Quantitative Analysis Case, assignment help

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Kindly find attached “Burn Care case”. This is the “quantitative analysis” case.

A few thoughts on Burn Care…

  • You are a VERY-WELL recompensed consultant, hired by Mr. Warden the hospital CEO, to develop and analyze alternative strategies regarding the situation. Mr. Warden is the target audience for the report and presentation.
  • As specified in the Case, “The corporation has a perfect Management Information System. I am providing you with the necessary data to solve the problems. Your job is to reduce operating expenses by $500,000 without reducing the quality of care or services to patients.
  • You must also avert the nurses’ strike and maintain their long-term job satisfaction. You can implement any change, use any strategy to reduce your expenses. If your strategy involves capital expenditure, then it must be paid for with interest within three years by the additional savings in operating expenses.”
  • For the Burn Care case your report should be the typical comprehensive “Capstone” report’ 15-pages single spaced report and these 15 pages not including charts, tables, or figures.

Let’s Review the Case

Job One –> The hospital was given a goal of reducing operating expenses by $500,000 for the burn care unit. (p. 2), based on 1994 hourly rates.

This is Larry’s favorite case, and there are a lot of ways to approach finding the reduction. But, you must not provide sub-standard patient care, and you want to prevent a nursing strike. Also, remember, you should be concerned about your continued ability to attract and retain qualified nurses – unless, that is, you want to get all of them from the agency pool (but are agency nurses as good, what about quality and continuity??).

A couple of more observations and/or subtleties I am concerned you might miss: Be careful

  • On page 2, the case says –> In May 1993 Mr. Adams, the regional vice-president of the corporation and an accountant by training, wrote a letter to Mr. Warden, the CEO, that he should discontinue the Baylor Plan as it was costing about $800,000 more in nursing payroll. Obviously, IF Mr. Adams is correct, finding $500,000 in savings will be easy… right??? Or, is Mr. Adams just a stupid budget weenie in administration who doesn’t understand or even have a clue?? So, never ever say this in your solution.
  • Remember, the “Budgeted Daily Staffing Pattern” (p. 4) is based on an assumption of 30 ADC, but what happens when ADC is higher/lower? How does the pattern change? And, remember, the budget model is based on the staffing standard of 22 HPPD.
  • Pay attention to this paragraph –> The hospital’s budgeted nurse-staffing standard in 1996 was 22 hours per patient per day (HPPD). The staff nurses on the unit, however, generally complained that the staffing levels were not sufficient to provide quality care to the burn patients. In December 1996, the hospital implemented Medicus patient acuity
  • Make sure you understand the work sampling data on page 5 🙂
  • Make sure you understand the “Census and Acuity Data by Pay-Period” on page 3 🙂
  • From page 6 –> Here we are assuming that only the regular staff makes overtime under the Baylor Plan. The Flex staff is generally a part-time staff and works 8- or 12-hour shifts without overtime but they receive benefits. Agency nurses do not earn overtime or benefits from the hospital.
  • Obviously, regular employees are paid OT at 1.5x for hours worked over 40 in a week. If you suggest something besides the Baylor staffing model, make sure you are explicit about how that schedule will work for “regular” employees – 24×7 staffing is very, very hard and is typically not easily divisible by 40.
  • What about sick leave, annual leave, etc. for regular employees. How does that fit in?

system for staffing and adopted 3.5 hours of direct care per acuity point as its worked nurse-staffing standard. (Bold emphasis supplied.)

  • Your quantitative analysis should include excel table, graphs, charts, calculation and everything needs to be explained in details in the report.

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