per patient day (HPPD)

5.1

Thetotal hours of care per day are as follows

I-4.2

II-70.2

III-89.6

IV-61.6

Total-225

TheHoursper patient day (HPPD) is 5.1

3.B Explanation of a variance

Thecalculated HPPD (5.1) is more than the anticipated value of 4.9. Thismeans that the facility requires more employees so as to meet thehours demanded by the patients so as to meet their needs moreeffectively . This will ensure that the staff available is not beingoverwhelmed by the number of patients who are available to an extentthat they are not able to concentrate well (Bluman, 2007).

3C.Implications to the nurse in-charge

Theresults of the variance experienced from the above calculation havesome level of implication to the Nurse Manager. One of the issuesthat she will need to bear with is the increased cost for theremuneration of the available staff. This is because the staff willhave to be paid more money in terms of overtime since they will haveto work for more hours so as to cover the entire work hours that areneeded to serve all the patients in the facility.

Question4

Positions

FTEs

Salary

Hours

Salary Subtotals

Benefits

Total

RN

1

72999

+72999

25550

98549

LVN

-2

22

-44

-15.4

-59.4

NA

2

12

+24

+8.4

+32.4

AHN

1

62,000

+62000

+21700

+83700

Totals

2

xxxxxxx

xxxxxxx

+134979

+24243

+182222

Inthe table shown above, I RN position has been added to the budget andthe respective salary. This shows that the facility shall have tospend more so as to ensure that a new registered nurse is hired andwell remunerated. The facility shall cut on the spending on LVNssince it will have to reduce their number by 2. This will lead to areduction of the salaries spent on the LVHs by a total of 59.4dollars per hour. The total number of employees who are introducedinto the work force of the facility are 2. The overall amount ofmoney that will be spent will be more. This leads to a total of182222 (Boslaugh &amp Watters, 2008).

Question5

Afterthe adjustments made due to the workforce after the introduction ofnew RN and NAs as well as the reduction of LVNs, there is a generalincrease in the amount of money that the facility shall have to incurso as to maintain the current workforce (Ross,2010).The break-down of the total pay of the staff is as follows

Manager-98549

RN-1101.6

LVN-2530

NA-1092

Total-187302.6

Positions

FTEs

Salary

Hours

Salary Subtotals

Benefits

Total

Manager

1

72999

72999

25550

98549

RN

24

34

816

285.6

1101.6

LVN

5

22

110

2420

2530

NA

7

12

84

1008

1092

US

3

10

30

300

330

AHN

1

62000

62000

21700

83700

Totals

41

xxxx

xxxxx

136039

51263.6

187302.6

References

Bluman,A. G. (2007).&nbspElementarystatistics: A step by step approach.Boston: McGraw-Hill.

Boslaugh,S., &amp Watters, P. A. (2008).&nbspStatisticsin a nutshell.Farnham: O`Reilly.

Ross,S. M. (2010).&nbspIntroductorystatistics.Burlington, MA: Academic Press/Elsevier.