Deck 9: Financial Management, Cost Containment, and Marketing

Question 1

One difference between the traditional model and the McCloskey model for costing out nursing services is that the McCloskey model uses:

A)Average nursing hourly salary (ANHS)
B)Benefits across the institution (BAI)
C)Indirect cost amount (ICA)
D)Nursing intervention (NI)

Answer 1

Nursing intervention (NI)

Question 2

The hospital has established a wellness center that provides health education programs.To advertise this new service,the hospital conducts what type of marketing?

A)Mass marketing
B)Social marketing
C)Product-variety marketing
D)Exchange marketing

Answer 2

Social marketing

Question 3

What has been the impact of managed competition on nursing?

A)Large differential in salary among nurses with an associate degree,bachelor of science degree,and master of science degree
B)Increased registered nurse staffing
C)Increased use of advanced practice nurses
D)Use of licensed practical nurses/licensed vocational nurses as utilization reviewers

Answer 3

Increased use of advanced practice nurses

Question 4

The chief nursing officer needed to make changes in the staffing budget because the hospital was opening an additional 10 beds to the emergency department.The nursing administrator had to look at what type of costs?

A)Variable costs
B)Sunk costs
C)Semivariable costs
D)Marginal costs

Question 5

A system in which a fixed payment is given to a care provider per health plan participant per month for delivery of a specified amount of health care services is known as:

A)Managed care
B)Health maintenance organization
C)Individual provider arrangements
D)Capitation

Question 6

The nurse manager used the traditional model for costing out nursing services.In this model,the amount of nursing time per intensity level (NT)is calculated based on what?

A)PPOs
B)MHOs
C)DRGs
D)IPAs

Question 7

The hospital implemented several cost-cutting strategies to keep from closing.One strategy was the support of early retirement.What kind of strategy can the nurse manager use to keep up the morale of the unit?

A)Initiate an across-the-board pay cut to be fair to everyone
B)Acknowledge the staff's good work
C)Encourage staff members to seek other positions for job security
D)Give a pay raise to the remaining employees

Question 8

A nurse manager has to submit a proposal to the administration for the staffing needs of the intensive care unit.The nurse manager will be working with what type of budget?

A)Operating budget
B)Revenue-and-expense budget
C)Personnel budget
D)Capital expenditure budget

Question 9

How should nurse managers face the challenge of globalization?

A)Participate in the World Health Organization to help prevent a pandemic
B)Assure that adequate disease testing equipment is in place
C)Conduct research to develop new diagnostic tests
D)Screen all patients to prevent an epidemic

Question 10

A nurse manager acts as a fiscal manager on the unit.The nurse manager's most likely duty is to:

A)Be proactive in the fiscal planning
B)Guide the formulation of justification for requests for resources
C)Coordinate the fiscal planning
D)Analyze expenses

Question 11

Health care costs continue to increase.All of the following contribute to rising health care costs except:

A)Aging population
B)Increasing number of diseases requiring acute care
C)Increased health care needs
D)Increasing number of uninsured people

Question 12

The hospital established the financial responsibilities of the personnel who are part of the budgetary process.The function of the nurse managers and department heads during the budgetary process is to:

A)Provide general planning expertise
B)Formulate and execute the budget by using guidelines
C)Establish a completion timetable
D)Prepare and review goals and objectives,and compile the budgets for their departments

Question 13

A nurse manager uses what technique to help control costs?

A)Delegating appropriate tasks to unlicensed personnel
B)Comparing costs with those of other departments
C)Calculating the break-even points on an item
D)Conducting comparisons in monetary units

Question 14

Which of the following reimburses according to the cost of treatment of specific diagnosis-related groups (DRGs)?

A)Health promotion programs
B)Managed care systems
C)Prospective reimbursement system
D)Health maintenance organizations

Question 15

The nurse manager wanted to implement a new indirect cost savings strategy on the unit.An example of an indirect cost savings strategy is:

A)Instituting a new 15-minute break policy
B)Holding staff meetings on company time
C)Charging for the coffee served to employees
D)Eliminating the nurses' lounge area

Question 16

The nurse manager needs to determine the most economical level of inventory,because supplies represent a significant cost factor.To keep costs down,the nurse manager places small orders frequently.This is an example of reducing what kind of cost?

A)Order cost
B)Carrying cost
C)Short cost
D)Stock-out cost

Question 17

The hospital is promoting a healthy living program for its employees.On what part of cost containment is the hospital focusing?

A)Cost fairs
B)Cost management
C)Cost avoidance
D)Cost reduction

Question 18

The nurse manager reviews the unit's budget quarterly.One advantage of such a budget review is that:

A)It is time consuming and expensive
B)Corrective measures can be taken
C)The budget converts organizational performance into monetary values
D)The budget supersedes the agency goals

Question 19

The hospital's board of directors sent letters to wealthy community leaders seeking donations to help build an extension to the hospital.This target group is an example of:

A)An exchange public
B)An internal public
C)A sought public
D)An unwelcome public

Question 20

The nurse manager assessed the need for a new flotation bed for patients with severe decubitus ulcers on the unit.The nurse manager reported this information to the chief nursing officer,who reviewed which budget to plan for replenishment of this equipment on the unit?

A)Operating budget
B)Capital expenditure budget
C)Cash budget
D)Flexible budget

Question 21

With very few Food and Drug Administration-approved nonprescription weight loss drugs on the market,the pharmaceutical companies that produce these over-the-counter medications can establish what kind of pricing goal?

A)Cost-plus pricing
B)Profit-maximizing pricing
C)Sliding payment scale
D)Price-discrimination pricing

Question 22

Marketing promotion informs potential customers of the existence and availability of products and services.Because consumers have become more knowledgeable about health care,hospitals have had to become very creative in their marketing promotions.Hospitals understand that marketing promotion leads to:

A)Reutilization of services
B)Underutilization of services
C)Narrowing of services to a select group
D)High bidding to get the business

Question 23

A marketing audit of a small rural town is performed to see if the community would be interested in having a clinic that specializes in women's and children's services.This is what type of market targeting?

A)Differentiated marketing
B)Comprehensive marketing
C)Concentrated marketing
D)Undifferentiated marketing

Question 24

The hospital used promotions that were not paid for by the hospital.What type of publicity tool did the hospital use?

A)Public service announcements
B)Billboard advertising
C)Telephone stickers
D)Fund raising

Question 25

A wellness clinic was promoting a new weight loss capsule that was approved by the Food and Drug Administration.Over the last quarter,the clinic's data revealed an increase in the sale of the product.This is an example of what stage of the product's life cycle?

A)Introduction stage
B)Growth stage
C)Maturity stage
D)Market decline stage