Download - Patton fuller final presentation
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Regine Roy, Dianne Smith, Dorian Rozier, Tara BrownHCS 405 – Health Care Financial Accounting
April 28, 2011Professor Theron Angry
Health Care Case Study:
Sensitivity Analysis
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OBJECTIVES
Discuss Patton-Fuller’s Nursing Shortageo The Advantageso The Disadvantageso The Best Choice
Explain the affects of giving raises to Patton-Fuller nurses
Explain The Use of Trend Analysis to plan for staffing at Patton-Fuller
Summarize the trend data and how comparative data facilitates forecasting at Patton-Fuller
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Patton-Fuller is a cardiac specialty facility with invasive procedures being done everyday.
Based on the financial statements, 20% of the budget is spent on nurses wages
Initially the nurse ratio was 5:1 and needs to be changed
PATTON-FULLER’S NURSING SHORTAGE
Regine Roy
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Nurse Burnout
Lack of employee retention
Job dissatisfaction
Poor quality in patient care
Prone to medical errors
NURSE 5:1 RATIO DISADVANTAGE
Regine Roy
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Implement team nursing
Get $1 per hour and better benefits
Less nurse burnout levels
Better employee retention
Better quality in patient care
Nurse able to focus better on the patient
NURSE 4:1 RATIO ADVANTAGE
Regine Roy
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4:1 ratio in nursing staff regardless of the department
Better Nurse Ratio = Better Care = Better Facility
Better Facility = More Clients = More Revenue = Happy CEO
BEST CHOICE FOR PATTON-FULLER
Regine Roy
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AFFECT OF NURSE RAISES
Tara Brown
Increase in cost per month
Cutting cost else where to cover cost of raises
Other Departments requesting a raise
Paying out more money – Less coming in
Negative
Positive
Happier Employees – Getting Paid their worth
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NURSING STASTICS
Tara Brown
Janu
ary
Mar
chJu
ne
Sept
embe
r
Decem
ber
0
400,000
800,000
1,200,000
1,600,000
2,000,000
$30 $31
Nursing Cost Per Month
Financial and statistical performance comparison over period of time
Differences between current assets and current liabilities
An aspect of technical analysis that tries to predict the future based on past data
TREND ANALYSIS
Dianne Smith 9
RECOMMENDATIONS
Internal Analysis
Surveys
Delivery
Competitiveness
Obtain staff feedback through in house surveys
Use manageable ratios of nurse to patient to avoid negative ratings in quality.
Performance management incentives.
Dianne Smith 10
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SUMMARIZING THE TRENDS ANALYSIS
Patton Fuller’s Cardiac Hospital is a 600 bed facility that generally utilizes 60% occupancy.
Based on the trend analysis the nurses were burned out based on a 5 to 1 ratio.
Changing the ratio to 4 to 1 will ease the nurse work load.
Increasing the nurses salary $ 1 per hour will increase the employee moral and maintain employee retention.
Dorian Rozier
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COMPARATIVE DATA
Changes in daily and monthly census affects the patient revenue.
Based on the patients census, it determines the nurse patient ratio.
The cost of the nurses is based on the existing 5 to 1 ratio and a salary of $30.00 an hour.
The data estimated what the nursing cost would be if given a $1 per hour raise or changing the ratio to 4 to 1 .
Dorian Rozier
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Carlson, J. (2010). Rallying for ratio. Modern Healthcare 40(24), 8 – 9. Retrieved from Health Source: Nursing/Academic Edition database.
University of Phoenix. (2011). Analyzing financial indicators for decision making [Computer Software]. Retrieved from University of Phoenix, Simulation, HCS405-Health Care Financial Accounting website
REFERENCES