Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PPA > PPA 2- Exam 1 > Flashcards

PPA 2- Exam 1 Flashcards

1
Q

Well managed pharmacies:

A

Constantly watch practice and technology changes
Leaders vision
Comply with regulations
React to competition and environmental changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Mission/Objective of modern management

A

Quality of patient care, happy and motivated staff, profitable operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Modern management

A

process that brings together resources to achieve goals and objectives.
Planning, leading, organizing, controlling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The management process

A

Planning, organizing, controlling, leading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Planning

A

Determine objectives, establish strategies for achieving them.
Vision, mission, goals, implications, business plans
The process of setting objectives and determining how the objectives should be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Organizing

A

Process of delegating and coordinating tasks and allocating resources to achieve objectives.
Tasks and authority relationships that support the objectives.
Division of labor, departmentalization, span of control, coordination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Controlling

A

Implementing mechanisms to ensure objectives are achieved

Standards established, measure and report performance, corrective/preventative actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Leading

A

Process of influencing employees to work effectively toward objectives
Communication, motivation/discipline, conflict resolution and performance appraisal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Management by Objectives (MBO)

A

Focuses on clearly defined achievable goals (results)
Staff has clear understanding about the organization and individual objectives and know their own roles and responsibilities.
Uses SMART principles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

SMART

A 
Specific 
Measurable
Attainable
Relevant
Timely
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Mission statement vs objective

A

Mission statement: Big picture

Objective: grounded and more attainable than mission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Goals vs objectives vs outcomes

A

Goals: general statement of your program purpose
Objectives: Intented results, more concrete/specific on how to achieve the goals
Outcomes: Actual results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Value of MBO?

A

Participative (Sharing of) decision making, accountability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Key result areas of an MBO

A

efficiency, quantity, quality, time, cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Types of objectives

A

Routine- normal work output to meet standards
Improvement- find better solutions
Innovative- add benefits, something new/change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Objectives must

A

align with organizational mission and vision. They need to be feasible and challenging, Connect staff with career objectives. Balance between short and long term objectives. Staff involved and buy in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Managers

A

Individuals who use principle of management services to guide/direct others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Types of managers

A

First line management
Middle management
Top management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Secondary skills of managers

A

Communication

Computer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Skills required to be a manager

A

Technical, analytical, decision-making, communication, people, computer, conceptual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Managerial roles

A

Interpersonal, informational, decisional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

First-line management primary skills

A

technical, decision making, people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Middle management primary skills

A

Analytical, decision-making, people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Top management primary skills

A

Analytical, conceptual, decision making, people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

3 P’s that influence top line sales

A

Purchasing, patients, people (payroll/expenses)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Profit/loss statement

A

Revenue (sales)
Cost of goods (how much did we buy?)
Expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Gross profit

A

Cost of goods- Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How do we get net profit into our business?

A

Increase revenue, decrease COGS, keep expenses manageable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Big 3 factors influencing patients

A

How many patients do we have?
Gains and losses of a patient- relationships with patients is vital
Prescriptions per patient- assess adherence, increase by med sync

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Big 3 for payers

A

Who are my top payers?
What is the payer mix?
Has there been a major change in a contract? If you see a decrease in reimbursements, we need to do better in other P categories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Big 3 for product

A

What is the % of generics?
Has there been a major product shift?
Is there a change in specialty or compounding?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Purchasing

A

Wholesaler contract and rebate maximization

  • helps net profit
  • maximize rebate by understanding contract and making purchasing decisions based on it.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Secondary purchasing

A

Identify top products and potentially buy in 3 month intervals
Improves product consistency, convenience, frees up staff time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

People (payroll/expenses)

A

Controlling payroll expense (keep between 10-11%) is the most important cost to control
Budget for pharmacists 1st

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Gross profit

A

Revenue- product cost (COGS)

What margin am I making on this script?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Operating expenses

A

All expenses separate from cost of the product needed to run the business (payroll, electricity, supplies)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Operating income

A

Gross profit-operating expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

PBM’s negotiate with

A

manufacturers for rebates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

PBMs contract with

A

pharmacies and reimburse them at certain rates over the course of the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Patients get prescriptions from the pharmacy and

A

Pay premiums

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Who pays the PBM?

A

Insurer or employer pays the PBM to continue managing their drug costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

PBM revenue is driven by

A

rebates, fees, and spread pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

DIR Fees

A

Direct and indirect remuneration fees
Initially a method for CMS to increase transparency regarding the real cost of drug transactions.
Can be attributed to “pay to play”- have to pay x amount of dollars to be in network.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

True-ups

A

Getting penalized by PBM if under rate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Example of reimbursement model w/ DIR fees

A
  • Pharmacy buys drug through wholesaler for $85.
  • Pharmacy submits claim to PBM for $100 based on benchmark price
  • PBM adjudicates the claim and remits payment back to pharmacy for $100 with a gross profit of $15
  • Months later, the PBM claws back a $7 DIR dee from the pharmacy, cutting gross profits in half.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What is the fastest area of growth by PBMs?

A

Discount cards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Discount cards

A

Low reimbursement, high hidden fees
Used in place of insurance- unable to show insurance that the patient is adherent
Excluded from rate guarantees
Going toward value-based care models

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Strategies to offset lower gross profit margins

A

Focus on quality measures, expand scope of practice, partnerships with nursing/LTC, group purchasing organizations, reduce overhead cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Budget

A

Itemized summary of estimated/intended expenditures or revenue along with sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Variance analysis

A

Monthly and year to date financial comparisons of budgeted vs actual revenue and expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Financial statement

A

A report providing financial statistics relative to a given part of an organizations operations or status.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

The 2 common financial statements

A

Balance sheet and income statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Fiscal year

A

time period the organization chooses for financial period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Gross revenue

A

Amount hospital charges to insurance companies and Medicare/Medicaid for the drug

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Budget for gross billing

A

Overall growth of hospital and project growth of units that drive pharmacy revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Net revenue

A

Gross billing- deduction rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

deductions/deduction rate

A

Difference between what the hospital charges and what is collected from insurance companies, State, federal payers, and self-pay
[We charge $100, we collect $60 then the deduction rate is $40 (40%)]. Deduction rate is typically 45-50%.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Net margin (operating margin)

A

Profit.

Net revenue- total expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Not-for-profit

A

hospitals that are mission driven. Attempt to generate a net margin, but do not distribute to shareholders. Reinvest profits/net margin directly back to the hospital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

For profit

A

hospitals that could be mission driven. They distribute net margins to shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

How to budget for drugs

A

Project drug volume based on revenue (census) growth. Add in any cost increase (typically 5-6%)

62
Q

Spinraza

A

Treatment of SMA

63
Q

Zolgemsa

A

Gene therapy treatment of SMA

64
Q

Luxturna

A

Gene therapy treatment of mutated retinal dystrophy

65
Q

How to budget for salary

A

Add the annual increases to individual salaries. Project OT for the next year based on the previous year and take into consideration any changes in the next fiscal year. Added any new positions to the budget

66
Q

Salary

A

Includes regular salary, PTO, and OT salaries

67
Q

Salary expense categories

A 
Regular pay 
PTO
OT
Non-productive pay
Sick/FML pay
68
Q

How to budget for supplies

A

Look at the trend over the past years and consider any new requests for old/replacement equipment

69
Q

Supply cost category

A 
Clinical supplies
Minor equipment
Office supplies
Computer software
Poster/abstracts

Includes medical and office supplies/equipment

70
Q

Expenses in the pharmacy

A

Drugs
Salary
Supplies
Purchased services/other

71
Q

Productivity

A 
Have to prove that staff is being used appropriately
Revenue/pt days
Revenue/clinic visit
Revenue/prescription
FTE's/adjusted pt day
Hours worked/weighted pharmacy pt day
Relative value unit (RVU)/time
72
Q

Inventory turns

A

Total drug expenses/average inventory on hand
Hospital industry average ranges from 10-12 times/year
Increasing inventory turns, decreases the inventory cost and increases profitability

73
Q

Pharmacy department revenue vs cost center

A

Determined based on % of government funded reimbursement

ACO

74
Q

Hospital reimbursement sources

A 
Federal- Medicare
State- Medicaid
Commercial 
Self-pay
Indigent- hamilton county levy
75
Q

Questions for clinical pharmacists regarding cost of drugs

A
  • Charge to patient
  • Acquisition cost to hospital: 340b discount program vs. Contract price
  • Average wholesale price (AWP): Published $ amount in Redbook
  • Average Sales Price (ASP): Medicare basis for drug reimbursement
76
Q

Break-even analysis

A

to determine the effect of changing costs, prices, or revenues on pharmacy profits

77
Q

Fixed costs

A

Costs remain the same regardless of volume change

Pharmacists salary, rent, depreciation,etc

78
Q

Variable costs

A

Costs increase in direct proportion to increase in volume

COGS, hourly wages, vials, etc.

79
Q

Classical theory

A

Focuses on the job and management functions to determine the best way to manage

80
Q

Scientific management

A

Stresses job efficiency through technical skills.

Job specialization, plan and schedule work, standard methods, wage incentives

81
Q

Administrative theory

A

Stresses rules and the structure of the organization, principles, and functions of management

82
Q

5 management functions of the administrative theory

A

planning, coordinating, organizing, controlling, commanding

83
Q

Behavioral theory

A

focuses on people, their motivation and behavior to determine how to manage.
Shifted focus from the job to the people

84
Q

What is the difference between classical and behavioral theories?

A

Behavioral theories shifted focus from the job to the people

85
Q

McGregor Theory X and theory Y

A

X- assumes people dislike work and need supervision

Y- assumes people like work and no need for close supervision

86
Q

Theory Z

A

focuses on the well-being of employees on and off the job; increases employee loyalty, promotes stable employment, high productivity, high satisfaction
Based on Japanese culture

87
Q

Management science

A

Focuses on mathematics to aid in problem solving and decision making

88
Q

Integrative perspectives

A

Systems theory
Sociotechnical
Contigency

89
Q

Systems theory

A

Organization as a whole and its interchangeable parts

90
Q

Sociotechnical theory

A

Integrating people and technology

91
Q

Contigency theory

A

Determining the best management approach for a given situation
Stable environment- mechanistic approach used (like classical theory), Good for mass production technology
Innovative environment- organic approach (like behavior theory)- small batch products

92
Q

Classic views of management

A

Hierarchial relationships
Authority went unquestioned
Workers did as they were told

93
Q

Management styles

A

Autocratic style
Consultant style
Participative style
Empowerment style

94
Q

Autocrative style

A

Highly directive and less concerned with relationships. Appropriate for low-capability employees. Give very detailed instructions and closely supervise.

95
Q

Consultant style

A

highly directive and highly supportive actions, direct instruction, work no relationships
Moderate capability employees

96
Q

Participative style

A

Focus on end result, less directive but highly supportive actions. Dont tell how to do but asks how they will accomplish the task at hand. High capability employees.

97
Q

Empowerment style

A

Very little direction or support. Answer their questions, they make their own decisions
Outstanding employees

98
Q

Two aspects of employee capability

A

Ability- knowledge, experience, education, skills, training

Motivation

99
Q

Human characteristics needed for employees

A

Courage and compassion

100
Q

Top 5 complaints of employment

A

retaliation, race, disability, sex, age, LGBTQ

101
Q

Title VII civil right act 1964

A

Prohibits job discrimination, promotes qualified candidates. Criminal background checks
Keep good records
EEOC meeting- tracks things, accommodation, looks at the sample

102
Q

FLSA

A

Fair Labor Standards Act
Improve american worker standard of living to help the nation
Minimum wage and exemptions, overtime pay, child labor

103
Q

ADEA

A

Age discrimination in employment

104
Q

ADA

A

Americans with disabilites

Prohibits discrimination against qualified people with disabilities. Provide reasonable accommodations

105
Q

OSHA

A

Occupational safety and health act

106
Q

PDA

A

Pregnancy discrimination act

107
Q

USSERA

A

The uniformed services employment and reemployment rights act

108
Q

EPA

A

Equality pay act- women pay equally

109
Q

IRCA

A

The immigration reform and control act

110
Q

Standards patients use to evaluate services

A

friendliness, fairness, control, give options, information

111
Q

Labor unions

A

Understanding labor unions and the national labor board
Working with labor unions in the workplace.
Unionization is believed to result from 3 issues- wages, benefits, and employee perceptions about the workplace

112
Q

Rules core values

A

Respect, inclusion, diversity, honesty, integrity, safety

113
Q

OIG exclusion

A

Prohibits participation in any federal health care program

114
Q

4 levels of success

A

financial success
Productivity success
Customer success
Employee success

115
Q

The #1 motivator for people

A

is feedback on results

116
Q

Position agreement

A

Results statement
Reporting positions
Areas of accountability
Measuring standards

117
Q

5 critical factors in one minute goal setting

A

customer relations, skills, communications and staff relations, adherence to policies, inventory

118
Q

One minutes managers

A

One minute goal setting
One minute praising
One minute reprimand, redirect

119
Q

4 components of one minute praising

A

deliver immediately, be specific, share your feelings, encourage them to keep up good work

120
Q

5 steps to train winners

A

tell them what to do, show them what to do, delegate, observe, praise progress

121
Q

One minute reprimand/ redirect

A

Only for people who are trained and know better

4 parts of a one-minute redirect: be immediate, specific, share feelings, tell person how valuable they are

122
Q

Performance=

A

motivation x ability x resources

123
Q

Results=

A

I want to x I can x I have what I need

124
Q

Motivation from an individual perspective

A

is an inner desire to satisfy an unsatisfied need

125
Q

Motivation from a business perspective

A

willingness to achieve org objectives or go above the call of duty

126
Q

Influence

A

how to get anybody to do anything

127
Q

Motivation process

A

Need, motivation, behavior, consequence, satisfactory/dissatisfactory

128
Q

Working model for motivation

A

motivation= reward x probability of success x effort

129
Q

Motivation theories

A

content motivation
Process motivation
Reinforcement theory
Hierarchy of needs theory

130
Q

Content motivation theories

A

focus on identifying and understanding employees needs

131
Q

Process motivation theories

A

Focus on understanding how employees choose behaviors to fulfill needs

132
Q

Reinforcement theory

A

propose that the consequences of behavior will motivate employees to behave in predetermined ways

133
Q

Hierarchy of needs theory (Maslow)

A

proposes that employees are motivated by 5 levels of needs.

Physiological, safety, social, esteem, and self-actualization

134
Q

Hierarchy of needs model 4 major assumptions

A

People have 5 levels of needs
Peoples needs are arranged in order or a hierarchy from basic to complex
People will not be motivated to satisfy a higher-level need unless the lower level needs have been met
Only unmet needs motivate

135
Q

ERG theory

A 
Employees are motivated by 3 needs
Existence (physiological and safety needs)
Relatedness (social needs)
Growth (esteem and self-actualization) 
Reorganization of Maslows hierarchy
136
Q

Two factor theory (Herzberg)

A

Proposes that employees are motivated by motivators (higher-level needs) rather than by maintenance factors (lower-level needs)

137
Q

Acquired needs theory

A

Employees are motivated by need for achievement, power, and affiliation
Assumed all people possess the needs for achievement, power, and affiliation to varying degrees

138
Q

Need for achievement (n Ach)

A

Want to take personal responsibilities for solving problems

  • Goal-oriented, set moderate, realistic, and attainable goals
  • Seek challenge, excellent, take calculated moderate risks
  • Desire concrete feedback on their performance
  • Willing to work hard
  • Perform well in nonroutine, challenging, and competitive situations
  • Enjoy sales and entrepreneurial positions (managers tend to have high n Ach)
139
Q

Motivate nAch by

A
  • Give them nonroutine, challenging tasks with a clear, attainable objective
  • Give them fast and frequent feedback on performance
  • Continually given them increased responsibility for doing new things.
140
Q

Need for Power (n Pow)

A

Want to control the situation, to influence or control others

  • Enjoy competition in which they can win (not like to lose)
  • Willing to confront others
  • Seek positions of authority and status (managers tend to have a high n Pow)
  • Have a low need for affiliation.
141
Q

Motivate n Pow by

A
  • Let them plan and control their jobs as much as possible.
  • Try to include them in decision making, especially if the decision affects them
  • Perform best alone rather than as team members
  • Try to assign them to a whole task rather than just a part of it.
142
Q

need for affiliation (n Aff)

A
  • Seek close relationships with others
  • Want to be liked by others
  • Enjoy social activities and belonging
  • Like to join groups and organizations
  • Think about friends and relationships
  • Enjoy developing, helping, and teaching others (make great mentors)
  • Avoid management roles)
  • Derive satisfaction from the people they work with more than the task itself.
143
Q

n Aff motivate by

A

Let them work as a part of a team

  • Give them praise and recognition
  • Delegate them the responsibility for orienting and training employees.
144
Q

Process motivation theories

A

Attempt to explain why employees have different needs, why their needs change, how and why their needs change, how and why they choose to try to satisfy needs in different ways

145
Q

Equity theory

A

proposes that employees will be motivated when their perceived inputs (performance) equal outputs (rewards received)
o If employees believe there is inequity, they will change their behavior to create equity by increasing output or decreasing input.
Three situations- under-rewarded, over-rewarded, equitable

146
Q

Goal-setting theory

A

proposes that achievable but difficult goals motivate employees
o One of the most valid approaches to work motivation
o SMART goals

147
Q

Expectancy theory

A

proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort.
o Based on the concept: Motivation= expectancy x valence

148
Q

Expectancy

A

persons perception of his/her ability (probability) to accomplish an objective. The higher one’s expectancy for a positive outcome or reward, the better the chance for motivation.

149
Q

Valence

A

refers to the value a person places on the outcomes or reward. The higher the value (importance) of the outcomes or reward, the better the chance of motivation.

150
Q

Reinforcement theory

A

proposed that the probability that a behavior will recur is affected by the delivery of reinforcement or punishment as a consequence of the behavior.
o No need for mangers to understand and identify needs (content motivation theories) or understand how employees choose behaviors to fulfill them (process motivation theories)
o Need to understand the relationship between behavior and their consequence and then reinforce desirable behaviors and discourage undesirable behaviors.

PPA (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions