Deck 10: Budget Concepts for Patient Care

Question 1

A payment classification system used for reimbursement of health care cost by Medicare is:

A)managed care contracts
B)penetration rate revenue
C)diagnosis-related groups
D)length-of-stay records

Answer 1

diagnosis-related groups

Question 2

An expense that is associated with patient care is:

A)fixed
B)indirect
C)direct
D)variable

Answer 2

direct

Question 3

Three premises on which the study of economics is based are:

A)price elasticity, choice, and scarcity
B)scarcity, choice, and preference
C)choice, price elasticity, and preference
D)price elasticity, scarcity, and cost maximization

Answer 3

scarcity, choice, and preference

Question 4

Gas,electricity,and telephone costs are considered:

A)fixed costs
B)variable costs
C)direct expenses
D)indirect expenses

Question 5

_____ minus _____ equals profit.

A)Money/mission
B)Revenue/need
C)Income/expense
D)Vision/mission

Question 6

A(n)_____ is a plan that provides formal quantitative expressions for the acquisition and disbursement of monies over a specified period of time.

A)accounting
B)budget
C)mission
D)vision

Question 7

You are a new manager for an ambulatory surgical facility.Part of your job is to develop and maintain budgets for expenses.Medical and surgical supplies,drugs,laundry,and food are considered what type of expense?

A)fixed costs
B)variable costs
C)direct expenses
D)indirect expenses

Question 8

Nurse Z is the manager of a busy medical-surgical inpatient unit at her local hospital.Nurse Z needs to provide information regarding unit expenditures,customer satisfaction and services,and staffing to her director for reporting purposes.What tool should the director use to provide a snapshot of what is going on in this facility?

A)dashboard
B)capital budget
C)competitive analysis
D)strategic planning

Question 9

The mission statement of an organization serves to:

A)establish long range goals
B)articulate where the organization is going
C)direct decision making about the organization
D)develop a strategic plan

Question 10

Obtaining information on Medicare services is considered:

A)demographic information
B)regulatory information
C)strategic information
D)competitive information

Question 11

Obtaining information concerning average income would be considered:

A)competitive analysis
B)demographic information
C)strategic initiatives
D)regulatory influences

Question 12

Equipment depreciation,fringe benefits,and salaries are considered:

A)fixed costs
B)variable costs
C)direct expenses
D)indirect expenses

Question 13

The concept of _____ does not work well when applied to health care,because the general rule that when the price of an item or service goes up then the demand goes down does not necessarily apply to the public's demand for (or their belief in their right to obtain)a health care item or service.

A)price elasticity
B)scarcity
C)economics
D)cost maximization

Question 14

The purchase of a new mammogram machine should be included in which of the following types of budgets?

A)operational
B)capital
C)construction
D)balanced

Question 15

A strategy that can be used by staff to positively affect the budget is:

A)increase patient charge items
B)maintain patient length of stay
C)maintain productivity
D)evaluate staff downtime

Question 16

A _____ business has no stockholders.

A)for-profit
B)not-for-profit
C)monopoly
D)fiefdom

Question 17

A department manager's budget concerned with the income and expenses associated with day-to-day activities of a unit is called a(n)_____ budget.

A)operational
B)capital
C)construction
D)balanced

Question 18

In the budget preparation phase,obtaining information regarding a competitor's performance is considered:

A)demographic information
B)regulatory influences
C)strategic initiatives
D)competitive analysis

Question 19

____ is responsible for the administration of Medicare and Medicaid.

A)The Health Care Financing Administration (HCFA)
B)Social Security Department
C)Tax Equity and Fiscal Responsibility Act (TEFRA)
D)Congress

Question 20

A budget that outlines anticipated revenue and expenses over a specified time period is called:

A)operational
B)capital
C)construction
D)accounting

Question 21

Nursing costs bundled into one type charge for a patient is incorrect because:

A)it makes critical care units lose money
B)it makes it difficult to plan a budget
C)it assumes every patient needs the same type of care
D)it assumes all nurses make the same salary

Question 22

Sick time,vacation time,and holiday time are not considered to be which of the following? Select all that apply.

A)productive time
B)unproductive time
C)direct expenses
D)variable costs

Question 23

Which of the following are strategies that can be used to positively affect budget dashboards? Select all that apply.

A)ensure that staff have the right tools that are able be used when needed
B)participate in the development of action plans to increase patient satisfaction
C)enhance productivity by taking additional patient assignments
D)analyze staff time management and efficiency

Question 24

Not-for-profit organizations refer to their profit as:

A)margin
B)appreciation
C)economics
D)revenue

Question 25

One aspect of health care's difference from a traditional economic model is:

A)payment mechanisms
B)nursing care costs
C)resource supply
D)profit

Question 26

Certificates of Need (CON)were found to be unsuccessful because:

A)there was no consistent oversight
B)they focused only on hospitals
C)hospitals spent more than their limits
D)the cost of technology was too expensive

Question 27

Which of the following are part of the "Four Ps of marketing"? Select all that apply.

A)price
B)product
C)plan
D)patient

Question 28

Third-party payers negotiate fees for services.If it cost the hospital $2,000 for costs associated with placing a PICC line and the insurance company has negotiated to pay 40% of the cost,how much will the hospital receive?

A)$900
B)$800
C)$1,000
D)$700

Question 29

Dashboards and balanced scorecards can be used to identify four perspectives of an organization.Which of the following are some of these perspectives? Select all that apply.

A)customer satisfaction
B)staff satisfaction
C)finances
D)learning and growth