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Notes - Chapter 9
Overview
Understand the difference between productive and nonproductive time
Understand computing full-time equivalents to annualize staff positions
Understand computing full-time equivalents to fill a scheduled position
Tie cost to staffing
Unlike non healthcare related businesses, healthcare must have staffing seven days a week, 24 hours a day. Most organizations have eight hour shifts, generally 7 to 3, 3 to 11 and 11 to7. Some healthcare organizations utilize 12 hour shifts.
The manager is responsible to make sure that the necessary staffing is available on all shifts. Without sufficient staffing, there can be issues with lack of care afforded to the patients/residents.
In order to assure sufficient staffing, the measurement known as full time equivalents is used. There are two different approaches used to compute full time equivalents (FTE’s). Those methods are the annualizing method and the scheduling position method.
FTE’s for Annualizing Positions
Annualizing is necessary because each employee that is eligible for benefits such as vacation days, will not be on duty for the full number of hours that they are being paid for. Annualizing allows the full cost of the position to be computed through a burden approach. In the burden approach, the net hours desired are inflated, or burdened, in order to arrive at the gross number of paid hours that will be needed to obtain the desired number of net hours on duty from the employee.
Productive vs Nonproductive Time
Productive Hours actually equates to the number of hours an employee is actually on duty and working. Nonproductive hours are hours that an employee is not working but being paid for some time off category, i.e. vacation, personal, sick, holiday.
FTE for Annualizing Positions Defined
The definition of FTE is the equivalent of one full time employee paid for one year, including both productive and nonproductive time.
Staffing Calculations to Annualize Positions
See Exhibit 9-2 on page 97.
Calculate By Position
This method is used for controlling, planning and decision making.
To fill one position that need to be filled 8 hours per day for 7 days a week is calculated as follows:
Days per Week = 7
Hours per Day = 8
Days x Hours = 56
An employee works a 40 hour shift. Therefore to fill that position 7 days a week, you need 1.4 FTE’s, calculated as follows:
7 x 8 = 56 hours
56 hours divided by 40 hours per week = 1.4 FTE’s.
If you needed 25 positions filled, you would need a total of 35 employees.
25 x 1.4 = 35
Calculation of FTE’s
Calculate FTE’s for different standard workweeks as follow:
HOURS
Standard Workweek Regular Vac Sick Total
35 hours 28 7 35 Divided by 35 = 1.0 FTE
37 ½ hours 7 ½ 30 37 ½ Divided by 37.5 = 1.0FTE
40 hours 40 40 Divided by 40 = 1.0 FTE
The homework assignment will utilize the method above to calculate FTE’s.
The basic formula to calculate FTE’s is:
Total Paid Hours divided by the Standard Workweek for that Job Title. Not every employee has the same standard workweek. Management may have a 35 hour workweek, RN’s may be 37 ½, Nurses Aides and Support Staff may have 36 ¼ .
