question

An _________ covers how the day-to-day operating expenses, ie. labor and supplies, and revenue will occur; a n _________ covers expensive equipment whose usefulness will last over many years.

answer

Operating budget; capital budget.

question

Healthcare organizations use cost accounting and document costs because their insurers expect accurate, honest, and complete records of every dollar of cost.

answer

True.

question

An operating budget is one type of budget. This is the budget used to plan/anticipate the unit's day-to-day expenses and revenues. The operating budget is a written plan -much like a plan of care for a patient- that tries to project/anticipate operating expenses and revenues.

answer

Operating expenses are estimated by collecting data, especially data on patient volume, patient acuity, and required staffing and supply levels for providing care. Once the data is collected, the nurse manager can estimate the next year's expenses by: looking at last year's costs, adjusting for inflation, then adjusting for any increases likely in patient census and subsequently, nursing staff.

question

Understanding financial statements helps nurse managers know if the organization's income is enough to cover its expenses and losses.

answer

True. Yes, the ability to read financial statements helps us know if the organization is healthy.

question

Unlike variable costs, such as fuel costs for an airline, fixed costs are the same regardless of volume. Similarly, fixed staff are those present regardless of patient volume. In light of these facts, _________ are examples of fixed staff and ___________are examples of variable staff.

answer

Nurse managers; direct care nurses. This is correct. Nurse managers are an example of fixed staff because their presence or numbers does not depend on patient volume or acuity. The number of direct care nurses, however, would depend on patient volume.

question

It is not important to track costs to stay "solvent" or financially healthy.

answer

False: Actually tracking costs is very important to staying solvent or financially healthy. This is especially true in healthcare where the difference between revenues and losses is often razor thin.

question

An example of a mission statement is:

answer

NOT TO BELIEVE IN ETHICAL PRINCIPLES. ? to break even after taxes *don;t think so. ?to become the hospital of choice for physicians. -maybe ?to provide healthcare in a given service area.- maybe but don't think so.

question

In healthcare economics, people and organizations that deliver healthcare services to patients are called:

answer

providers.

question

An example of a common market condition in the healthcare financial environment is:

answer

intense competition.

question

As a cost center, one financial responsibility of a nurse manager of a nursing unit is to:

answer

control expenses.

question

Manufacturers and distributors of all supplies, equipment and technology used in healthcare organizations are referred to as:

answer

suppliers.

question

The Chief Financial Officer is a member of the top management team.

answer

True.

question

A nursing unit is

answer

one part of the organization.

question

Each organization conducts its business based on which of the following driving forces?

answer

Philosophy, mission statements, and goals.

question

Individuals who use healthcare services are called

answer

consumers.

question

The mission statement reveals what the organization exists

answer

to do or be.

question

The nurse manager of the CT ICU has

answer

line authority.

question

Third party reimbursement comes from

answer

payers.

question

Transcription services often fall in the realm of the financial operators because

answer

the coding for reimbursement depends on transcription.

question

Examples of regulators are:

answer

OSHA and the Joint Commission.

question

Nurse-physician collaboration is most enhanced when

answer

mutual interest in quality care is kept at the forefront.

question

An industry partner can best assist with a capital purchase by

answer

providing information about emerging technologies.

question

Which is NOT an example of capital expense purchase?

answer

boxes of pre-filled saline syringes.

question

Strategic planning involves a review of strengths, weaknesses, opportunities, and threats to an organization, called S.W.O.T. Analysis. An example of an OPPORTUNITY for a department of nursing or a patient care services division is to

answer

initiate a collaborative partnership with a nearby school of nursing to start a graduate nursing program in the evening at the hospital.

question

Which of the following choices is an ideal attribute of a mission statement?

answer

Clearly states the organization's purpose.

question

A vision statement for an organization BEST identifies a future state that is:

answer

Preferred.

question

When a nurse manager operates within a unit budget, there will not be any changes in volume to disrupt the budget plan.

answer

False.

question

Given this information, calculate the hours per patient day: five direct care staff RNs giving one-to-one patient care to six critically ill patients in two twelve hour shifts every 24 hours.

answer

6 x 24 = 144 hours. six patients multiplied by 24 hours of care each.

question

Hours per patient day- HPPD- is a measure of

answer

care hours required each patient's length of stay ? care hours required in a 24 hour period per patient ?THINK SO. care hours required in a 24-hour period per patient. ?

question

The formula for calculating average acuity is:

answer

total nursing care hours multiplied by Average Daily Census.

question

When Karen Drew takes some well-deserved vacation days from her critical care nursing position, her Nurse Manger knows that the vacation days are classified in financial terms as:

answer

non-productive hours.

question

Governmental, legal, accreditation and certification. ..

answer

Regulators.

question

Individuals who use healthcare services are

answer

Consumers.

question

The nurse manager of the CT ICU has

answer

Line authority.

question

Each organization conducts its business based on which of the following driving forces?

answer

Philosophy, mission statements, and goals.

question

An example of a common market condition in the healthcare financial environment is

answer

intense competition.

question

As a cost center, one's financial responsibility is to:

answer

control expenses.

question

Manufacturers and distributors of all supplies, equipment and technology used in healthcare organizations are referred to as:

answer

suppliers.

question

Third-party reimbursement comes from

answer

payers.

question

Healthcare costs will continue to increase mainly because of what factor?

answer

rising prescription drug costs and use.

question

An industry partner can best assist with a capital purchase by:

answer

providing information about emerging technologies.

question

An example of a strategy to enhance nurse -physician

answer

for nurses and physiciains to develop a capital expense wish list together.

question

Of all financial statements, this one may be the most relevant to nurse managers because it should the balance of assets to liabilities.

answer

Balance Sheet.

question

It is not important to track costs to stay "solvent"

answer

False. Actually, tracking costs is very important to staying solvent or financially helathy. This is especiallly true in health care where the difference between revenues and losses is often razor thin.

question

Understanding financial statements helps nurse managers know if the organization's income is enough to cover its expenses and losses.

answer

TRUE. Yes, the ability to read financial statements helps us know if the organization is healthy.

question

Unlike variable costs, (such as fuel costs for an airline), fixed costs are the same regardless of patient volume. Similarly, fixed staff are those present, regarless of patient volume. In light of theses facts, _______ are examples of fixed staff and _____ are examples of variable staff.

answer

Nurse managers; direct. Nurse managers are an example of fixed staff because their presence or numbers does not depend on patient volume or acuity. The number of direct care nurses, however, would depend on volume.

question

Healthcare organizations use cost accounting -and document costs- because their insurers expect accurate, honest, and complete record of every dollar of cost.

answer

TRUE.

question

Hours per patient day (HPPD) is a measure of:

answer

WRONG: CARE HOURS DELIVERED IN A 24-hour period per nursing unit. I DO NOT KNOW THE CORRECT ANSWER YET.

question

To calculate the nursing labor costs, the for...

answer

Nurses' annual wage.

question

Given this information , calculate the hours per patient day: five direct care staff RNs giving one-to-one patient care to six (6) critically ill patients in two (2) twelve-hour shifts every 24 hours.

answer

6x24= 144 hours

question

When a nurse manager operates within a unit level budget, there will not be any changes in volume to disrupt the budget plan.

answer

FALSE

question

A unit level nursing budget is

answer

the amount of funding that a nursing unit must operate within during a fixed budget period.

question

Which is NOT an example of a capital expense purchase?

answer

BOXES OF PRE-FILLED SALING SYRINGES. Computers for clinical documentation; a new fleet of intravienous infusion pumps; a hemodynamic monitoring system.

question

A new nurse manager is planning to set up training classes on new equipment purchased for the nursing unit. The training must take place on day shift only because of the business hours of the industry partner.

answer

FALSE

question

The formula for calculating average acuity is:

answer

Total work divided by total average daily census.

question

What percentage of FTE budget do you use to allow for weekend coverage in your budget?

answer

40%.

question

Which of the following is an example of a well written mission statement for the Coronary Care unit (CCU) at Mercy General Hospital?

answer

The CCU meets the needs of critically ill adult patients with cardiovascular disease or compromised hemodynamic conditions.

question

Of all financial statemenst, this one may be the most relevant to nurse managers because it shows the balance of assets to liabilities.

answer

Balance Sheet.

question

In healthcare economics, entities which pay for healthcare services, including individuals, employers , insurers, and the government are called:

answer

Payers

question

Monopoly power is one cause of market failure and is, in essence, when there is only one

answer

Market.

question

The main responsibilities fo a Chief Financial Officer are:

answer

Planning, Control, Decision-Making.

question

Providers are key players in the healthcare system because they are

answer

directly involved in patient care.

question

The Vice President for Patient Financial Services is a resource for the nurse manager for understanding the financial impact of length of stay.

answer

True,

FINANCIAL MANAGEMENT- TEST QUESTIONS AND ANSWERS – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards