Patton-Fuller Community Hospital Operation Budget Research Paper

Length: 4 pages Sources: 4 Subject: Health - Nursing Type: Research Paper Paper: #85455515 Related Topics: Activity Based Costing, Gaap, Nurse To Patient Ratio, Hospital
Excerpt from Research Paper :

Patton-Fuller Community Hospital Operation Budget Analysis

Caterina Hossack, the Chief Nursing Officer is proposing for the PFCH ? ("Patton-Fuller Community Hospital") (Patton-Fuller Community Hospital, 2010 p 1) ? To hire additional nursing staff because she believes that the policy will enhance quality of services. Presently, the Patron-Fuller hospital is maintaining

nursing ratio, which is 5 patients for every nurse. The argument of Caterina is that nurses have been overworked, and the issue is having negative effects on patient's care. By consequence, some nurses have left the PFCH for other hospitals. Based on the memo sent by Caterina to the President/CEO, the President has asked the Chief Financial Officer to prepare the financial data to compare whether giving nurses more raise vs. hiring additional nurses can solve the problems.

Objective of this paper is to prepare 2010 Operating Budget based on the labor decision selected from the Nursing Statistics memo?.


The report chooses the policy decision to raise wage of nurses by $1 per hour. A raise will reduce the costs of operations compared to hiring additional nurses, which will skyrocket the costs of operations.

The table 1 reveals the costs of raising the nurse's wages vs. hiring additional nursing staff. The stimulation in the table 1 reveals that the PFCH will benefit from raising the wages of nurses rather than hiring additional nursing staff or reducing nursing- patient ratio from 1-to-5 to 1-to-4.

Table 1: "Simulation Effect of a $1 per hour raise for all nurses"








"Number of Patients ?per- day"?

"Cost -of -nurse per hour w/benefits" $31.00






Cost- of- nurse per 24 hour day?







"?Number of nurses per patient "5 to 1" nursing ratio ?"


Number of nurses -per -day







Nursing- cost per -day







Nursing -cost per- month



In other words, budget serves as a financial framework that can be used to make a decision on a course of action a company intends to implement. A business is required to control expenditures in order to effectively manage its operations. In the case of the Patton-Fuller Hospital, preparing operating…

Sources Used in Documents:


Chew, L. Parkinson, A. (2013). Making Sense of Accounting for Business. Harlow: Pearson.

Colin, D. (2007), Differences between management accounting and financial accounting, Management and Cost Accounting, p.7.

Patton-Fuller Community Hospital (2010). Patton - Fuller Community Hospital Patient Statistics. USA.

Patton-Fuller Community Hospital (2010). Statement of Revenue and Expense 2009 to 2010 Operating Budget. USA.

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