One person working full-time translates into one FTE. The number of hours that would constitute full-time can vary. The most common definition is 40 hours per week, which equals 173.33 hours per month, and 2080 hours per year.
Number of FTEs in department = Total number of labor hours worked in a week ÷ 40 hours per FTE Example
The total number of hours worked in the Dining Services Department last week = 772 hours 772 hours ÷ 40 hours per FTE per week = 19.3 FTEs The total number of hours worked in the Dining Services Department last month = 1920 hours. 1920 hours ÷ 173.33 hours per FTE per month = 11.1 FTEs
LABOR COST PER MEAL
FORMULA Labor Cost per Meal = Monthly Labor Cost ÷ Total Number of Meals Served
Example
Labor costs for the month of July = $56,825 Total number of meals served = 12,400 Labor Cost per Meal = $56,825 ÷ 12,400 = $4.58
LABOR COST PER PATIENT DAY (PPD) FORMULA
Labor Cost per Patient Day = Monthly Labor Cost ÷ Total Number of Patient Days* *Total number of Patient Days = Average daily patient census for the month x days in the month
Example
Labor costs for the month of July = $36,825 Number of Patient Days = 60 patients x 31 days = 1,860 patient days Labor Cost per Patient Day = $36,825 ÷ 1,860 = $19.80 Per Patient Day (PPD)