Question 1

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

Accepted Answer

Understanding financial information helps in making informed decisions, managing resources efficiently, and ensuring long-term sustainability of an organization.

Question 2

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

Accepted Answer

Financial performance management involves strategic and operational elements that help healthcare leaders develop, invest in, and implement a sustainable business model, ensuring the organization's financial health and success.

Question 3

Key drivers are:

Accepted Answer

Key drivers are factors that influence and direct the outcome of a process, impacting its success or failure.

Question 4

Key drivers in healthcare include which of the following:

Accepted Answer

All the options listed are key drivers in healthcare. Contribution margin helps in understanding profitability, bad debt and charity impact financial health, and market share indicates competitive position.

Question 5

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

Accepted Answer

Contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products or service lines. It is calculated by subtracting variable costs from sales revenue.

Question 6

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

Accepted Answer

Monitoring key drivers allows organizations to focus on the most impactful factors affecting financial performance, enabling better decision-making and resource allocation.

Question 7

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

Accepted Answer

Performance reporting can identify successful strategies and practices, allowing organizations to learn from them and replicate success across different areas.

Question 8

Which describes the balanced scorecard instead of trending?

Accepted Answer

The balanced scorecard combines performance management and benchmarking by providing a framework to evaluate and improve organizational performance across multiple perspectives, such as financial, customer, internal processes, and learning and growth.

Question 9

Which best describes a successful management model?

Accepted Answer

A successful management model strives to create and advance accountability at all levels, ensuring that everyone in the organization is responsible for their actions and contributions.

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:

Accepted Answer

Approaching performance issues with a beginner's perspective allows healthcare leaders to remain open-minded and innovative, encouraging fresh ideas and solutions.

Question 11

Which is not a part of the GRPI model?

Accepted Answer

Relationships are not a part of the GRPI model. The GRPI model is a framework for understanding group dynamics and includes the following four elements: Goals, Roles, Processes, and Interpersonal relationships.

Question 12

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

Accepted Answer

Focusing on strategies and solutions helps in systematically addressing problems, leading to informed and effective decision-making.

Question 13

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

Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted to enhance corporate governance and strengthen financial practice regulations to protect investors from fraudulent accounting activities by corporations.

Question 14

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

Accepted Answer

The Patient Protection and Affordable Care Act was signed into law by President Obama on March 23, 2010.

Question 15

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

Accepted Answer

Nurse Integration is not directly related to financial challenges posed by the Patient Protection and Affordable Care Act. The other options involve changes in reimbursement and payment structures.

Quiz 12: Financial Considerations for Healthcare Leaders