Question 1

For an experienced nurse manager who is new to an organization,it would be important to

Accepted Answer

A)  Know the difference between operating and capital budgets. 
B)  Understand the budget timetable and level of involvement expected of individual managers in budget preparation. 
C)  Know why a budget is essential to the well-being of an organization. 
D)  Understand what factors drive up health care costs in the health care system. 
A)  Know the difference between operating and capital budgets. 
B)  Understand the budget timetable and level of involvement expected of individual managers in budget preparation. 
C)  Know why a budget is essential to the well-being of an organization. 
D)  Understand what factors drive up health care costs in the health care system. B

Question 2

Physicians in a small rural hospital are reluctant to discharge older adult patients because many of the patients live more than an hour's drive from the hospital.Also,many of the patients lack the resources to travel these long distances for follow-up care.The hospital administration pressures the physicians to discharge patients sooner and to be more consistent with the number of hospitalization days specified within the diagnosis-related groups.Which of the following would most likely prompt the action of administrators?

Accepted Answer

A)  The hospital is incurring a deficit related to a gap between the resource intensity weight (RIW)and the case mix groups (CMGs)in relation to costs of care. 
B)  Local home care services are expressing concern about the increased numbers of acutely ill patients being discharged into their care. 
C)  The resource-based relative scale for physicians does not account for the increased length of stay. 
D)  Patients who need acute care are being denied entry to the hospital because of the increased stay of patients in general. 
A)  The hospital is incurring a deficit related to a gap between the resource intensity weight (RIW)and the case mix groups (CMGs)in relation to costs of care. 
B)  Local home care services are expressing concern about the increased numbers of acutely ill patients being discharged into their care. 
C)  The resource-based relative scale for physicians does not account for the increased length of stay. 
D)  Patients who need acute care are being denied entry to the hospital because of the increased stay of patients in general. A

Question 3

In preparing a budget,the nurse manager needs to anticipate the cost of benefits (e.g.,health,life insurance,pension,and retirement plans).On the basis of the usual cost of benefits,how much should a nurse manager include for a total full-time salary cost of $312,000?

Accepted Answer

A)  $71,760 to $84,240 
B)  $62,400 to $78,000 
C)  $46,820 to $62,400 
D)  $31,200 to $46,800 
A)  $71,760 to $84,240 
B)  $62,400 to $78,000 
C)  $46,820 to $62,400 
D)  $31,200 to $46,800 A

Question 4

During the budgeting process,nurse managers are typically responsible for which of the following? (Select all that apply.)

Accepted Answer

A)  Calculating workload. 
B)  Developing unit operation objectives. 
C)  Justifying capital equipment requests. 
D)  Predicting cash flow. 
E)  Calculating patient load. 
A)  Calculating workload. 
B)  Developing unit operation objectives. 
C)  Justifying capital equipment requests. 
D)  Predicting cash flow. 
E)  Calculating patient load.

Question 5

A nurse manager determines that RN 1 has 5 weeks of vacation time and 3 days of education and has averaged 3 sick days a year.RN 2 has 6 weeks of vacation time,has asked to attend a 3-day conference and a 2-day workshop,and has no history of sick time.RN 3 is new,and you anticipate 3 weeks of orientation,as well as 4 weeks of vacation time.RN 4 has 6 weeks of vacation and has an ongoing health condition,so you anticipate 2 weeks of sick time,as well as 3 days for education.RN 5 has 5 weeks of vacation,has no education plans,and averages 5 sick days per year.RN 6 has 6 weeks of vacation,has no education plans,and has been off ill for 4 weeks.How many hours of productive paid time can be anticipated for the budget?

Accepted Answer

A)  12,480 
B)  11,200 
C)  10,848 
D)  10,688 
A)  12,480 
B)  11,200 
C)  10,848 
D)  10,688

Question 6

In a nurse managers' meeting,the chief nursing officer encourages the managers to brainstorm ways to reduce costs.Nurse managers have the greatest effect on reducing costs by managing:

Accepted Answer

A)  Supplies. 
B)  Staffing. 
C)  Fixed costs. 
D)  Medication costs. 
A)  Supplies. 
B)  Staffing. 
C)  Fixed costs. 
D)  Medication costs.

Question 7

Which of the following factors is not implicated in rising health care costs?

Accepted Answer

A)  Rising expectations of consumers for cure and care. 
B)  Method of health care funding. 
C)  Socioeconomic conditions. 
D)  Rising health care insurance costs. 
A)  Rising expectations of consumers for cure and care. 
B)  Method of health care funding. 
C)  Socioeconomic conditions. 
D)  Rising health care insurance costs.

Question 8

Many provinces have moved to Group Purchasing Organizations (GPOs)to control costs with increased utilization of services.What factors are causing this increase? (Select all that apply.)

Accepted Answer

A)  Consumer beliefs and attitudes. 
B)  Pharmaceutical usage. 
C)  Consumer interest in healthy lifestyles. 
D)  Changing population demographics. 
A)  Consumer beliefs and attitudes. 
B)  Pharmaceutical usage. 
C)  Consumer interest in healthy lifestyles. 
D)  Changing population demographics.

Question 9

Mr.and Mrs.Amin,an older adult couple with limited means and are considering options after the hospitalization of Mrs.Amin with a fractured hip.Mrs.Amin is stable but requires assistance with bathing,transfer,and mobility,and this will present stress for Mr.Amin,who was hospitalized with a mild myocardial infarction last year.Considering their means and health concerns,which of the following might be the best option?

Accepted Answer

A)  Hospice care. 
B)  Custodial nursing home care. 
C)  Home care. 
D)  Hospital care. 
A)  Hospice care. 
B)  Custodial nursing home care. 
C)  Home care. 
D)  Hospital care.

Question 10

The chief nursing office of a Magnet hospital has conducted a study of ways to improve health care services.Health care services that add value for patients:

Accepted Answer

A)  Accomplish health care goals. 
B)  Minimize costs. 
C)  Decrease the number of services used. 
D)  Involve the use of high-technology treatments. 
A)  Accomplish health care goals. 
B)  Minimize costs. 
C)  Decrease the number of services used. 
D)  Involve the use of high-technology treatments.

Question 11

In preparing her budget,a nurse manager determines that she needs to budget for six FTE registered nurse (RN)positions in the upcoming year.On the basis of a 40-hour week,this means that the nurse manager has determined that the budget will provide for what number of hours?

Accepted Answer

A)  12,480 productive. 
B)  10,820 productive. 
C)  12,480 paid. 
D)  10,800 patient care. 
A)  12,480 productive. 
B)  10,820 productive. 
C)  12,480 paid. 
D)  10,800 patient care.

Question 12

Because of the complexity of reimbursement systems and its implications for the services available to patients,the nurse has a key role in which of the following?

Accepted Answer

A)  Advocacy for patients with regard to services required and services used. 
B)  Increasing the volume of services and decreasing the number of patients served. 
C)  Accomplishing more with each visit and decreasing the volume of services used. 
D)  Decreasing the volume of services used and the number of return visits. 
A)  Advocacy for patients with regard to services required and services used. 
B)  Increasing the volume of services and decreasing the number of patients served. 
C)  Accomplishing more with each visit and decreasing the volume of services used. 
D)  Decreasing the volume of services used and the number of return visits.

Question 13

The standard of care in a certain labour and delivery unit is 14 hours per patient day (HPPD),and on an average day,three patients are in labour.Analysis of the past month indicates the unit was averaging 38 hours of care.What is the productivity rating for this situation?

Accepted Answer

A)  91% 
B)  101% 
C)  111% 
D)  271% 
A)  91% 
B)  101% 
C)  111% 
D)  271%

Question 14

A staff nurse regularly works two 12-hour shifts each week and one 8-hour shift every other week.How many full-time equivalents (FTEs)is this position?

Accepted Answer

A)  0.6 
B)  0.7 
C)  0.8 
D)  1 
A)  0.6 
B)  0.7 
C)  0.8 
D)  1

Question 15

A nurse manager is planning to request three new infusion pumps at a cost of approximately $1500 each.This item would typically be included in which budget?

Accepted Answer

A)  Operating. 
B)  Strategic. 
C)  Unit of service. 
D)  Capital. 
A)  Operating. 
B)  Strategic. 
C)  Unit of service. 
D)  Capital.

Question 16

Length of stay (LOS)is the most important predictor of hospital costs.How can nurses increase efficiency within their work to decrease LOS? (Select all that apply.)

Accepted Answer

A)  Evaluating staffing patterns. 
B)  Evaluating major work processes. 
C)  Eliminating areas of redundancy. 
D)  Using clinical information systems. 
E)  None of above 
A)  Evaluating staffing patterns. 
B)  Evaluating major work processes. 
C)  Eliminating areas of redundancy. 
D)  Using clinical information systems. 
E)  None of above

Question 17

The primary reason for calculating productive hours paid instead of simply calculating work paid per year is that productive hours enable the manager to:

Accepted Answer

A)  Anticipate total costs of patient care. 
B)  Know how much time staff will probably be unavailable because of illness. 
C)  Determine when orientation needs to occur for new staff. 
D)  Determine the number of hours available for patient care. 
A)  Anticipate total costs of patient care. 
B)  Know how much time staff will probably be unavailable because of illness. 
C)  Determine when orientation needs to occur for new staff. 
D)  Determine the number of hours available for patient care.

Question 18

A nurse manager gives approval for two staff nurses to attend a national conference.When reviewing the budget,the nurse manager looks at which line item?

Accepted Answer

A)  Cash budget. 
B)  Capital budget. 
C)  Operating budget. 
D)  Supply and expense budget. 
A)  Cash budget. 
B)  Capital budget. 
C)  Operating budget. 
D)  Supply and expense budget.

Question 19

Of the following,which is the most effective strategy that a nurse manager could employ to reduce unnecessary costs in specific health care settings?

Accepted Answer

A)  Training nurses on accurate documentation of supplies used for patient care. 
B)  Reducing the number of overtime hours worked by staff. 
C)  Reducing the number of staff on a unit. 
D)  Making decisions for patients about which care is important to their health. 
A)  Training nurses on accurate documentation of supplies used for patient care. 
B)  Reducing the number of overtime hours worked by staff. 
C)  Reducing the number of staff on a unit. 
D)  Making decisions for patients about which care is important to their health.

Question 20

Choosing and purchasing new eyeglasses,Mr.Jones sends the receipt in to his private health insurance provider for which of the following?

Accepted Answer

A)  Cost-based reimbursement. 
B)  Charges. 
C)  Contractual allowance. 
D)  Prospective reimbursement. 
A)  Cost-based reimbursement. 
B)  Charges. 
C)  Contractual allowance. 
D)  Prospective reimbursement.

Exam 14: Managing Costs and Budgets

For an experienced nurse manager who is new to an organization,it would be important to

In preparing a budget,the nurse manager needs to anticipate the cost of benefits (e.g.,health,life insurance,pension,and retirement plans).On the basis of the usual cost of benefits,how much should a nurse manager include for a total full-time salary cost of $312,000?

During the budgeting process,nurse managers are typically responsible for which of the following? (Select all that apply.)

In a nurse managers' meeting,the chief nursing officer encourages the managers to brainstorm ways to reduce costs.Nurse managers have the greatest effect on reducing costs by managing:

Which of the following factors is not implicated in rising health care costs?

Many provinces have moved to Group Purchasing Organizations (GPOs)to control costs with increased utilization of services.What factors are causing this increase? (Select all that apply.)

The chief nursing office of a Magnet hospital has conducted a study of ways to improve health care services.Health care services that add value for patients:

In preparing her budget,a nurse manager determines that she needs to budget for six FTE registered nurse (RN)positions in the upcoming year.On the basis of a 40-hour week,this means that the nurse manager has determined that the budget will provide for what number of hours?

Because of the complexity of reimbursement systems and its implications for the services available to patients,the nurse has a key role in which of the following?

The standard of care in a certain labour and delivery unit is 14 hours per patient day (HPPD),and on an average day,three patients are in labour.Analysis of the past month indicates the unit was averaging 38 hours of care.What is the productivity rating for this situation?

A staff nurse regularly works two 12-hour shifts each week and one 8-hour shift every other week.How many full-time equivalents (FTEs)is this position?

A nurse manager is planning to request three new infusion pumps at a cost of approximately $1500 each.This item would typically be included in which budget?

Length of stay (LOS)is the most important predictor of hospital costs.How can nurses increase efficiency within their work to decrease LOS? (Select all that apply.)

The primary reason for calculating productive hours paid instead of simply calculating work paid per year is that productive hours enable the manager to:

A nurse manager gives approval for two staff nurses to attend a national conference.When reviewing the budget,the nurse manager looks at which line item?

Of the following,which is the most effective strategy that a nurse manager could employ to reduce unnecessary costs in specific health care settings?

Choosing and purchasing new eyeglasses,Mr.Jones sends the receipt in to his private health insurance provider for which of the following?

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