Deck 10: Piscal Plaming

Question 1

What is fiscal planning?

A) A learned skill that improves with practice
B) A job role of the facility business manager
C) Part of the organizing phase of the management process
D) Reactive based on political, social, and economic forces

Answer 1

A learned skill that improves with practice

Question 2

What is the basic principle of responsibility accounting?

A) An organization's revenues, expenses, assets, and liabilities are someone's concern.
B) Managers have a responsibility to submit their budgets on time.
C) The organization's financial officer works with department heads regarding budget approval.
D) Fiscal accounting should be honest and accurate.

Answer 2

An organization's revenues, expenses, assets, and liabilities are someone's concern.

Question 3

Which activity is a responsibility of the unit manager regarding fiscal planning?

A) To assume responsibility for achieving budgetary planning goals
B) To monitor and evaluate all aspects of the unit's budget control
C) To streamline the number of subordinates involved in the budgetary process
D) To control unpredictable census variations that may undermine the personnel budget

Answer 3

To monitor and evaluate all aspects of the unit's budget control

Question 4

Which is a leadership role in fiscal planning?

A) Coordinating the monitoring aspects of budget control
B) Accurately assessing personnel needs using agreed-on standards or an established patient classification system
C) Assessing the internal and external environment of the organization in forecasting to identify driving forces and barriers to fiscal planning
D) Being visionary in identifying short- and long-term unit fiscal needs

Question 5

What type of budget requires rejustification for yearly fiscal needs?

A) Incremental budgeting
B) Perpetual budgeting
C) Zero-based budgeting
D) Managed care

Question 6

Equipment depreciation, the n umber and type of supplies needed by patients, and overtime that occurs in response to an emergency are all examples of what type of expenses?

A) Controllable
B) Fixed
C) Capital budget
D) Noncontrollable

Question 7

What is inferred if an item is "cost-effective"?

A) It is the least expensive product available
B) It is worth the cost
C) It is reimbursable
D) Its cost was anticipated

Question 8

What is the largest budget expenditure for health-care organizations?

A) The personnel budget
B) Short-term capital acquisitions
C) The operating budget
D) Supplies and equipment

Question 9

Determine the nursing care ho urs per patient day (NCH/PPD) if the following staffing existed for a 24-hour period (unit census = 10):
12 midnight to 12 noon, 1 registered nurse, 1 licensed vocational nurse
12 noon to 12 midnight, 1 registered nurse, 1 licensed vocational nurse, 1 unit clerk (8 hours only)

A) 5.6 NCH/PPD
B) 4.8 NCH/PPD
C) 5.0 NCH/PPD
D) 6.2 NCH/PPD

Question 10

The measurement of NCH/PPD will provide what information?

A) The acuity level of the patients on a particular unit in a 24-hour time span
B) The total number of hours worked by nursing personnel on a particular unit in a 24-hour time span divided by the patient census
C) The specific amount of money spent on staffing during a 24-hour period
D) The quality of nursing care that was provided on a particular unit in a 24-hour time span

Question 11

What is the name for a provision of health care in an organized system to subscribing members in a geographical area with an agreed-on set of basic and preventive supplemental health maintenance and treatment services for a fixed, prepaid charge?

A) Preferred provider organizations (PPOs)
B) A traditional third-party payer indemnity plan
C) A health maintenance organization (HMO)
D) Diagnostic-related groupings (DRGs)

Question 12

What was the primary reason for the development of the prospective payment system?

A) Skyrocketing health-care costs following the advent of Medicare and Medicaid
B) The passage of the Health Maintenance Act of 1973
C) The introduction of the Health Security Act to Congress
D) A coalition held by the three largest private insurers in 1975

Question 13

What is capitation?

A) A reimbursement schema whereby health-care organizations receive a predetermined amount (based on a patient's diagnosis for services provided)
B) The limited availability of services to patients in managed care organizations
C) The use of a "gatekeeper" to ensure appropriate utilization of services
D) A predetermined, negotiated payment to providers, per patient, regardless of whether services are used

Question 14

Which use of limited resources would result in increased reimbursement revenues?

A) Education on appropriate documentation on patient care records
B) Number of clinical nurse specialists
C) Educational paid days for licensed staff
D) Mix and number of clinical staff

Question 15

Which statement best describes critical pathways?

A) They determine justifiable differences among clients
B) They decrease the amount of paperwork required for reimbursement
C) They reduce administrative costs
D) They provide a means of standardizing care for clients with similar diagnoses

Question 16

Using a decision package to aid in fiscal priority setting is a key feature of what type of budgeting?

A) Personnel workforce
B) Operating
C) Capital
D) Zero based

Question 17

Key principles of managed care include:
1) Nurses as gatekeepers
2) Focus on prevention
3) Decreased emphasis on inpatient hospital care
4) Capitation

A) 1, 2, 3
B) 1, 2, 4
C) 1, 3, 4
D) 2, 3, 4

Question 18

Which statement accurately describes provision of service?
1) It guarantees reimbursement
2) Proof is required for need for services
3) Reimbursement is based on services provided
4) The social worker is the gatekeeper

A) 1, 2
B) 1, 4
C) 2, 3
D) 3, 4

Question 19

What are the results of managed care backlash?
1) Delay of payment for services provided
2) Denial of requests for additional treatment
3) Increased premiums to consumers
4) Lower co-pays and deductibles

A) 1, 2
B) 1, 3
C) 2, 4
D) 3, 4

Question 20

What changed the structure of Medicare payments from a retrospectively adjusted cost reimbursement system to a prospective, risk-based one?

A) Zero-based budgets
B) Diagnostic-related groupings
C) Prospective payment sy stem
D) Incremental budgets

Question 21

Which statement concerning a budget is true?

A) A budget's reliability is related to how far in advance it was created
B) Budgets should be created as far in advance is possible
C) A budget is revised every 3 months during a fiscal year
D) Budgets are reliable only when expenses are fixed

Question 22

Which statement regarding fiscal planning is true? Select all that apply.

A) Social influences affect fiscal planning
B) The successful fiscal planner is creative
C) An understanding of economic forces is necessary
D) Practical experience is a key to being a good fiscal planner

Question 23

Which statement about American health-care budget spending is correct?

A) A large health-care budget equals quality health-care outcomes
B) America spends less than any other industrialized country on health care
C) The outcomes related to low-birth-weight infants have not been successfully met
D) The scarcity of resources is the biggest factor in the failure to reach outcomes

Question 24

Which factor is primarily important when budgeting for a healthcare facility?

A) Services provided
B) Budget time frame
C) Size of organization
D) Acuity of patients being served

Question 25

Which statement regarding a budget is true? Select all that apply.

A) A budget contains an estimate of both expenses and income for a year.
B) It allows for an institution to plan for the effective use of its resources
C) The cost of supplies is an example of a variable expense
D) A mortgage is an example of a fixed expense