Discussion Question1: Average Daily Census

Discussion Question1: Average Daily Census

Discussion Question1: Average Daily Census

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.