Sensitivity Analysis

Patton-Fuller Community Hospital Virtual Organization University Of Phoenix HCS/405 Team A: Bennetta Dove, Jason Ellis, and Jocelyn Garcia February 13, 2013

Objectives
Describes elements that affect health care staffing at Patton-Fuller, such as raises in wages and changes in the nurse-to-patient ratio.

Provide a comparative analysis of the last two years of data.

Explain how the 2010 budget assumptions will positively or negatively affect PattonFuller Summarize the trend analysis

Summarize how comparative data facilitates forecasting at Patton-Fuller.

Overview
Patton Fuller community hospital has been providing medical care to its community since 1975. It is a cardiac specialty facility that provides top quality care to its patients. With increasing growth in business, the hospital now provides 600 beds with full service to its patents. At present only 60% of the hospital beds are occupied. Due to seasonal fluctuation, occupancy of the hospital is affected. This has caused strain on the finance of the hospital.

Comparative analysis
staff wages, management can compare previous wages internally or of other Health care organizations and compare industry average to determine if a wage increase is appropriate. The nurse-to-patient ratio is determined by patient census. The ratio is found by calculating the number of nurses and number of hours those nurses worked then dividing that by the patient census. This will give the health care organization an idea if they have the right number of nurses working.

Comparative Analysis
Using software for patients access Sending prescriptions over the internet Using a new coding system Software program to save time Reducing staff to improve budget

Budget Assumptions Affected

Skill-set

Economy-

Supply and Demand- A theory explaining the interaction between the supply of a resource and the demand for that resource.

Trends analysis to plan for staffing

the ultimate accuracy of a forecast rests on the strength of its assumptions
The organizations structure must be recognized and taken into account when setting up assumptions for staffing forecasts. operating budget staffing computations, costs, and reports in a previous year forecast considerations, components, and assumptions Staffing forecasting
Required Minimum Staff Levels Controllable versus Non-controllable Expenses( should not be included in plan) Labor Market Issues in Staffing Forecasts
o o Available staffing hour rate decreases Shortage on staffing- hour rate increases

annual FTEBy converting the non productive and the paid days to the annual factor. Considering the capacity level o space and equipment o available staff

Staffing components

IMPORTANCE OF FORECASTS
The dictionary defines to forecast as . . . to calculate or predict some future event or condition, usually as a result of study and analysis of available pertinent data

Elements that affects staffing at Patton Fuller: 5:1 ratio.

1. 2. 3. 4. 5.

Shortage of nurses Raises in wages Nurses are over worked Poor quality in patient care Dissatisfied nurses

Summarize the trend analysis

1. The nurse to patient ratio 5:1 ( 5 patient for every nurse ) need to change to 4:1 (4 patients for every nurse) or 2. Nurses would get $1.00 increment to their current pay $30.00 and better benefits. 3. Patient would have quality care and nurses would be able to focus on their patients 4. Nurses would not be overwhelm with work-loads 5. Turnover rates would decrease, nurses would likely stay

Comparative data facilitates forecasting at Patton-Fuller.

. Effect of a $1 per hour raise for all nurses: A. Number of nurses per patient based on a ratio of 5 patients per nurse or a "5 to 1" nursing ratio B. Cost of nurse per hour w/benefits is $31.00 C. Nursing cost per month $ 1,974,781 Effect of changing to a "4 to 1" nursing ratio A. Nursing cost per day (Nursing ratio of "4 to 1" and an hourly rate of $30 B. Nursing cost per month $ 2,388,848 C. Nursing statistic data provides nurse would get a $1 raise or the nurse to patient ratio would be 4:1

Conclusion
The analysis of the Patter-Fuller Hospital financial statements shows that all financial ratios have improved, and the hospital is poised to continue its profitable trend even with in the seasons that workflow changes. With the comparative and trend analysis we showed that they are used in various of ways in the form of comparison for a period of time, which we used the 2008 and 2009 statements as examples. With this we also mentioned the effect it had on the 2010 budget, the way staffing planning is made, and the summarization of the importance of forecasting.

Questions???

References :

Baker, J. J., & Baker, R. W. (2011). Health care finance, basic tools for nonfinancial managers. (3 ed.). Sudbury: Jones & Bartlett Learning.

2009 Budget Issue-Nurses (2009). Patton-Fuller Community Hospital. Retrieved (2013) from University Of Phoenix Virtual Health Care Financial Statement website

Nursing Options3. (2009) PDF worksheet retrieved from Web Development\CIST Server\CIST\VOP Development\Healthcare\PFCH\HosDepts\CFO\2009 Financial Statements\2009NursingStatsPDF.xls