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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