NURS 4455 Module 3 Assignment 1 Financial Management Case Study vfa20(1)
Module 3 Assignment 1
Financial Management Case Study vfa20(1)
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.
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.
Average Daily Census (ADC): 55
Budget based on 6.2Avg.Hours per patient day (HPPD)
(6.2HPPD excludesNurse Manager and unit secretaries)
Total FTEs 40.0 Variable FTEs
1.0 Nurse Manager
2.5 Unit Secretaries
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
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
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
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
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
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
Totals XXXXX XXXXX
ADDITIONAL INSTRUCTIONS FOR THE CLASS
Discussion Questions (DQ)
Initial responses to the DQ should address all components of the questions asked, include a minimum of one scholarly source, and be at least 250 words.
Successful responses are substantive (i.e., add something new to the discussion, engage others in the discussion, well-developed idea) and include at least one scholarly source.
One or two sentence responses, simple statements of agreement or “good post,” and responses that are off-topic will not count as substantive. Substantive responses should be at least 150 words.
I encourage you to incorporate the readings from the week (as applicable) into your responses.
Your initial responses to the mandatory DQ do not count toward participation and are graded separately.
In addition to the DQ responses, you must post at least one reply to peers (or me) on three separate days, for a total of three replies.
Participation posts do not require a scholarly source/citation (unless you cite someone else’s work).
Part of your weekly participation includes viewing the weekly announcement and attesting to watching it in the comments. These announcements are made to ensure you understand everything that is due during the week.
APA Format and Writing Quality
Familiarize yourself with APA format and practice using it correctly. It is used for most writing assignments for your degree. Visit the Writing Center in the Student Success Center, under the Resources tab in LoudCloud for APA paper templates, citation examples, tips, etc. Points will be deducted for poor use of APA format or absence of APA format (if required).
Cite all sources of information! When in doubt, cite the source. Paraphrasing also requires a citation.
I highly recommend using the APA Publication Manual, 6th edition.
Use of Direct Quotes
I discourage overutilization of direct quotes in DQs and assignments at the Masters’ level and deduct points accordingly.
As Masters’ level students, it is important that you be able to critically analyze and interpret information from journal articles and other resources. Simply restating someone else’s words does not demonstrate an understanding of the content or critical analysis of the content.
It is best to paraphrase content and cite your source.
For assignments that need to be submitted to LopesWrite, please be sure you have received your report and Similarity Index (SI) percentage BEFORE you do a “final submit” to me.
Once you have received your report, please review it. This report will show you grammatical, punctuation, and spelling errors that can easily be fixed. Take the extra few minutes to review instead of getting counted off for these mistakes.
Review your similarities. Did you forget to cite something? Did you not paraphrase well enough? Is your paper made up of someone else’s thoughts more than your own?
Visit the Writing Center in the Student Success Center, under the Resources tab in LoudCloud for tips on improving your paper and SI score.
The university’s policy on late assignments is 10% penalty PER DAY LATE. This also applies to late DQ replies.
Please communicate with me if you anticipate having to submit an assignment late. I am happy to be flexible, with advance notice. We may be able to work out an extension based on extenuating circumstances.
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I do not accept assignments that are two or more weeks late unless we have worked out an extension.
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Questions to Instructor Forum: This is a great place to ask course content or assignment questions. If you have a question, there is a good chance one of your peers does as well. This is a public forum for the class.
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