Herzing University Unit 4 Staffing a Coding Business Reflection Paper

Unit 4 Assignment 2

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Determine: Staffing Needs

Estimated time to complete: 4 hours

Health care managers are responsible for identifying staffing needs, including reductions and additions to their teams. There are two parts to this assignment:

Scenario 1 will challenge you to determine if a new hire is a viable option.

Scenario 2 will give you the opportunity to “sell” your open position to an applicant.

Both of these scenarios are based in statistics. Your responses should reflect a careful analysis of the statistical principles involved.

Evaluation Title: Staffing Needs

Scenario 1: Staffing a Coding Business

You are the manager of a small coding business that contracts with physicians. The owner of your business has asked you to evaluate if adding another coder will help increase revenue and efficiency. You currently employ two coders, with annual salaries of $40,000 and $36,000. They each code an average of 6,500 records per person, per year. You are able to provide some training to a novice coder, therefore, you are open to interviewing applicants who code less than 6,500 records per year for this additional position.

  1. List the factors you should consider regarding adding a new coder to the business.
  2. What is the maximum annual salary you could pay a new hire?
  3. How many records per year will the new hire need to code in order to make this additional hire a smart business decision? Explain your answer, including the calculation of unit cost.

Scenario 2: Case Mix for Hiring a New Physician

You are a manager responsible for hiring a new hospital physician. You have several qualified applicants, ready to be interviewed.

  1. In approximately 100 words, explain the concept of Case Mix.
  2. In Q&A format, provide three possible questions the applicants might ask you.
  • At least one of the questions should be regarding case mix.
  • Conduct research as needed to formulate your answers, which should include applicable [fictional] statistical data.

Note: The assignment submission should include a minimum of 3 references overall.

Expert Solution Preview

Introduction: The following are the answers to the Unit 4 Assignment 2 for medical college students on the topic of Staffing Needs. The assignment involves two scenarios that require a careful analysis of statistical principles involved in determining staffing needs.

1. Factors to Consider When Adding a New Coder to the Business:

When considering the addition of a new coder to the business, factors such as the demand for coding services, financial capacity, and the skillset of potential candidates should be taken into account. The business needs to evaluate if there is enough work to justify the cost of a new hire and if the cost can be managed within the budget. Furthermore, a novice coder may require more training and supervision, which can impact the workload of existing staff and affect efficiency. The capability of potential hires to perform beyond the existing workload should also be evaluated.

2. The Maximum Annual Salary for a New Hire:

The maximum annual salary for a new hire can be calculated by identifying the capacity that the business can support based on the additional revenue expected to be generated. Assuming that the average rate for each record is $25, and the average number of records coded by the two existing coders is 6,500, it can be estimated that they generate $162,500 in revenue per year ($25 x 6,500 x 2). To cover the cost of a new hire and make a profit, the added revenue must exceed the cost of hiring the new coder. The maximum salary for the new hire, therefore, can be calculated as the difference between the expected revenue and the current cost of the existing coders.

3. The Number of Records to Code to Justify a New Hire:

To justify a new hire, the added revenue generated must exceed the cost of the new hire. Assuming the maximum salary for the new hire is $40,000, the total cost of adding a new hire would be $70,000 ($40,000 + $36,000). The number of additional records required to be coded can be calculated by dividing the cost of adding the new hire ($70,000) by the unit cost ($25), resulting in 2,800 additional records per year.

4. Explanation of Case Mix:

The concept of case mix refers to the number, type, and severity of cases treated within a given healthcare facility or system. It reflects the complexity of illnesses and procedures handled by the facility. Understanding case mix is important when hiring a new physician as it helps assess the skills and experience required, and the potential compensation of the new hire.

5. Possible Interview Questions about Case Mix:

a) Can you tell me about the most common cases treated at this facility and how they are managed?
b) What is the typical patient demographic at this facility and how does it affect the case mix?
c) How does the case mix influence the compensation of physicians at this facility?

These questions present the interviewer with the opportunity to address the applicant’s concerns about the complexity of cases they will be handling, the patient population at the facility, and the potential salary compensation. Answers to these questions should provide statistical data on the facility’s case mix and compensation structure to support decision making.

Overall, understanding staffing needs is essential for health care managers as it affects the quality of care delivered, staff morale, and financial outcomes. A careful analysis of the principles and factors involved in staffing decisions can determine the success of an organization.

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