Discussion Week 4

As the office manager of a large group practice you have two computational tasks to undertake today.

1. You need to run a Depreciation Computation: Units-of-Service

Using the format in Table 91, compute Units-of-Service Depreciation using the following assumptions:

Cost to be depreciated = $50,000

Salvage value = zero

Total units of service = 10,000

Units of service per year: Year 1 = 2,200; Year 2 = 2,100; Year 3 = 2,300; Year 4 = 2,200; Year 5 = 200

2. Next you need to calculate the FTEs needed next year to Annualize Staffing

To annualize your staffing plan, you need to convert the staffs net paid days worked to a factor. The office is open and staffed seven days a week, due to your contracts with two managed care plans. The group practice pays for 8 holidays, 5 sick days, and 1 education day each year. An employee must work one full year to earn 5 vacation days. An employee must have worked full time for three full years before earning 10 annual vacation days. Because the turnover is so high, nobody on staff has earned more than 5 vacation days.

Required

1. Compute Net Paid Days Worked for a full-time employee in the physicians group.

2. Convert Net Paid Days Worked to a factor so you can annualize your staffing plan.