NR 533 Financial Management in Healthcare Organizations Week
4:Assignment Staffing Budgets, FTEs &Variance Analysis.
**COPYRIGHT PAGE**
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**Week 4: Staffing Budgets/FTEs/Variance Analysis Assignment Guidelines with Scoring Rubric**
**PURPOSE**
This assignment provides learners with the opportunity to apply budgeting knowledge and skills by calculating full-time
equivalents (FTEs) for a nursing unit, projecting FTE needs related to census changes, and analyzing a variance scenario.
**DUE DATE:** Sunday 11:59 p.m. MT at the end of Week 4
**TOTAL POINTS POSSIBLE:** 150
**REQUIREMENTS**
**Description of the Assignment**
This assignment consists of two scenario-based sections related to staffing budgets. In the first section, you will perform
multistep calculations of FTEs and project future FTE needs for a selected nursing unit. The second section involves
calculating budget variance and analyzing it. Each section requires a supported written interpretation of findings.
**Criteria for Content**
,nursing
Answer the questions and complete the calculations required for the two sections of the assignment.
**Key Points Related to Calculations:**
1. When performing calculations, standard rounding rules apply. If the number to the right of the decimal is less than 5,
round down to the nearest whole number (e.g., 33.4 = 33). If the number to the right of the decimal is 5 or greater, round
up to the nearest whole number (e.g., 33.5 = 34).
2. Read the question carefully. Pay close attention to the units being asked and keep them consistent (e.g., hours vs. FTEs;
days vs. months vs. years).
3. Provide ALL formulas with references. Designate which formula associates with which source. It is not sufficient to
simply list the source at the beginning of the section. Write out the formula used BEFORE filling in the numbers.
Rundio, A. (2016). *The nurse manager’s guide to budgeting and finance*. 2nd Ed., Indianapolis, IN: Sigma Theta Tau
International.
**Section One: Staffing Budget and FTEs**
- Calculations of full-time equivalents (FTEs)
- Project FTE needs related to census changes
**Section Two: Variance Analysis**
- Calculating variance
- Variance analysis with explanation
, nursing
Download the Assignment Word Document and submit your answers directly onto the form. When completed, upload
into the assignment portal in your course. For the questions requiring a written response, please adhere to proper
grammar and syntax, and provide references. For the questions requiring calculations, show all your work including the
formula used. Include the references for the formula chosen.
**PREPARING THE ASSIGNMENT**
**Section One—Staffing Budget and FTEs Personnel Budget Case Study**
Sandra Chambers has recently accepted the position of assistant administrator for the Department of Nursing at Potter
Regional Medical Center, where she will oversee the operations of five medical units. As she evaluates the budgets for the
different cost centers, she finds that all are being used at near or full capacity. The activity in four of the five units has
remained steady over the past 2 years. A fifth unit has realized a steady increase in patient volume during that time and is
currently at 88% capacity. It has been projected that within the next 12 months the volume of patients moving through
that unit will increase by 20%. Sandra needs to determine if the current FTEs for the unit will be sufficient to ensure
quality and safe care continues to be provided, and if not, what is the number of FTEs that will be needed to cover a 20%
increase in volume.
1. Suggest all the information Sandra needs to collect in order to project the FTEs needed for the next fiscal year
accounting for the projected increased capacity. Remember, she is new to her position, so be sure to include background
data on the unit itself as it relates to previous budgets, nursing staff, and the organization. In other words, summarize your
approach to this Case Study.
For Sandra to accurately forecast the next financial year’s budget, the information that should be gathered includes:
- Average length of patient stay
- Care hours provided per total days of the patient
- Average total number of days a patient stays in the hospital
- Daily census of patients (Leger & Dunham-Taylor, 2018)
Additionally, Sandra should consider unit acuity and non-staff expenses such as supplies (clerical and medical), equipment,
service and maintenance contracts, certification costs, tuition reimbursement, and training costs financed by the
department.
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