Annualizing Staff

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:

Holidays

Personal holidays

Sick days

Education days

Vacation days

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.

SITE

EQUATION

FACTOR

1

2