Problem 4
You must prepare a budget for fiscal year 19X2 for your 75-bed nursing unit.
Target occupancy rate is 80 percent. You have determined that the staffing pat-
tern needed to support this level of occupancy is 50 FTEs of RNs managed by a
single head nurse. The fiscal year begins on July 1, 19X1. The existing rates of
pay as of November 30, 19X0, are $15/hour for RNs and $20/hour for the head
nurse. These rates will be increased on January 1, 19X1 by 10 percent and on
January 1, 19X2, by 8 percent. Benefits are 20 percent of salaries for all em-
ployees. Inflation on nonsalary items is 10 percent for the budget year. The bud-
get you are to prepare should include patient days, salaries, benefits, and
supplies. The following data are available for consumable supplies.
Departmental Expense Report
July 1 -- November 30, 19X0
Description Amount
Office Supplies (F) $500
Med/Surg Supplies (V) 18,000
Stock Drugs (V) 13,500
Books & Periodicals (F) 50
Miscellaneous (F) 1,000
Total $33,050
Partient Days 9,000
(V) = variable expense items
(F) = fixed expense items
