Deck 12: Financial Considerations for Healthcare Leaders

Question 1

It is increasingly important to understand how to use financial information to ensure organization's sustainability.

Answer 1

True

Question 2

Financial performance management is vital to a healthcare organization's success. What does financial performance management involve?

A) Best practices that have been successfully implemented by one unit or an entire department.
B) Identification of each business unit's underperforming departments to allow for adequate maintenance.
C) Strategic and operational elements that allow healthcare leaders to develop, invest in, and implement a sustainable business model.
D) Percentage of the organization's budget allotted for labor, which includes employee salaries, insurance and holiday pay.

Answer 2

C

Question 3

Key drivers are:

A) Mandated for organizational effectiveness.
B) Insurance elements that increase net income.
C) Factors that influence and direct the outcome of a process.
D) Past and present financial performance data.

Answer 3

C

Question 4

Key drivers in healthcare include which of the following:

A) Contribution margin by product or service line
B) Bad debt and charity as a percentage of revenue
C) Market share percentage
D) All of the above

Question 5

A cost accounting concept that allows a company to determine the profitability of individual products or service lines?

A) Operating margin
B) Contribution margin
C) Market share percentage
D) Service unit percentage

Question 6

Financial performance in an organization can be assessed by monitoring its vital few key drivers.

Question 7

Performance reporting can be used as a learning tool that highlights best practices within an organization.

Question 8

Which describes the balanced scorecard instead of trending?

A) Combines performance management and benchmarking.
B) Groups together cohorts for budgeting purposes.
C) Monitors for trends and variations in performance.
D) Allows tracking of performance over time

Question 9

Which best describes a successful management model?

A) Strives to create and advance accountability
B) Focuses only on the executive suite
C) Acknowledges that lower level positions cannot contribute effectively to performance
D) Accountability is at the highest level only

Question 10

Healthcare leaders play a crucial role in problem-solving by facilitating collaboration and teamwork to address issues. As effective leaders, they approach performance issues:

A) By managing upward
B) With a beginner's perspective
C) By fostering social responsibility
D) By discussing solutions with external stakeholders

Question 11

Which is not a part of the GRPI model?

A) Goals
B) Relationships
C) Process
D) Interpersonal

Question 12

Focusing efforts on strategies and solutions is an effective approach to making wise decisions.

Question 13

The Sarbanes-Oxley Act of 2002 introduced major changes by?

A) Allowing middle level managers to be responsible for changes in performance
B) Encouraging certifications to be completed monthly to track organizational efficiencies
C) Regulation of corporate governance and financial practice
D) Requiring the signature of the CNO to signify accuracy and integrity of documents

Question 14

On February 27, 2009, President Obama signed into law the Patient Protection and Affordable Care Act.

Question 15

The Patient Protection and Affordable Care Act is likely to deliver the following financial challenges to healthcare organizations except

A) Medicare Reimbursement
B) Nurse Integration
C) Independent Payment Advisory Board
D) Medicare Pilot Program