Practice Quiz 3 Flashcards

1
Q

One way that healthcare executives can avoid or minimize the negative implications of conflict of interest is to

A

Make the conflict known to those in superior positions.

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2
Q

The principles of quality improvement require that healthcare executives change their management philosophy from:

A

finding fault with employees to finding problems in processes.

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3
Q

What type of problem arises when a healthcare executive knowingly allows the organization to continue double billing?

A

An actual conflict of interest, even absent a direct economic benefit to the healthcare executive.

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4
Q

A unit of measure commonly used to determine physicians’ clinical productivity

A

RVU

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5
Q

Third-party reimbursement methods provides the largest financial incentive for the provider to reduce cost

A

Prospective payment

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6
Q

Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all:

A

Publicly owned healthcare organizations.

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7
Q

Example of a capital expenditure

A

A building with a useful life of 20 years

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8
Q

Correct order of stages for accomplishing organization change:

A

Identifying
Planning
Implementation
Evaluation

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9
Q

Boards make better strategic decisions if they use information that is

A

focused on measurable outcomes of service quality and economic vitality.

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10
Q

The central role of the health services organization board includes all of the following

A

Support in managing important service programs or departments

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11
Q

The first role of the governing body is to

A

Set objectives and develop policy to guide the organization in achieving its mission

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12
Q

Internal members of the healthcare organization’s governing body

A

Often include the CEO, medical director, and CFO

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13
Q

In assessing the advantage of using a focus group over a survey in evaluating a program, one could say that focus groups

A

Are more useful in designing improvements to a program.

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14
Q

From a marketing viewpoint, the development of standards of practice, clinical pathways, clinical guidelines and protocols can all be viewed as efforts to deal with which unique aspect of delivering services

A

Heterogeneity

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15
Q

What purpose do market plans fulfill for the healthcare organization

A

Provide specific objectives for utilization attainment the next fiscal year.

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16
Q

The five major functions of marketing are:

A
Identifying markets,
Promoting the organization, 
Managing external relationship,
Convincing patients to select the organization,
Attracting capable workers.
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17
Q

Forecasting organizational need for Human Resources by focusing on specific position openings that are likely to occur and using these planning is called:

A

Demand-pull approach

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18
Q

A health services organization should use the following sequential processes to help establish Human Resources (HR) objectives and policies

A

Analyze the current HR situation,
Forecast HR demand,
Reconcile with the budget,
Forecast HR supply.

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19
Q

Probability models that forecast the internal flow of employees from one job category to another use a:

A

Transition matrix

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20
Q

Forecasting the internal supply of employees as they move from their current jobs into others through promotions, lateral moves and terminations is called:

A

Supply-push approach

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21
Q

The conflict management strategy that would have the most immediate effect on reducing conflict behavior?

A

Imposition of formal authority to resolve or suppress conflict.

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22
Q

Multi-rater assessment (360 degrees feedback) of managers in healthcare organization is best used:

A

In the development of a specific action plan by appraises.

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23
Q

Behaviorally anchored rating scales (BARS) for specific jobs can be:

A

Used to identify components of job behaviors.

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24
Q

If the amount of charity care increases from one reporting period to the next

A

Unrestricted net assets would decrease

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25
Q

Which would be a reasonable basis on which to allocate administrative overhead costs

A

Amount of supplies used.

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26
Q

The effective cost of debt is roughly the same for both not-for-profit and investor-owned organizations because:

A

The tax deductibility of interest for investor-owned firms offsets the lower coupon rate on tax-exempt debt.

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27
Q

The master site plan (or master facility plan) for a healthcare organization:

A

Describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs.

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28
Q

Statistics budget

A

Provides input date for other budgets.

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29
Q

All areas of healthcare facilities are subject to safety, convenience and other regulatory requirements as dictated by the state life safety codes, JCAHO, OSHA, state fire marshal, etc. which area of the facility typically has the highest standards?

A

Patient care areas

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30
Q

The best way to reduce/contain the costs of distributing supplies throughout an organIzation is to:

A

Minimize the number of times an item is handled from the time it is received by the organization to the time it is used.

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31
Q

The objective of maintenance and repair services is to keep the facility and its equipment operating like new. This goal is best achieved by emphasizing

A

Prevention

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32
Q

The facility’s plan for a healthcare organization may include plans for renovation or new construction, energy requirements, acquisition of new property, financing options, etc. However, the facility plan begins with an estimate of each service or department’s

A

Operational needs

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33
Q

An important management principle that should guide the development of information systems in healthcare organization is to

A

Treat information as an essential organizational resource.

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34
Q

A major priority for system development in the managed care environment

A

Development of operational inpatient systems

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35
Q

The best source of information to help a healthcare organization improve its existing service

A

Weekly meetings with staff members to determine organizational deficiencies.

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36
Q

An asset

A

Property
Plant
Equipment

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37
Q

Statement about short-term debt reduces liquidity

A

Increased use of short-term debt reduces liquidity.

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38
Q

Likely to provide useful information for evaluating the profitability of a hospitals managed care business

A

Changes

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39
Q

A master patient index (MPI) can best be described as

A

A relational database containing all identification numbers assigned to patients.

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40
Q

A typical use of the Internet by healthcare organizations is to

A

Advertise services available to the community

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41
Q

Best way to facilitate information system integration within a healthcare organization is to

A

Standardize data definitions and data structures

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42
Q

Developing technology that will help control unauthorized access to computerized information

A

Biometric access control devices

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43
Q

In negotiating a contract for an information system, healthcare organization’s should

A

Form a negotiating team and utilize legal counsel.

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44
Q

Most important factor to consider in evaluating vendor software packages

A

Ability of the software to interface with existing systems

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45
Q

The CIO for a healthcare organization is typically responsible for

A

Information systems and telecommunications

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46
Q

In selecting an information systems, a consultant can best be used to

A

Provide technical information and an outside prospective

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47
Q

The Information Systems Steering Committee for a healthcare organization should perform

A

Information systems planning,
Selection of software and
development of related organizational policies.

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48
Q

Primary functions of the information services department

A

Ensuring the integrity, quality, and security;
Archiving and retrieving data;
Training and supporting users.

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49
Q

Information system departments utilize the following methods to ensure confidentiality

A

Issue security codes and limit access to the system

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50
Q

Who has the primary responsibility to assure and maintain the integrity and security of electronic data in a healthcare organization

A

The Information Services Department

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51
Q

An efficient Formulary and Therapeutics Committee in many hospitals evaluates

A

Symptoms of adverse reactions;
Contraindications;
Specific drug in terms of appropriateness to caseload

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52
Q

Healthcare organizations often utilize special purpose software which allows rapid access to large archives of integrated data to assist management with decision making. This is referred to as

A

Executive decision support system

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53
Q

The most common cause of adverse drug events (ADEs)

A

Lack of knowledge of drug

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54
Q

The primary advantage of the corporate form of organization for a healthcare provider

A

It has limited liability

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55
Q

Law of tradition have established basic criteria for healthcare governing boards. One criteria is that:

A

The actions of the board are reasonable and prudent

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56
Q

Continuous quality improvement assumes that

A

There is no upper limit to excellence

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57
Q

Which beat describes the responsibility of a hospital with an emergency department (ED) when a person comes to the ED for Examination or treatment?

A

The hospital must provide an appropriate medical screening to determine whether an emergency condition exists and, if so, stabilize the condition.

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58
Q

First major law to have a significant impact on individual privacy in the workplace?

A

Civil Rights Act

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59
Q

How does physician self-referral or Stark Laws apply to Medicare payments?

A

The law prohibits a provider from presenting a claim to Medicare or to any person or other entity for a prohibited DHS referral.

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60
Q

A advantage of an effective Corporate Compliance Program for a healthcare organization.

A

Initiating immediate and appropriate corrective action;
Developing processes to allow employees to report potential problems;
Identifying and preventing criminal and unethical conduct.

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61
Q

A privilege of confidentiality exists in a physician-patient relationship when the physician-acquired information is

A

Related to the care and treatment of the patient

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62
Q

Participating providers in the federal Medicare program must

A

Meet the conditions of participation

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63
Q

Physician organization responsible for accrediting residency training program

A

ACGME

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64
Q

Important aspects to consider when establishing a joint venture

A

Joint ventures involve capital investment by all parties, can be difficult to dissolve, and are usually expected to be permanent.

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65
Q

A balance scorecard is a set of performance measurements used to

A

Ensure the organization does not exceed one performance metric at the expense of another

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66
Q

Maslow’s Hierarchy of Needs from correct order from bottom to top

A

Physiological, safety, belonging, esteem, self-actualization

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67
Q

Communication Health Intranet Network (CHINs) were developed for what purpose?

A

To provide a community-based hub for sharing health information.

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68
Q

Organizational theory is illustrated by governing activities with explicit and specific procedures, arranging offices in a hierarchal fashion, and selecting candidates on the basis of their technical competency?

A

Bureaucratic

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69
Q

In planning for future community health services, it is important to understand population health needs. Which ethnic category tends to proportionally use physician services the most?

A

White

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70
Q

A limitation which would cause a hospital OB unit to see no change in volume over a four year period?

A

Market

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71
Q

According to CMS Conditions of Participation, under what circumstances, is it permissible to deny a patient access to his or her medical record?

A

The information requested consists of psychotherapy notes.

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72
Q

The overall goal of the HIPAA Act of 1996 is

A

Improve portability and continuity of health insurance, combat fraud

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73
Q

Congress enacted Stark II to prohibit which of the following?

A

A physician or an immediate family member from referring a patient to an entity with which they have a financial relationship.

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74
Q

Which of the following activities should be performed by the Board of Directors?

A

Hiring the CEO

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75
Q

Performance improvement teams should consist of

A

Members from the involved Microsystems

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76
Q

The four important aspects of clinical support services are technical quality, patient satisfaction, continuity or integration, and

A

Appropriateness

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77
Q

A bar chart format, with the items rank ordered on a dependent variable, such as cost, profit, or satisfaction the Examines the components of a problem in terms of their contribution to it is known as

A

Pareto analysis

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78
Q

Governing boards are typically more effective at what size?

A

10 to 15 members

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79
Q

What type of review involves evaluation of management staff by their superiors, subordinates, and internal and external customers?

A

360-degree review

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80
Q

The role of a not-for-profit healthcare organization’s governing board includes

A

Deliberate clinical privileges;
Ensuring that quality healthcare is delivered;
Setting broad institutional policy.

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81
Q

Medicare Conditions of Participation for hospitals require that a prescribing practitioner authenticate a verbal order within _____, if not defined by the state.

A

48 hours

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82
Q

Cost accounting is an important tool which enables the CFO to

A

Determine the actual cost of providing patient care.

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83
Q

What is true about the relationship between acute care hospitals and long-term care organization?

A

Hospitals and patients frequently have difficulty arranging for nursing home care services.

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84
Q

The first step in any strategic management scenario planning is to

A

Gather information from as many sources as possible

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85
Q

The least serious limitation to decision analysis

A

The statistical model

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86
Q

In a unionized organization, what is the most effective contract dispute resolution finalization alternative?

A

Arbitration

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87
Q

Liquidity ratio measure

A

A firms ability to meet its current obligations in a timely manner.

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88
Q

The real value of financial statements lies in the fact they can be used to help

A

Predict the firm’s future financial condition.

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89
Q

Facing struggles such as declining profit margins, nonprofit healthcare organizations have become more dependent on what source for financing capital needs?

A

Philanthropy

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90
Q

You work for a county organization that has decided to issue bonds to find a new building. What type of bond would be sold on behalf of your organization?

A

Municipal bond

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91
Q

On a balance sheet, what does the difference between total current assets and total current liabilities indicate?

A

Net working capital

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92
Q

How should supervisors behave toward informal leaders in the organization?

A

Maintain a positive attitude toward informal leaders.

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93
Q

Budgets for new capital expenditures include requests for

A

Infrastructure

94
Q

The Capital Asset Pricing Model (CAPM), an equilibrium model, describes the relationship between which of the following?

A

Market risk and required rate of return

95
Q

What is the most common operating indicator used to measure overall staff productivity?

A

Full-time equivalent per adjusted averaged daily census.

96
Q

Determining whether the help desk function is effective and whether projects are well managed are examples of measuring an information system department’s

A

Operational competency

97
Q

When seeking information about fixed assets, payroll, regulatory and tax reporting, and accounts payable, an administrator will access what information management system?

A

General financial management

98
Q

The main role of the board is

A

Setting institutional policy

99
Q

Part of the labor budget

A

Staff salaries
Hourly wages
Employee benefits

100
Q

Health Savings Accountable (HSAs) we’re established through which law?

A

Medicare Prescription Drug Improvement and Modernization Act

101
Q

The only law that mandates a particular type of payment for time not worked.

A

FMLA

102
Q

Which position is included in the NRLB Bargaining rules

A

Pharmacists

103
Q

One method for evaluating relative value of different jobs is

A

Benchmarking

104
Q

When discharging a patient from a hospital, the institution can be held liable

A

For abandoning the patient if the patient is in need of further medical care

105
Q

Under the Emergency Medical Treatment and Active Labor Act (EMTALA)

A

Originated due to concerns of patient dumping

106
Q

Which of the following health maintenance organization models exert maximum control over physician providers?

A

Closed panel

107
Q

What is generally prohibited by Stark II Laws

A

A physician referring a patient to a service owned by the physician.

108
Q

Under HIPAA, Congress required the Secretary of HHS to adopt standards to:

A

Provide for standard data elements and code sets.

109
Q

Which is the Shewhart process for performance improvement?

A

Plan, do, check, act.

110
Q

Which of the following are parts of the dimensions of the strategic balanced scorecard?

A

Financial performance

111
Q

The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions and determines that her institution has no competitive advantage. Which strategy should she pursue?

A

Prioritize market segments and heavily promote to key groups.

112
Q

If the average daily census on an inpatient medical surgical unit is 19, and the productive hours per patient day target is 7.2, and the productive percentage calculation is 8.5, how many full time equivalents (FTEs) should be budgeted for the productive core staffing?

A

24

113
Q

What in the revenue cycle process is a major impediment to prompt payment?

A

Claim denial

114
Q

When evaluating capital budgeting performance, what is the best indicator of operating leverage?

A

Expense ratio

115
Q

An analysis of proposed capital investment includes

A

Cost of capital
Cash flow projections
Risk assessment

116
Q

Revenue cycle billing management typically includes what broad activities

A

Activities before services are rendered, activities that occur simultaneously with the service and activities after services are rendered.

117
Q

Who gives final approval of the medical staff bylaws?

A

The board

118
Q

Which of the following courts is often given jurisdiction to hear cases involving such matters as surgery for an incompetent person or the involuntary commitment of a mentally ill person?

A

Probate court

119
Q

To guard against the loss of assets, an administrator should

A

Implement detailed procedures, risk control and annual outside audits.

120
Q

A food service director is assigned responsibility for environmental services. This is an example of

A

Matrix management

121
Q

Which of the following management styles allows the highest subordinate freedom and lowest personal authority?

A

Laissez-faire

122
Q

Under the regulations of the IRS, a tax exempt entity

A

Must provide a public benefit to the community

123
Q

Network of hospitals, physicians and other healthcare providers that provide services for a negotiated fee are called

A

PPOs

124
Q

The practice of a provider seeing a patient more often than is medically necessary, primarily to increase revenue through an increased number of services, is called

A

Churning

125
Q

Regulations exempted self-funded employer-sponsored health insurance plans from state insurance regulation

A

ERISA

126
Q

Hospitals that were acquired by hospital systems generally have which characteristic

A

They incur higher debt levels

127
Q

Hospitals known for their ability to attract and retain nurses despite the significant nursing shortages are called

A

Magnet hospitals

128
Q

The reimbursement method that was first adopted by Medicare and later by most third party payers is known as

A

DRG

129
Q

The principal goal of a Health Service Organization’s medical/hospital model is

A

Disease treatment

130
Q

Which segment of the healthcare delivery system is exclusively dedicated to terminally ill patients

A

Hospice programs

131
Q

Emerging physician organizations are usually private, for-profit corporations. In order to gain not-for-profit status, such organizations must

A

Have a community-dominated board of governance

132
Q

Key responsibility of the governing board

A

Recruit and select the CEO

133
Q

Which of the following networks is intended to reduce costs and improve quality by giving access to financial, clinical and administrative information

A

Community health information networks (CHIN)

134
Q

When introducing a new information technology system to a healthcare organization, resistance can be effectively addressed by

A

Focusing on the system users and being responsive to their needs

135
Q

A discrete measure in continuous improvement

A

Gender

136
Q

The qui tam provision of the federal False Claim Act is a statute aimed at those who commit fraud against the government

A

Allows any citizen to bring suit in the name of the United States

137
Q

Which of the following activities is illegal for tax-exempt health organizations

A

Endorsing a candidate for public office

138
Q

The status of health organizations under antitrust law

A

They are subject to antitrust law, just as any other industry is.

139
Q

The legal status of the physician-patient relationship

A

It is based on an expressed or implied contract, from which certain elements of duty arise.

140
Q

A major advantage of capitation for primary care gatekeepers is it

A

Encourages primary care physicians to be more judicious in their referrals to specialist.

141
Q
Bundled pricing (paying a single fee for all services) for such services as total hip replacement or coronary artery bypass surgery affects physician hospital
relationships by
A

Promoting efforts to collaborate and integrate efforts to provide more efficient
care.

142
Q

A healthcare executive is serving on the board of a community mental health center. The mental health center board is evaluating proposals for inpatient psychiatric services. Proposals were received from the executive’s facility and several other facilities. The healthcare executive should:

A

Participate in the discussion but not vote on the proposals.

143
Q

Primary reason for conducting continuing education for staff

A

It is a long-term commitment to the patient.

144
Q

The first effect of demographic trends on a health services organization’s strategic planning process

A

Determining the range and types of services to be offered.

145
Q

Managers who use their authority to greatly enhance their salaries,
benefits, and accoutrements of office may be causing a disbenefit to
patients. This personal aggrandizement is known as self dealing and can:

A

Occur in any health service organization.

146
Q

The primary stimuli that causes educational programs to be made available to and required of staff are the

A

Demands and expectations of stakeholders.

147
Q

Research in behavioral science has consistently found that once basic needs
are met, staff is motivated most

A

By factors such as being kept informed.

148
Q

Resource allocation in health services organizations involves balancing the
needs of organization, staff, and patients. However, the essential primary focus on patients can be met only if the

A

Basic needs of the organization and staff are addressed first.

149
Q

Which of the following best describes a healthcare organization’s recognized service reputation that has been earned over the long-term within its market

A

Brand equity

150
Q

Which technique would provide the most beneficial information to a healthcare organization about customer satisfaction

A

Direct mail surveys

151
Q

You have been assigned to develop a marketing strategy for your organization. The most important issue to consider is that the marketing strategy be

A

Customer-centered

152
Q

The first stage in the strategic planning process

A

Situation analysis

153
Q

Analyses used for workforce planning and

forecasting

A

Ratio analysis

154
Q

Which techniques would play a central role in an organization being able to demonstrate equal employment compliance

A

A job analysis procedure

155
Q

An organization has made a commitment to begin training its employees to fill anticipated job openings in upcoming years. This is an example of

A

Succession planning

156
Q

Example of direct costs

A

Drug prescriptions

157
Q

Healthcare organizations require the filing of annual disclosure statements on the part of board members and officers. This policy is intended to address

A

Inurement

158
Q

Healthcare organizations are routinely faced with accommodating competing space needs. The key considerations in resolving such issues should be based upon which of the following

A

Long-range facility plan

159
Q

Information systems management security is concerned with the policies and procedures for ensuring the security of

A

Data

160
Q

A patient files a complaint relating to a negative hospital experience. The proper handling of this patient’s complaint is to

A

Clarify the problem

161
Q

The single most important way patients can help prevent medical errors from affecting them is to:

A

Interact with their caregivers

162
Q

A critical pathway is best described as

A

A document that focuses on efficiency and describes a standard set of activities to be performed for a defined category of patients.

163
Q

One reason healthcare entities should document their credentialing procedures is to

A

Minimize inconsistency and liability

164
Q

One feature that distinguishes nonintegrated healthcare organizations from integrated organizations is a

A

Define market image

165
Q

Hospitals pursuing strategic alliances are faced with issues of vertical integration. One example of vertical integration is

A

Acquiring a long-term care facility

166
Q

Governance challenges faced by fully integrated healthcare delivery systems are more complex than those faced by nonasset merged multihospital systems because

A

The components of integrated systems function in a highly interdependent
manner

167
Q

The purpose of the ACHE Ethics Committee is to review and recommend action on ethical violations to which group

A

Board of Governors

168
Q

According to the ACHE Code of Ethics, what action can the Ethics Committee take against an affiliate after a grievance procedure has been initiated?

A

Recommend expulsion of the affiliate

169
Q

ACHE’s Ethical Policy Statement on Ethical Issues Related to Downsizing recommends that healthcare executives should consider providing which of the following when downsizing

A

Out-placement assistance

170
Q

ACHE’s Ethical Policy Statement in Creating an Ethical Environment for Employees, the organization should

A

Create a working environment that provides freedom from coercion

171
Q

The three basic categories of quantitative performance measures used in conventional accounting systems

A

Demand, cost, and output/productivity

172
Q

Under a capitated payment system, the risk sharing arrangements involve which parties

A

Hospitals and insurers

173
Q

Concept of profitability analysis

A

Net Present Value (NPV) is a profitability measure that uses discounted cash flow

174
Q

Must be included when determining a capital project’s incremental cash flow

A

Opportunity costs

175
Q

Critical link that brings patients and providers together

A

Marketing

176
Q

Concept of demand management consists of

A

Concurrent review

177
Q

The primary purpose of generally accepted accounting principles (GAA) in healthcare settings is to

A

Ensure that financial information that is reported to outsiders is consistent across businesses and presented in a manner that facilitates interpretation and judgments

178
Q

The internal rate of return measures the

A

Discount rate at which the net present value is zero

179
Q

The Statement of Cash Flows is typically organized into three sections: Cash Flow From Operations; Cash Flow From Investing Activities; and Cash Flow From

A

Financing Activities

180
Q

Combines data from a balance sheet and an income statement to create a single number that facilitates easy interpretation

A

Financial ratio analysis

181
Q

Who has ultimate fiduciary responsibility

A

Board of Directors

182
Q

Medicare DRG payment is highly dependent upon a hospital’s case mix index. This index represents the average relative weight for all Medicare patients treated in a

A

Specific period

183
Q

If a CEO wanted to look at a “snapshot” of the financial condition of the healthcare organization, he/she would review the

A

Balance Sheet

184
Q

Where should charity care be shown in a healthcare organization’s financial statement

A

In the notes to the financial statements

185
Q

The best way to assign costs in responsibility management

A

Assign costs to the department manager who is responsible for making decisions
about those costs

186
Q

You are planning to conduct an assessment of the utilization patterns in your organization’s emergency department over the past three years. Which of the following techniques would be most appropriate

A

Trend Analysis

187
Q

A manager who seeks input from others prior to making a decision is engaging in which leadership style

A

Participative

188
Q

When a specialist within the organization provides a directive or states an opinion, there is recognition of that individual as an expert in the field. This is an example of what type of authority

A

Functional

189
Q

An example of marketing function

A

Promoting the organization
Convincing patients to select the organization
Managing external relationships

190
Q

The arrival of women for obstetrical deliveries or patient flow in an emergency department can best be analyzed through the use of which technique

A

Stochastic Modeling

191
Q

One approach for measuring technical quality of clinical support services is

A

Process review

192
Q

Which financial statement is updated daily to reflect changes in assets or composition of financing

A

The balance sheet

193
Q

An organization’s long-term competitive position is substantially dependent on its credit rating. Which of the following is a direct benefit of an excellent credit rating

A

Improved cost of capital

194
Q

The applicability of continuous improvement in healthcare organizations assumes

A

An organizational commitment

195
Q

An output-related performance measure

A

Provider productivity

196
Q

The thrust of antitrust legislation as applied to the healthcare field is to

A

Protect the public’s economic interest

197
Q

The primary function of an extended-care unit is to provide

A

Post-acute care services in a rehabilitation oriented environment

198
Q

Essential components of strategic planning

A

The corporate mission statement
Competitive analysis
Assessment of the external environment

199
Q

Which one of the following conditions must be met for human subjects to be
used in a medical research program

A

Risk should be clearly explained in understandable language to each individual
subject

200
Q

Controlling the costs of accounts receivable is heavily affected by

A

The time or length of the payment cycle

201
Q

Operational planning can defined as

A

The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan

202
Q

Short-range planning is enhanced if a strategic plan has been adopted
because

A

A frame of reference is already in place

203
Q

In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systematic credentialing processes in healthcare facilities

A

The growth of liability of healthcare facilities for malpractice by health practitioners

204
Q

In a sound human resources program, the primary purpose of the job classification system is to

A

Rank jobs by kind and level of work performed

205
Q

Best defines increased productivity

A

An increase in productivity occurs when a reduction occurs in the ratio of hours worked to the number of units of service rendered

206
Q

The depreciation method that best recognizes changes in the general purchasing power of the dollar and/or changes in the replacement cost of specific assets

A

Price-level depreciation

207
Q

When third-party policies and programs impede the healthcare facility’s fiscal capacity to renovate and model its plant as routinely scheduled, the healthcare facility—to protect itself—should first

A

Delay capital improvements until funds are available

208
Q

The method referred to as value analysis is used in inventory control
activities to

A

Reduce cost without impairing functional efficiency

209
Q

Under generally accepted accounting standards, bad debts are reported as
a/an

A

Operating expense.

210
Q

Incident reports should be initiated by

A

A member of the medical/professional staff or by any employee

211
Q

The governing authority of a healthcare facility can terminate the privileges of any member of the medical/professional staff

A

At any time, if it follows its own adopted procedures

212
Q

Materials management can best be defined as a system of effective

A

Allocation of materials

213
Q

When facility maintenance is deferred, which of the following outcomes is predictable

A

Higher costs

214
Q

The major purpose of a code of ethics for members of a healthcare executives association is to

A

Provide guidance to members in their own professional conducts

215
Q

The volume that would be realized if each prospective consumer were to purchase a specified amount of a particular service during a defined future time frame is called:

A

Market potential

216
Q

As an internal control method, a budget is most commonly used to

A

Serve as a numerical specification of plans and to function as a standard of control against which results can be compared

217
Q

The most useful way for a healthcare organization to deal with outside regulatory and credentialing bodies is to

A

Regularly maintain both formal and informal relationships with these agencies

218
Q

The cultural climate of an organization affects its recruiting procedure because

A

Organizations seek applicants whose attitudes, values and goals are consistent
with those of the organization

219
Q

Accident rates among personnel continue to rise and are distributed among all departments. What would be your best initial action in finding a comprehensive solution to this problem?

A

Form a safety committee of key personnel to review reports of all accidents and make recommendations for corrections

220
Q

If a physician abuses a patient in the healthcare organization, initial corrective action should be taken by the:

A

Chief of services (department chairman)

221
Q

A successful healthcare organization usually has a unique and well articulated company philosophy that presents a clear picture of the organization’s objectives, norms and values. Employee motivation to support this philosophy would be greatest when the company

A

Provides a training program that is well communicated, understood by employees and enforced by executive management

222
Q

One of the techniques most frequently used in industry to aid management in interpreting a form’s balance sheet is computation of the acid-test ratio, which is the ratio of

A

Cash, marketable securities and accounts receivable to current liabilities

223
Q

The primary reason for the decision to move from a freestanding voluntary facility to an investor-owned healthcare organization

A

Access to the equity market

224
Q

Most products and services enter a period of decline. Unless compelling reasons prevail, continuing a declining product or service is costly because

A

The program will consume a disproportionate amount of management time and delay the search for a replacement

225
Q

After a marketing research problem has been identified, the researcher’s next step is to

A

Specify information needs

226
Q

Which of the following statements is in accordance with the principle of delegation

A

In applying the principle of delegation, an executive makes relatively few decisions personally and frames orders in broad general terms

227
Q

Before submission of the annual business plan to the governing authority, the plan should be developed by

A

Key executives, after receiving recommendations from the head of operating
divisions

228
Q

Memorial Hospital offers a screening test as a public service for $0.50 per test. Variable costs per unit are $0.32. Fixed costs are $43,200 per month for the department performing the test. It is the only test done by this special department. The break-even point in tests is:

A

240,000 tests

229
Q

A positive net present value indicates that the investment has a rate of return

A

Higher than the discount rate used in the calculation

230
Q

The asset turnover ratio is useful in measuring managerial performance because it indicates the:

A

Amount of resources required to generate a dollar of revenue