1. For the routine service cost center, an increase in the number of patient
days over the budgeted number of patient days will result in:
1.A higher average cost per patient day.
2.A lower average cost per patient day.
3.An increase in the budgeted fixed costs for the routine service cost center.
4.No change in the average cost per patient day.: 2.A lower average cost per
patient day.
2. Which of the following balance sheet items would differ between a for-profit
and a not-for-profit healthcare organization?
1. Retained earnings.
2. Plant, property, and equipment.
3.Real estate.
4.Investments.: 1.Retained earnings
3. Which of the following leadership actions most clearly supports organiza-
tional transformation toward total quality management?
1. Convening and chairing the Quality Council.
2. Changing the name of the quality department from QA to CQI.
3.Requiring all direct reports to attend an introductory course in TQM.
4.Hiring a customer service representative.: 1.Convening and chairing the Qual-
ity Council.
4. In the healthcare field, the accountability of management is best measured
by the:
1.Balance maintained between service quality and operational efficiency.
2.Results shown on the annual expense and income statement.
3.Balance maintained between physician satisfaction and patient needs.
4.Degree to which management's needs are met.: 1.Balance maintained be-
tween service quality and operational efficiency.
5. Consumer "report card" development and distribution has become a high
priority for managed care organizations because:
1. Measurements of performance have now become well established, stan-
dardized, and accepted by all parties.
2. Purchasers are pressuring for disclosure of meaningful performance infor-
mation for use by buyers and consumers.
3. Consumers in healthcare are now well organized, and managed care orga-
nizations feel a need to satisfy them.
4. Physicians are increasingly encouraging their patients to evaluate managed
care organizations based on these report cards.: 2.Purchasers are pressuring
for disclosure of meaningful performance information for use by buyers and con-
sumers.
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