Premium Partners
IAHCSMM News
 |
 |
Budgeting Basics for the CSSD: Flexing Staff
By Michele DeMeo, CRCST
A major expense for Central Sterile Supply Departments is the cost of labor. This second part in the ‘Budgeting Basics’ series will address staffing and its financial impact on the department. For the purpose of this article, “staffing” refers to worked labor hours or productive hours, and the associated costs that are related to productive paid time.
Managing a department’s human resources is difficult on many levels. Without a manager’s appropriate input —supported by analysis and data—the finance and executive teams will be working in the dark to finalize a suitable operational budget. Each manager possesses detailed information and a fundamental understanding of their own department. Properly displaying departmental operational “norms” and creating a staffing matrix that not only makes sense, but also is financially prudent, is essential to every manager’s success, as well as the success of the overall department.
The volume or quantity of tasks performed in the CSSD is a critical consideration. However, it is only a portion of the total picture of the department’s workload. Not all “volume” is the same. Some tasks are more complex than others and, as a result, require additional amounts and types of resources, including personnel. Weighting each task for comparison and planning purposes becomes essential.
‘Flexing’ for stronger staffing
Labor requirements are comprised of both “fixed” and “variable” components. Depending on the size of the department and types of services it provides, there is a level of staffing required, regardless of how low the department’s volume is on a particular day.
Flexing down staff coverage during low-volume days or weeks is an important operational task for managers to adopt. Conversely, flexing up during higher volume times is equally important. The key is maintaining an optimal balance and managing the process effectively. Processes must be put into place to force the department to “flex” staffing levels when necessary. To do this effectively, managers must fully understand staffing composites and how each factors into the department’s productivity.
Let’s take full-time equivalents (FTEs), for example. Managers must understand is that if they have an operational budget of 15 FTEs that does not necessarily mean they will have 15 full-time employees. Instead, they will have a composite of individuals ranging from full-time, part-time or per diem, and cumulatively, they will or should equal the equivalent of 15 FTEs.
Say a manager has a budget of 8.5 FTEs and the department’s hours of operation are Monday through Friday from 7am-11pm. In addition, the manager has a call schedule set up for the remaining 88 hours each week; however, he or she only has seven full-time employees and one part-time employee who typically only works 20 hours per week. Just because 8.5 FTEs is in the budget that does not necessarily mean the manager should hire a full 8.5 FTEs, especially, if their department has to cover required call shifts. Their budget may not be adequately structured to pay for the worked hours that may have resulted from covering the scheduled call time each week.
So, how do managers gain better control of their staffing requirements and budgets? Here are a few initial steps to get started:
- Verify the facility’s policies and procedures regarding employee “flexing.”
- Verify the FTEs that are budgeted for the department.
- Compare the budgeted amount against the current staffing composite.
- Compare the “actual” FTE usage with the existing budget. Managers may find that they need to make some adjustments.
- Solicit the help of the finance team. They have a deep understanding of the hospital’s available resources and can provide some basic – yet essential -- education for any willing manager or supervisor.
- Communicate needs to finance executives and the departmental supervisor (and be sure to come prepared with supportive data).
- Monitor staffing levels against workload needs and make proactive changes, when appropriate.
By following these few simple steps, any CSSD manager can start gaining control of the largest expense in their operational budget!
Michele DeMeo, CRCST, serves as sterile processing manager for Memorial Hospital in York, PA
