Organization & Mission Statement – Financial Management Course
These financial management questions & answers include Organization’s purpose, Vision, Mission Statement, financial management, operating budget, Operating expenses, nurse managers, Chief Financial Officer, financial statements.
Which of the following choices is an ideal attribute of a mission statement?
Clearly states the organization’s purpose.
A vision statement for an organization BEST identifies a future state that is:
Preferred.
When a nurse manager operates within a unit budget, there will not be any changes in volume to disrupt the budget plan.
False.
An operating budget is one type of budget. This is the budget used to plan/anticipate the unit’s day-to-day expenses and revenues. The operating
budget is a written plan -much like a plan of care for a patient- that tries to project/anticipate operating expenses and revenues.
Operating expenses are estimated by collecting data, especially data on patient volume, patient acuity, and required staffing and supply levels for providing care. Once the data is collected, the nurse manager can estimate the next year’s expenses by: looking at last year’s costs, adjusting for inflation, then adjusting for any increases likely in patient census and subsequently, nursing staff.
Understanding financial statements helps nurse managers know if the organization’s income is enough to cover its expenses and losses.
Yes, the ability to read financial statements helps us know if the organization is healthy. True.
The main responsibilities for a Chief Financial Officer are:
Planning, Control, Decision-Making.
Providers are key players in the healthcare system because they are
directly involved in patient care.
The Vice President for Patient Financial Services is a resource for the nurse manager for understanding the financial impact of length of stay.
True
Unlike variable costs, such as fuel costs for an airline, fixed costs are the same regardless of volume. Similarly, fixed staff are those present regardless of patient volume. In light of these facts, _________ are examples of fixed staff and ___________are examples of variable staff.
Nurse managers; direct care nurses. This is correct. Nurse managers are an example of fixed staff because their presence or numbers does not depend on patient volume or acuity. The number of direct care nurses, however, would depend on patient volume.
It is not important to track costs to stay “solvent” or financially healthy.
False: Actually tracking costs is very important to staying solvent or financially healthy. This is especially true in healthcare where the difference between revenues and losses is often razor thin.
An example of a mission statement is:
NOT TO BELIEVE IN ETHICAL PRINCIPLES.
1- to break even after taxes – don t think so
to become the hospital of choice for physicians. -maybe
to provide healthcare in a given service area.- maybe but don’t think so
In healthcare economics, people and organizations that deliver healthcare services to patients are called:
providers.
An example of a common market condition in the healthcare financial environment is:
intense competition.
As a cost center, one financial responsibility of a nurse manager of a nursing unit is to:
control expenses.
Manufacturers and distributors of all supplies, equipment and technology used in healthcare organizations are referred to as:
suppliers.
The Chief Financial Officer is a member of the top management team.
True.
A nursing unit is
one part of the organization.
Each organization conducts its business based on which of the following driving forces?
Philosophy, mission statements, and goals.
Individuals who use healthcare services are called
The mission statement reveals what the organization exists
to do or be.
The nurse manager of the CT ICU has
line authority.
Third party reimbursement comes from
payers.
An _________ covers how the day-to-day operating expenses, ie. labor and supplies, and revenue will occur; a n _________ covers expensive equipment whose usefulness will last over many years.
Operating budget; capital budget.
Healthcare organizations use cost accounting and document costs because their insurers expect accurate, honest, and complete records of every dollar of
cost.
True.
Transcription services often fall in the realm of the financial operators because
the coding for reimbursement depends on transcription.
Examples of regulators are:
OSHA and the Joint Commission.
Nurse-physician collaboration is most enhanced when
mutual interest in quality care is kept at the forefront.
An industry partner can best assist with a capital purchase by
providing information about emerging technologies.
Which is NOT an example of capital expense purchase?
boxes of pre-filled saline syringes.
Strategic planning involves a review of strengths, weaknesses, opportunities, and threats to an organization, called S.W.O.T. Analysis. An example of an OPPORTUNITY for a department of nursing or a patient care services division is to
initiate a collaborative partnership with a nearby school of nursing to start a graduate nursing program in the evening at the hospital.
Given this information, calculate the hours per patient day: five direct care staff RNs giving one-to-one patient care to six critically ill patients in two twelve hour shifts every 24 hours.
6 x 24 = 144 hours. six patients multiplied by 24 hours of care each.
Hours per patient day- HPPD- is a measure of
care hours required each patient’s length of stay ?
care hours required in a 24 hour period per patient ?THINK SO.
care hours required in a 24-hour period per patient. ?
The formula for calculating average acuity is:
total nursing care hours multiplied by Average Daily Census.
When Karen Drew takes some well-deserved vacation days from her critical care nursing position, her Nurse Manger knows that the vacation days are classified in financial terms as:
non-productive hours.
Governmental, legal, accreditation and certification.
..
Regulators.
Individuals who use healthcare services are
Consumers.
The nurse manager of the CT ICU has
Line authority.
Each organization conducts its business based on which of the following driving forces?
Philosophy, mission statements, and goals.
An example of a common market condition in the healthcare financial environment is
intense competition.
As a cost center, one’s financial responsibility is to:
control expenses.
Manufacturers and distributors of all supplies, equipment and technology used in healthcare organizations are referred to as:
suppliers.
Third-party reimbursement comes from
payers.
Healthcare costs will continue to increase mainly because of what factor?
rising prescription drug costs and use.
An industry partner can best assist with a capital purchase by:
providing information about emerging technologies.
An example of a strategy to enhance nurse -physician
for nurses and physiciains to develop a capital expense wish list together.
Of all financial statements, this one may be the most relevant to nurse managers because it should the balance of assets to liabilities.
It is not important to track costs to stay “solvent”
False. Actually, tracking costs is very important to staying solvent or financially helathy. This is especiallly true in health care where the difference between revenues and losses is often razor thin.
Understanding financial statements helps nurse managers know if the organization’s income is enough to cover its expenses and losses.
TRUE. Yes, the ability to read financial statements helps us know if the organization is healthy.
Unlike variable costs, (such as fuel costs for an airline), fixed costs are the same regardless of patient volume. Similarly, fixed staff are those present, regarless of patient volume. In light of theses facts, _______ are examples of fixed staff and _____ are examples of variable staff.
Nurse managers; direct. Nurse managers are an example of fixed staff because their presence or numbers does not depend on patient volume or acuity. The number of direct care nurses, however, would depend on volume.
Healthcare organizations use cost accounting -and document costs- because their insurers expect accurate, honest, and complete record of every dollar of cost.
TRUE.
Hours per patient day (HPPD) is a measure of:
WRONG: CARE HOURS DELIVERED IN A 24-hour period per nursing unit. I DO NOT KNOW THE CORRECT ANSWER YET.
To calculate the nursing labor costs, the for…
Nurses’ annual wage.
Given this information , calculate the hours per patient day: five direct care staff RNs giving one-to-one patient care to six (6) critically ill patients in two (2) twelve-hour shifts every 24 hours.
6×24= 144 hours
When a nurse manager operates within a unit level budget, there will not be any changes in volume to disrupt the budget plan.
FALSE
A unit level nursing budget is
the amount of funding that a nursing unit must operate within during a fixed budget period.
Which is NOT an example of a capital expense purchase?
BOXES OF PRE-FILLED SALING SYRINGES. Computers for clinical documentation; a new fleet of intravienous infusion pumps; a hemodynamic monitoring system.
A new nurse manager is planning to set up training classes on new equipment purchased for the nursing unit. The training must take place on day shift only because of the business hours of the industry partner.
FALSE
The formula for calculating average acuity is:
Total work divided by total average daily census.
What percentage of FTE budget do you use to allow for weekend coverage in your budget?
40%.
Which of the following is an example of a well written mission statement for the Coronary Care unit (CCU) at Mercy General Hospital?
The CCU meets the needs of critically ill adult patients with cardiovascular disease or compromised hemodynamic conditions.
Of all financial statemenst, this one may be the most relevant to nurse managers because it shows the balance of assets to liabilities.
Balance Sheet.
In healthcare economics, entities which pay for healthcare services, including individuals, employers , insurers, and the government are called:
Payers
Monopoly power is one cause of market failure and is, in essence, when there is only one
Market.