Deck 16: Purchasing and Materials Management

Question 1

Materials management focuses on the timely processing of laundry materials in the hospital.

Answer 1

False
The basic mission of materials management in the hospital setting is to direct and control the movement of goods in an efficient manner through the organization.

Question 2

In a typical hospital organization, the materials management function reports to the Chief Nursing Executive.

Answer 2

False
Despite the clinical impacts of supplies to patient care, materials management generally reports to the Chief Financial Officer.

Question 3

Materials management can be organized as either a cost center or a profit center.

Answer 3

True
There are potential revenues gains to be made from prudent management of medical and pharmaceutical supplies.

Question 4

Culturally, materials management is similar to housekeeping and maintenance.

Question 5

Hospitals generally adopt one best markup percentage for fees associated with supplies.

Question 6

The purchasing function can represent a significant source of potential financial value to a hospital.

Question 7

Segregation of duties in the purchasing function entails implementation of a three way match process where steps in ordering, receiving, and paying for goods are handled by three separate persons.

Question 8

A spend analysis includes all of the following characteristics except:

A) Identifies which vendors are being paid
B) What physicians are influencing vendors
C) The types of items most commonly used
D) Identify areas for cost savings and improved contractual negotiation

Question 9

Code sets that describe supply items include:

A) DRG
B) UPS
C) HCPCS
D) ICD

Question 10

Which of the following is not a technology used to capture supply charges in hospitals?

A) Point-of-use (POU) systems
B) Sticker systems
C) Neither a nor b
D) Both a and b

Question 11

Characteristics of a Group Purchasing Organization (GPO) include which of the following?

A) They are similar in concept to unions which collectively bargain for favorable prices and terms
B) They work well in markets where there are few vendors
C) They work less well where products are more standardized
D) They compile best prices from among many vendors and provide a consolidated price list to member hospitals

Question 12

Some future trends in hospital purchasing include all of the following except:

A) Less standardization of products to meet broader patient and physician needs
B) Increased use of EDI purchasing
C) Increased use of automated requisitioning and supply chain systems
D) Smaller, more focused purchasing staffs

Question 13

Describe the major groups of customers served by hospital materials management and the supply chain.

Question 14

Describe the concept of par levels and how they are implemented in hospitals.

Question 15

Describe the effect of group purchasing organizations in the hospital supply chain.

Question 16

Describe how appropriate segregation of duties can be implemented using information technology in the hospital supply chain.