HSA 6115 Final Exam

Question 1

Current Ratio

Answer 1

Shows number of times short-term obligations can be met from short-term creditors.

Total current assets / Total current liabilities

Question 2

Accounts receivable (days)

Answer 2

Measure of the efficiency of collections function

Net patient accounts receivable / (net patient revenue / 365)

Question 3

Cash - on - hand (days)

Answer 3

of days an organization could pay its cash operating expenses if none of A/R were collected

(cash + cash equivalents) / ([total operating expenses - depreciation expense]/365)

Question 4

Average payment period (days)

Answer 4

measure of how efficiently an organization pays its bills

Current liabilities / ([total operating expenses - depreciation and amortization expense]/365)

Question 5

Leverage

Answer 5

How much a company owns based on assets and equity

Question 6

Leverage - liabilities - liquidity

Answer 6

• How much a company owns based on assets and equity

* Having leverage could be a good or bad thing, it depends on the organization and their current financial status.

Question 7

Planned budget

Answer 7

Planned: Planned management + Planned Volume

Question 8

Flex budget

Answer 8

Flex: Planned management + Actual volume

Question 9

Actual budget

Answer 9

Actual: Fixed management + Actual volume

Question 10

Isolating change due to volume

Answer 10

compare where the volumes are different

Question 11

Isolating changes due to mangement

Answer 11

compare Actual to Flex budget

Question 12

Break-even analysis (volume)

Answer 12

Fixed costs /

price per unit - variable cost per unit

Question 13

Break-even analysis definition

Answer 13

Helps to evaluate the economic viability of a proposed alternative involving resource allocation.

Question 14

Break-even analysis (volume)

Answer 14

*Fixed costs /
price per unit - variable cost per unit

• Volume / Profit

Question 15

Contribution margin formula

Answer 15

Revenue - Variable costs

Question 16

Profit

Answer 16

Revenue - (Fixed costs - Variable costs)

Question 17

Total costs

Answer 17

Fixed costs + Variable costs

Question 18

Variable costs

Answer 18

Variable costs per unit x # of units

Question 19

Revenue

Answer 19

Price per unit x # of units

Question 20

Porter’s 5 Forces

Answer 20

1. Rivalry
2. Bargaining power of suppliers
3. Threat of entry
4. Bargaining power of buyers
5. Threat of substitutes

• In addition to these five forces, each one needs to be broken down by:
  1. Issues for Industry
  2. Implications for Organization
  3. Implication for strategy, not a strategy

Question 21

Rivalry

Answer 21

Want to be able to differentiate self among competitors (stand out)

Question 22

Threat of entry

Answer 22

are their certain threats that hinder your entry into that particular industry

Question 23

Threat of substitutes

Answer 23

No commonalities. Make yourself indistinguishable.

Question 24

Bargaining power of suppliers

Answer 24

Can’t make money without key players (i.e. physicians)

Question 25

Bargaining power of buyers

Answer 25

Buy in bulk which allows for reduction in price. Switch to different supplier, or buy supplier out.

Question 26

4 P’s of Marketing

Answer 26

1. Price
2. Product
3. Place
4. Promotion

Question 27

Services Marketing

Answer 27

Key is to know your market (customer), and market your product to them.

Question 28

Marketing

Answer 28

Refers to customers, typically not as patients. Because they have choice or elective decision.

Question 29

Reaction triggers

Answer 29

Change insurance and can’t go to preferred provider anymore

Question 30

Structural triggers

Answer 30

Charged for excessive testing, excessive wait times

Question 31

Service marketing helps to generate loyalty (switching costs)

Answer 31

Helps to keep patients happy. Easier and cheaper to maintain current customers than having new ones.

Question 32

Loyalty programs effect on heavy and light users

Answer 32

• Loyalty programs don’t have much of an effect on heavy utilizers.
• However, light utilizers, are more persuade in their purchasing.

Question 33

Service failure

Answer 33

long wait times, asking repetitive questions by different staff, and issues with central scheduling on how to prepare for procedure

Question 34

Service recovery

Answer 34

Come out better in the end after service failure

Question 35

H.R. responsibilities

Answer 35

1. acquisition
   a) H.R. planning
   b) recruitment
   c) screening
   d) orientation
2. employee maintenance and retention
   a) performance appraisal
   b) placement
   c) training
   d) development
   e) discipline
   f) corrective counseling
   g) compensation and benefits
3. seperation
   a) preretirement counseling
   b) exit interviewing
   c) outplacement
4. coordinating