Consult Ch. 9 of Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.) and other outside sources to complete the worksheet.
Part I: Taking information for the following scenario, complete the table accordingly by listing the number of days next to each category. Remember, a business year is
divided into quarters. Therefore, when calculating a business year, you must divide the year into 52 weeks, which creates 13 months of 28 days, or 4 weeks. This
translates into 4 quarters of 91 days, as there are 364 days in a business year.
Imagine you are the office manager for a site the physician group owns. You are working on the budget for next year. Your boss has asked you to annualize staff at both
sites because the second site���s office manager is on family leave. You agree to do both sites. To annualize the staffing, you must convert the staff���s net paid days
worked to a factor.
Both offices are open and staffed 7 days a week, per the agreement with two managed care plans. The physician group offers the following paid days for each full-time
employee after 3 years of service: 8 holidays, 5 sick days, 15 vacation days, 3 personal holidays, and 3 education days. For FTEs with more than 1 year of service but
less than 3 years, the physician group offers the following paid days: 8 holidays, 5 sick days, 7 vacation days, 2 personal holidays, and 1 education day.
Site 1: All employees have been employed for more than 3 years.
Site 2: All employees have been employed for less than 3 years, but more than 1 year.
Compute net paid days worked for a full-time employee in the physician group.
CATEGORY OF DAYS
NUMBER OF DAYS: Site 1
NUMBER OF DAYS: Site 2
Total days: business year
Less 2 days off per week
Number of paid days per year
Less paid days not worked:
Total nonproductive days
Net productive days
Part II: Convert net paid days worked to a factor to annualize the staffing plan for the physician practice at both sites. Complete the following table by entering the
annualizing equation to obtain the factor.