Scenario 2

HCA312 Week 3 Assignment

Managerial Role and Annualizing Staffing

Prior to completing this assignment, review Chapter 10 in the course textbook, Health Care Finance: Basic Tools for the Nonfinancial Managers, 5th edition. The example outlined on pages 104 and 105 will clarify these calculations. Instructions: As the office manager for Dr. Smith and Brown’s two offices, you are responsible for the developing the yearly budget. To identify the cost related to staffing, you are tasked with annualizing the staff for both offices. In addition, you must convert the employee’s net paid days worked to a factor. Complete the following: Section 1: Enter the results of your calculations for each category. It is important to understand that a business year is divided into quarters. Therefore, when calculating a business year, you must divide the year into 52 weeks, which creates 13 months of 28 days, or 4 weeks. This translates into 4 quarters of 91 days, as there are 364 days in a business year. Section 2: Convert the net paid days to the annualized factor. Section 3: Discuss the regulatory requirements about staffing and correlate staffing cost.

Dr. Smith and Brown’s Practice Information: Both offices are open 7 days a week, which requires staffing for each of the 7 days for 8 hours a day. Dr. Smith and Brown offer the following benefits to their full-time employees. The benefits are applied according to the employee’s length of service. All employees at the Spruce Street office have been employed for more than 3 years. All employees at the Birch Street office have been employed for at least 1 year, but less than 3.

3 to 5 years of service 1 to 3 years of service 10 Holidays 10 Holidays 5 Sick days 3 Sick days 15 Vacation days 7 Vacation days 3 Personal days 1 Personal days 3 Educational days 3 Educational day

Section 1:

Compute Net Paid Days Worked for a Full-time Employee

CATEGORY OF DAYS Spruce Street Office: Number of Days

Birch Street Office: Number of days

Total days: Business year Less 2 days off per week Number of paid days per year Less paid days not worked: Holidays Sick days Vacation days Personal days Educational days Total nonproductive days Net productive days

Section 2:

Convert net paid days worked to a factor to annualize the staffing plan for Dr. Smith and Brown’s physician practice at both offices. Complete the following table by entering the annualizing equation to obtain the factor.

OFFICE EQUATION FACTOR Spruce Street

Birch Street

Section 3:

Discuss the regulatory requirements about staffing and correlate staffing to cost. Type your response directly into the box below.

1. Spruce Street Office Number of DaysTotal days Business year:
2. Birch Street Office Number of daysTotal days Business year:
3. Spruce Street Office Number of DaysLess 2 days off per week:
4. Birch Street Office Number of daysLess 2 days off per week:
5. Spruce Street Office Number of DaysNumber of paid days per year:
6. Birch Street Office Number of daysNumber of paid days per year:
7. EQUATIONSpruce Street:
8. FACTORSpruce Street:
9. EQUATIONBirch Street:
10. FACTORBirch Street:
11. directly into the box below:
12. Holidays:
13. Sick days:
14. Vacation days:
15. Personal days:
16. Educational days:
17. Total nonproductive days:
18. Net productive days:
19. Text1:
20. Text2:
21. Text3:
22. Text4:
23. Text5:
24. Text6:
25. Text7:
26. Text8: