Strategic Planning

Question 1

what is strategic planning?

Answer 1

Process of ensuring that an organization’s current purpose, aspirations, goals, activities and strategies are connected to plans that maximize its performance and support it’s mission

Question 2

why is strategic planning important?

Answer 2

Guides an organization by developing a plan of action to achieve a future goal/objective, mission, direction and/or vision

Question 3

what is a vision?

Answer 3

organization’s image / aspiration of the future

Question 4

what is a mission?

Answer 4

organization’s purpose, reason for being

Question 5

who are stakeholders?

Answer 5

those invested in the organization who have something to gain or lose by the organization’s success or failure

Question 6

what are the major components of strategic planning?

Answer 6

vision
mission
stakeholder involvement
Environmental Analysis
SWOT
ID possible Scenarios
Prioritization and Selection of Strategic Goals
Determination of Evaluation Criteria

Question 7

what is the strategic planning process based on?

Answer 7

dynamic systems theory

Internal & External Environmental Analysis

Question 8

what are SWOT strengths?

Answer 8

attributes of the organization that are helpful to achieving an objective

Question 9

what are SWOT weaknesses?

Answer 9

attributes of the organization that are harmful to achieving an objective

Question 10

what are SWOT opportunities?

Answer 10

external conditions that are helpful to achieving an objective

Question 11

what are SWOT threats?

Answer 11

external conditions that are harmful to achieving an objective

Question 12

what are direct costs?

Answer 12

the actual cost of providing a particular service (materials/supplies, time, personnel)

Question 13

what are indirect costs?

Answer 13

the “overhead”, e.g. electric, water, processing the bill, supportive personnel

Question 14

what are fixed vs. variable costs?

Answer 14

Fixed- constant, stable costs

Variable- costs that change with volume/census changes (e.g. disposable supplies) or as market dictates (e.g. gasoline)

Question 15

what is a start up budget?

Answer 15

all expenses needed to get business/program up and running

Question 16

what is an operating budget?

Answer 16

Day to day costs associated with carrying out your program that may be variable depending on volume, case mix

Question 17

what is a capital budget?

Answer 17

Items or improvements over a certain $ amount with an expected useful life of > a few years. Ex: any single item over $1000.00

Question 18

what is a durable budget?

Answer 18

Non-disposable items that can withstand repeated use

Question 19

what is a disposable budget?

Answer 19

Consumable items that are not reusable or must be thrown out after each use

Question 20

what is personnel budgeting?

Answer 20

Largest budget item
Staffing Patterns and Plans
FTE
Productivity

Question 21

what is a direct equipment cost?

Answer 21

cost of actual equipment purchase or rental

Question 22

what is an indirect equipment cost?

Answer 22

cost to run, maintain equipment, training costs, space utilization

Question 23

What is the optimal level of inventory to have on hand?

Answer 23

“standing orders”

Question 24

how do you keep “standing orders”?

Answer 24

balance costs of capital spent on stock/storage, and loss, vs. costs of running short of equipment and disrupting service, placing frequent orders, losing volume discounts, and increasing shipping

Question 25

how do you budget for space?

Answer 25

Consider efficient use of space, direct and indirect costs of space, special needs, safety, storage space, adherence to regulation

Question 26

what are actual costs?

Answer 26

What it actually costs to provide a service

Question 27

What is a charge?

Answer 27

What you actually bill
your “mark-up”
(what you bill may not be what is ultimately paid)

Question 28

what is contractual allowance?

Answer 28

discount given to a payer; it will result in the paid fee being lower than the billed fee

Question 29

what are Relative Value Units (RVU)?

Answer 29

form of billing that considers equipment, time, staff skill level to provide a procedure

Question 30

what makes higher RVU’s?

Answer 30

More expensive equipment, longer periods of time, require higher skilled staff

Question 31

what are CPT codes?

Answer 31

A uniform coding methodology for medical procedures

Ex: Timed vs. Untimed CPT Codes
Group vs. Individual CPT Codes

Question 32

what type of service is billable?

Answer 32

only direct service

Question 33

what should OT consider for group tx?

Answer 33

equipment + time / # of participants when calculating charge

Be sure insurance will reimburse; may limit # of group txs per week

Differentiate group tx vs. concurrent tx

Be aware of regulations and concurrent txs (staff: patient; # minutes per week; “dovetailing”)

Question 34

what to consider for charge vouchers?

Answer 34

Have system in place for generating and imputing your bill.

Paper vs. electronic

Question 35

what to be aware of for documentation for charges?

Answer 35

Documentation MUST support charges, be complete, be timely

Question 36

what are managed care considerations?

Answer 36

Prior Approvals
Visit Caps
Preferred Providers
Timeliness

Question 37

what is OSHA responsible for?

Answer 37

federal agency that Develops standards, educates, surveys/ inspects worksites, responds to complaints, enforces

Question 38

what is the goal of Material Safety Data Sheet (MSDS)?

Answer 38

provide workers and emergency personnel with proper procedures for handling or working with a particular substance

Question 39

what kind of info does the Material Safety Data Sheet (MSDS) provide?

Answer 39

physical data (melting point, boiling point etc.), toxicity, health effects, first aid, reactivity, storage, disposal, protective equipment and spill/leak procedures