Deck 9: Program Budgeting

Question 1

The primary focus of a program budget is on

A) Control of inputs
B) Control over processes
C) Efficiency
D) Effectiveness

Answer 1

D

Question 2

The part of a system that a program budget focuses on is

A) Inputs
B) Throughputs
C) Outputs
D) Outcomes
E) Feedback

Answer 2

D

Question 3

The metric used in program budgeting is

A) Total cost
B) Cost per output
C) Marginal cost
D) Cost per outcome
E) Cost per activity

Answer 3

D

Question 4

Which of the following is NOT one of the five questions program budgeting answers according to Ruta et al. (2005)?

A) What is the total funding constraint?
B) What is the marginal cost of expanding output?
C) What new funding opportunities have arisen?
D) Can existing services be provided more efficiently?
E) Should existing services be reduced to fund desired expansions?

Question 5

Which if the following elements is primarily found in program budgeting (compared to other budgeting systems)?

A) Opportunity cost
B) Diminishing marginal returns
C) Equity
D) Efficiency

Question 6

In 2009, what percentage of total healthcare expenditures was consumed by the top 10% of healthcare consumers?

A) 0%-19%
B) 20%-39%
C) 40%-59%
D) 60%-79%
E) 80%-99%

Question 7

The method of allocating resources that maximizes outcome of interest is

A) Equal shares
B) Need-based allocation
C) Equalizing of marginal products
D) Historical allocation

Question 8

In the English National Health System, resources are allocation based on

A) Primary or public health focus, patient age, and medical specialty
B) Patient age, medical specialty, and the cost of treatment
C) Medical specialty, the cost of treatment, and the effectiveness of treatment
D) The cost of treatment, the effectiveness of treatment, and whether treatment is focused on primary or public health

Question 9

A program in program budgeting

A) Specifies the major goal of an organization
B) Satisfies one end or objective of a major goal
C) Is alternative means to an end
D) Provide variations on alternative means to an end

Question 10

An element in program budgeting

A) Specifies the major goal of an organization
B) Satisfies one end or objective of a major goal
C) Is alternative means to an end
D) Provide variations on alternative means to an end

Question 11

The formula for cost effectiveness analysis is

A) Benefit ($)/Cost ($)
B) Cost ($)/Benefit ($)
C) Benefit (non-monetary)/Cost ($)
D) Cost ($)/Benefit (non-monetary)
E) Cost (non-monetary)/Benefit (non-monetary)

Question 12

Which of the following can managers do to minimize the reported cost per outcome?

A) Ignore costs generated outside the department
B) Select less relevant but larger outcome measure
C) Divide costs over multiple simultaneously produced outcomes
D) Minimize allocated overhead costs
E) All of the above

Question 13

Which of the following is NOT a strength of program budgeting?

A) Defines, measures, and focuses employee attention on outcomes
B) Encourages allocative and technical efficiency
C) Introduces competition for resources
D) Focuses on input use

Question 14

Which of the following is NOT a weakness of program budgeting?

A) Administrative problems arising from differences in program boundaries and managerial responsibilities
B) Measuring and achieving outcomes
C) Allocation of costs when programs fulfill more than one goal
D) Allocation of overhead costs
E) Requires preparation of multiple budgets

Question 15

To fundamentally change Medicaid in Oregon, the Oregon Health Plan ranked health problems and placed the lowest funding priority on

A) Fatal and full recovery conditions
B) Fatal but incomplete recovery conditions
C) Maternity
D) Conditions where no improvement was expected
E) High-cost conditions

Question 16

In the initial years of the Oregon Health Plan experiment, which of the following did NOT occur?

A) Medicaid coverage for people under the poverty line increased
B) The uninsured rate decreased
C) Total Medicaid spending decreased
D) All of the above

Question 17

Cost benefit analysis quantifies the benefits and costs of a program in dollars to compare different programs and allocate resources.

Question 18

Quality adjusted life years are designed to provide a common metric to assess the value of different health interventions that extend life expectancy by a different number of years.

Question 19

Quality adjusted life years are designed to provide a common metric to assess the value of different health interventions based on how long they extend life expectancy and patient's evaluation of the value of those additional years.

Question 20

The difference between voice of the consumer surveys and patient satisfaction surveys is voice of the consumer surveys are more focused on patients desires while patient satisfaction surveys focus on their view of currently provided services.

Question 21

Program budgeting, more than any other budgeting system, focuses on the outcome achieved outside the organization.