This assignment provides learners with the opportunity to apply budgeting knowledge and skills by calculating fulltime equivalents for a nursing unit, projecting FTE needs related to census changes, and analyzing a variance scenario.
Description of the Assignment
This assignment is in two scenariobased 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.
Download the Assignment Word Document and submit your answers directly onto the form. When completed, upload into the assignment portal in your course. For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all your work including the formula used. Include the references for formula chosen.
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.
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  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Total Patient Days 
A  35  31  30  31  30  29  30  31  30  31  29  29  32  31  33  31  31  33  34  34  34  34  32  30  32  31  30  30  33  31  34  0  941 
B  15  15  14  11  9  7  12  12  15  13  13  16  15  15  15  16  16  15  14  15  16  15  13  13  17  16  15  16  16  14  15  0  424 
C  13  10  12  11  11  11  13  13  13  12  13  12  12  12  13  13  13  13  13  13  13  13  13  13  12  12  12  12  13  13  13  0  372 
D  32  30  27  27  24  26  23  27  29  28  28  25  27  30  26  31  31  30  30  30  32  32  32  26  25  25  25  23  31  31  30  0  841 
E  6  6  3  3  3  3  5  5  5  2  2  2  2  4  4  3  3  0  0  0  6  5  5  3  3  3  2  5  4  3  3  0  97 
(adapted from…..Healthcare Financial Management Association (2012). Managing fiscal resources: A budget and productivity case study. Retrieved from hfmamd.org
Average Daily Census/Occupancy Rate  
Unit  ADC  Occupancy (%) 
A  
B  
C  
D  
E 
The Unit with an 88% occupancy rate is _____.
Unit  # Beds  Patient Days  # Discharges  Average Length of Stay (ALOS) 
A  110  
C  96  
D  85 
What is the ALOS for the unit you identified earlier at an 88% occupancy rate? _____
You have determined the Unit for which Sandra must make FTE projections. For the remaining questions in this section, refer to the figures used and or obtained related to the Unit identified in Question 1.
Additional information includes
_______________________________________________________________________________
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 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.
Budget  Actual  Budget Variance  
Patient Days  420  510  
Nursing Care Hours  
HPPD  5.0  5.6  
Average Hourly Pay  $35.00  $45.00  $10.00 
Total Payroll Costs 
(Table adapted from: Rundio, A. (2016). The nurse manager’s guide to budgeting and finance, 2nd. Ed, Indianapolis, IN: Sigma Theta Tau International)
DIRECTIONS AND ASSIGNMENT CRITERIA
Category  Points  %  Description 
Section One: Staffing Budget and FTEs  
Background Information  10  10%  Approach to Personnel Case Study is clearly articulated and contains the elements needed to address the situation presented in the scenario. 
ADC and Occupancy Rate  10  10%  ADC/Occupancy Rate table completed with reference for formulas included, formulas and work shown, correct unit calculations, correct unit identified. 
Average LOS  10  10%  ALOS table completed with reference for formulas, formula and work shown, correct calculations, ALOS of identified unit correct. 
Current FTE  15  15%  Current FTEs of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. 
Total FTE (Current)  15  15%  Total FTEs (accounts for nonproductive time) of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. 
Effect of Volume Increase on FTE  10  10%  Describes effect of increase of patient volume on FTEs over the next year. Describes what effect an increased length of stay would have on FTEs. 
Total FTE (Projected)  15  15%  Total FTEs (accounts for nonproductive time) for projected volume increase of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. 
FTE Difference Explanation  10  10%  Explains potential causes for being under budget and explicitly describes its effect on the budget request for next year. Uses data from given and calculated elements to support explanations. 
Section Two: Variance Analysis  
Calculation of Total Variance  35  35%  Calculations that lead to the total variance of the unit are present and include volume efficiency, volume (quantity), and cost variances. References for formulas used, formulas and all work are shown, calculations are correct. 
Analysis of Variances  15  15%  All elements of variances explained, variance justification present and supported with evidence, effect on current and future budges explicit and clearly articulated. 
Writing conventions, format, and reference citations  5  5%  Writing is clear and concise without grammatical and spelling errors. All references are correctly cited (if applicable) and written. 
150  150%  A quality assignment will meet or exceed all of the above requirements. 
Assignment Criteria  Exceptional
(100%) Outstanding or highest level of performance 
Exceeds
(88%) Very good or high level of performance 
Meets
(80%) Competent or satisfactory level of performance 
Needs Improvement
(38%) Poor or failing level of performance 
Developing
(0) Unsatisfactory level of performance 

Content
Possible Points = 150 Points 




Section One: Staffing Budget and FTEs  
Background Information  10 Points  8 Points  6 Points  0 Points  
Approach to Personnel Case Study is clearly articulated and contains all the elements needed to address the situation presented in the scenario.  Approach to Personnel Case Study is generally described and contains nearly all elements needed to address the situation presented in the scenario.  Approach to Personnel Case Study is minimally described, generally stated and missing key elements needed to address the situation presented in the scenario.  Approach to Personnel Case Study is absent or does not contain adequate elements to all the elements needed to address the situation presented in the scenario.  
ADC and Occupancy Rate

10 Points  8 Points  3 Points  0 Points  
Table completed with formulas referenced and shown, work shown with correct calculations, and correct unit identified.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Average Length of Stay (ALOS)  10 Points  8 Points  3 Points  0 Points  
ALOS table completed with formulas referenced and shown, work shown with correct calculations, ALOS of identified unit correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Current FTE

15 Points  10 Points  5 Points  0 Points  
Current FTEs of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Total FTE (Accounts for nonproductive timecurrent)  15 Points  10 Points  5 Points  0 Points  
Total FTEs (accounts for nonproductive time) of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Effect of Volume Increase on FTE

10 Points  5 Points  0 Points  
Describes effect of increase of patient volume on FTEs over the next year. Describes what effect an increased length of stay would have on FTEs.  Only one element present or is answered correctly.  Both elements are missing or no elements are answered correctly.  
Total FTE (Projected)  15 Points  10 Points  5 Points  0 Points  
Total FTEs (accounts for nonproductive time) for projected volume increase of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
FTE Difference Explanation  10 Points  8 Points  3 Points  0 Points  
Explains potential causes for being under budget and explicitly describes its effect on the budget request for next year. Uses data from given and calculated elements to support explanations.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Section 2: Variance Analysis  
Personnel Budget table  5 Points  0 Points  
Table completed with correct calculations.  Table incomplete or complete with incorrect calculations.  
Volume (Efficiency) Variance Calculated  10 Points  8 Points  3 Points  0 Points  
Calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Volume Quantity Variance Calculated  15 Points  10 Points  5 Points  0 Points  
Calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.

All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Cost (price) Variance calculated  15 Points  10 Points  5 Points  0 Points  
Calculated correctly and includes reference for formulas used, formula and work shown, calculations correct.  All but one element are present and correct.  All but two elements are present and correct.  No elements are present or they are present and incorrect.  
Calculation of Total Variance  5 Points  0 Points  
Calculation of Total Variance is correct.  Calculation of Total Variance is incorrect.  
Analysis of Variances  15 Points  10 Points  5 Points  0 Points  
Analysis of Variances thoroughly explained; variance justification with evidence included; effects on current and future budges explicit and clearly articulated.  Analysis of Variances generally explained; or variance justification is missing or lacks support from evidence; or effects on current and future budges is missing or generally addressed.  Analysis of Variances contains only one of the required elements: thorough explanation; variance justification with evidence included; effects on current and future budges explicit and clearly articulated.  Analysis of variances is missing or is inaccurate.


Writing Conventions, format, and reference citations  5 Points  3 Points  1 Point  0 Points  
No errors in any of the three elements of writing conventions, format, and reference citations.  One error in any of the three elements of writing conventions, format, and reference citations.  Two errors in any of the three elements of writing conventions, format, and reference citations.  More than three errors in any of the three elements of writing conventions, format, and reference citations.  
Total Points  _____of points  
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