Hospital Budgeting

BUDGETING EXERCISE
You are a manager of a 25 bed med- surgical unit in two months, April 1styou will be moving to the new 32 bed unit in a new building. Below is the current data regarding costs and revenue for the currentunit for February.
Patient Information

Ave Census 24 hrs

Ave Length of Stay

Ave Revenue per
Patient/ day

Ave Cost of Medical Supplies per patient/ day

22

3.7

$3, 949

$398.40

Nurse staffing- The staffing below is based on the average patient acuity of 1.8 and average census of 22
7-3

3-11 shift

11-7 shift

1 charge nurse – does not take patients

1 charge nurse – does not take patients

1 charge nurse – takes 2-3 patients and covers desk

5 RN’s

4 RN’

3 RNs

3 CNA’s

2 CNA’s

2 CNA’s

1 HUC

1 HUC (0.5) leaves at 1915

No HUC

Average Hourly Pay for Employees

RN

CNA

HUC

$38.75/ hr

$15.60/ hr

$13.50/ hr

Shift Differential Pay for All Employees

Charge RN

Evening Shift

Night Shift

Weekend Shift

3$/ hr

3$/ hr

5$/ hr

4$/ hr

Your salary is $ 78,400/ yr
Using the data above please answer the following questions and develop a proposed budget for the current month and for the month of April. (Please show your work)
1 Calculate the NCH/PPD for the unit with the current staffing and average patient census.
NCH/PPD = Nursing Hours Worked in 24 Hours/Patient Census
7AM- 3PM (9 staff) = 72hrs
3PM- 11PM (6 staff) = 52hrs
11PM- 7AM (5 staff) = 40hrs
72+52+40=164 hours
Then NCH/PPD =164/22=7.45
2 Using census (occupancy %) datafrom this month; estimate the average census you may anticipate when you move to the new unit.
Occupancy rate= average daily census/ number of hospital beds22/25=0.88
At 32 beds the average census =0.88*32= 28.16=29
3 Estimate the number of employees needed to be added to each shift based on previous staffing mix for the month of April. Provide breakdown on number of RN’s CNA’s & HUC’s. Explain how you came to this decision.
The total hours =7.45*28.16=209.92=216 hours
Based on this there would be 95hrs, 68 hrs and 53 hrs
7AM- 3PM 92/8 hours=11.5≈ 12 [3 more employees]
3PM- 11PM 67/8 hours=8.375 ≈9 [2 more employees]
3PM- 11PM >51/8=6.375 ≈7 [2 more employees]
7-3

3-11 shift

11-7 shift

1 charge nurse – does not take patients

1 charge nurse – does not take patients

1 charge nurse – takes 2-3 patients and covers desk

7 RN’s

5 RN’

4 RNs

4 CNA’s

3 CNA’s

3 CNA’s

1 HUC

1 HUC (0.5) leaves at 1915

No HUC

4 What is your estimated budget of salaries and wages for this month
5 days
7-3
Official day
RN’s 4*$38.75*8
RN1*41.75*8
CNA’s 3*$15.60*8
HUC’s ->1* $13.50*8
1240+334+374.4+108=2056.4
3-11 shift
RN’s 3*$41.75*8
RN1*41.75*8
CNA’s 2*$18.60 hr*8
HUC’s1*$16.50*4
1002+334148.8+66=1699.6