Hospital Sensitive Analysis 1 Hospital Sensitive Analysis

2 This presentation will present the elements which affect the health care staffing as observed at Patton-Fuller which includes raises in wages, the nurse-to-patient ratio changes, the contracted staff reduction, and the additional staffing of more nurses aides. By using trend analysis, the members of management of Patton-Fuller determine the type and amount of employees needed for medical facility staffing in order to maintain or improve operations above the level of quality. Using trend analysis will make us find out the costs that are associated with lessening the ratio of nurse-to-patient and this change's impact will be discussed as well.

Elements Which Affects Staffing 3 Planning, making decisions on who to hire, and controlling are a few of the vital duties of a financial manager. The task of staffing involves the computation of the total coverage that once facility needs in order to cover a full time position of an employee. With this, annualizing is required. Annualizing is defined by factors such as vacation, holiday, sick pay, and other days that are non-productive. (Baker & Baker 2011) these are some of the major issues that one financial manager should take into account while planning the staffing of one facility. For the case of Patton- Fuller, the staff nurses are to be reduced according to the specific ratio of the patients. Doing so will increase the patient safety. Likewise when the workload of the nurses is increased the patient safety starts to change. Many hospitals as well as healthcare centers possess a bigger number of nurses thereby generating unsafe workloads and additional overtime. (America Association of Critical Nurse care, n.d.). In order to remedy the staffing issues of one facility, the contracting staff as well as the nursing assistance personnel should make it a point to decrease the number of workload for the nurses. In addition, decreasing the number of contracting staff and giving a higher pay for the nurses will decrease the management cost of the facility. The increased number of the staff will then give the nurses some time off during regular vacations.  Elements Which Affects Staffing On Staffing Nurse-to-patient ratio Safety of Patients Reduction of contracted staff Additional staffing (Nursing Aide) Benefits Salary Vacation Hours

Trend Analysis Used for Patton-Fuller Staffing 4 Patton-Fuller has devised an effective organizational structure that can provide top-notch services to meet the goals of the medical institutions or the hospitals. Through the use of Patton-Fuller, the organization is now being more productive and is growing gradually. As the organization grows so is does the work therefore more work forces are needed. One of the most effective way of predicting or analyzing the future needs with regards to the current trends is the Trend Analysis. Both sales and service need in Patton-Fuller is increasing which causes the staffing needs to sky-rocket as well. In order to satisfy the demand of the staff for the future based on the current trends, additional recruitments should be performed. Therefore, the process of trend analysis is very effective in analyzing the future staffing needs based on the gathered data from the current status (Buhler, 2002). Trend Analysis Used for Patton-Fuller Staffing  Trend analysis is an essential and supportive tool used to identify and fulfill all the staffing needs for any organization. Trend analysis can be a tool for quantitative and qualitative analysis to determine the future needs according to current trends. Patton-Fuller utilizes an impressive and very systematic organizational structure for managing their services.

Trend Analysis Used for Patton-Fuller Staffing 5 The primary role of Trend Analysis is to review the staffing needs or requirements based on the sales which in turn assist in plotting the needed work force or employees in an organization. The data that is gathered will then be used to calculate the ratio of the sales to the number of the work force or employees. The results of trend analysis will then pinpoint the areas as well as the time when the staffing needs to be accomplished. At Patton-Fuller, trends are very useful in considering staff recruitment at various shifts. In addition, the future staff attrition is likewise identified by trends and it also assists in decision-making for retirement plans, promotions, transfers and others. The trend also issues information on the needs of the staff depending on their posts as a manager, nurse, helper or any company personnel. Therefore, we can say that trend analysis is a vital tool that can contribute to the success of the Patton-Fuller staffing plannings. Trend Analysis Used for Patton-Fuller Staffing  Trend analysis aids in the analysis of staffing needs by using the sales. The sales on the other hand helps in plotting all the needs in human resource. The trends help when recruiting staff for certain positions, job profiles,and shifts in organizations. Therefore, Patton-Fuller benefits and is supported by trend analysis tool in identifying their staffing needs.

Trend Analysis Aiding Forecasting Compare Salary Increase 6 The standard occupancy was used to determine the dollar increase on the cost for the nurses. The computed increase amounted to $63, 703.00 or roughly 3.4%. The next slide will show results of changing the ratio of patient to the nurses. Notice how it affects the cost of the organization. It is determined that by increasing the pay of the nurse the patient care will not be affected. With increased pay the nurses will still be overworked and will cause a possibility of resignation on the nurses. If this happens, the organization will result to low nursing staff level as well as very poor patient care. Technological advancements as well as the time the patient would stay in the hospital gives a huge influence in todays nurse shortages. Most people today prefer to stay at home on their recovery period rather than to stay in the hospital therefore making staff nurses only tend to the really “sick people”. Staffing nurses is given much attention today because it contributes mainly on the patient safety and quality care. Trend Analysis Aiding Forecasting Compare Salary Increase Ratio 5:1 [5 patients to 1 nurse] Current hourly salary rate $30 Number of nurses needed daily 85.6 Monthly cost $1,911,078 $1 Salary Increase Current hourly salary rate $30 Number of nurses needed daily 85.6 Monthly cost $1,974,781 Cost Increase 3.4%

Trend Analysis Aiding Forecasting Compare Ratio Increase 7 Patient well being is closely related to the term nursing care that the patient receives. While a nurse gets his or her raise the tendency is that patients will be reduced per nurse. With reduced patients per nurse, the nurse would then feel less stressed and will have greater satisfaction on his or her job. By increasing the number of the nurses, patients will have faster recovery in hospitals and thus will receive better health care. The expenses with the added number of nurses might not be offset by additional costs to the medical institution. An effective funding method that is possible to offset the cost for the addition of nursing staff is to present a cost that is billed directly toward the patient (Mendelson, 2010). Trend Analysis Aiding Forecasting Compare Ratio Increase Ratio 4:1 [4 patients to 1 nurse] Current hourly salary rate $30 Number of nurses needed daily 85.6 Monthly cost $1,911,078 Ratio decrease Current hourly salary rate $30 Number of nurses needed daily 107 Monthly cost $2,388,848 Cost increase 25%

Impact The operating expenses or costs would increase 8 We can now tell that the salary increase and decreased number of patients per nurse will definitely result to a higher salary cost. With this, we can assume that higher cost will have an adverse effect on the total expenses. The organization did not present an additional charge or increased charge to its patients so the total revenue of the organization will remain the same. This in turn will project a less operating income in the Statement of Revenue and Expenses. As soon as the company closes out the total net income from the Statement of Revenue and Expenses, the equity will not be less. The Balance Sheet is likewise greatly affected. Impact The operating expenses or costs would increase By the salary increase By the change to 4:1 ratio Income remains constant The patient visit did not increase The procedures did not increase Total expenses decrease Total equity will decrease

9 Conclusion-Lila This presentation presents how the trend analysis could be used to determine Patton-Fuller's health care staffing requirements. The management made use of this tool to identify how many employees or the type of employee is needed to correctly staff the facility. The number of employees derived also keeps the patient care quality at its highest level, providing nurses with enough time off from work. The utilization of trend analysis showed the associated costs with decreasing the hospital's nurse-to- patient ratio. Indeed, trend analysis is an essential tool for the health care facilities when studying cost effective measures before actually implementing them.

1010 References America Association of Critical Nurse care. (n.d.). Nurse to patient ratio. Retrieved from http://www.aacn.org/wd/practice/content/nurse-staffing-ratio.pcms?menu=practice Baker, J, & Baker, R. (2011). Health care finance basic tools for nonfinancial managers. Sudbury, MA: Jones and Bartlett Publishers. Buhler, P. (2002). Human Resources Management: All the Information You Need to Manage Your Staff and Meet Your Business Objectives. Adams Media. Mendelson, Littler (June 07, 2010) Federal HHS Agency Touts Nurse-Patient Ratio Study retrieved from http://healthcareemploymentcounsel.com/examining-room/nurses/federal-hhs- agency-touts-nurse-patient-ratio-study/