Question

Please create a salary budget for St Catherine Hospital for the year. You are opening a new patient care unit of 30 medical-surgical patient beds which will be opened for the entire year. You will be staffing the unit as follows:

Day shift (7:00 am – 7:00 pm) - RN to patient ratio of 6 patients to 1 nurse. Each nurse will be assigned one Patient Care Associate (PCA) daily. The nurses and PCAs work three twelve hour days (12 hour days) per pay period. Each pay period is 2 weeks. There is one unit secretary, one Nurse Manager and one Assistant Nurse Manager. The unit secretary, Nurse Manager and Assistant Nurse Manager work five days a week – 8 hour days.

Night shift (7:00 pm – 7:00 am) - RN to patient ratio of 10 patients to 1 nurse. Each nurse will be assigned one Patient Care Associate (PCA) per night. The nurses and PCAs work three twelve hour nights (12 hour nights) per pay period. Each pay period is 2 weeks. There are two Assistant Nurse Managers who cover 7 nights per week- 10 hour shifts (9pm- 7am). There is no unit secretary on at night.

1- Average salary for RN = $ 40 per hour

2- Average salary for PCA = $ 15 per hours.

3- Salary for Nurse Manager = $120,000 annually

4- Salary for Unit Secretary = $ 12 annually

5- Salary for Assistant Nurse Manager = $ 90,000 annually

6- Night differential is paid to non-management staff at a 10% differential for all hours worked after 7pm and up until 7 am.

7- Benefits (health and disability) should be calculated at 30% of salary expense.

8- Replacement time for vacation, sick, and holiday should be calculated at 20%.

9- Assume the Average Daily Census for the unit is 25 patient beds. Patient days should be calculated using 25 beds X 365 days/ year.

10- Assume hours worked for 5 days a week are 40 per week or 2,080 hours annually (40 X 52 weeks).

11- Assume hours worked for 3 days a week are 36 per week or 1,872 hours annually (36 X 52 weeks).

12- Assume hours worked for 10 hour shifts are 7 shifts every 2 weeks or 70 hours per two weeks or 1,820 annually.

Assignment:

Please create an excel spreadsheet and calculate the following:

1- How many FTEs will be included in your budget?

2- How many full-time and part-time employees will you need to cover all shifts for the year?

3- What is the total salary expense for the year?

4- What is the total benefit expense for the year?

5- What is the total personnel budget for the year?

6- Please calculate the Patient Care hours ratio. Patient Care hours are calculated by Direct Care giver hours worked per year (RN and PCA)/ Total patient days.

7- On which financial statement would you find salary expense and benefit expense?

8- Please prepare the journal entry for the annual salary expense

. 9- Please prepare the journal entry for the annual benefit expense.

Please help me to answer all these questions. Second time posting.

Answer 1

Part 1:
FTEs:
6 patients for each RN and PCA
Total number of patients	25
Number of RN	4.166667	3
Number of PCA	4.166667
Number of pay period
Each pay period consists of	2 Weeks
Number of pay period	182.5
Total number of days in a year	365
Number of 12 hours shift	730
Total number of hours required from RN and PCA
Number of patients	30 per day
Number of effective nurses required per day	10
Number of PCA per day	8.333333
Total number of hours required from RN
Number of days in a year	365
Number of hours	36500
Total hours by a RN in a year
Number of hours in two weeks	36	6570
Number of weeks	365
Effective week by a nurse	182.5
Number of hours in a year	6570
FTEs for RN	5.555556	11.11111
Total number of hours required from PCA
Number of days in a year	365
Number of hours	36500
Total hours by a PCA in a year
Number of hours in two weeks	36
Number of weeks	365
Effective week by a nurse	182.5
Number of hours in a year	6570
FTEs for PCA	5.555556	11.11111
Full time employees		22.22222
Thus, total full time employees	23

Part 2:

Full time employees required
RN	10
PCA	10
Part time employees	7

Part 3:

Total salary expense for the year
(7.00 am to 7 .00 pm)	Hours	Hourly rate	Salary
RN salary	21900	40	876000
PCA	21900	15	328500
(7.0 pm to 7.00 Am)
RN salary	21900	44	963600
PCA	21900	16.5	361350
Salary for nurse manager			120000
Salary for unit secretary			12
Salary for assistant manager			90000
Total salary expense for the year			2739462

Part 4:

Benefit expenses
Health and disability benefit (20% of salary)	821838.6
Vacation, sick and holiday benefit	547892.4
Benefit expenses	1369731