Problem
A hospital's budgeted volume for calendar year 2024 is 220,000 procedures, and each FTE can do 8,700 procedures a year. A pay raise will be given to all staff on May 1st of each year at a rate of 6 percent. The annual hours for FTE is based on 40 hours per week for 52 weeks. The July 1, 2023 rate of pay for new hires is set at $38.00/hour regardless of hire date. The following are the current staff with FTE values and hourly rates of pay as of October 1, 2022:The following information may or may not be needed to solve this problem. In examining the payroll and personnel records of your department, you have determined that productive time is 84 percent of total paid time.
1. Calculate the FTEs needed to perform the planned procedures for the calendar year, and determine how many new staff need to be hired, new staff can only be hired in full FTE increments (e.g., if you need 12.3 FTEs, 13 FTEs must be hired).
2. Calculate the salary budget for fiscal year 2024 which runs from July 1, 2023 to June 30, 2024). Hint: Make sure to account for adjustments based on the dates they went into effect.
|
Employee
|
FTE Value
|
Pay Rate
|
|
Name 1
Name 2
Name 3
Name 4
Name 5
Name 6
Name 7
Name 8
|
0.5
1.0
1.0
1.0
0.5
1.0
0.5
0.5
|
$35.50
31.75
29.35
32.75
25.75
36.20
31.00
28.00
|
|
New Hire(s)
|
??
|
38.00
|