Professional Issues Final Exam

Which of the following tools can be used to best manage a company's finances and keep them organized? a. A chart of accounts b. A google.doc c. A graph of change d. A money plot line

a. A chart of accounts

Which of the following agencies focuses on developing and implementing safe and effective patient care practices, preserving financial resources, and maintaining safe work environments? a. American Society for Healthcare Risk Management (ASHRM) b. Commission on Accreditation in Physical Therapy Education (CAPTE) c. American Institute of Certified Public Accountants d. American Association of Homes and Services for the Aging (AAHSA)

a. American Society for Healthcare Risk Management (ASHRM)

As physical therapists, we must be prepared to handle numerous client concerns about initiating and continuing therapy. Such concerns include all of the following EXCEPT? a. Amount of massage given b. Benefit of treatment c. Out of pocket costs d. Time demands e. Amount of 1:1 contact

a. Amount of massage given

Why is competition able to constrain price increases for services? a. Consumers have the choice to substitute another product or service that is comparable if one supplier raises their prices or decreases their supply. b. Suppliers monopolize businesses in a given area and control prices. c. Consumers have coupons that they can use for services to assist in decreasing costs. d. Nobody likes to compete so competing suppliers collaborate to make sure they all charge the same amount for the same services.

a. Consumers have the choice to substitute another product or service that is comparable if one supplier raises their prices or decreases their supply.

Why is data driven analysis, including comparative benchmarking, important for businesses? a. Data must be used to assess whether the plan is producing the desired outcomes over time. b. It allows businesses to adapt to changes within the external and internal environment. c. It provides communication between stakeholders. d. Data driven analysis is not important for businesses.

a. Data must be used to assess whether the plan is producing the desired outcomes over time.

Benefits of market segmentation DO NOT include which of the following? a. Decreased cost b. High customer loyalty c. Increased communication with specific customers d. Increased efficiency

a. Decreased cost

The first four steps (out of 6) in engaging staff in quality improvement efforts are: a. Discover a common purpose, show courage, reframe values and believes, and use engaging improvement methods b. Discover a common purpose, reframe value and beliefs, segment the engagement plan, and use engaging improvement methods c. Adopt an engaging style, reframe values and beliefs, show courage, and discover a common purpose d. Reframe values and beliefs, segment the engagement plan, and use engaging improvement methods, discover a common purpose

a. Discover a common purpose, show courage, reframe values and believes, and use engaging improvement methods

It is suggested that management should know the answers to the following questions in order to _____________________________: rate of process variability, rate of waste, types of defects or error, and rate of organizational variability. a. Effectively select a method/system and tools/aids for decision making b. Know when your business is failing c. Understand the need for change in the management process d. Be able to understand competitors advantage

a. Effectively select a method/system and tools/aids for decision making

Organizational structure describes the association among the people in an organization. The correct structure for an organization will: a. Facilitate performance b. Allow the organization to respond to internal weaknesses c. Accommodate slackers d. None of the above

a. Facilitate performance

Which Act was implemented for employee regulation that sets standards for wages and overtime pay that affect most private and public employers? A. Fair Labor Standards Act B. Federal Employees Compensation Act C. Labor Management Reporting and Disclosure Act D. Occupational Safety and Health Act

a. Fair Labor Standards Act

Fraud in the medical world can cause several thousand dollars in damages per claim. What act established a comprehensive program to combat fraud against all health plans, both public and private? a. Federal False Claims Act b. HIPAA c. American Medical Association Fraud Act d. Fraudulent Medical Act

a. Federal False Claims Act

Contracting may involve arranging with a facility to provide PT as an independent contractor, therefore it allows a PT to enter private practice with: A. Minimal investment B. Moderate investment C. Maximal investment D. A rigid schedule E. Hakuna Matata (no worries)

a. Minimal investment

Which groups can be considered to be "in private practice"? A. PT practice owners B. PT's employed in the PT owned practice C. PTA's employed in the PT owned practice D. All of the above

a. PT practice owners

What is the term for a practice that is characterized by independent, self determined professional judgment and action? A. Professional Autonomy B. Entrepreneurial Autonomy C. Technical Practice D. Independent Practice

a. Professional autonomy

Which of the following does not typically define a listing on a fee schedule? a. Quality b. Price c. Description d. Numeric charge code

a. Quality

How can debits and credits be described? a. As a term of how money can be created b. As a term of the basic accounts in a double entry accounting system which one account is a debit, and the other is a credit c. As a term of paying off debt collectors d. As a term of sums

b. As a term of the basic accounts in a double entry accounting system which one account is a debit, and the other is a credit

To be an ideal accrediting entity, it would require the organization to be all except: a. Autonomous b. Community Services c. Credible with stakeholders d. Possess extensive knowledge of stakeholders

b. Community services

What does CPT stand for? a. Codes of Physical Therapy b. Current Procedural Terminology codes c. Current Physical Therapy codes d. Classification of Physical Therapy codes

b. Current Procedural Terminology codes

Employment law applies to the rights and obligations between the: a. customer and employer b. employer and employees c. employer and federal government d. customer and employees

b. Employer and employees

There are four parts to the American Disabilities Act (ADA). Which act prohibits discrimination against a qualified individual with a disability when the discrimination is attributable to the disability? a. Communications Provisions b. Employment Provisions c. Public Accommodations d. Transportation

b. Employment provisions

Entrepreneurs have many different characteristics that are outlined in the chapter. Which of the following is NOT a characteristic of an entrepreneur that owns a private practice physical therapy clinic? A. Confidence with clinical skills B. Entry level clinician that is willing to learn new clinical skills C. Interested in management D. Able to manage multiple life roles

b. Entry level clinician that is willing to learn new clinical skills

Which agency or department works with health service providers and biotech firms to evaluate waste management rules and policies that impact health service facilities? A. Agency for Healthcare research and quality B. Environmental Protection Agency C. Health Resources and Services administration D. Agency for toxic substances and disease registry

b. Environmental Protection Agency

Which agency is responsible for the enforcement of federal antitrust and consumer protection law? a. Drug Enforcement Administration (DEA) b. Federal Trade Commission (FTC) c. Internal Revenue Service (IRS) d. Department of Labor (DOL)

b. Federal Trade Commission (FTC)

When starting a business, why are goals needed? A. With goals, you can make more money B. Goals are needed for direction and balance between life roles C. They give you something to look forward to D. If you have goals, you can achieve a higher level of success E. Fewer than 3% of Americans reported having long range goals

b. Goals are needed for direction and balance between life roles

What is the term defined as the, "process that includes planning, design, and development of manufactured and service products. It also includes the pricing, promotion, and selling of products to customers and markets, and facilitate capital formation"? a. Pricing b. Marketing c. Market Positioning d. Market Development

b. Marketing

Cost effective analysis is described as: a. The ability to spend money effectively b. Measurement of costs & outcomes of an activity in comparison to a similar activity c. How a company saves their money with low costs d. The amount of money that a company can spend without worry

b. Measurement of costs & outcomes of an activity in comparison to a similar activity

On a financial statement what symbol is used to represent a negative number? a. A dotted line b. Parenthesis c. Dollar sign ($) d. Asterisk (*)

b. Parenthesis

There are 5 steps in a personal selling sales encounter. Which of the following is NOT one of the steps? a. Opening b. Telling the client what they need c. Presenting solutions to meet the client needs d. Responding to objections e. Closing

b. Telling the client what they need

The Institute for Healthcare Improvement (IHI) has created interactive web based tools to help organizations track and measure efforts in specific areas. Which of the following is not true of these tools? a. The FEMA is a tool to determine the likelihood of failures and the potential impact of that failure b. The Physician Practice Safety Assessment is used by physician groups to measure only safety of the practice. c. The Trigger for Measuring ADEs can be used they the PT to collaborate with nursing to schedule timing of treatment and medications to lower risk of falls. d. The FEMA can be used to analyze specific protocols, incidents or outcomes.

b. The Physician Practice Safety Assessment is used by physician groups to measure only safety of the practice.

________ is an action that would allow a business to not provide accommodations for an employee with a disability if the accommodations were to negatively impact the business. a. reasonable accommodation b. undue hardship c. disability d. employment law

b. Undue hardship

How long of a time frame is strategic budgeting done for? a. 1 to 2 years b. 2 to 3 years c. 3 to 5 years d. 5 to 8 years

c. 3 to 5 years

What term is defined as "process of identifying, recording, summarizing, and reporting in monetary terms information about an organization during a specific period of time." a. Debit b. Credit c. Accounting d. Expenses

c. Accounting

The Department of Justice (DOJ) works to do all of the following EXCEPT? a. Enforce the law and defend the interests of the United States b. Ensure public safety against threats foreign and domestic c. Assure the safety of foods and cosmetics d. Provide federal leadership in preventing and controlling crime

c. Assure the safety of foods and cosmetics

What are the rules for transaction recording? a. Revenue and expenses should be recorded when services and/or products are sold or costs are incurred. b. Expenses should be recorded during the time period in which the item purchased is used in the production of the entity's goods or services. c. Both A & B d. None of the above

c. Both A and B

What is the term for regularly investigating a business' external environment to be able to quickly recognize and respond to unexpected external changes such as new technology, changes in governmental regulations, or new competitive challenges? a. Contingency planning b. Business plan c. Continuous environmental scanning d. Continuous strategic planning

c. Continuous environmental scanning

All of the following is what makes healthcare a distinctive economic system except: a. Health insurance. b. Government subsidies. c. Credit card companies. d. Restriction on competition through state legislation.

c. Credit card companies

Which federal government department or agency is the principal agency for the enforcement of laws related to protecting the health and providing essential human services to all Americans, especially those least able to help themselves? a. Administration for Children and Families b. Agency for Health Care Research and Quality c. Department of Health and Human Services d. National Institute of Health

c. Department of Health and Human Services

All of the following are included in SMARTER goals except: a. Specific b. Time bound c. Efficient d. Realistic e. Measurable

c. Efficient

Crossing the Quality Chasm was created to present a strategy and action plan that was aimed at improving health care. All of the following are components of this plan EXCEPT a. timely b. efficient c. ethical d. safe

c. Ethical

How is business success measured? a. How many things management does to reach a goal b. Profit c. How well the goal is achieved d. Productivity

c. How well the goal is achieved

Parallels between relational personal selling concepts and PT were outlined in this chapter. Which of the following is NOT one of the parallels? a. Listen → determining patient goals b. Collaborate → partnering with the client to achieve a win-win solution c. Keep in touch → exchanging information so you can hang out later d. Question → clarify the patient's problem, goal or priority to meet expectations

c. Keep in touch → exchanging information so you can hang out later

The bureaucratic stage of organizational development begins when a more complex work coordination system increases. Which of the following are characteristic of a bureaucracy? a. A low degree of reliance on work standardization b. A small, simple management structure c. Large technical and general support service functions d. General operating departments

c. Large technical and general support service functions

What is not an example of how to avoid legal problems when hiring employee? a. avoid harassment and discrimination b. properly advertise job description c. lie about compensation d. follow requirements for employee leave

c. Lie about compensation

Which form of ratio is used to assess and organization's ability to meet short term financial obligations? a. Operating ratio b. Common size ration c. Liquidity ratio d. Current ratio

c. Liquidity ratio

When analyzing the external influences on operating structure, _____ must be taken into account. a. Instability b. Simplicity c. Market diversity d. Friendliness

c. Market diversity

Borden (1964) introduced what became known as the traditional tools, or the core 4 Ps of marketing. Which of the following is NOT considered one of the four P's? a. Product b. Price c. People d. Place e. Promotion

c. People

According to Maslow (1943), motivation is driven by needs. Which of the following is considered one of those needs? a. Lamborghini Murcielago. b. Three story mansion for a family of two. c. Physiological needs such as food, clothing and water. d. Cash.

c. Physiological needs such as food, clothing, and water

External oversight for health service organizations and individual providers can come from the following except: A. Governmental agencies B. Nongovernmental organizations operating under government contracts C. Professional review agencies D. Nongovernmental private organizations acting under agreement with the health service provider

c. Professional review agencies

What is overutilization? A. Having the PTA's in the facility perform tasks that are not within their scope of practice. B. Having the physical therapy aides perform job duties that they cannot legally perform. C. Providing unnecessary but reimbursable physical therapy or other health care services. D. Billing for PT services that were not performed.

c. Providing unnecessary but reimbursable physical therapy or other health care services

Physician Quality Reporting Initiative is part of current federal quality CMS effort. Which of the following is true of Physician Quality Reporting? a. It is currently a voluntary, quality reporting program the provides financial incentives for participation b. It is an example of pay for performance. c. It includes a self report completed by physicians d. A and B e. all of the above

d. A and B

Work standardization is useful within a work coordination structure by reducing the need for: a. Direct supervision/oversight b. Continued resources c. Mutual accommodation d. A and C

d. A and C

At what age does the Age Discrimination in Employment Act of 1967 prohibit discrimination against? a. Age 20 years and younger b. Age 30 years and younger c. Age 40 years and younger d. Age 40 years and older

d. Age 40 years and older

Decision support tools help to: a. Understand what is really happening through situational analysis b. Avoid rework and correcting the current processes errors c. Reducing cost d. All of the above

d. All of the above

Managers need to have the appreciation for which of the following in order to successfully lead their organization through times of change? a. Knowledge for situational analysis b. Performance management c. New process design and business operations d. All of the above

d. All of the above

Option(s) available to achieve a market position is/are which of the following? a. Market Leader b. Innovator c. Customer Centric d. All of the above

d. All of the above

To improve the likelihood of continued success, health care organizations have undergone partial or total reorganization. Reasoning for a change in organizational structure includes, but is not limited to: a. A fundamental change in the vision, purpose, strategic direction b. Reorganization is a popular thing to do c. Changing of CEO's d. All of the above

d. All of the above

When starting up a business, one can expect to experience which of the following challenges? A. Limited liquid assets B. Difficulty obtaining loans C. Miscues due to lack of business experience D. All of the above E. None of the above

d. All of the above

Which of the following is a tool used to support management decision making? a. Process analysis using tools like flow charts, failure modes and effect analysis, or mistake proofing. b. Project planning c. Innovation teams and networking d. All of the above are tools used to support management in decision making

d. All of the above are tools used to support management in decision making

What is a necessary attribute to starting a private practice? A. Self determination B. Clear vision of your future C. Money D. Both A & B E. All of the above

d. Both A and B

Under Medicaid what is not a service that the state has to cover? A. Family Planning B. X-Ray services C. Doctor Services D. Glasses E. Inpatient Health Services

d. Glasses

In order to set a price for a service or product, a business must understand what the associated costs are. According to Drnach (Author of Chapter 20), what should be the first step for a physical therapist in the cost identification process? a. Decide what your employee salaries are going to be. b. Research how much an ultrasound machine will be reimbursed by insurance companies. c. Find out the cost of real estate taxes for the property. d. Identify the most commonly treated condition in physical therapy practice.

d. Identify the most commonly treated condition in physical therapy practice.

Physical therapy is a service that is in demand in healthcare. All of the following are facilitators of demand except: a. Aging baby boomers. b. Rise in chronic illness in the elderly. c. Technological advancements that are able to care for premature infants. d. Money.

d. Money

Which of the following was NOT a specific measure of interest to PT on the 2008 Healthcare Effectiveness Data Information Set (HEDIS)? a. Falls risk management b. Osteoporosis in older women c. Osteoporosis management in women who have had a fracture d. Physical activity in young adults e. none of the above

d. Physical activity in young adults

What is the purpose of the Office of Inspector General (OIG)? a. Watch for illegal or unethical conduct and alert others of these acts b. Encourage continual improvement in workplace safety and health c. Advise US Congress on issues affecting the Medicare program d. Prevent fraud and abuse

d. Prevent fraud and abuse

The Administration on Aging helps do all of the following EXCEPT? a. Help vulnerable older persons in their own homes b. Provide funding for Meals on wheels c. Provide Health Enhancement Programs d. Provide funds to assist low income families

d. Provide funds to assist low income families

All health care businesses should incorporate four product characteristics into their positioning strategy. Which of the following characteristics should be incorporated? a. Quality b. Safety c. Technical Leadership d. Customer Service e. All of the above

e. All of the above

How does the strategic planning process serve to improve business performance? a. Serves to focus thinking toward strategic concerns of tomorrow b. Helps a business prioritize efforts c. Is a communication tool for internal and external audiences d. Helps a business align efforts toward achievement of common goals e. All of the above

e. All of the above

One of the personal selling concepts is 'Build a Relationship'. This concept includes what Kotler (2000) believes to be the rewards for building this relationship and learning what a client's needs are. These rewards include which of the following? a. Sales of additional services b. Repeat business c. Loyalty d. Positive Recommendations e. All of the above

e. All of the above

Private practice owners can choose the type of clinical practice they have in regards to the legal structure. There are several examples of various legal structures the physical therapist can choose. Which of the following can be an example of the legal structure of a privately owned physical therapy practice? A. Sole Practitioner B. Partnership C. Incorporation D. Hybrid with a large corporation E. All of the above

e. All of the above

Selling encounters between clients and professional services, such as physical therapy, differ from retail sales in numerous ways. Which of the following is a way in which they differ? a. The properties of what is exchanged b. Marketing challenges c. How clients are involved in the exchange d. How each service is produced e. All of the above

e. All of the above

The Centers for Disease Control and Prevention(CDC) works with state and local governments as well as health surveillance systems to provide which of the following? a. Monitor and prevent disease outbreak b. Maintain national health statistics c. Provide for Immunization services d. Guard against international disease transmission e. All of the above

e. All of the above

The OIG recommends that health services business have in place a CPP that includes which of the following elements? A. Organizational Structure B. Operational mechanisms to implement the program C. Measures to prevent violations D. A & C E. All of the Above

e. All of the above

What are the best planning practices, as determined by The American Quality and Productivity Center's International Benchmarking Clearinghouse? a. Use of stretch goals b. Use of continuous improvement c. Business planning done within the context of the corporate vision or culture. d. A and B e. All of the above

e. All of the above

Which of the following are not examples of federal employment regulation acts? a. Equal Pay Act of 1963 b. Fair Labor Standards Act c. Civil Rights Act of 1991 d. Immigration and Nationality Act e. none of the above

e. None of the above

Which of these are NOT considered a challenge to a woman developing a private practice? a. Number of mentors/role models b. Family commitments c. Securing financing d. Making contacts and getting referrals e. None of the above, they are all considered challenges

e. None of the above