Full-Time Equivalent (FTE)

Full-time equivalent, or FTE, is a percentage value used to compare the number of hours required by a position to the hours of a full-time position. “Full time” can be defined differently by different organizations; typically, a full-time position means 8 hours of work per day, 40 hours per week, and 2080 hours per year. An FTE value is always represented by a whole percentage (such as 75%, 50%, or 25%) and is calculated by dividing the number of working hours assigned to a position by the amount of time assigned to a full-time position. For example, a part-time medical transcription position that requires an individual to work 20 hours per week would equate to a 50% FTE (that is, 20 hrs/40 hrs = .50). FTE values are frequently used to determine which benefits are available to employees. For instance, many hospitals require an employee to be in a position that is at least a 75% FTE in order to qualify for health insurance and paid vacation. FTE values are also used to calculate staffing requirements, resource needs, and various metrics that allow comparison across different departments, subspecialties, or organizations, and to track trends over time. For example, a family practice group may monitor “revenue per FTE physician” to ascertain productivity over time, or “number of in-house radiology procedures per FTE physician” to track utilization of specialized services and equipment.