HCA312 Week 3 Assignment - Managerial Role and Annualizing

HCA312 Week 3 Assignment

Managerial Role and Annualizing Staffing

For this assignment, please 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.

Assignment:

Section 1 consists of calculating the staffing for Dr. Smith and Browns’ two offices: Spruce Street office and the Birch Street Office.

Section 2 consists of converting the net paid days to the annualized factor.

Section 3 asks you to discuss the regulatory requirements about staffing and correlate staffing to cost.

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 Section 1 of the table provided by entering 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.

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. Use at least one scholarly or credible source as well as the course textbook to support your response. All summarized or quoted content must be presented in APA format with citations and a corresponding reference list.

References