Deck 12: Managing Financial Risk

Question 1

Which of the following is a growing problem for the Worker's Compensation system?

A) The failure of workplaces to document injuries to workers
B) Inadequate funding from the federal government
C) Inadequate funding from the state government
D) The numbers of lawsuits filed by injured employees

Answer 1

The numbers of lawsuits filed by injured employees

Question 2

A hospital has a significantly higher rate of serious blood transfusion reactions than similar hospitals. A risk management team was assigned to the problem. Which of the following is one of the first things it should do?

A) Inform blood bank technologists of the importance of transfusion safety.
B) Compare its blood transfusion processes to national standards.
C) Fire the nurses whose patients had transfusion reactions.
D) Recommend switching to a different blood supplier.

Answer 2

Compare its blood transfusion processes to national standards.

Question 3

A hospital transporter accidentally bumped into an elderly visitor with a gurney. She fell and broke her wrist. Which of the following will most reduce the risk of litigation by the injured woman?

A) Tell her she caused the accident
B) Sending her to another hospital for treatment to avoid a conflict of interest
C) Offering to pay all her out-of-pocket costs for treatment and follow-up visits
D) Explaining to her that a tort would hurt the hospital

Answer 3

Offering to pay all her out-of-pocket costs for treatment and follow-up visits

Question 4

On average, errors in providing healthcare have more serious consequences than errors in other businesses.

Question 5

Which of the following is true about medical malpractice?

A) Any episode of medical negligence is grounds for a tort.
B) A patient must show injury from negligence for a successful tort.
C) Only persons caring for a patient can be sued for medical malpractice.
D) Insurance premiums have been falling due to fewer torts since 1998.

Question 6

A healthcare organization is hiring a worker for its day care center. The interviewer asks an applicant, "What childcare experience do you have?" The applicant answers, "I've raised four children." Which of the following is correct?

A) An EEOC violation occurred because the hirer knows that the applicant has four children.
B) An FMLA violation occurred because the organization knows that the applicant has a higher likelihood of needing family leave.
C) No violation occurred because the hirer's question was relevant to the job.
D) No violation occurred because asking about an applicant's children is acceptable.

Question 7

Which of the following types of insurance would cover water damage to paper medical records in a physicians office?

A) property
B) general liability
C) directors and officers liability
D) boiler and machinery

Question 8

Which type of insurance will protect against the costs of an injury to someone on the property of the healthcare facility?

A) property
B) general liability
C) medical malpractice
D) crime

Question 9

Which of the following primarily involved changing the time allowed between a workplace discrimination event and filing a formal complaint?

A) The Age Discrimination in Employment Act
B) United Steelworkers of America v. Weber
C) The Pregnancy Discrimination Act
D) The Lilly Ledbetter Fair Pay Act

Question 10

The National Institutes of Health provides worker safety guidelines and Standard Precautions for healthcare facilities.

Question 11

Workers' compensation is a federal government program that ensures that all employees receive fair compensation for their work.

Question 12

Which of the following could result in a tort?

A) Accidentally billing a patient twice for a medical service
B) Rescheduling an outpatient surgery procedure
C) A clinician telling a patient privately that her obesity is her own fault
D) A tree limb falling on a patient's car in a medical facility's parking lot

Question 13

The Family Medical Leave Act requires that pregnancy leave be treated the same as medical or personal leave.

Question 14

Information on risks obtained from professional organizations, insurance companies, publications, and risk managers at other facilities allows a healthcare facility's risk management team to ____.

A) learn from the experiences and mistakes of others
B) classify existing incident reports
C) make a top ten list of risks
D) brag about how such undesired events have not happened at their facility

Question 15

Which of the following is the most important reason for obtaining, reviewing, and saving incident reports?

A) Fulfilling government requirements
B) Fulfilling liability insurance requirements
C) Allows the risk management staff to concentrate efforts on frequently occuring incidents
D) Estimating the cost of the incident

Question 16

A small medical practice has five employees, including the physician owner. Which of the following apply to this practice?

A) Record-keeping for the Equal Employment Opportunity Commission
B) The Age Discrimination in Employment Act
C) The Pregnancy Discrimination Act
D) Occupational Safety and Health Administration standards

Question 17

Employment practices that are not intended to be discriminatory can be prohibited by the Civil Rights Act of 1964.

Question 18

The Americans with Disability Act of 1990 ____.

A) provided clearcut guidelines about hiring and accommodating disabled persons
B) was primarily about guaranteeing handicapped access to businesses
C) created litigation exposure for employers due to lack of definition terms
D) does not cover mental illnesses such as mood disorders

Question 19

Which of the following is the most important task for an insurance consultant to a large healthcare facility?

A) Negotiating premiums with insurers
B) Explaining risks to the board members
C) Determining the types and amounts of insurance coverages
D) All of the above

Question 20

At a large, for-profit hospital, which of the following groups most needs to be trained by human resources professionals on federal laws related to employment?

A) chief executive officers
B) managers and supervisors
C) non-staff physicians with admitting privileges
D) nurses

Question 21

List the workplace related aspects of the Title VII, Civil Rights Act of 1964.

Question 22

Describe methods for identifying risks in a healthcare facility.

Question 23

What three questions should be answered by effective risk management?

Question 24

Financial risks of injuries to non-workers or of damages to their property would be covered by ____________________.

Question 25

Briefly describe the workers' compensation system.

Question 26

An angry, disgruntled nurse deliberately fails to administer insulin but recorded its administration in the patient's medical record. The patient suffered permanent brain damage from the lack of insulin. This scenario is an example of ____.

A) medical malpractice
B) the crime of depraved indifference
C) gross negligence
D) medical malpractice AND the crime of depraved indifference

Question 27

A litigation that is not a criminal legal action is called a(n) ____________________.

Question 28

The risk management team at a large hospital identified its ten most serious risks and developed procedures to reduce those risks. After two years, those ten risks either had no occurrences or had more than 50% reductions in occurrences. Which of the following actions is best for the hospital?

A) Keep following the procedures related to the ten risks.
B) Reevaluate risks and develop procedures for a different set of serious risks.
C) Retrain employees on the procedures related to the ten risks.
D) Show the results to its insurers and request reduced premiums.

Question 29

A male respiratory therapist at a hospital requests ten weeks unpaid leave so he can help out at home after the birth of his third child. His supervisor told him that a new respiratory therapist will need to be hired, and that he may not have a job after ten weeks. If the supervisor does what he said, his action would be ____.

A) an EEOC-related (Title VII, Civil Rights Act) violation
B) a violation of the Pregnancy Discrimination Act of 1978
C) a violation of the Family Medical Leave Act of 1998
D) legal because there are fewer than 15 respiratory therapists at the hospital

Question 30

The federal law that prohibits employers from basing hiring, promotion, wage, and termination decisions on age is the ____________________.

Question 31

A document or form completed by an eyewitness to an undesirable event at a healthcare facility is called a(n) ____________________.

Question 32

Describe how a healthcare organization transfers financial risk.

Question 33

Workplace promotion decision-making processes that result in fewer women being promoted are examples of ____________________.

Question 34

Crime insurance for a hospital would cover losses from ____.

A) the vandalism of cars in the employees' parking lot
B) a purchasing agent's scheme to send payments to her spouse's fake business
C) an administrator running an e-mail scam from his home computer
D) an employee assaulting a patient

Question 35

A male laboratory technologist repeatedly tells two female coworkers that they look "hot" or "sexy." The two coworkers have complained to the lab supervisor. This situation is an example of ____.

A) a sexual crime
B) sexual harassment
C) sexual discrimination
D) crude but legal behavior