Deck 3: Accounting for Change - Forecasting

Question 1

The two variables that output determines in a budget are:

A) operating revenue and total fixed cost.
B) operating revenue and total variable cost.
C) non-operating revenue and total fixed cost.
D) non-operating revenue and total variable cost.

Answer 1

B

Question 2

All of the following changes occurred in hospital utilization between 2005 and 2014, except:

A) total admissions increased.
B) there were increases and decreases based on types of admissions (e.g., mental and substance abuse versus medical and surgical admissions.
C) Medicaid admissions increased.
D) commercial admissions decreased.

Answer 2

A

Question 3

Between 2005 and 2014, which of the following types of admissions had the largest percentage decrease?

A) Coronary atherosclerosis
B) Pregnancy
C) Surgical
D) Septicemia

Answer 3

A

Question 4

Which of the following is true for the years between 2005 and 2014?

A) Total hospital admissions and outpatient visits fell.
B) Total hospital admissions fell and outpatient visits increased.
C) Total hospital admissions increased and outpatient visits fell.
D) Total hospital admissions and outpatient visits increased.

Question 5

Which of the following is true about changes in physician visits between 2010 and 2015?

A) Total visits have decreased
B) Medicare visits have decreased
C) Medicaid visits have decreased
D) Commercial visits have increased

Question 6

Which of the following did not occur in the job market for physicians and registered nurses from 1998 through 2017?

A) Physician salaries increased.
B) Physician employment increased
C) Registered nurse salaries increased
D) Registered nurse employment decreased

Question 7

The medical services seeing the lowest rate of increase in Medicare reimbursement between 2007 and 2017 were:

A) physician services.
B) hospital inpatient services.
C) hospital outpatient services.
D) home health services.

Question 8

The medical services seeing the highest rate of increase in Medicare reimbursement between 2007 and 2017 were:

A) physician services.
B) hospital inpatient services.
C) hospital outpatient services.
D) home health services.

Question 9

Which of the following is true about Medicare reimbursement between 2007 and 2017?

A) Physician and hospital reimbursement increased faster than the rate of inflation.
B) Physician services increased faster than the rate of inflation and hospital inpatient services increased slower than inflation.
C) Physician services increased slower than the rate of inflation and hospital inpatient services increased faster than inflation.
D) Physician and hospital reimbursement increased slower than the rate of inflation.

Question 10

All of the following occurred in hospital resource use from 2011 through 2015, except:

A) increases in the total cost per CMI-adjusted discharge.
B) increases in staff hours per CMI-adjusted discharge.
C) increases in general service cost per CMI-adjusted discharge.
D) increases in case mix index (CMI).

Question 11

Which of the following hospital sizes has the lowest cost per CMI-adjusted discharge?

A) Hospitals with less than 100 beds
B) Hospitals with 100 to 199 beds
C) Hospitals with 200 to 399 beds
D) Hospitals with more than 400 beds

Question 12

Which of the following hospital sizes has the highest cost per CMI-adjusted discharge?

A) hospitals with less than 100 beds
B) hospitals with 100 to 199 beds
C) hospitals with 200 to 399 beds
D) hospitals with more than 400 beds

Question 13

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the annual compound growth rate is:

A) 2.2%.
B) 3.4%.
C) 4.0%.
D) 40.0%.
E) None of these is correct.

Question 14

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the compound growth rate forecast for 2021 discharges would be:

A) 14,400.
B) 14,479.
C) 14,560.
D) 19,600.
E) None of these is correct.

Question 15

Which of the following is the formula to calculate a compound growth rate forecast?

A) r = (X ÷ Y)^{( 1÷n)} - 1
B) Y = X *(1 + r)ⁿ
C) Y = (X_t-1 + X_t-2 + X_t-3) ÷ 3
D) Y = α * X_t-1actual + (1-α) *X_t-1budget

Question 16

Assume hospital discharges between 2016 and 2020 were 12,885 (2016), 13,331 (2017), 13,789 (2018), 13,569 (2019), and 14,000 (2020). A 3-year moving average forecast for 2021 discharges would be:

A) 13,335.
B) 13,515.
C) 13,786.
D) 14,000.
E) 14,214.

Question 17

Which of the following is the formula used to create a 3-year moving average forecast?

A) r = (X ÷ Y)^(1÷n) - 1
B) Y = X *(1 + r)ⁿ
C) Y = (X_t-1 + X_t-2 + X_t-3) ÷ 3
D) Y = (X_t-1 + X_t-2 + X_t-3 + X_t-4) ÷ 4

Question 18

In the product life cycle model, managers should expect revenues to reach a maximum during the:

A) introduction period.
B) growth period.
C) maturity period.
D) decline period.

Question 19

Which of the following is not a quantitative forecasting method?

A) Compound growth rate forecasts
B) Moving average forecasts
C) Product life cycle forecasts
D) Exponential smoothing forecasts

Question 20

In the top-down approach to forecasting, output forecasts are created by senior managers.

Question 21

In the top-down approach to forecasting, output forecasts are created by department managers.

Question 22

From 1998 through 2017, registered nurse salaries increased at a faster rate than physicians.

Question 23

Wages for technical healthcare occupations are higher than the median annual wage for all occupations.

Question 24

Teaching hospitals have a lower cost per CMI-adjusted discharge than non-teaching hospitals.

Question 25

Compound growth rate forecasts are a qualitative forecasting method.