Online Ch. 10 Fiscal Planning and Health Care Reimbursement

Who is responsible for cost-containment? a. Nurses b. Doctors c. Hospitals d. All of the above

d. All of the above

A nurse manager is performing a daily assessment of staffing needs. When determining if staffing adjustments are needed, to which data should the current NCH/PPP calculation be compared? a. Budgeted NCH/PPP for the unit b. Unit's maximum NCH/PPP c. Average of the unit's NCH/PPP d. Unit's minimum NCH/PPP

a. Budgeted NCH/PPP for the unit

A new nurse manager is learning about fiscal planning. Which are barriers for nurse managers' participation in fiscal planning? (Select all that apply.) a. Nursing input in fiscal planning is undervalued b. Nurses lack the intuition necessary for fiscal planning c. Nurses are directly involved in fiscal planning d. Nursing education lacks preparation in fiscal planning e. Many nurses perceive that fiscal planning is difficult

d. Nursing education lacks preparation in fiscal planning e. Many nurses perceive that fiscal planning is difficult

It is not necessary for the nurse leader to develop a budget cycle; the emphasis should be on assessing departmental needs. a. TRUE b. FALSE

b. FALSE

The nurse leader does not need to be concerned with the budgeting process steps. a. TRUE b. FALSE

b. FALSE

Which budgeting approach can foster overspending? a. Incremental b. Performance c. Zero-based d. Flexible

a. Incremental

A nurse manager is considering how to gain more staff involvement in meeting budgetary goals. Which activity is most likely to result in staff understanding and participating in budgetary goals? a. Communicating budgetary planning goals to staff b. Comparing actual expenses with budgeting expenses c. Being held accountable for the unit's financial results d. Forecasting or estimating needs using current data

a. Communicating budgetary planning goals to staff

Which of the following are steps included in the flexible budgeting process? (Select all that apply.) a. Determining the time period for the budget b. Analyzing the cost patterns over that period of time c. Separating the costs into fixed, variable, or mixed categories d. Listing all current and proposed objectives and activities in the department e. Forecasting the cost for each of these categories of activities

a. Determining the time period for the budget b. Analyzing the cost patterns over that period of time c. Separating the costs into fixed, variable, or mixed categories e. Forecasting the cost for each of these categories of activities

A nurse manager is performing a daily assessment of staffing needs. Which types of nursing units can successfully use a predetermined standard of nursing staffing for the patient census? (Select all that apply.) a. General medical-surgical units b. Home health care c. Operating room d. Emergency department e. Specialty care units

a. General medical-surgical units b. Home health care c. Operating room e. Specialty care units

A nurse manager is considering the reasons for the current problems with the health care system. Which are negative consequences of higher spending in health care? (Select all that apply.) a. Higher spending may result in duplication of services b. Higher spending may result in overuse of technology c. Higher spending may result in overutilization of services d. Higher spending may result in higher quality of care e. Higher spending guarantees a higher quality of care

a. Higher spending may result in duplication of services b. Higher spending may result in overuse of technology c. Higher spending may result in overutilization of services

A new nurse manager with limited budgeting expertise is considering what approach to use to determine the budget of the nursing unit for the upcoming fiscal year. Which approach would be the easiest to implement? a. Incremental b. Performance c. Zero-based d. Flexible

a. Incremental

Operational budgets are financial plans for the entire organization day-to-day operations. This type of budget includes which of the following? a. Payroll, supplies, and expenses b. Supplies, expenses, and equipment purchases c. Expenses, equipment purchase, and payroll d. Payroll, monthly expenses, and large purchase items

a. Payroll, supplies, and expenses

A nurse manager is reviewing the budget for the nursing unit. Which budget covers the expenditures for the unit's workforce? a. Personnel b. Operating c. Capital d. Volume

a. Personnel

Which refers to the system in which facilities join a payment system, whereby they receive a specified a fixed payment for each Medicare patient's admission, regardless of the actual cost? a. Prospective payment system (PPS) b. Diagnosis-related groups (DRGs) c. Neither of these d. Both PPS and DRGs

a. Prospective payment system (PPS)

Health care reimbursement affects both the operational budget and the departmental budget. a. TRUE b. FALSE

a. TRUE

Nurse leaders can use the nursing process to develop a budget for their unit or department. a. TRUE b. FALSE

a. TRUE

The budget uses numerical data to predict short- and long-term needs of an organization. a. TRUE b. FALSE

a. TRUE

A nursing manager is considering the budget for a nursing unit as compared with the overall institutional budget. Which is the most negative outcome of multiple nursing units 'padding' or inflating their department budgets to cushion against administrative cuts? a. The entire institution's budget may be ineffective. b. All units will inflate their department budgets as a result. c. Some units may not have access to adequate resources. d. It will come out okay at the end of the budget period.

a. The entire institution's budget may be ineffective.

A nurse manager is considering the use of critical pathways for a nursing unit. Which statement regarding critical pathways is most accurate? a. They can be used to monitor quality of care b. They reduce the need for documentation c. They reduce the need for utilization review d. They accurately predict patient progress

a. They can be used to monitor quality of care

Health care is not only financed by private insurance, government funding, and private donations but also by individual out-of-pocket expenses. a. True b. False

a. True

A nurse manager is preparing the annual budget for the coming fiscal year, and is considering what the goal is of using the allocated funds. What stage of the budgetary process is this? a. Evaluation b. Diagnosis c. Planning d. Assessment

b. Diagnosis

Choose the method of reimbursement that creates higher rates as more services are provided. a. Diagnosis-related group (DRGs) b. Fee-for-service (FFS) c. Prospective payment system d. Managed Care

b. Fee-for-service (FFS)

A nurse manager is evaluating the current fiscal year budget. Which statement regarding the evaluation stage of the budgetary process is most accurate? a. Most units will have no variation from the projected budget. b. Large variations from the projected budget must be examined. c. The CEO is accountable for individual unit budgetary outcome. d. Budgets are usually created at the beginning and unchanged.

b. Large variations from the projected budget must be examined.

A nurse manager wants to improve the efficiency and effectiveness of budgetary expenditures. Which budgeting approach would be the best to use in this situation? a. Incremental b. Performance c. Zero-based d. Flexible

b. Performance

A nurse manager is considering revising the budget cycle for the nursing unit. Which budget cycle has the greatest probability for error? a. Short-sighted planning b. Planning for the distant future c. Fiscal year budget d. Calendar year budget

b. Planning for the distant future

A nurse manager is performing a daily assessment of staffing needs. Which data would be needed to calculate the NCH/PPP? (Select all that apply.) a. Census for the entire calendar year b. Staff on duty for 24 hours beginning at 11 p.m. c. Patient census as of midnight on day two d. Work hours for each staff member on duty e. Staff on duty for 24 hours beginning at 12 a.m. (midnight)

b. Staff on duty for 24 hours beginning at 11 p.m. c. Patient census as of midnight on day two d. Work hours for each staff member on duty

A nurse manager is performing a daily assessment of staffing needs. Which statements about calculating the NCH/PPP are most accurate? (Select all that apply.) a. The calculation of the NCH/PPP absolutely determines staffing needs. b. The first step is to calculate the number of staff for the 24-hour period. c. The total staff for 24 hours is divided by the patient census at 12 a.m. (midnight) d. The calculation includes the total staff for any 12-hour shift that day. e. The calculation should include all members of the nursing staff on duty.

b. The first step is to calculate the number of staff for the 24-hour period. c. The total staff for 24 hours is divided by the patient census at 12 a.m. (midnight) e. The calculation should include all members of the nursing staff on duty.

A nurse manager is preparing a presentation to be delivered to a group of nurses in a nursing unit about the current U.S. health care system. Which statement about resource utilization is most accurate? a. Currently, there is a scarcity of resources available in the U.S. health care system. b. The health care resources that are available in the United States are not used cost-effectively c. Additional funding for health care resources would improve the status of U.S. health. d. Limiting spending for health care resources will improve the quality of U.S. health.

b. The health care resources that are available in the United States are not used cost-effectively

A nurse manager is using a budgeting approach that requires justification for each budgetary need. What approach is being used? a. Incremental b. Performance c. Zero-based d. Flexible

c. Zero-based

A nurse manager is performing a daily assessment of staffing needs. If the current NCH/PPP is greater than the budgeted NCH/PPP for the unit, which action should be implemented to keep staffing on track? The nursing staff should: a. remain the same for the current shift. b. should be increased for the coming shift. c. be reduced for the current shift. d. be reduced for the coming shift.

c. be reduced for the current shift.

Which factors affect the ability to forecast the budget? (Select all that apply.) a. Mission and philosophy of the organization b. Political culture c. Economics d. Social climate e. Legislative climate

e. Legislative climate