If FTEs equal 180 and Adjusted Occupied Beds equal 40, what is labor productivity?

If FTEs equal 180 and Adjusted Occupied Beds equal 40, what is labor productivity?

• A. 4.5
• B. 0.22
• C. 7.2
• D. 1.8

Answer: (A)

Labor productivity here is the amount of labor input per unit of output. In this context, output is Adjusted Occupied Beds and input is FTEs, so the metric uses FTEs per occupied bed. Divide 180 by 40 to get 4.5, meaning about 4.5 full-time-equivalent staff are associated with each occupied bed. If you instead looked at beds per FTE, you’d get 0.22, which is the reciprocal and represents a different way to express productivity. The convention used in this item yields 4.5.

Labor productivity here is the amount of labor input per unit of output. In this context, output is Adjusted Occupied Beds and input is FTEs, so the metric uses FTEs per occupied bed. Divide 180 by 40 to get 4.5, meaning about 4.5 full-time-equivalent staff are associated with each occupied bed. If you instead looked at beds per FTE, you’d get 0.22, which is the reciprocal and represents a different way to express productivity. The convention used in this item yields 4.5.