This assignment is based on making a budget for a hospital. All instructions are in the attached documents.

N4455 Nursing Leadership and Management Week 3 Assignment 1: Financial Management Case Study v2.2 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. 2015 University of Texas at Arlington Page 1 of 7 N4455 Nursing Leadership and Management 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 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) Nurse Manager $77,999.00 per year Registered Nurses (RN) $36.00 per hour Licensed Vocational Nurses (LVN) $24.00 per hour Nurse Aides (NA) $13.50 per hour Unit Secretary (US) $11.25 per hour 2015 University of Texas at Arlington Page 2 of 7 N4455 Nursing Leadership and Management Rubric Use this rubric to guide your work on this assignment. Criteria Question 1 Question 2 Target Acceptable Unacceptable Both % and FTEs column totals within 2 of correct answers Either % or FTEs column totals within 2 of correct answers Neither % nor FTEs column totals within 2 of correct answers (13-16 Points) (5-12 points) (0-4 points) All column (except Hours and Salary) totals within 2 of correct answers At least 4 column totals within 2 of correct answers Less than 4 column totals within 2 of correct answers (5-16 points) (0-4 points) All six values within 2 of correct answers At least five values within 2 of correct answers Less than five values within 2 of correct answers (6-8 points) (1-7 points) (0-1 point) Response is clearly stated and explains some potential details, ramifications, and/or solutions Response states some potential details or ramifications Response is unclear or lacks potential details or ramifications (2-7 points) (0-2 points) Response shows some knowledge of responsibilities of the nurse leader Response fails to demonstrate knowledge of responsibilities of the nurse leader (17-20 Points) Question 3 A. Table B. Significanc e of variance in HPPD (6-8 points) C. Implication s for nurse leader Response shows keen understanding of responsibilities of the nurse leader regarding staff budgets (2-7 points) (0-1 point) (6-8 points) Question 4 All columns (except Hours and Salary) totals within 2 of correct answers At least 4 column totals within 2 of correct answers Less than 4 column totals within 2 of correct answers (5-16 points) (0-4 points) At least 4 column totals within 2 of correct answers Less than 4 column totals within 2 of correct answers (17-20 Points) Question 5 All columns (except Hours and Salary) totals 2015 University of Texas at Arlington Page 3 of 7 N4455 Nursing Leadership and Management within 2 of correct answers (5-16 points) (0-4 points) (17-20 points) 2015 University of Texas at Arlington Page 4 of 7 N4455 Nursing Leadership and Management 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. Positions Variable FTEs % by Position RN 37.0 .65 LVN 37.0 NA 37.0 FTEs by Position Totals 2. Compute the annual salary budget for 3 West. (Round to the nearest tenth.) Compute totals for appropriate columns. Positions FTEs Salary Hours MANAGER 1.0 77,999 XXXX Totals XXXXX XXXXXX 2015 University of Texas at Arlington Salary Subtotals Benefits Total Page 5 of 7 N4455 Nursing Leadership and Management 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. Acuity Mix Average Hours of Care Required Average Daily Census (ADC) I 1.4 8 II 3.9 22 III 5.6 16 IV 8.8 8 Total Hours of Care Per Day Totals Hours per patient day (HPPD) 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.) 2015 University of Texas at Arlington Page 6 of 7 N4455 Nursing Leadership and Management 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. (DO NOT INCLUDE INFORMATION IN Q 2) Positions FTEs RN 1.0 LVN -2.2 NA 2.5 AHN 1.0 Totals Salary Salary Subtotals Hours Benefits Total 65,000 XXXXX XXXXX 5. Assume your proposal was approved. Calculate the new personnel budget. Compute totals for each column. (ADJUST Q 2 TO INCLUDE RECOMMENDED CHANGES) Positions Totals FTEs Salary XXXXX 2015 University of Texas at Arlington Hours Salary Subtotals Benefits Total XXXXX Page 7 of 7