Sensitivity Analasis- HHS

1
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

2
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 Patton-Fuller
• Summarize the trend analysis
• Summarize how comparative data facilitates
  forecasting at Patton-Fuller.

3
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.

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• 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.
5
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
• 
  

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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.

7

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
• Available staffing hour rate decreases
• Shortage on staffing- hour rate increases

8
Staffing components

• annual FTE-
• By converting the non productive and the paid
  days to the annual factor.
• Considering the capacity level
• space and equipment
• available staff

9

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

10

• Elements that affects staffing at Patton Fuller
  51 ratio.
• 1. Shortage of nurses
• 2. Raises in wages
• 3. Nurses are over worked
• 4. Poor quality in patient care
• 5. Dissatisfied nurses

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Summarize the trend analysis

• 1. The nurse to patient ratio 51 ( 5 patient for
  every nurse ) need
• to change to 41 (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

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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 41

13

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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.

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Questions???
16
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