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Part III: Tools to Analyze Financial Operations

CHAPTER 8: STAFFING: THE MANAGER’S RESPONSIBILITY. Part III: Tools to Analyze Financial Operations. Staffing Requirements. In Health Care, many positions. Must be filled, or covered, 7 days a week, and Must also be filled, or covered, 24 hours a day. Productive and Non-Productive Time.

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Part III: Tools to Analyze Financial Operations

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  1. CHAPTER 8: STAFFING: THE MANAGER’S RESPONSIBILITY Part III: Tools to Analyze Financial Operations

  2. Staffing Requirements In Health Care, many positions Must be filled, or covered, 7 days a week, and Must also be filled, or covered, 24 hours a day.

  3. Productive and Non-Productive Time Why analyzed? Employees are paid for more hours than the hours they are on duty (vacation days, etc.), so Annualizing allows the full cost of the position to be computed through a “burden” approach.

  4. FTEs for Annualizing Staff Positions Productive Time — Represents the employee’s net hours on duty. Non-Productive Time — Represents the paid-for time when the employee is not on duty (such as vacation time).

  5. FTEs for Annualizing Staff Positions FTE Definition for purposes of understanding annualizing positions: The equivalent of one full-time employee paid for one year, including both productive and non-productive time. Two employees working half-time for one year would be the same as one FTE.

  6. FTEs for Annualizing Staff Positions The calculations to annualize staff positions is a two-step process: 1. Compute the net days worked. 2. Convert the net paid days worked to a factor. See Exhibit 8-2 as an example.

  7. Number of Employees Required to Fill a Position Why calculate by position? Because computing by position is used in controlling, planning and decision-making. The scheduled position method is often used when forecasting new programs and services. You will also find scheduling software using this method.

  8. Number of Employees Required to Fill a Position FTE definition for purposes of filling a scheduled position: A factor expressing the number of employees required measured against, or the equivalent of, one full-time employee’s standard work week.

  9. Number of Employees Required to Fill a Position The calculation to fill scheduled positions is as follows: Compute the number of hours for a full-time position filled for one year. This measure is the baseline. Compute a factor representing the position to be filled for the required number of days (a required seven-day week to cover, for example, versus a five-day work week equals a factor of 1.4). See the cast room example in the chapter.

  10. Tying Cost to Staffing In the case of the annualizing method the cost of nonproductive days is already in the formula. So, multiply the factor times the base hourly rate to compute cost. Study the example in the chapter.

  11. Tying Cost to Staffing In the case of the scheduled position method the base rate must be increased, or burdened, by the nonproductive time. First, increase the hourly base rate by a percent or factor that represents the nonproductive time. Then multiply the burdened based rate by the factor to compute the cost. Then, multiply the factor times the base hourly rate to compute the cost. Examine the examples in the chapter.

  12. Tying Cost to Staffing The actual cost is attached to staffing in the books and records, though. A subsidiary journal and a basic transaction record (both of which are described in the previous chapter). Study the examples shown in the chapter.

  13. Subacute Unit Master Staffing Plan Staffing for Eight-Hour Nursing Shift

  14. Calculation for AnnualizingMaster Staffing Plan Example Step 1: Compute Net Paid Days Worked

  15. 364 226 RN = 1.6106192 364 227 LPN = 1.6035242 364 228 NA = 1.5964912 Calculation for AnnualizingMaster Staffing Plan: Example Step 2: Converting Net Paid Days Worked to a Factor

  16. 1. Compute Net Paid Days Worked Total days in business year Less two days off per week Number paid days per year Less paid days not worked Holidays Sick days Education days Vacation days Net paid days worked 8 5 1 5 19 364 104 260 241 2. Convert Net Paid Days Worked to a Factor. Total days in business year divided by net paid days worked equals factor 364/241 = 1.510373 FTEs to Annualize Staffing: Practice

  17. FTEs to Annualize Staffing: Assignment

  18. FTEs to Fill Position: Example 8 Hour

  19. FTEs to Fill a Position: Practice 8 Hour

  20. FTEs to Fill a Position: Assignment 8 Hour

  21. FTEs to Fill a Position: Example 12 Hour

  22. FTEs to Fill a Position: Assignment 12 Hour

  23. FTEs to Fill a Position: Example 12 Hour

  24. FTEs to Fill a Position: Assignment 12 Hour

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