Week 5 – Assignment 1
Discussion
Discussion Question
1: The Average Daily Census (ADC) and the Target Budget
One of the greatest challenges unit managers and CNOs face
is predicting and working with the average daily census (ADC), particularly as
it relates to the target budget.
The average daily inpatient census refers to the number of
patients present at the official census-taking time each day. For example, a
patient admitted to the coronary care unit at 1:00 pm and who dies at 4:00 pm
the same day is a patient admitted and discharged the same day. The ADC is
typically calculated each night at midnight. It is a challenge to predict what
the ADC will be on any given day.
The target budget is targeted or predicted in the zero-based
operating budget based on the previous years’ ADC. The target budget is
typically projected at least one year in advance. A lot of information goes
into the computation of a target budget, and there are many variances once the
budget is formulated and approved.
Using the readings for the week, the South University Online
Library, and the Internet, respond to the following:
Explain how the ADC contributes to the target budget.
Describe two major challenges in determining the actual
target budget and ADC.
Identify two major challenges for unit managers and CNOs due
to the variances between the actual target budget and the ADC.
Comment on the postings of at least two peers.
Evaluation Criteria:
Explained how the ADC contributes to the target budget.
Described two major challenges with the actual target budget
and ADC.
Identified two major challenges for unit managers and CNOs
due to the variances between the actual target budget and the ADC.
Justified your answers with appropriate research and
reasoning.
Commented on the postings of at least two peers.
DQ2
Discussion Question
2: Return on Investment
Return on investment (ROI) is a financial performance
measure used to evaluate and determine the efficiency of an investment on a
number of different measures. The ROI is calculated by examining the benefit
(return) of an investment divided by the cost of the investment. The result of
this calculation is a percentage or a ratio. For example, the formula for ROI
is as follows:
ROI = (Gain from the investment – Cost of the investment) /
Cost of the investment
It should be noted that there is more than one way
healthcare organizations may compute and calculate the ROI for a new service or
product line. The ROI is not always calculated in direct dollars, but it may be
calculated as the ability to contribute to the organizational mission and
philosophy. For example, a nonprofit healthcare organization may want to
partner with a local community endeavor and establish a free clinic with
low-dollar ROI but with a tremendous feeder of new patients to primary care services
within the organization.
Using the readings for the week, the South University Online
Library, and the Internet, respond to the following:
Develop an ROI for a new project (such as the implementation
of a new Level 3 neonatal intensive care unit [NICU]).
Summarize the issues and challenges in formulating an
accurate ROI for a new product or service line.
Identify two major challenges and two major barriers for
unit managers or the CNO accountable for ensuring ROI on a new product or service
line.
Comment on the postings of at least two peers.
Evaluation Criteria:
Developed an ROI for a new project (such as the
implementation of a new Level 3 neonatal intensive care unit [NICU]).
Summarized the issues and challenges in formulating an accurate
ROI for a new product or service line.
Identified two major challenges and two major barriers for
unit managers or the CNO accountable for ensuring ROI on a new product or
service line.
Justified your answers with appropriate research and
reasoning.
Commented on the postings of at least two peers.
