The productivity standards for your new observation unit are set. You must meet the minimum target of 95% with a maximum target of 105%. Keep in mind that volume drives productivity in a positive direction. Using the formulas provided in your assigned textbook readings, determine the number of patients you need to admit to meet budgeted volumes. Consider the type of unit you are managing. An observation unit has a minimal stay of six (6) hours and a maximum stay of forty-eight (48) hours. Most patients are admitted into an appropriate next level of care (inpatient admission) or discharged home within 24 hours of admission into an observation unit. This demonstrates a unit with rapid turnover. Also include in your discussion how nursing labor/staffing will be managed when census/volume drops.

Actual Budget

Volume/Census 360 420

Supplies $8,550 $7,800

Nursing Labor $58,450 $52,575