DQ 1) Provide an example of a direct cost and indirect cost from your workplace or an organization with which you are familiar. What is the difference? Explain your answer. List references if you use a source other than the text.

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DQ 1) Provide an example of a direct cost and indirect cost from your workplace or an organization with which you are familiar. What is the difference? Explain your answer. List references if you use a source other than the text.

DQ 2) Understanding the difference between fixed and variable costs, what area of a health care facility or physician practice do you think would have a greater amount of variable costs than fixed? What would you suggest to lower the fixed costs for the same area?

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95 Staffing: The Managerâ??s Responsibility 9 C H A P T E R STAFFING REQUIREMENTS In most businesses, a position is filled if the employee works five days a week, generally Monday through Friday. But in health care, many positions must be filled, or covered, all seven days of the week. Furthermore, in most businesses, a position is filled for that day if the employee works an eight-hour dayâ??from 9:00 to 5:00, for example. But in health care, many positions must also be filled, or covered, 24 hours a day. The patients need care on Saturday and Sunday, as well as Monday through Friday, and patients need care around the clock, 24 hours a day. Thus, healthcare employees work in shifts. The shifts are often eight-hour shifts, because three such shifts times eight hours apiece equals 24-hour coverage. Some facilities have gone to 12-hour shifts. In their case, two 12-hour shifts equal 24-hour coverage. The manager is responsible for seeing that an employee is present and working for each position and for every shift required for that position. Therefore, it is necessary to understand and use the staffing measurement known as the full-time equivalent (FTE). Two different approaches are used to compute FTEs: the annualizing method and the scheduled-position method. Fulltime equivalent is a measure to express the equivalent of an employee (annualized) or a position (staffed) for the full time required. We examine both methods in this chapter. FTES FOR ANNUALIZING POSITIONS Why Annualize? 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 paid for by the After completing this chapter, you should be able to 1. Understand the difference between productive time and nonproductive time. 2. Understand computing fulltime equivalents to annualize staff positions. 3. Understand computing fulltime equivalents to fill a scheduled position. 4. Tie cost to staffing. P r o g r e s s N o t e…
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