Exam 8: Budgets

A hospital gets 60% of its revenue from Medicare and Medicaid patients, 38% from patients with healthcare insurance that base reimbursements on the Medicare model, and 2% of its revenue from uninsured patients who pay the full standard fees for medical services. The hospital increases its base service charge by 10%. If all other factors remain the same, revenues from patient care will increase by only 0.2%.

Monthly budget review is ____.

The annual budget combines which two annual budgets?

A nursing home unit manager with 20 employees is told that her personnel budget will not be increased in the next fiscal year. However, her unit is expected to provide 5% more services than in the current fiscal year. Which of these processes is most likely to achieve those goals?

In a revenue budget for a healthcare business, net medical revenues is gross medical revenues minus ____.

A commonly used purchase price cutoff for an item to be on a capital budget is $____________________.

What is the most important advantage of zero-based budgeting over other budgeting philosophies?

A physician chooses to create different revenue accounts for physical examinations, office visits, and office surgical procedures. What advantage does this have over creating a combined revenue account for all medical services?

A skilled nursing home unit is in such demand that it always is full. A full unit requires a staff of 15 (8 day, 5 evening, and 2 night shift workers) every day. Explain why the nursing home will need to hire more than 21 FTE workers.

Management's plan for a future period, expressed in dollars, is called the ____________________.

Which of the following is an allocated cost for a department within a healthcare facility?

Hospital management, in response to the 7% increase in the costs of blood products, declares that physicians will be trained on conserving blood products, and that this will decrease blood usage by at least 7%, thereby eliminating the need to increase the Blood Bank's supply budget. Describe the flaws in this plan.

What should a business use to predict which months will have higher than average payments for services?

Breakeven analysis of a new medical service for elderly patients shows that 900 units of service are required to break even. At that volume, fixed costs are half the total costs. The predicted volume of service is 800 units. Which of the following is a realistic choice that will make the new medical service profitable?

In a typical medical facility, the cash budget will be the same for each month of a fiscal year.

A master operating budget for a hospital is comprised of ____.

Which of the following is a characteristic of a capital budget?

Describe the process of benchmarking costs for budgeting purposes.

What does a statistical budget project?

The first step in developing the first budget for a small medical practice is to prepare a(n) ____________________.