Suppose 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

ADC: 54

Budget based on 5.4 Avg. HPPD

(5.4 HPPD excludes head nurse and unit secretaries)

Staff Data

Total FTEs 37.0 Variable FTEs

1.0 Nurse Manager

2.2 Unit Secretaries

40.2 Total FTEs

Staffing Mix

RN 65%

LVN 20%

NA 15%

Average Salary Scale per Employee

(Fringe benefits are 35% of salaries)

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

2. Compute the annual salary budget for 3 West. (Round to the nearest tenth.)

Compute totals for appropriate columns.

3. 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.

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

B. Remember that your established personnel budget for 3 West assumes a HPPD of 5.4. If your calculated HPPD is different, explain the significance of the variance. (If your calculated HPPD is different than 5.4, 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? (HINT: supply costs; overtime hours, average census of 43 on a 45 bed unit, etc.)

4. 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 2.2 LVN positions
• Add 2.5 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.

5. Assume your proposal was approved. Calculate the new personnel budget. Compute totals for each column.

Nurse Manager Registered Nurses (RN) Licensed Vocational Nurses (LVN) Nurse Aides (NA) Unit Secretary (US) $77,999.00 per year $36.00 per hour $24.00 per hour $13.50 per hour $11.25 per hour Positions RN LVN Totals Variable FTES 37.0 37.0 37.0 % by Position .65 FTES by Position Positions MANAGER 1.0 24.1 RN FTES Totals Salary 77,999 $36 XXXXX Hours XXXX 2080 XXXXXX Salary Subtotals Benefits Total Acuity Mix I II III IV Average Hours of Average Daily Census Total Hours of Care Per Day Care Required (ADC) 1.4 3.9 5.6 8.8 Totals Hours per patient day (HPPD) 8 22 16 8 Positions FTES RN LVN AHN Totals 1.0 -2.2 2.5 1.0 Salary Hours 65,000 XXXXX XXXXX Salary Subtotals Benefits Total Positions FTES Totals Salary XXXXX Hours XXXXX Salary Subtotals Benefits Total