Phyllis E. Adams
June 30, 2013
The Healthcare manager has many roles, his/her duties many depend of several factors such as the size and type of healthcare facility. Generally Healthcare managers plan, organize, and supervise decisions made within the facility. Among the many responsibilities of management is the component of staffing the facility and managing the costs thereof. In an ideal world, the manager’s role is to increase productivity, and optimally managing resources and decreasing costs—all while trying to enhance the quality of care. Total labor expense for healthcare provider organizations can exceed 50 percent of a hospital's operating costs and 90 percent of its variable costs. The ability to reduce labor costs by even a very small percentage is critical to increasing the operating margin and helping grow the bottom line. (Healthcare Insights, 2013)
Most businesses employ staff for a five day work week, eight hours daily, equivalent to a full time employee, (FTE) in a hospital setting many positions must be filled seven days weekly, 24 hours a day. The manager must monitor the productive and non-productive time of each employee to insure that the facility is staffed properly for optimal patient care. Productive time is defined as an employee’s net hours on duty when performing the functions of his or her job description. Non-productive time is paid for time when the employee is not on duty, not producing. (Baker, 2011) Two different methods are used to compute the FTE, the annualizing method, and the scheduled position method. The annualizing method is a two-step process to compute a FTE by first computing the paid days worked by an employee per year and then deducting the paid days not worked to calculate the net paid days worked to a factor. The numbers are calculated by computing the totals days in the business year minus the paid time off for holidays, vacations, sick days,...