NAB CORE CERTIFICATION EVALUATION
EXAMS SCRIPT STUDY GUIDE WITH
SOLVED QUESTIONS
⩥ Interest coverage.
Answer: EBITDA/ Interest Expense
How many times over the facility could pay its outstanding debts using
its earnings (i.e., how much "cover"
⩥ EBITDA.
Answer: Earnings before interest, taxes and depreciation and
amortization
-Useful measure because it is neutral to the effects of borrowing and
accounting decisions- it is used as a profitability measure/a measure of
the ability to generate cash
⩥ Depreciation.
Answer: reduction in the value of an asset over time, due to wear and
tear
⩥ Amortization.
Answer: Spreading payments over multiple periods
,⩥ Net operating income (NOI).
Answer: total revenue- operating expenses)
Want a positive number as the result
⩥ Occupancy rates:.
Answer: (# of resident days/facility beds) x 365
⩥ Average length of stay.
Answer: Total patient days in the year/ number of admissions
⩥ Debts covenants.
Answer: Stipulations in a lending agreement that the facility will
maintain certain financial ratios and operational conditions
-Covenants protect the facility and the lender
- Violating a covenant can trigger a loan default
Examples of debt covenants: debt to equity ratios and working capital
ratios; requirement to maintain physical assets to certain standards
⩥ Total cost.
Answer: Total fixed cost + total variable cost
,⩥ The Break Even Point.
Answer: total cost= total revenue
⩥ Salary per compensated FTE.
Answer: salary & wage expense/ total FTEs
⩥ Full Time Employee.
Answer:
⩥ Medication Error Calculation.
Answer: (total number of doses given + doses not given)/ doses not
given + number of errors made x 100% = error rate
⩥ Psychotropic drugs.
Answer: 1. Anti-psychotic
2. Anti-depressant
3. Anti-anxiety
4. Hypnotics
⩥ Priority areas for QAPI.
Answer: -Resident Safety
-Coordination of care
, -Autonomy and choice
-High risk, high volume of problem-prone areas based upon facility
assessment
-Medical errors and adverse resident events
⩥ Members of the Quality Assessment and Assurance (QAA)
Committee.
Answer: 1) Medical director or Designee
2) DON
3) 3 other staff members (One of whom must be the LNHA, board
member, owner or another individual in a leadership position)
⩥ Operational budgeting and forecasting.
Answer: The operating budget projects revenues and expenses for a 12
month period
Accurate forecasts should include expected revenue ( changes in #
resident units, changes in census, new services, new/amended laws, etc.
)
Also should include expected expenses:
Salary projections for the 12 month period
Department supplies (food, nursing supplies, activities supplies etc.)
⩥ Capital budgeting and forecasting.
EXAMS SCRIPT STUDY GUIDE WITH
SOLVED QUESTIONS
⩥ Interest coverage.
Answer: EBITDA/ Interest Expense
How many times over the facility could pay its outstanding debts using
its earnings (i.e., how much "cover"
⩥ EBITDA.
Answer: Earnings before interest, taxes and depreciation and
amortization
-Useful measure because it is neutral to the effects of borrowing and
accounting decisions- it is used as a profitability measure/a measure of
the ability to generate cash
⩥ Depreciation.
Answer: reduction in the value of an asset over time, due to wear and
tear
⩥ Amortization.
Answer: Spreading payments over multiple periods
,⩥ Net operating income (NOI).
Answer: total revenue- operating expenses)
Want a positive number as the result
⩥ Occupancy rates:.
Answer: (# of resident days/facility beds) x 365
⩥ Average length of stay.
Answer: Total patient days in the year/ number of admissions
⩥ Debts covenants.
Answer: Stipulations in a lending agreement that the facility will
maintain certain financial ratios and operational conditions
-Covenants protect the facility and the lender
- Violating a covenant can trigger a loan default
Examples of debt covenants: debt to equity ratios and working capital
ratios; requirement to maintain physical assets to certain standards
⩥ Total cost.
Answer: Total fixed cost + total variable cost
,⩥ The Break Even Point.
Answer: total cost= total revenue
⩥ Salary per compensated FTE.
Answer: salary & wage expense/ total FTEs
⩥ Full Time Employee.
Answer:
⩥ Medication Error Calculation.
Answer: (total number of doses given + doses not given)/ doses not
given + number of errors made x 100% = error rate
⩥ Psychotropic drugs.
Answer: 1. Anti-psychotic
2. Anti-depressant
3. Anti-anxiety
4. Hypnotics
⩥ Priority areas for QAPI.
Answer: -Resident Safety
-Coordination of care
, -Autonomy and choice
-High risk, high volume of problem-prone areas based upon facility
assessment
-Medical errors and adverse resident events
⩥ Members of the Quality Assessment and Assurance (QAA)
Committee.
Answer: 1) Medical director or Designee
2) DON
3) 3 other staff members (One of whom must be the LNHA, board
member, owner or another individual in a leadership position)
⩥ Operational budgeting and forecasting.
Answer: The operating budget projects revenues and expenses for a 12
month period
Accurate forecasts should include expected revenue ( changes in #
resident units, changes in census, new services, new/amended laws, etc.
)
Also should include expected expenses:
Salary projections for the 12 month period
Department supplies (food, nursing supplies, activities supplies etc.)
⩥ Capital budgeting and forecasting.
