Question 1

One difference between the traditional model and the McCloskey model for costing out nursing services is that the McCloskey model uses:

Accepted Answer

The equation for the McCloskey model uses nursing intervention (NI)instead of intensity level for a diagnosis-related group to cost out nursing services.

Question 2

The hospital has established a wellness center that provides health education programs.To advertise this new service,the hospital conducts what type of marketing?

Accepted Answer

Social marketing applies generic marketing techniques to change the social behavior of a target audience or the well-being of society in general.

Question 3

What has been the impact of managed competition on nursing?

Accepted Answer

Managed competition exists among prepaid providers such as health maintenance organizations,preferred provider organizations,and independent practice associations and leads to increased use of advanced practice nurses as substitutes for physicians and psychologists.

Question 4

The chief nursing officer needed to make changes in the staffing budget because the hospital was opening an additional 10 beds to the emergency department.The nursing administrator had to look at what type of costs?

Accepted Answer

Marginal costs are the extra costs created by providing care to one more service unit.They are calculated as the difference between the total costs before and after adding one additional service unit.

Question 5

A system in which a fixed payment is given to a care provider per health plan participant per month for delivery of a specified amount of health care services is known as:

Accepted Answer

A capitated system is a health care plan in which the health care provider receives a fixed amount per month (or per year)for each plan participant for delivery of a specified amount of health care services.

Question 6

The nurse manager used the traditional model for costing out nursing services.In this model,the amount of nursing time per intensity level (NT)is calculated based on what?

Accepted Answer

NT is equal to the amount of nursing time per intensity level for a diagnosis-related group (DRG).

Question 7

The hospital implemented several cost-cutting strategies to keep from closing.One strategy was the support of early retirement.What kind of strategy can the nurse manager use to keep up the morale of the unit?

Accepted Answer

Recognition is a reward for most types of agency achievement.

Question 8

A nurse manager has to submit a proposal to the administration for the staffing needs of the intensive care unit.The nurse manager will be working with what type of budget?

Accepted Answer

Personnel budgets estimate the cost of direct labor required to fulfill the agency's objectives.The nurse manager decides on the types of nursing care necessary to meet the nursing needs of the estimated patient population.

Question 9

How should nurse managers face the challenge of globalization?

Accepted Answer

Nurse managers and others need to prepare for a large-scale infectious disease outbreak.Clinical care protocols should be developed,alternate space use designs should be planned,and adequate disease testing equipment should be put in place.

Question 10

A nurse manager acts as a fiscal manager on the unit.The nurse manager's most likely duty is to:

Accepted Answer

The fiscal manager coordinates fiscal planning,plans to budget,organizes the justification,implements the budget process,determines resource requirements within the existing constraints,and evaluates technology.

Question 11

Health care costs continue to increase.All of the following contribute to rising health care costs except:

Accepted Answer

Health care costs have been rising because of the aging of the population,the consequent increase in the number of individuals with chronic diseases,increased health care needs,and an increased number of uninsured people.

Question 12

The hospital established the financial responsibilities of the personnel who are part of the budgetary process.The function of the nurse managers and department heads during the budgetary process is to:

Accepted Answer

Department heads formulate and review goals and objectives and prepare the budgets for their departments.

Question 13

A nurse manager uses what technique to help control costs?

Accepted Answer

Delegation of appropriate tasks to unlicensed personnel can save more expensive nurses' time for activities requiring more knowledge and skill.

Question 14

Which of the following reimburses according to the cost of treatment of specific diagnosis-related groups (DRGs)?

Accepted Answer

A prospective reimbursement system encourages the implementation of cost-effective health care services.Reimbursement is based on the cost of treatment of specific DRGs rather than on per diem costs or total hospital costs divided by patient-days.The payment unit is the diagnosis rather than the patient-day.

Question 15

The nurse manager wanted to implement a new indirect cost savings strategy on the unit.An example of an indirect cost savings strategy is:

Accepted Answer

Staff development,travel to gain new experiences,staff meetings held on company time,provision of seed money,and maintenance work can lead indirectly to cost savings.

Question 16

The nurse manager needs to determine the most economical level of inventory,because supplies represent a significant cost factor.To keep costs down,the nurse manager places small orders frequently.This is an example of reducing what kind of cost?

Accepted Answer

The carrying cost is the expense involved in holding inventories.To keep carrying costs down,the nurse manager should place small orders frequently.

Question 17

The hospital is promoting a healthy living program for its employees.On what part of cost containment is the hospital focusing?

Accepted Answer

Healthy living programs,such as promotion of exercise activities,stocking of heart-wise foods in the cafeteria,and smoking cessation classes,may help keep workers healthy and thus reduce sick time,absenteeism,and health care costs.

Question 18

The nurse manager reviews the unit's budget quarterly.One advantage of such a budget review is that:

Accepted Answer

One advantage of budgeting is that the weakness in the organization can be revealed and corrective measures can be taken.

Question 19

The hospital's board of directors sent letters to wealthy community leaders seeking donations to help build an extension to the hospital.This target group is an example of:

Accepted Answer

Sought publics are desired by the agency but are not necessarily interested in the agency.For instance,wealthy people who are potential donors could be a sought public.

Question 20

The nurse manager assessed the need for a new flotation bed for patients with severe decubitus ulcers on the unit.The nurse manager reported this information to the chief nursing officer,who reviewed which budget to plan for replenishment of this equipment on the unit?

Accepted Answer

Capital expenditures include expenditures on physical items,such as replacement or expansion of the plant,major equipment,and inventories.

Quiz 9: Financial Management, Cost Containment, and Marketing