UPDATED QUESTIONS AND CORRECT
ANSWERS
Retention - CORRECT ANSWER in the context of the HC organization, retention consists of
conscious efforts undertaken to minimize employee turnover, especially from within the ranks of
needed technical and professional workers
Turnover - CORRECT ANSWER loss of employees, for any of several reasons, usually
necessitating replacement; turnover is ordinarily measured in terms of percentage of a work group per
some period of time (usually a year).
Undesirable or controllable turnover - CORRECT ANSWER workers who leave for other
employment, depart for personal or unstated reasons, or are released for failure to pass probation or
failure to maintain minimum job performance
The Privacy Act of 1974 - CORRECT ANSWER legislation applying to agencies of the federal
government widely regarded and applied as a standard for other employers, stating that an agency or
employer could obtain from individuals only information relevant and necessary for the
accomplishment of its official purposes
The Employee Polygraph Protection Act of 1988 - CORRECT ANSWER legislation that
banned the practice of routinely administering lie detector tests and defined the limited instances in
which such testing can be used
The Fair Credit Reporting At - CORRECT ANSWER legislation that limited the extent to
which an organization can secure information about the personal finances of an individual
The Health Insurance Portability and Accountability Act (HIPAA) of 1996 - CORRECT
ANSWER many-faceted legislation, one portion of which (Title II) has had significant and far-
reaching effects on matters of privacy and confidentiality
Capitation reimbursement - CORRECT ANSWER prospectively determined payment system
based on the number of persons in the population to be served, transferring financial risk from the
insurer to the provider based on some anticipated level of activity
, Outcomes management - CORRECT ANSWER approach to care delivery intended to reduce
medical costs while preserving or improving quality
Benchmarking - CORRECT ANSWER comparison of quantitative indicators from one HC
entity with others; comparisons may be between hospitals or medical staffs, comparing physician
practice patterns (clinical benchmarking) and financial and administrative data (operational
benchmarking)
Budget - CORRECT ANSWER financial plan for the conduct of business for some time period
in the near future, usu 1 year; as such, the budget provides a financial map of coming activities
Variance (or budget variance) - CORRECT ANSWER amount by which the actual outlay for a
particular expense category is less than the budgeted amount (usually a favorable condition) or more
than the budgeted amount (usually an unfavorable condition)
Rightsizing - CORRECT ANSWER process of matching staffing to workloads to become more
efficient
Competencies - CORRECT ANSWER technologies, capabilities, and expertise that enable
organizations to satisfy customers and meet new standards of care delivery; competencies are affected
most by hiring and training systems
Job enrichment - CORRECT ANSWER continuous process of encouraging employee
participation in multiple activities, thus expanding each employees' capabilities and building a more
flexible staff
Cross-training - CORRECT ANSWER process of training employees of comparable skill level
and pay grade in the performance of each others' jobs
Job redesign - CORRECT ANSWER involve improving the manner in which a job is
performed to serve the task--that is, to save time or money or material or improve quality--and to meet
the needs of the workers--that is, to make the tasks more interesting or appealing