My class poll questions/bonus Flashcards
Veterinary Staff Ratio, Veterinary Production, Team member production, Efficiency and Staff Payroll percentages are 5 of the key factors involved in consider when to hire, what is the 6th key factor?
a. percent of gross profit increase per quarter
b. liabilities as a percent of gross
c. square footage of building per DVM
d. hospital work flow
Hospital Work flow
When should a pre-adverse action letter be used?
a. When considering not hiring a candidate due to details revealed in a pre-employment background check.
b. To advise a candidate they will not be hired due to details revealed in the pre-employment background check.
c. To request further detail/clarification on the candidate from the back ground investigation company when considering not hiring a candidate due to details on the initial background check.
a. When considering not hiring a candidate due to details revealed in a pre-employment background check.
When it comes to enhancing employee productivity, which one of the below answers is NOT one of the suggestions?
a. Engage and Empower
b. Personal focus
c. Accountability and Acceptance
d. Performance Standards.
c. Accountability and Acceptance
When it comes to Individual Development Plans; what are the three main details that should be addressed?
a. Coaching, Training, Accountability
b. Coaching, Training, Career Development
c. Development, Training, Career Management
c. Development, Training, Career Management
On-board with EASE stands for Encouragement, Align, Solve and _______.
a. Elevate
b. End
c. Endorse
d. Embrace
b. End
What is the ideal ratio of staff to veterinarians that allows the hospital to leverage veterinarians to perform task it takes a DVM degree to perform?
a. 4.9:1
b. 3:1
c. 4:1
d. 3.4:1
a. 4.9:1
Which of these interviewing mistakes refers to allowing a candidate’s good qualities to overshadow the challenges they present as a candidate?
a. Prejudice & Stereotypes
b. Leading Questions
c. Halo Effect
d. Armchair Psychology
c. Halo Effect
When must OSHA Safety Training be completed for each new hire?
a. Within the first 72 hours of employment
b. By the end of the first day of employment
c. Before the new employee is released form onboarding to train with the team
d. Annually.
c. Before the new employee is released form onboarding to train with the team
A doctor is using 2 exam rooms simultaneously for appointments, what type of scheduling is this considered?
a. Ten Minute Flex
b. High density
c. Concurrent
b. High density
Regarding the practice client schedule; what is the definition of an emergency?
a. Where no doctor is immediately available and one must be pulled from another client.
b. When the patient is triaged and determined to take priority over other patients.
c. Where the client arrives without an appointment for a legitimate patient concern.
a. Where no doctor is immediately available and one must be pulled from another client.
Your practice has decided that they want clients to bond with the entire practice, what are the risks associated with that Bonding Philosophy?
a. The clients may not like all the doctors
b. Lack of continuity of patient care
c. Doctors find it an unrewarding way to practice.
a. The clients may not like all the doctors
b. Lack of continuity of patient care
When empowering a team member, it is important to define the task/tasks with clarity. Which part of the SMART System will do that?
a. Specific
b. Agreed
c. Realistic
a. Specific
The Benefits of Cross-Training include:
a. Employee knowledge of the practice as a whole, and the roles of other in the practice grows.
b. When team members are ill or absent, client service and wait times do not have to decline.
c. Places another level of employee accountability into the system, helping to reduce the occurrence of fraud and theft.
a. Employee knowledge of the practice as a whole, and the roles of other in the practice grows.
b. When team members are ill or absent, client service and wait times do not have to decline.
c. Places another level of employee accountability into the system, helping to reduce the occurrence of fraud and theft.
Emotional intelligence is often described by five levels of competence in which to focus personal improvement.
What are those five levels?
Self-Awareness
Self-Control
Self-Motivation
Empathy
Effective Management of relationships.
David Pink defines motivation as “the desire to do things because they matter”. However, three elements must exist for intrinsic motivation to occur. What are they?
autonomy, mastery and purpose
_________ refers to the degree to which the test actually measures what it claims to measure.
a. Validity
b. Tenability
c. Reliability
a. Validity
When it comes to management of daily work assignments ______________ and ___________ are the keys to a successful veterinary practice.
a. Delegation and Instruction.
b. Delegation and Empowerment.
c. Delegation and Responsibility.
b. Delegation and Empowerment.
What are the federal retention laws for applicant documents such as resumes and employment applications?
One year from filling the position, unless you suspect applicant is over 40 years of age, then it is recommended to keep records 2 years.
List the four elements necessary to hold working interviews
- Must be on payroll.
- Must be eligible to work in U.S.
- Must be paid at least minimum wage.
- Must be covered under workers compensation
FIT is how a candidate will complement the culture, and POTENTIAL is the measure of growth the new hire would be expected to experience. Define IMPACT.
Impact – is the measure of results the candidate has achieved in the past and is likely to achieve in the future.
As it relates to interviewing candidates, what are the benefits of the use of a rating scale?
A Rating Scale can help helpful when hiring because it is challenging to compare candidates equally and consistently, especially if there are multiple members of the management team interviewing candidates for the same position
Information revealed in the background checks can be helpful with hiring decisions and should be conducted on all candidates who make it to the final hiring pool to choose from. True or false?
False – Background checks should only be made after a contingent employment offer has been made.
What are Phase Training lists and what are four benefits of using them?
Outlines the progressive steps in the training for a specific position within the practice.
1. Helps ensure team members are trained properly
2. Aids in titrating information/instruction to the employee to avoid overloading them early in the process.
3. Provides a resource for training preparation for the trainer.
4. Provides reference and review material for the new employee and phase Training can accommodate a new employee that already has some experience.
What is a reasonable budget to spend on training annually?
1-2% of annual revenue of the practice.
New employees must have immediate knowledge of what 5 safety details?
- Location of the first aid kit/s, eye wash stations and exits.
- Location of all personal protective equipment, and instructions on proper use prior to first use.
- Location of all mandatory posters.
- Location of the hospital Safety Manual.
- Copies of all applicable OSHA standards.
List the 3 most common reasons a staff member leaves a practice.
- Lack of positive feedback.
- Lack of training opportunities.
- Failure of management to include them in the larger strategic vision of the practice.
Name 4 elements of enhancing employee productivity
- Shared Purpose
- Tools to do the job.
- Standard operating procedures.
- Performance Standards.
- Engage and Empower.
- Recognize and Reward.
- Physical fitness.
- Personal focus.
- Team focus.
The ____________ and ______________ of the practice help define the core competencies that should be expected of employees.
Mission and Values
Why are core competencies important in staff development?
Because they can be tiered to beginner, intermediate and expert and because they can be considered in terms of reward based compensation.
Name at least 4 of the 10 elements that should be considered in virtual team training.
1 – Put your training on a diet.
2 – Gain attention from the start
3 – Establish Relevance
4 – Present information with a twist
5 – Ask compelling questions
6 – Conduct realistic demonstrations
7 – Provoke discussion
8 – Employ interactive activities
9 – End with a bang
10 – Prepare, prepare, prepare
In the 70/20/10 Learning and Development Model; define the elements involved
- 70% of learning within an organization should come from on the job training.
- 20% from coaching and mentoring.
- 10% from actual courses, lectures, and formal training
An effective appointment system should have what two goals?
- To eliminate client wait time.
- To maximize the efficiency of the doctors, the support staff and the facility by minimizing downtime between clients or patient procedures.
In the example of Dense Scheduling in Practice Made Perfect; list the breakdown of the three 5 minute sections for a 15 minute annual wellness appointment (goal of the 1st five minutes, 2nd five minutes, etc.)
- The first five minutes is the technician check in period for patient history and vitals.
- The doctor is present for the next five minutes to perform the physical exam, answer questions, gather information and discuss preventative care.
- In the remaining five minutes the technician and/or doctor may collect lab samples, fill prescriptions or vaccinate.
What are three ways to try to avoid appointment problems with clients?
- Appointment cards should always be given to clients who make the appointment while in the clinic.
- Proper hospital protocols that prepare the team for unexpected appointment challenges.
- Advanced reminders within 24 hours of the appointment is considered best practice.
Name five of the nine details to consider regarding appointment scheduling criteria for making appointment schedules.
- The number of doctors available during any particular period.
- The relative efficiency of the doctors.
- The time allotted to each appointment.
- The number of patients presented by each client.
- Types of cases seen.
- The number of exam or consult rooms.
- The hours of hospital operation, including the hours for scheduled and nonscheduled activities.
- Favored client times for veterinary care.
- Veterinary technician appointments.
An unusual number of established clients arriving early or late to the appointment may be a sign of what?
Ongoing appointment scheduling and time management problems at your hospital.
When it comes to staff scheduling __________ is one of the most desired employee benefits; therefore it is an important component in staff morale, productivity and retention.
Flexibility
Name and define the five potential employee scheduling options
- Rotating Schedule: the staff, their duties and shifts rotate.
- Hybrid Schedule: a mix of fixed and variable days. Example: fixed weekdays with rotating weekends.
- Skill Based Scheduling: based on the known skill set of the employee and the needs of the practice. The greater the skill set the employee develops, the more flexible their scheduling options.
- Split Scheduling: when an employee works for more than one business unit within a single workday. Example: a technician works in the surgical practice from 9:00 am to 2:00pm and then moves into the outpatient practice from 3:00pm to 8:00pm.
- Per Diem: scheduled one day at a time as needed by the practice. This is most common among relief veterinarians.
Ultimately the _____________ is responsible for the efficiency, function and flow of the practice. Below are several strategies to help achieve success
Manager
When it comes to managing daily work assignments; what does SMART stand for and what are the definitions?
a. Specific – define the task. Why is it important and what are the expected outcomes.
b. Measurable – how is the task going to be measured in terms of progress or completion?
c. Agreed - both parties agree on the importance of the task and how the results will be achieved. What resources will be needed to achieve these results?
d. Realistic - the task being delegated and the goals being sought are realistic with the time constraints that are in place.
e. Time Bound – how and when will the results be expected? Create check-in points on the calendar. A check-in point prevents micro-management and keeps lines of communication open
What are the 12 Cs for team building?
Clear Expectations
Context
Commitment
Competence
Charter
Control
Collaboration
Communication
Creative Innovation
Consequences
Coordination
Cultural Change
True or false:
Staff meetings are a good way to create team bonding and introduce new policies or products, but they rarely show a financial return on investment
False
What are some ways to engage team members at a staff meeting?
a. Publicly praise work well done and celebrate successes
b. Do not allow meetings to turn into gripe sessions.
c. Share important information, changes and progress towards goals so that people want to be at the meeting and not miss out on the announcements.
d. Learning games or ice breaker exercises
All
Training meetings should be 20-40 minutes long for attendees to remain engaged.
T/F
False
Employee performance reviews should include?
A conversations about wage and compensation.
b. Clarity about goals and direction
c. Addressing team members accomplishments
d. Address concerns over policy and procedures
B, C and D
Which of the following statements are true about staff meetings?
A. Appointing staff members to present topics during the meeting helps to develop leadership skills and a sense of pride among the staff.
b. A skilled facilitator can turn a gripe session into a positive, problem-solving meeting.
c. Meetings that begin with praise for accomplishments of team members or successful hospital initiative will always end on a positive note.
d. It’s not necessary to share the agenda ahead of time as long as notes from the meeting are shared after the meeting.
A and B
Raises should always be tied to performance review to protect the practice against unemployment claims.
t/f
False
What are four common types of performance reviews?
A. Behaviorally Anchored Rating scale
b. 360 Peer review
c. Management by Objectives
d. self review
e. job satisfaction survey
b, d, e
What is the best time frame for addressing conflict in the practice?
Immediately
One potential employee review pitfall is ____________.
A. Managements pre-conceived ideas or expectations.
b. Measuring the trivial
c. Not giving the employee all the time they need to discuss their concerns.
B
What are the elements in the ABCDEF Formula?
What are the top 3 cause conflict in the workplace environment?
Gossip
Lack of training
Lack of communication
Which of these is not an example of grounds of immediate termination?
a. Insubordination
b. time card violation
c. improper use of PPE
d. an employee performing poorly due to a death in the family
D
In what type of employment relationship can an employee only be disciplined or terminated for a sufficient reason (some examples are misconduct, negligence or theft)?
a. Justified action
b. Just grounds
c. Just cause
c. Just cause
An employment contract that details a specific length of employment is an exception to At Will employment.
t/f
True
Avoidance of the other person(s), personal attacks, hurtful gossip, barbed humor and lack of cooperation are all potential symptoms of what dynamic within your practice?
a. vague guidelines/policies regarding conflict resolution
b. symptoms of conflict within the practice
c. lack of accountability and leadership
b. symptoms of conflict within the practice
After meeting with two team members who are experiencing conflict and you have told them that you have confidence in them to find a solution, how much time do you give them before you meet again to hear their solutions?
a. 1 week
b. 1-2 days
c. by the end of the day.
b. 1-2 days
Do not misrepresent the qualification or character of a former employee if you have the knowledge of that employee’s propensity for violence, or illegal behavior in order to avoid liability claims of _________________.
Negligent referral
David Pink defines motivation as “the desire to do things because they matter”. However, three elements must exist for intrinsic motivation to occur. What are they?
Autonomy
Mastery
Purpose
Whether an individual is classified as an employee or an independent contractor is an important factor in determining the responsibilities of your practice under a variety of acts and regulations, and one of those is the Fair Labor and Standards Act. Since 1987, the IRS has used a 20 “common law factors test” which are grouped into three categories.
What are those three categories ?
· Behavioral Control
· Financial Control
· Relationship between the parties
Whether an individual is classified as an employee or an independent contractor is an important factor in determining the responsibilities of your practice under a variety of acts and regulations, and one of those is the Fair Labor and Standards Act. Since 1987, the IRS has used a 20 “common law factors test” which are grouped into three categories.
what are the four common law factors that indicate an independent contractor relationship?
· Investment
· Profit and Loss
· Number of clients
· Service offerings
The AAHA Compliance Study The Path to High Quality Care showed that most veterinarians over estimate client compliance by at least 25% and that the level of care they provide their patients is not as high as they thought it was. From the results of this study, AAHA came up with the CRAFT formula for compliance. The formula demonstrates that veterinarians control three of the four components of compliance. Define the CRAFT formula for compliance.
C = R + A + FT.
C = Compliance Standards.
R = Recommendation.
A = Acceptance.
FT = Follow-through.
In regards to identifying your practices “trade area”, there are two common calculations: Radius Rings, and Drive Times. Which calculation is considered the best?
Drive Times.
B
When it comes to scheduled drugs, drugs with the highest potential for abuse and the lowest potential for accepted medical use fall under Schedule_____?
Schedule I
Which agencies have a role in the rescheduling of a drug, in bringing an unscheduled drug under control, or removing the controls on a drug?
a. USDA
b. OSHA
c. DEA
d. CSA
e. Attorney General
DEA and Attorney General
Drugs that contain unsanitary components, lack adequate control in manufacturing, differ in strength from official compendium, or that are mixed with another substance are known as ______________.
a. Adulterated Drugs
b. Controlled Drugs
c. Misbranded Drugs
d. Legend Drugs
e. Compounded Drugs
Adulterated Drugs
Which is not a requirement for prescription drug labels?
a. The inclusion of the statement “Caution: Federal law restricts this drug to use by or on the order of a licensed veterinarian.
b. The inclusion of the statement “For sale only to a licensed veterinarian”
c. The label must include the recommended dose and route of administration
d. The quantity or proportion of each active ingredient
e. The names of all inactive ingredients if drug is for non-oral use.
f. The identifying lot or control number from which it is possible to determine the complete manufacturing history of the drug.
b. The inclusion of the statement “For sale only to a licensed veterinarian”
Which is not one of the 5 areas of focus when managing controlled substances?
a. Registration
b. Reverse distribution
c. Record keeping
d. Security and protection
e. Reporting losses
f. Substance disposal
b. Reverse distribution
Veterinarians who work at one or more locations may administer, dispense, and prescribe controlled drugs provided they have a current DEA registration at a central place of business.
t/f
False
Under what circumstances can a DVM dispensed an adulterated drug?
Under no crimcumstances
Regarding a DEA inspection, what can the inspector copy without the consent of the practice owner or representative?
a. All records and reports involving controlled drugs
b. All records, reports and financial information regarding controlled drugs
c. They cannot copy any documents without consent.
a. All records and reports involving controlled drugs
The AVMA Principles of Veterinary Medical Ethics is an example of what branch of ethics?
a. Descriptive
b. Official
c. Administrative
d. Normative
b. Official
What is the process for making changes to Veterinary Practice Act laws?
a. Only a unanimous vote of the state’s veterinary medical association board members
b. Proposed changes must be submitted to the house and senate and ultimate signed into law by the Governor
c. Through a lengthy process that includes introduction of the proposed changes, membership time for rebuttal, and eventually voting opportunities for all members
b. Proposed changes must be submitted to the house and senate and ultimate signed into law by the Governor
In regards to Unjust Enrichment - the legal system will look for which of the following elements before considering applying the law to a situation: multiple choice
a. The more emergent the animal’s needs are the more leeway exists to provide the emergency medical care.
b. The veterinarian attempted to reach the owner prior to medical care.
c. The extend of the emergency care required to stabilize the patient was reasonable.
a. The more emergent the animal’s needs are the more leeway exists to provide the emergency medical care.
b. The veterinarian attempted to reach the owner prior to medical care.
c. The extend of the emergency care required to stabilize the patient was reasonable.
What is the first A - in the 4 As to Rise above Moral Distress?
a. Analyze
b. Assess
c. Ask
d. Appraise
c. Ask
________________ occurs when you know the ethically appropriate action to take but you are unable to do so, or you act in a manner that does not agree with your own personal and professional values.
a. Ethics Exhaustion
b. Moral Distress
c. Compassion Fatigue
d. Emotional Distress
b. Moral Distress
If a driver hits a loose dog with their car and brings the dog into your practice: does your veterinarian have a legal responsibility to stabilize that patient or euthanize to relieve suffering since the owner is unknown and a veterinary client patient relationship has not been established?
Y/N
No - not a legal responsibility but there is discussion of the the ethical responsibility
Having a client sign off on a surgical consent form is adequate proof of informed consent in a court of law.
T/F
False - signature is not enough you need to have reviewed the information and have it documented that it was reviewed.
Which of the following are among the most common complaints to the board of veterinary medicine? multiple choice
a. Cost of treatment
b. Unsatisfied experience
c. Lack of communication
d. Unexpected death
e. Recordkeeping
f. Termination of the VCPR by the veterinarian
b. Unsatisfied experience
c. Lack of communication
d. Unexpected death
e. Recordkeeping
In a Covenant not to Compete the scope of activity is generally restricted and includes a time limitation and geographic restraint.
t/f
True
What laws involve a person who as been authorized to act on behalf of another?
a. Law of Authority
b. Law of Agency
c. Law of Power of Attorney
b. Law of Agency
What is the sneaky 4th element of a contract?
a. Contract final agreement
b. Intent to contract
c. Agreement to complete
b. Intent to contract
As it relates to tax planning, what is Safe Harbor?
a. A system of calculating this year’s projected tax based off of last year’s tax.
b. A system created by the IRS that will hold businesses harmless for low level tax miscalculation
c. Safe Harbor refers to retirement vesting schedules and income tax deferral
a. A system of calculating this year’s projected tax based off of last year’s tax.
What is the first step in creating a business contingency plan?
a. The formation of the recovery team
b. Back up all available data
c. A risk assessment
c. A risk assessment
In a medical malpractice lawsuit; if a client fails to confine a dog after surgery, or there is proof of any degree of medical negligence by the client, it may eliminate financial recovery for the client in a lawsuit. What term supports this theory?
a. Duty Negligence
b. Contributory Negligence
c. Negligent Forbearance
b. Contributory Negligence
Maximizing inventory turnover is a key strategy in creating an efficient and profitable inventory system. What are four results from having effective turnover rates?
- Practice profitability increases
- Decreased expired product
- Decrease shrinkage
- Lower holding and ordering costs
All federal and state anti-trust legislation preserve the underlying principle that our nation shall function under a competitive business economy. The basic unifying principle of these statutes is to ensure economic freedom for competitors and consumers.
The Sherman Antitrust Act was enacted in 1890 and the goal of the act is to guarantee the freedom to compete.
Who is responsible for the interpretation and application of the competitive objectives of the anti-trust laws?
A - The courts, the Department of Justice, and the Federal Trade Commission. Law and Ethics.
There are two rules the courts will use when making a ruling regarding Antitrust Laws, what are they?
A - The Per Se Rule and the Rule of Reason. Law and Ethics.
To be in violation of the Sherman Antitrust Act there must be proof of a contract, combination, or conspiracy that restrains interstate trade or commerce. If two local veterinary practices conspired to set fees, would they be free from the Sherman Antitrust Act requirements because they did not restrain interstate trade due to being in the same state and the same town? Why or why not?
Who is responsible for the interpretation and application of the competitive objectives of the anti-trust laws?
A - The courts, the Department of Justice, and the Federal Trade Commission.
There are two rules the courts will use when making a ruling regarding Antitrust Laws, what are they?
A - The Per Se Rule and the Rule of Reason.
To be in violation of the Sherman Antitrust Act there must be proof of a contract, combination, or conspiracy that restrains interstate trade or commerce. If two local veterinary practices conspired to set fees, would they be free from the Sherman Antitrust Act requirements because they did not restrain interstate trade due to being in the same state and the same town? Why or why not?
A – No. Those practices could still be found guilty of restraining interstate trade or commerce even if the activity is purely local but the activity affects interstate commerce.
Fair Labor Standards Act enforces what
Wage & Hour Division of the US Department of Labor
According to the Fair Labor Standards Act if a relief veterinarian has a set schedule with your practice but also continues to provide random relief shifts for other practices, are they considered an independent contractor?
Y/N
No, they are not because of the set schedule
When it comes to the employment of minors, which age group can only work 3 hours per day during school days and 8 hours a day on non-school days? They also cannot begin work prior to 7 am.
14-15 year-olds
______ occurs when submission to or rejection of unwelcome sexual conduct is used as the basis of employment decisions affecting the individuals (applies to protected classes as much as it does gender)
Quid Pro Quo
Who enforces the federal laws prohibiting employment discrimination?
a. The Fair Labor Standards Act
b. Civil Rights Act
c. Equal Employment Opportunity Commission
c. Equal Employment Opportunity Commission
Employers with at least _____ or more employees who worked for the employer for at least _____ calendar weeks in this year or last are protected from discrimination by the EEOC
a. 50/26
b. 50/52
c. 15/20
d. 20/15
c. 15/20
Which jobs listed may be classified as “exempt” from overtime? (multiple choice)
a. Team lead who manages two or more employees
b. Office manager/CVPM
c. Veterinarian
d. Certified Veterinary Assistant
b. Office manager/CVPM
c. Veterinarian
Pregnant employees can be prohibited by their employer from performing certain job duties to protect the developing baby. T/F
False
Title 1 of the Employee Retirement Income Security Act outlines reporting and disclosure obligations, minimum participation rules, vesting and funding requirements, and fiduciary standards. Who enforces Title 1 of ERISA?
a. Department of Labor
b. IRS
c. Pension Benefit Guaranty Corporation
d. Dept of Treasury
a. Department of Labor
In most states The Principals of Veterinary Medical Ethics of the AVMA can actually be enforced by law.
T/F
False
Client confidentiality is critical part of our profession, with that in mind, when is it considered acceptable for a member of the practice to take client list and information with them when departing?
a. Never
b. When they maintain “relief DVM” relationship with the practice
c. It depends on what the agreement was with the practice
c. It depends on what the agreement was with the practice
Which of the following are NOT acceptable contacts for employees to discuss client or patient confidences?
a. the client’s agent
b. a concerned co-worker
c. co-workers involved in the patient’s care
b. a concerned co-worker
In its simplest form, the inventory turnover ratio is computed for drug and medical supply purchases made over the course of a single year.
The ratio equals the total number of purchases divided by the average inventory value on hand.
To find the inventory turnover ratio begin by calculating the average inventory on-hand (AI). This is the sum of the beginning inventory (BI) and the ending inventory (EI) divided by 2. The result is the average on-hand inventory.
The formula looks like this;
(BI + EI)/2 = AI
Now that you have the AI, you can compute the inventory turnover ratio. Divide the total purchases during the year (DMSP) by the average on-hand inventory value, as calculated in the first step.
The formula looks like this;
DMSP/AI = Inventory Turn Over Ratio
For our purposes today we will use these numbers –
Beginning inventory January 1 - Clavamox 125mg = $3,000
Ending inventory December 31 - Clavamox 125mg = $2,500
Total Clavamox purchases for the year = $26,000
Using these numbers what is the AI?
Now, what is the Inventory turnover ratio?
Is the Inventory Turnover ratio you calculated considered an acceptable number of “turns per year”?
In general, the ____________ the turn-over ratio for a given period of time, the tighter the inventory control.
Using all the same numbers as above, what would the Average Shelf Life of Inventory in Days (ASLD) be?
Using these numbers what is the AI? $2,750
Now, what is the Inventory turnover ratio? 9.5
Is the Inventory Turnover ratio you calculated considered an acceptable number of “turns per year”?
Both 6-10 and 8 to 12 have been cited. As a reminder, your goal should be 8-12 turns per year depending on the product. 10-12 would be your highly selling products.
In general, the ____________ the turn-over ratio for a given period of time, the tighter the inventory control.
Higher
Using all the same numbers as above, what would the Average Shelf Life of Inventory in Days (ASLD) be?
38
In regards to changing organizational culture;
there are five key steps in making a culture change within a practice. What are those five steps, and of those five steps?
Which step states (among other things) that “The bottom line is that if a leader wants to create a different culture within the hospital, the leader has to go first”?
Define the culture.
Align behaviors with the desired culture.
Commit to the change.
Support the shift.
Grow the team.
Commit to the change contains the statement that to create a different culture, the leader has to go first.
What is considered more accurate, cash-based accounting or accrual-based accounting?
a. Cash Based
b. Accrual Based
b. Accrual Based
Which financial statement is considered the most important for small business?
a. Cash Flow Statement
b. Balance Sheet
c. Profit and Loss Statement
c. Profit and Loss Statement
Is staff payroll considered a fixed or variable expense?
a. Variable
b. Fixed
a. Variable
The Federal Insurance Contribution Act - or FICA is a payroll tax that is paid by the employer or employee?
a. Both employer and employee
b. Employer
c. Employee
a. Both employer and employee
Which payroll tax is paid by employers only and only on the first $7000 of an employee’s earnings?
a. State Unemployment Tax Act (SUTA)
b. Federal Unemployment Tax Act (FUTA)
c. Workers Compensation Tax
b. Federal Unemployment Tax Act (FUTA)
What is an Employer Identification Number (EIN)?
a. It is a number assigned by the Federal Trade Commission in order for the IRS to track revenue earned and taxes paid on that revenue.
b. Its is a business identification number assigned by the IRS to identify tax accounts of employers.
c. It is a federally required identification number assigned by the IRS for purposes of tracking the federal taxes on business earnings.
b. Its is a business identification number assigned by the IRS to identify tax accounts of employers.
AR that are over ____% need intervention to get the entire team to follow an AR policy.
a. 2%
b. 3%
c. 4%
d. 5%
b. 3%
Which Act prohibits placing “delinquent account” stickers on the outside of an envelope when mailing statements to clients?
a. The Fair Debt Collections Practices Act
b. The Consumer Protection Act
c. The Consumer Confidentiality Act
a. The Fair Debt Collections Practices Act
What does the accounts receivable turnover calculation tell us? (Multiple choice)
a. The fiscal health of the practice as it relates to accounts receivable as a percentage of gross revenue.
b. How many times the accounts receivable balance is converted into cash.
c. The ratio shows how efficient a company is at collecting its credit sales from customers.
b. How many times the accounts receivable balance is converted into cash.
c. The ratio shows how efficient a company is at collecting its credit sales from customers.
According the AVMA, what is the average net profit of a general practice in a given year?
a. 20%
b. 10-12%
c. 12-15%
d. 15-20%
b. 10-12%
Doctors on salary, utilities, medical insurance and rent are all examples of what kind of expense?
a. Fixed Expense
b. Variable Expense
c. Average Expense
a. Fixed Expense
Financial reports should be generated and analyzed within _____ business days after the end of the month.
a. 30
b. 1-5
c. 5-10
d. 20
c. 5-10
Which payroll schedule offers 24 pay periods per year?
a. Bimonthly
b. Biweekly
c. Biannual
a. Bimonthly
Which of these represent the determination of financial statement entry relationships and the fractional structure that results provides a concise reference to performance. They are generally used to assess aspects of profitability, solvency, and liquidity.
- Key Performance Indicators
- Ratios
- Percentages
- Contrast Parallels
- Ratios
When accepting personal checks for payment of products and services rendered, what are 6 criteria that a check acceptance policy should have?
· Adequate identification
· Payer’s address
· Payer’s account
· Written for the amount owed
· Written from an established account
· Preauthorization by a check-verification service
The difference between the cost of a product and the revenue it generates is called what?
If your end of year revenue for the practice was $2,400,000 and your profit was $312,000 what is your Net Profit Margin percent?
Which expenses are considered more controllable, Direct Expense or Indirect Expense?
An organization’s debts or other obligations which must be discharged within a short time (usually within the earnings cycle, or one year) are called what?
If the practice currently has $94,250 of cash on hand and the annual operating expenses of the practice are $1,677,000, how many days cash balance do you have and is that a healthy number for the practice?
The difference between the cost of a product and the revenue it generates is called what?
A–Gross Profit Margin
If your end of year revenue for the practice was $2,400,000 and your profit was $312,000 what is your Net Profit Margin percent?
A – 13%
Which expenses are considered more controllable, Direct Expense or Indirect Expense?
A – Direct Expenses are usually more controllable because they relate directly to specific income production.
An organization’s debts or other obligations which must be discharged within a short time (usually within the earnings cycle, or one year) are called what?
A – Current Liabilities.
If the practice currently has $94,250 of cash on hand and the annual operating expenses of the practice are $1,677,000, how many days cash balance do you have and is that a healthy number for the practice?
A – 14.6 days. As a general rule, it is a good business practice to keep 20 to 30 days’ worth of cash on hand to ensure liquidity issues do not arise.
Expansion, prosperity, contraction, and recession are the 4 stages of:
a. The budget process
b. The business cycle
c. Exit strategy awareness
d. Business valuation timing
b. The business cycle
What are 2 ways of normalizing revenue and expenses when creating a budget? (multiple choice)
a. Remove any non-recurring items from the previous year
b. Combine the last 3 years as an average.
c. Combine annual budget totals and divide by 12 to normalize anticipated monthly expenses.
a. Remove any non-recurring items from the previous year
b. Combine the last 3 years as an average.
In regards to creating a Credit Policy, what are the two sub policies that you should begin with? (multiple choice)
a. Client Credit Policy
b. Client Charge Policy
c. Charge Account Policy
a. Client Credit Policy
c. Charge Account Policy
Which metrics below are important considerations when creating a budget? (multiple choice)
a. Last 3 years P & L and Productivity Statements.
b. All lease and loan documents.
c. Fee schedule
d. List of operational changes expected in the next few years & their potential effect on revenue and/or expenses (new services, expansion, etc)
e. List of major capital
all
a. Last 3 years P & L and Productivity Statements.
b. All lease and loan documents.
c. Fee schedule
d. List of operational changes expected in the next few years & their potential effect on revenue and/or expenses (new services, expansion, etc)
e. List of major capital
What elements should be included in the Charge Account Policy for the practice? (multiple choice)
a. The pre-qualification procedures for a client of unknown standing.
b. The process for flagging a pre-qualified client in your practice management system
c. Acceptable forms of payment as well as storage of credit card numbers to be used as a backup guarantee the client agrees to at signing.
d. Total invoice amount of a client can charge without additional approval of management/ownership.
a. The pre-qualification procedures for a client of unknown standing.
b. The process for flagging a pre-qualified client in your practice management system
d. Total invoice amount of a client can charge without additional approval of management/ownership.
A list of procedures to use when considering ways of extending credit to clients includes creating ranges of available credit amounts based on the client’s longevity with the practice.
t/f
False
What is the Consumer Price Index?
A list or index of prices used to measure the change in the cost of basic goods and services.
The Consumer Price Index can be instrumental in determining the cost of living increase for a variety of expenses associated with running a veterinary practice.
t/f
True
In relation to Fee Analysis; which of the following elements should be included in the calculation? (multiple choice)
a. Variable cost per minute
b. Staff cost per minute
c. Veterinary cost per minute
d. Fixed cost per minute
b. Staff cost per minute
c. Veterinary cost per minute
d. Fixed cost per minute
Marsha Heinke DVM states _____% of practices have been victims of fraud or embezzlement.
a. 80%
b. 67.8%
c. 49.8%
b. 67.8%
It is recommended that practices do not prosecute confirmed cases of embezzlement unless the loss is determined to be greater than $2,000.
t/f
False
What entity may be a good resource for the practice in the event embezzlement is suspected?
a. The Federal Trade Commission
b. Your Insurance Carrier
c. Business Protection Agency.
d. All of the above
b. Your Insurance Carrier
More than ___% of gross revenue is lost to embezzlement in small business annually.
a. 7%
b. 3%
c. 5%
d. 9%
c. 5%
In the budgeting process, normalizing the hospital’s expenses refers to: (multiple choice).
a. Looking back at the past 3 years of revenue and expenses.
b. Projecting the next 3 year’s expenses
c. Removing any large one-off expenses from a year’s expenses.
d. Averaging the last 3 year’s expenses
c. Removing any large one-off expenses from a year’s expenses.
d. Averaging the last 3 year’s expenses
Which is the correct formula for measuring profit?
a. Profit divided by revenue
b. (Expense divided by gross revenue) x100
c. Revenue minus expenses
c. Revenue minus expenses
When budgeting for a start up practice, it is recommended to use the ____ percentile of industry benchmarks.
a. 25th
b. 20th
c. 15th
d. 30th
a. 25th
When comparing revenue and expenses, is it more valuable to determine the % change or the dollar amount change year over year?
% change
I am sure we all agree that performing a necropsy without the owner’s consent is unethical but it is also a high-risk liability. The risks of liability center on causes of action. Define those two causes of action.
1 – The tort of outrageous conduct.
2 – The right not to have one’s sensibilities shocked.
What is common sizing?
If your practice had $3,691,000 in revenue and $2,952,800 in expenses, how would you express the expenses using Common Sizing?
Once calculated using the metrics above, is your answer considered within the preferred benchmark for expenses?
Your expenses are 80% of gross revenue leaving 20% profit for the owner and 20%-30% is considered preferable.
Financial Management for the Veterinary Practice
Your accounts receivable on January 1, 2024 was $22,968.75. Your accounts receivable on December 31st, 2024 was $7,104.50. What is your Average Accounts Receivable?
Your sales for the year equal =
$43,426.98 in credit extended.
$191,207.42 in cash
$273,961.80 in checks.
$642,044.50 in credit cards.
Using the numbers above and your previous answer, calculate your Accounts Receivable Turnover.
Average Accounts Receivable:
$22,968.75 + $7,104.50 = $30,073.25
$30,073.25/2 = $15,036.62
Accounts Receivable Turnover:
Credit Sales/Average AR = AR Turnover.
$43,426.98/$15,036.62 = 2.9
What are the 4 Ps of Marketing?
a. Product, profit, promotion, place
b. Product, price, promotion, place
c. Product, preparation, price, place
b. Product, price, promotion, place
When completing a SWOT analysis, which category does a new low cost spay/neuter clinic opening nearby fall under?
a. Strengths
b. Weaknesses
c. Opportunities
d. Threats
d. Threats
What net to new clients ratio indicates healthy growth of the practice?
a. 6:1
b. 8:1
c. 10:1
a. 6:1
_______ tell the biggest part of the story when it comes to communication with clients and team members.
a. Paraverbal skills
b. Non-verbal skills
c. Verbal skills
b. Non-verbal skills
The goal should be to retain ___%-____% of clients over a 3 year period.
a. 85-90%
b. 65-75%
c. 70-75%
c. 70-75%
Each client who presents to the practice should be scheduled for at least one of the 3 follow-up events so that the practice automatically contacts each client in the future.
a. Recall, reappointment, reminder
b. Recall, reminder, recheck
c. Reminder, reappointment, referral
a. Recall, reappointment, reminder
How many clicks is considered the maximum number a client should need to make before getting to any part of your hospital website?
a. 6
b. 4
c. 3
d. 2
c. 3
All phone calls should be answered in ____ rings.
a. 3
b. 2
c. 1
d. 4
b. 2
Which is not one of the 6 Cs of client relationship management?
a. Consistency
b. Compassion
c. Care
d. Customer Service
e. Cost
f. Competence
c. Care
Clients retain only _____% of what they hear.
a. 20%
b. 25%
c. 15%
a. 20%
The average person needs to hear about a product or service around ____ times before they purchase it.
a. 10
b. 5
c. 7
c. 7
Client reference and education materials should always be branded with the mission of the practice.
t/f
False
When it comes to medical errors and the silencing of those errors, the AVMA and PLIT developed a model to facilitate discussions of full disclosure. The model is designed around the acronym TEAM. What does TEAM stand for?
Truth – Teamwork – Transparency
Empathy
Apology – Accountability
Management
Very often the complexity of the legal system and the sluggish progression of cases (among other things) will discourage people from using the judicial system. There are three alternatives to a lawsuit to settle a dispute. What are they and briefly define each one?
1 – Negotiation. A conversation between the involved parties with or without legal counsel.
2 – Mediation. The use of an intermediary who is a neutral party and in whom both sides have confidence. The parties are not required to accept the mediator’s findings.
3 – Arbitration. Similar to Mediation except that the findings of the neutral arbitrator are generally binding on the parties.
Which of the elements below are NOT considered a forgotten cost of doing business?
- Staff turn-over
- Pharmacy
- Continuing Education
- Credit card merchant fees
According to Practice Made Perfect; applying Pareto’s 80/20 rule to inventory helps in:
a. Making organizational decisions about inventory
b. Prioritizing inventory time investment, since 20% of our products bring in 80% of our produce revenue, we should concentrate the lion’s share of our efforts on that top 20%.
c. Creating a marketing strategy regarding inventory.
d. Making budget decisions regarding inventory.
b. Prioritizing inventory time investment, since 20% of our products bring in 80% of our produce revenue, we should concentrate the lion’s share of our efforts on that top 20%.
Ideally, the top 20% of inventory items should be ordered _______.
Monthly
To maintain tight internal controls the role of Inventory Purchaser should always be a separate individual from (multiple choice).
A. The inventory receiver
b. the inventory counter
c. the inventory documenter and tracker
d. the inventory researcher
A. The inventory receiver
c. the inventory documenter and tracker
The Tax Act of 2003 provided what increased benefits to small business owners (multiple choice)
a. significantly increased the amount of eligible property that can be written off in the first year.
b. gave an additional deduction of 50% of the remaining balance of the equipment purchased that is above the $139,000
c. the remainder of the purchases can also be depreciated on a straight-line depreciation schedule.
All
a. significantly increased the amount of eligible property that can be written off in the first year.
b. gave an additional deduction of 50% of the remaining balance of the equipment purchased that is above the $139,000
c. the remainder of the purchases can also be depreciated on a straight-line depreciation schedule.
Practices should plan to reinvest around ____% of gross revenue for replacing or acquiring equipment annually.
1%
Is the digital radiography unit in your practice considered Capital Inventory?
a. If it is valued at $1500 or higher
b. If it is valued at $15000 or higher
c. Yes, if it is in useable condition.
c. Yes, if it is in useable condition.
Which details below are considered a benefit of using logs in veterinary medicine? (multiple choice)
a. To comply with legal requirements such as controlled substances log.
b. Provide evidence in the event of a malpractice claim.
c. Convenient for quick data analysis and auditing.
a. To comply with legal requirements such as controlled substances log.
b. Provide evidence in the event of a malpractice claim.
c. Convenient for quick data analysis and auditing.
The state Veterinary Practice Act defines minimum medical record documentation for each state. What other entity(s) define minimal requirements of veterinary medical records?
a. AVMA Principles of Veterinary Medical Ethics.
b. DEA and AVMA Principles of Veterinary Medical Ethics
c. AVMA Principles of Veterinary Medical Ethics and AAHA.
c. AVMA Principles of Veterinary Medical Ethics and AAHA.
The most common medical record format is:
a. Problem Oriented Medical Record (POMR)
b. Source Oriented Medical Record (SOMR)
a. Problem Oriented Medical Record (POMR)
Software and Hardware purchases will show greater return on investment than any other capital expense in veterinary medicine due to increased efficiency in every department.
t/f
True
Hardware and Software are both examples of Information Systems.
t/f
True
Ideally no less than ____ of on-site training should accompany any major software conversions.
a. 2 days
b. 1 day
c. 1/2 day
c. 1/2 day
Which of the 4 phases of Strategic Planning is focused on how the practice will get from point A (now) to point B (the future)?
a. Formulation
b. Development
c. Implementation
d. Evaluation
b. Development
Leadership Fatigue can be experienced by both owners and managers and usually results from a lack of communication, lack of delineation of job duties, and feeling that they re constantly haggling with the team to carry out policies and procedures. Which element of the strategic plan address this dynamic?
a. Organizational Development
b. Organizational Design
c. Organizational Learning.
b. Organizational Design
How long can it take to prepare a team member for a leadership position?
a. 6-12 months
b. 12-24 months
c. 12-36 months
d. 24-36 months
c. 12-36 months
