NURS 4455 Financial Management Case Study

NURS4455 Nursing Leadership and Management

Module 3 Assignment 1

Financial Management Case Study vfa20(1)

Name: Date:

Overview: Financial Management Case Study

One of the important duties of a nurse leader is to manage personnel and personnel budgets. In this assignment, you will assume the role of a nurse manager. You will use given data to make important decisions regarding budgets and staffing.

Some nurse managers have computer spreadsheets or software applications to help them make decisions regarding budgets and staffing. You will only need simple mathematical operations* to perform the needed calculations in this assignment because the scenario has been simplified. Furthermore,some data have been provided for you that a nurse leader might need to gather or compute in a real setting. Still, you will get a glimpse of the complexity of responsibilities nurse leaders shoulder regarding financial management.

• To calculate the percent of the whole a given number represents, follow these steps:

Change the percentage to a decimal number by moving the decimal twice to the left (or dividing by 100).

Multiply the new decimal number by the whole.

Example: What is 30% of 70?

30%= .30; (.30) × 70 = 21

• To find out what percentage a number represents in relation to the whole, follow these steps:

Divide the number by the whole (usually the small number by the large number).

Change the decimal answer to percent by moving the decimal twice to the right (or multiplying by 100).

Example: What percent of 45 is 10?

10 ÷ 45 = .222; so, 10 is 22% of 45.

* You will only need addition, subtraction, multiplication, and division.

Case Study

You are the manager for 3 West, a medical/surgical unit. You have been given the following data to assist you in preparing your budget for the upcoming fiscal year.

Patient Data

Average Daily Census (ADC): 55

Budget based on 6.2Avg.Hours per patient day (HPPD)

(6.2HPPD excludesNurse Manager and unit secretaries)

Staff Data

Total FTEs 40.0 Variable FTEs

1.0 Nurse Manager

2.5 Unit Secretaries

43.5Total FTEs

Staffing Mix

RN 75%

LVN 10%

NA 15%

Average Salary Scale per Employee

Benefits are 35% of annual salaries

Nurse Manager $75,000.00 per year

Registered Nurses (RN) $34.00 per hour

Licensed Vocational Nurses (LVN) $20.00 per hour

Nurse Aides (NA) $14.50 per hour

Unit Secretary (US) $12.00 per hour

Questions

1. How many RNs, LVNs, and NAs, by category, are on the staff of 3 West? (Round FTEsto the nearest tenth.)Compute totals for each column.

Positions Variable FTEs % by Position FTEs by Position

RN 40 0.75 30

LVN 40

NA 40

Totals

2. Compute the annual salary budget for 3 West.

Compute totals for appropriate columns.

Positions FTEs Salary Hours Salary Subtotals Amount of Benefits Total

MANAGER 1.0 $75,000 XXXX $75,000 $26,250

RN 30 $34 2080 $2,121,600

LVN 2080

NA 2080

Sec 2080

NURS 4455 Financial Management Case Study

Totals XXXXX XXXXXX

3. Your hospital unit, 3 West, is a 60-bed general medical-surgical unit. Over the past year, the ADC (Ave. Daily Census) was 55 patients.

Use the following data on 3 West during the last year to perform these calculations and answer these questions.

A. Complete this table to calculate the actualaverage hours of care required per patient day (HPPD) for the patients in 3 West.Round to the nearest tenth

Acuity Mix Average Hours of Care Required Average Daily Census

(ADC) Total Hours of Care Per Day

I 1.4 8 11.2

II 3.9 21

III 5.6 19

IV 8.8 7

Totals

Hours per patient day (HPPD)

B. Remember that your established personnel budget for 3 West assumes a HPPD of 6.2. If your calculated HPPD is different, explain the significance of the variance. (If your calculated HPPD is different than 6.2, you must write more than, “We need more/less nurses.”)

What is the Significance of the variance? If you believe you need more staff, what will be your rationale for making this requires? If you have too much staff, what would your proposal be for bringing your staffing into a better balance?

C. What are the implications for the Nurse Manager? As an example, based on your conclusions in Section B, what other observations would you make as you review your total budget and what would you expect to see as a result? (Ex: supply costs; overtime hours, average census of 50 on a 60 bed unit, etc.)

4. Youhave set two new goals for your unit for the next year related to personnel:

• Provide stronger unit management support on evening and night shifts and inthe absence of the manager.

• Correct unfavorable efficiency variances due to overtime.

To accomplish these goals, you plan to make these changes:

• Add 1.0 RN FTE position

• Eliminate 1.5 LVN positions

• Add 1.5 FTEs NA positions

• Add 1.0 Assistant HN position at $62,000/year

Calculate ONLY the costof the proposed recommendations for 3 West.Compute totals for each column. If the change represents a reduction in the budget for that category, record the total as a negative number. If it represents an increase in the budget for that category, record the total as a positive number.

Positions FTEs Salary Hours Salary Subtotals Benefits Total

RN 1

LVN -1.5

NA 1.5

AHN 1 62,000 XXXXX

Totals 2 XXXXX XXXXX

5. Assume your proposal was approved. Calculate the new personnel budget (You will use your budget from question 2 and account for the changes you requested in question 4). Compute totals for each column.

Positions FTEs Salary Hours Salary Subtotals Benefits Total

Manager 1 $75,000 XXXXX

AHN 1 $62,000 XXXXX

RN 31

LVN

NA

Sec

Totals XXXXX XXXXX

NURS4455 Nursing Leadership and Management

Module 3 Assignment 2

Organizational Analysis–The Organization

Name: Date:

Organizational Analysis–The Organization

Them aj or assignment for this course is analysis of your organization (or an organization that you have worked for if you aren’t currently employed).In this assignment, you will report the organization’smission,philosophy,and administrative structure. You will compare and contrast whatyoufind with the characteristicsoforganizations you have learned aboutin the lecturesand presentations and in your own investigative reading.

Complete this assignment to demonstrate your analysis of the big picture of your organization.

Objectives

• Explain how organizations function.

• Compare and contrast characteristics of leadership and management.

• Apply trends, issues, theories, and evidence as guidelinesf or management decisions.

• Evaluate effectiveness of communication patterns using specific management situations.

Expected elements for scholarly writing:

• Ensure correct grammar and spelling

• Assignment should be submitted as an APA Paper, including title page and references.

• Title page is required for this Assignment and the UTACON version is expected format.

• 1-inch margins, 12 size Times New Roman font.

• Please provide all references used to support your opinions and clarify positions in the paper.

• The reference list begins on a separate page from the content.

• Headings are expected and must be connected to the assignment criteria following APA style.

• An introduction is expected providing a brief look at what is planned within the body of the paper. However, no heading is used over the introduction in APA format. A Summary is usedand should have a heading over it.

• For all other style questions refer to the American Psychological Association. (2020).

Publication manual of the American Psychological Association (7th ed.) Washington, DC: Author.

Introduction of the Organization

Provide a concise description of the healthcare organization, including type of agency, size ,geographic location, services provided, target clientele, accreditation status, and community relationships.

Examination ofthe Organization

Identify the organization’smission,philosophy,and theadministrative structure.Identifythetypeof organizational structure thefacilityrepresents (functional,matrixreporting,jointpractice,etc.).Give examplesthatsupportthetype you selected.

Strengths and Limitations

Discussmajorstrengthsand limitationsoftheorganization.

Care Delivery System

Describe the nursing care deliverysystem(s)used.Include delegation examples ofmanager,charge nurse,licensed staffto unlicensed staff.

Outcomes and Measurements

Discuss two specific patient outcomes and explain how they are measured and monitored. Include one system–wide outcome and one nurse–sensitive clinical indicator.

Module 3 Assignment 1: Financial Management Case Study v2.6

Overview: Financial Management Case Study

One of the important duties of a nurse leader is to manage personnel and personnel budgets. In this assignment, you will assume the role of a nurse manager. You will use given data to make important decisions regarding budgets and staffing.

Some nurse managers have computer spreadsheets or software applications to help them make decisions regarding budgets and staffing. You will only need simple mathematical operations* to perform the needed calculations in this assignment because the scenario has been simplified. Furthermore, some data have been provided for you that a nurse leader might need to gather or compute in a real setting. Still, you will get a glimpse of the complexity of responsibilities nurse leaders shoulder regarding financial management.

• To calculate the percent of the whole a given number represents, follow these steps:

Change the percentage to a decimal number by moving the decimal twice to the left (or dividing by 100).

Multiply the new decimal number by the whole.

Example: What is 30% of 70?

30%= .30;            (.30) × 70 = 21

• To find out what percentage a number represents in relation to the whole, follow these steps:

Divide the number by the whole (usually the small number by the large number).

Change the decimal answer to percent by moving the decimal twice to the right (or multiplying by 100).

Example: What percent of 45 is 10?

10 ÷ 45 = .222; so, 10 is 22% of 45.

* You will only need addition, subtraction, multiplication, and division.

Case Study

You are the manager for 3 West, a medical/surgical unit. You have been given the following data to assist you in preparing your budget for the upcoming fiscal year.

Patient Data

Average Daily Census (ADC): 54

Budget based on 5.2 Avg. Hours per patient day (HPPD)

(5.2 HPPD excludes head nurse and unit secretaries)

Staff Data

Total FTEs                  41.0 Variable FTEs

1.0 Nurse Manager

2.3 Unit Secretaries

44.3 Total FTEs

Staffing Mix

RN       75%

LVN     10%

NA       15%

Average Salary Scale per Employee

Benefits are 35% of salaries

Rubric

Use this rubric to guide your work on this assignment.

Questions

1. How many RNs, LVNs, and NAs, by category, are on the staff of 3 West? (Round FTEs to the nearest tenth.) Compute totals for each column.

1. Compute the annual salary budget for 3 West.

Compute totals for appropriate columns.

 2. Your hospital unit, 3 West, is a 60-bed general medical-surgical unit. Over the past year, the ADC (Ave. Daily Census) was 54 patients.

Use the following data on 3 West during the last year to perform these calculations and answer these questions.

3. Complete this table to calculate the actual average hours of care required per patient day (HPPD) for the patients in 3 West. Round to the nearest tenth

4. Remember that your established personnel budget for 3 West assumes a HPPD of 5.2. If your calculated HPPD is different, explain the significance of the variance. (If your calculated HPPD is different than 5.2, you must write more than, “We need more/less nurses.”)

5. What is the Significance of the variance?  If you believe you need more staff, what will be your   rationale for making this requires?  If you have too much staff, what would your proposal be for bringing your staffing into a better balance?

6. What are the implications for the Nurse Manager?  As an example, based on your conclusions in Section B, what other observations would you make as you review your total budget and what would you expect to see as a result?  (Ex: supply costs; overtime hours, average census of 43 on a 45 bed unit, etc.)

7. You have set two new goals for your unit for the next year related to personnel:

• Provide stronger unit management support on evening and night shifts and in the absence of the manager.
• Correct unfavorable efficiency variances due to overtime.

To accomplish these goals, you plan to make these changes:

• Add 1.0 RN FTE position
• Eliminate 2.5 LVN positions
• Add 1.5 FTEs NA positions
• Add 1.0 Assistant HN position at $65,000/year

Calculate ONLY the cost of the proposed recommendations for 3 West. Compute totals for each column. If the change represents a reduction in the budget for that category, record the total as a negative number. If it represents an increase in the budget for that category, record the total as a positive number.

8. Assume your proposal was approved. Calculate the new personnel budget (You will use your budget from question 2 and account for the changes you requested in question 4). Compute totals for each column.