NURS 840
NURSING FINANCIAL MANAGEMENT
Payroll Budget Exercise
Prepare a payroll budget for a Nursing Department Inpatient Unit** utilizing payroll data and payroll cost assumptions provided. Utilize an Excel format to display the calculations and budget. Provide an assessment (1 – 2 pages) of issues and changes required in achieving the budget target.
You will be preparing the Payroll Budget using the Excel Payroll Budget Worksheet attached to the assignment. Please note that the worksheet is provided in two versions for your convenience:
Excel 2007
Excel XXXXXXXXXXtitle has “Alt” at the end)
The worksheets have calculation formulas built-in but be sure to check for accuracy.
In order to prepare the payroll budget for your assigned unit you should assemble the following materials:
Data prepared for your individual Nursing Unit (A, B, C) in the Staffing Project
Salary Rates & Differentials (below)
Overtime & Benefit Information (below)
Week 6 and 7 lecture notes for reference
Text books readings for Weeks 6 & 7
After completion of the Payroll Budget worksheet, prepare a 1 – 2 page assessment of the payroll budget process addressing:
Issues encountered in achieving appropriate NHPPD,
Changes made to achieve 24/7 coverage,
Problems encountered.
Include in the paper your approach if the CFO asked for an 8% cost reduction after your budget was finalized (running shrieking from the building is not an option).
**This is a slight variance from the syllabus assignment which targets an Emergency Department rather than a nursing unit..
NURS 840
Payroll Budget Exercise (cont.)
BUDGET ASSUMPTIONS
Salary Rates & Differentials (Per Hour)
POSITION
AVERAGE
SALARY
3 -11
DIFFERENTIAL
11 -7
DIFFERENTIAL
WEEKEND
PREMIUM
HOLIDAY
PREMIUM
Nurse Manage
$40.85
CNS
$31.25
RN
$24.45
$2.00
$3.00
$3.00
$5.00
LPN
$18.00
$1.00
$2.00
$2.00
$3.00
CNA
$14.45
$0.50
$0.50
$0.50
$0.50
US
$12.00
$0.50
$0.50
$0.50
$0.50
Estimated Overtime & Benefit Costs
Facto
Assumptions
Overtime Pay
8.0%
Merit Increases
4.0%
FICA
8.2%
Health Insurance
2.5%
Life Insurance/Othe
1.0%
# Holidays
6
NURS 8400
STAFFING PROJECT
1. Assume that the hospital’s pay periods are two weeks in length. Calculate the weekly and pay period hours for the given FTEs. (Type your answers into the chart provided XXXXXXXXXXpoints)
FTEs
Hours per week
Shifts per week
Hours per pay period
Shifts per pay period
0.2
8
1
16
2
0.4
16
2
32
4
0.5
20
2.5
40
5
0.6
24
3
48
6
0.8
32
4
64
8
1
40
5
80
10
2
80
10
160
20
2. Calculate the number of shifts and FTEs for nursing unit MS-2 based on the given schedule which provides the total number of shifts worked each day. Place your answers in the “Shifts” and “FTEs columns. (20 points)
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
SHIFTS
FTEs
Manage
0
1
1
1
1
1
0
5
1.0
Charge RN
1
1
1
1
1
1
1
7
1.4
CNS
0
1
1
1
1
1
0
5
1.0
RN
6
8
9
9
9
8
7
56
11.2
LPN
4
3
3
3
3
3
4
23
4.6
CAN
3
3
4
4
4
3
3
24
4.8
US
1
1
1
1
1
1
1
7
1.4
TOTAL
15
18
20
20
20
18
16
127
25.4
3. Calculate the Nursing Hours per Patient Day (NHPPD) for the staffing pattern given above for a two week pay period during which the unit had a total of 250 patient days. Show formula and answer in boxes provided. (25 points)
ANSWER
Formula used:
(Total Nursing Hours)/pay period x 8 hr shifts/ # pt days
127/10 x 8 /250
NHPPD =
0.41
STAFFING PROJECT (page 2)
4. Assume that each staff member on MS-2 had an average of 230 non-worked hours
in the last year. Calculate the number of Paid FTEs for this nursing unit. (20 points)
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
FTEs
Worked
FTEs
Paid
Manage
0
1
1
1
1
1
0
1.0
1.0
Charge RN
1
1
1
1
1
1
1
1.4
CNS
0
1
1
1
1
1
0
1.0
1.0
RN
6
8
9
9
9
8
7
11.2
LPN
4
3
3
3
3
3
4
4.6
CAN
3
3
4
4
4
3
3
4.8
5.66
US
1
2
2
2
2
2
1
2.4
TOTAL
15
19
21
21
21
19
16
26.4
Show the formulas used:
PWR =
(Total paid hours) / (Total paid hours) - (non-worker hours)
TOTAL PAID FTEs =
(Shifts) x 8hours x 52 weeks/40 hours
5. Assume that the same nursing unit MS-2 has experienced the patient acuity as shown in the table below. Calculate the acuity, the acuity adjusted daily census and the acuity adjusted NHPPD for the month of June. Indicate the formulas used in the calculations. (20 points)
Acuity Level
Patient Days
RVUs
Total RVUs
(acuity)
1
90
1.00
90
2
230
1.33
306
3
310
1.66
515
4
85
2.20
187
5
35
3.00
105
TOTAL
750
9.2
1203
Formula
Answe
Acuity
Pt days x total RVU
6900
Adjusted Daily Census
Total patient days / 365
2.1
Acuity Adjusted NHPPD
6. STAFFING PLAN (50 points)
Using the assigned nursing unit data set listed below complete the
Staffing Proposal Sheet and the Staffing Schedule. The data are comparable to that which would be provided by your CNO in preparation for developing a staffing plan for the next budget year.
____________________________________________________________
Data Set A – 12 North (15 bed oncology unit)
· Total budgeted paid FTEs 47.9
· Budgeted workload volume (patient days) 4590
· Annual non-worked hours per FTE 270
· Caregiver staff distribution
· RN 60%
· LPN 15%
· CNA 25%
· Staffing distribution per shift
· Day 40%
· Evening XXXXXXXXXX%
· Nights 25%
· One Nurse Manager, one Clinical Nurse Specialist
· Unit Secretary on day shift seven days a week, on evening shift five days a week
___________________________________________________________________
Data Set B – 7 East (20 bed medical unit)
· Total budgeted paid FTEs 63.7
· Budgeted workload volume (patient days) 6110
· Annual non-worked hours per FTE 290
· Caregiver staff distribution
· RN 50%
· LPN 25%
· CNA 25%
· Staffing distribution per shift
· Day 37%
· Evening 33%
· Nights 30%
· One Nurse Manager, one Clinical Nurse Specialist and Charge Nurse on days weekends only
· Unit Secretary on day and evening shift seven days a week
___________________________________________________________________________
Data Set C –8 West (24 bed surgical unit)
· Total budgeted paid FTEs 76.4
· Budgeted workload volume (annual patient days) 7330
· Annual non-worked hours per FTE 310
· Caregiver staff distribution
· RN 65%
· LPN 15%
· CNA 20%
· Staffing distribution per shift
· Day 37%
· Evening XXXXXXXXXX%
· Nights 26%
· One Nurse Manager, one Clinical Nurse Specialist,
· Charge Nurse on evenings only Monday – Friday.
· Unit Secretary on day shift seven days a week, on evening shift five days a week
Staffing Work Sheet
UNIT NAME
12 North (15 bed oncology unit)
Required Calculation
Formula
Answe
Average Daily Census
Patient days / 365 days
26.07
Total Worked FTEs
(Total FTE Week)[ 52 weeks x 40 hours - NonWorked Hours/( 52 weeks x 40 hours)
51.52
Total Worked Shifts
Total Worked FTEs x 40 / 8
257.6
# Fixed FTEs
Sum manager, Charge RN, CNS and US FTEs
9.6
# RN FTEs
Sum all RN FTEs
28.4
# LPN FTEs
Sum all LPN FTEs
8.4
# CNA FTEs
Sum all CNA FTEs
12.8
# Day Shifts per Day
Sum all day shifts in a week / 7 days
17
# Evening Shifts per Day
Sum all evening shifts in a week / 7 days
14
# Night Shifts per Day
Sum all night shifts in a week / 7 days
11
Master FTE Schedule Unit 12 North (15 bed oncology unit)
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
FTEs
SHIFTS
Manage
0
0,6
0,6
0,6
0,6
0,6
0
3
15
Charge RN
0
0
0
0
0
0
0
0
0
CNS
0,6
0,6
0,6
0,6
0,6
0,6
0,6
4,2
21
RN
4
4
4
4
4
4
4,4
28,4
142
LPN
1,2
1,2
1,2
1,2
1,2
1,2
1,2
8,4
42
CAN
1,8
1,8
1,8
1,8
1,8
1,8
2
12,8
64
US
0,2
0,4
0,4
0,4
0,4
0,4
0,2
2,4
12
TOTAL
7.8
8.6
8.6
8.6
8.6
8.6
8.4
59.2
296
Two Week Schedule – Day Shift
Two Week Schedule Unit: 12 North (15 bed oncology unit)
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Manage
0
1
1
1
1
1
0
Charge RN
0
0
0
0
0
0
0
CNS
1
1
1
1
1
1
1
RN
8
8
8
8
8
8
8
LPN
2
2
2
2
2
2
2
CAN
4
4
4
4
4
4
4
US
1
1
1
1
1
1
1
TOTAL
16
17
17
17
17
17
16
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Manage
0
1
1
1
1
1
0
Charge RN
0
0
0
0
0
0
0
CNS
1
1
1
1
1
1
1
RN
8
8
8
8
8
8
8
LPN
2
2
2
2
2
2
2
CAN
4
4
4
4
4
4
4
US
1
1
1
1
1
1
1
TOTAL
16
17
17
17
17
17
16
Two Week Schedule – Evening Shift
Two Week Schedule Unit: 12 North (15 bed oncology unit)
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Manage
0
1
1
1
1
1
0
Charge RN
0
0
0
0
0
0
0
CNS
1
1
1
1
1
1
1
RN
7
7
7
7
7
7
7
LPN
2
2
2
2
2
2
2
CAN
3
3
3
3
3
3
3
US
0
1
1
1
1
1
0
TOTAL
13
15
15
15
15
15
13
Staff
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Manage
0
1
1
1
1
1
0
Charge RN
0
0
0
0
0
0
0
CNS
1
1
1
1
1
1
1
RN
7
7
7
7