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.