3/25 Budgeting and Managing Resources

A nurse manager is considering the use of critical pathways for a unit. Which statement is accurate? A) they can be used to monitor quality B) they reduce documentation C) They accurately predict patient progress D) they reduce utilization review

A) they can be used to monitor quality

A nurse manager is beginning to plan for the next fiscal year. He considered the unit's needs and wants that the staff has requested. He knows the hospital has a tight budget and will not be considering any large expenditures. He does need to consider hiring 2 new full time nurses. As he begins to place expenses into categories, where would hiring of new employees fall? A) Capital Budget B) Personnel Budget C) Overtime Budget D) Operating Budget

B) Personnel Budget

The Case Manger is helping with discharge plans for a patient who will need multiple services. The patient is a paraplegic in his 50s who requires home care and is homebound due to disability. The case manager must consider this about his insurance: A) The patient is likely to have Medicaid d/t disability B) The patient has Medicare d/t disability which covers home health as part of hospitalization C) The patient will decline services since Medicaid/Medicare does not cover them D) The patient will not have to follow with a PCP since insurance will allow her to go to the hospital for minor needs

B) The patient has Medicare d/t disability which covers home health as part of hospitalization

What area do consumers value most when seeking health care? A) advanced technology, staffing levels, low cost B) high quality, low cost, ability to meet patient outcomes C) Ability to meet patient outcomes, high technology, staffing levels D) low cost, meet patient outcomes, high technology

B) high quality, low cost, ability to meet patient outcomes

A Nurse Manager is preparing a presentation for her unit staff regarding the current health care system. Which statement about resource utilization is most accurate? A) Limiting spending for healthcare resources will improve quality of US healthcare B) Additional funding for health care resources will increase quality of US health care C) The health care resources that are available in the US are not used cost efficiently D) At this time int he US, there is a shortage of health care resources

C) The health care resources that are available in the US are not used cost efficiently

T/F: Health care is not only financed by private insurance, government fundings, and private donations but also by individual out of pocket expenses.

True

T/F: Health care reimbursement affects both the operational budget and departmental budget.

True

T/F: The nurse leader can use the nursing process to develop a budget for their unit or department.

True

Which steps are in the flexible budgeting process? (SATA) a) determine time period b) analyze cost patterns c) list all current and proposed objectives and activities d) separate cost into fixed, variable, and mixed e) forecast cost for each activity

a) determine time period b) analyze cost patterns d) separate cost into fixed, variable, and mixed e) forecast cost for each activity c describes zero based budgeting

A nurse manager is learning fiscal planning. Which are barriers for nurse managers? (SATA) a) many nurse managers perceive it difficult b) nurse input is undervalues c) nurses are directly involved d) lack of the intuition necessary for budgeting e) education lacks preparation for budgeting

a) many nurse managers perceive it difficult e) education lacks preparation for budgeting

A nurse manager is reviewing the budget for a unit. Which budget covers the work force? a) personnel b) capital c) operating d) volume

a) personnel

Which are factors that affect the ability to forecast the budget? a) political culture b) mission and philosophy c) social climate d) economics e) legislative environment

a) political culture b) mission and philosophy c) social climate d) economics e) legislative environment

Which refers to the system in which facilities join a payment system where they receive a specified fixed payment fo reach Medicare patient admission regardless of cost? a) both PPS and DRG b) PPS c) Neither d) DRGs

b) PPS

A nurse manager is considering reasons for current problems in health care. Which are negative consequences of higher spending in health care? (SATA) a) increased spending may increase quality b) increased spending may result in over utilization c) increased spending guarantees increased quality d) increased spending may result in duplication e) increased spending may result in overuse of technology

b) increased spending may result in over utilization d) increased spending may result in duplication e) increased spending may result in overuse of technology

A new nurse manager with limited experience is considering what approach to use. Which is the easiest to implement? a) zero based b) incremental c) performance d) flexible

b) incremental good in periods of change, easiest, fosters overspending with a use it or lose it mentality

What budget can foster overspending? a) zero based b) incremental c) performance d) flexible

b) incremental good in periods of change, easiest, fosters overspending with a use it or lose it mentality

Operational budgets are financial plans for entire organizations day- day operation. This type of budget includes which of the following? a) supplies, expenses, equipment b) payroll, supplies, expenses c) expenses, equipment purchase , payroll d) payroll, monthly expenses, and large purchase items

b) payroll, supplies, expenses

A nurse manager is considering the budget for the unit compared to the overall institutional budget. Which is the most negative outcome of multiple units padding or inflating their budgets to cushion against administration cuts? a) some units may not have adequate resources b) the entire institution budget may be ineffective

b) the entire institution budget may be ineffective

A nurse manager is using a budget approach that requires justification for each budget need. What approach is this? a) incremental b) zero based c) performance d) flexible

b) zero based Used in new organizations, most time consuming budget but worth it, checks and balances with intense monitoring and scrutiny

A nurse manager is considering revising the budget cycle. Which has the greatest probability for error? a) short sighted planning b)planning for the distant future c) calendar year budget d) fiscal year budget

b)planning for the distant future

A nurse manager is preparing the annual budget for the coming fiscal year and is considering what the goal is of using allocated funds. What stage of the budget process is this? a) planning b) evaluating c) diagnosis d) assessment

c) diagnosis

A nurse manager is evaluating the current fiscal year budget. Which statement regarding the evaluation stage of the budget process is most accurate? a) most units will have no variation from the projected budget b) the CEO is accountable c) large variations must be examined d) budgets are usually created at the beginning and remain unchanged

c) large variations must be examined

A nurse manger wants to improve efficiency and effectiveness of budget expenditures. Which budget approach is best to use? a) zero based b) incremental c) performance d) flexible

c) performance When there is a direct link between expenditure and performance, data easily obtained, used in specialized services, more time consuming

A nurse manager is considering how to increase staff involvement in budget goals. Which is most likely to result in staff understanding and participation? a) forecasting or estimating needs using current data b) being held accountable for units financial results c) compare actual expenses with budgeted expenses d) communicate budgetary plan goals

d) communicate budgetary plan goals

T/F: The nurse leader does not need to be concerned with budget process steps.

False