NURSE EXECUTIVE CERTIFICATION
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ Assets. Answer: The financial resources, including cash,
investments, and property, that an organization possesses or
receives.
◉ Average Length of Stay (ALOS). Answer: The average duration that
patients spend in a healthcare facility, such as a hospital, before
being discharged.
◉ ADC (Average Daily Census). Answer: The average number of
patients on an in-patient unit at a certain point in time for a set
period of time (week, month, year) almost always collected at
midnight.
◉ Bad Debt. Answer: Losses due to uninsured or not collected
◉ Break-even. Answer: The point at which cost is covered by
revenue. This concept is often used during decision making process
for equipment purchasing and program development.
,◉ Capital Budget. Answer: Long range planning tool for
organizations; also refers to items that cost over a certain amount of
money $500, $1000, $5000
◉ Capitation. Answer: Payment arrangement where providers are
paid a pre-arranged amount for each person/member asssigned to
them over a certain period of time often whether they use it or not.
◉ Charitable Care. Answer: Healthcare provided for free or at
reduced prices to low income patients
◉ CMI. Answer: Case Mix Index (CMI) is the average relative DRG
weight of a hospital's inpatient discharges, calculated by summing
the Medicare Severity-Diagnosis Related Group (MS-DRG) weight for
each discharge and dividing the total by the number of discharges.
◉ What does CMI reflect?. Answer: Reflects the diversity, clinical
complexity and resource needs of all the patients in the hospital.
◉ What does a higher CMI indicate?. Answer: Indicates a more
complex and resource-intensive case load.
◉ Contribution Margin. Answer: The profit that is contributed by a
cost center without the indirect costs.
, ◉ Cost-Benefit Ratio. Answer: A way for an organization or
department to weigh/analyze the cost of an item/project/program
with the benefit. Analysis may include non-monetary value such as
charity care and community benefit.
◉ Depreciation. Answer: Amount written off annually on a piece of
equipment and buildings.
◉ Direct Costs. Answer: Costs that can be attributed to a specific
item or cost in a department's or projects budget. Examples include
salaries, admission kits etc.
◉ DRG (Diagnosis Related Groups). Answer: Categories of diagnoses
defined by Medicare for payment purposes
◉ Fiscal year. Answer: The period of time or cycle that a 12-month
budget addresses. Most common cycles include calendar year
January 1st-Dec 31st or academic year Sept 1-Aug 31st
◉ Fixed Expenses. Answer: Remains the same regardless of the
number of patients such as mortgage or loan payments
◉ Forecasting. Answer: The process by which a department or
organization translates future needs of a new program or budget
into resource needs and financial terms.
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ Assets. Answer: The financial resources, including cash,
investments, and property, that an organization possesses or
receives.
◉ Average Length of Stay (ALOS). Answer: The average duration that
patients spend in a healthcare facility, such as a hospital, before
being discharged.
◉ ADC (Average Daily Census). Answer: The average number of
patients on an in-patient unit at a certain point in time for a set
period of time (week, month, year) almost always collected at
midnight.
◉ Bad Debt. Answer: Losses due to uninsured or not collected
◉ Break-even. Answer: The point at which cost is covered by
revenue. This concept is often used during decision making process
for equipment purchasing and program development.
,◉ Capital Budget. Answer: Long range planning tool for
organizations; also refers to items that cost over a certain amount of
money $500, $1000, $5000
◉ Capitation. Answer: Payment arrangement where providers are
paid a pre-arranged amount for each person/member asssigned to
them over a certain period of time often whether they use it or not.
◉ Charitable Care. Answer: Healthcare provided for free or at
reduced prices to low income patients
◉ CMI. Answer: Case Mix Index (CMI) is the average relative DRG
weight of a hospital's inpatient discharges, calculated by summing
the Medicare Severity-Diagnosis Related Group (MS-DRG) weight for
each discharge and dividing the total by the number of discharges.
◉ What does CMI reflect?. Answer: Reflects the diversity, clinical
complexity and resource needs of all the patients in the hospital.
◉ What does a higher CMI indicate?. Answer: Indicates a more
complex and resource-intensive case load.
◉ Contribution Margin. Answer: The profit that is contributed by a
cost center without the indirect costs.
, ◉ Cost-Benefit Ratio. Answer: A way for an organization or
department to weigh/analyze the cost of an item/project/program
with the benefit. Analysis may include non-monetary value such as
charity care and community benefit.
◉ Depreciation. Answer: Amount written off annually on a piece of
equipment and buildings.
◉ Direct Costs. Answer: Costs that can be attributed to a specific
item or cost in a department's or projects budget. Examples include
salaries, admission kits etc.
◉ DRG (Diagnosis Related Groups). Answer: Categories of diagnoses
defined by Medicare for payment purposes
◉ Fiscal year. Answer: The period of time or cycle that a 12-month
budget addresses. Most common cycles include calendar year
January 1st-Dec 31st or academic year Sept 1-Aug 31st
◉ Fixed Expenses. Answer: Remains the same regardless of the
number of patients such as mortgage or loan payments
◉ Forecasting. Answer: The process by which a department or
organization translates future needs of a new program or budget
into resource needs and financial terms.
