Assessment 7
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Assessment07.docxAssessment 07 – Healthcare Economic Business Case and Funding Proposal Scenario You are tasked with analyzing the year-end variance in personnel costs related to increased overtime and callout coverage within the nursing unit 10 East. Quarterly overtime expenditures have risen steadily across the fiscal year, and callout coverage premiums have increased in parallel. Informal staff feedback and internal surveys indicate rising burnout, increased sick time utilization, and decreased scheduling flexibility. Your responsibility is to evaluate the financial impact of burnout-related overtime and callouts and propose an economically sound initiative to stabilize staffing costs while supporting workforce sustainability.
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Unit 10 East Operating Budget |
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Expense Category |
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Q1 |
Q2 |
Q3 |
Q4 |
Total |
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Personnel |
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Nursing Staff Salaries |
$ 2,350,000.00 |
$ 2,400,000.00 |
$ 2,450,000.00 |
$ 2,500,000.00 |
$ 9,700,000.00 |
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Overtime |
$ 70,000.00 |
$ 95,000.00 |
$ 130,000.00 |
$ 165,000.00 |
$ 460,000.00 |
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Agency/Temporary Staff |
$ 55,000.00 |
$ 80,000.00 |
$ 115,000.00 |
$ 150,000.00 |
$ 400,000.00 |
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Callout Coverage Premiums |
$ 20,000.00 |
$ 28,000.00 |
$ 35,000.00 |
$ 48,000.00 |
$ 131,000.00 |
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Clinical Supplies |
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Medical Supplies |
$ 150,000.00 |
$ 165,000.00 |
$ 210,000.00 |
$ 240,000.00 |
$ 765,000.00 |
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Medication |
$ 315,000.00 |
$ 330,000.00 |
$ 345,000.00 |
$ 360,000.00 |
$ 1,350,000.00 |
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Equipment Maintenance |
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Inventory Tracking System Maintenance |
$ 38,000.00 |
$ 44,000.00 |
$ 60,000.00 |
$ 82,000.00 |
$ 224,000.00 |
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Training & Development |
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New Staff Orientation |
$ 18,000.00 |
$ 22,000.00 |
$ 34,000.00 |
$ 46,000.00 |
$ 120,000.00 |
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Recruitment Costs |
$ 12,000.00 |
$ 16,000.00 |
$ 25,000.00 |
$ 38,000.00 |
$ 91,000.00 |
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Continuing Education |
$ 10,000.00 |
$ 10,000.00 |
$ 10,000.00 |
$ 10,000.00 |
$ 40,000.00 |
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Total Operating Expenses |
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$ 3,038,000.00 |
$ 3,190,000.00 |
$ 3,414,000.00 |
$ 3,639,000.00 |
$ 13,281,000.00 |
NHS-FPX6008 Final Assignment: Healthcare Economic Business Case and Funding Proposal
Assignment Template
**Type in the boxes provided, deleting the instructions as you complete the assignment. Use full sentences and paragraphs and include citations and references using APA format.**
Student Name:
Fact Sheet
Description of Assigned Problem:
Proposed Solution:
Stakeholders:
List stakeholders in the table below with a brief justification for each one:
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Stakeholder Role |
Justification for Initiative Involvement |
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Budget Proposal
Initiative Cost Breakdown
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Cost Component |
Type (Operating/Capital) |
Calculation Basis |
Annual Cost |
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Definitions:
Cost Component: List each individual expense required to implement your initiative.
Type (Operating/Capital): Indicate whether the expense is a recurring operating cost or a one-time capital investment.
Calculation Basis: Briefly explain how you estimated the cost (e.g., hourly wage × FTE hours, vendor estimate, number of units × price, etc.).
Annual Cost: Enter the projected total cost for that component for the next fiscal year.
Budget Impact Summary
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Budget Category |
Current Annual Cost (FY1) |
Proposed Initiative Cost (FY2) |
Projected Cost Reduction (FY2) |
New Projected Annual Cost (FY2) |
Net Financial Impact |
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Definitions:
Budget Category: List only the line item(s) from the provided Unit 10 East operating budget that are directly affected by your assigned economic problem, along with any new initiative-related expenses you are proposing.
Current Annual Cost (FY1): Enter the total annual cost for the selected budget category exactly as listed in the provided Unit 10 East operating budget spreadsheet.
Proposed Initiative Cost (FY2): Enter the projected annual cost of any new operating expense or capital investment required to implement your proposed solution for the next fiscal year.
Projected Cost Reduction (FY2): Estimate and enter the anticipated decrease in the current annual cost that would result from implementing your initiative, based on reasonable financial assumptions.
New Projected Annual Cost (FY2): Calculate and enter the revised annual cost for the category after applying the projected reduction and/or adding initiative-related expenses.
Net Financial Impact: Calculate and enter the overall financial effect of your proposal for the next fiscal year, indicating whether the initiative results in net savings or a net increase in expenses.
References
List references here
