WGU D580 TASK 2 – HEALTH CARE
ADMINISTRATION CAPSTONE 2026/2027 UPDATE
NOTES AND CORRECT QUESTIONS AND
COMPLETE SOLUTIONS
1. Leadership & Strategic Management
Leadership Styles in Healthcare
• Transformational → Drives change, motivates staff,
improves culture (BEST for capstone initiatives)
• Transactional → Task-based, performance incentives
• Autocratic → Crisis situations only
• Servant Leadership → Staff empowerment, trust
building
Strategic Planning Components
• Mission → Why the organization exists
• Vision → Future state
• Values → Guiding principles
• Goals → Broad outcomes
• Objectives → Specific, measurable actions (SMART)
,Strategic Tools
• SWOT Analysis
o Strengths & Weaknesses (internal)
o Opportunities & Threats (external)
• Balanced Scorecard
o Financial
o Customer/Patient
o Internal Processes
o Learning & Growth
Change Management
• Resistance is reduced by:
o Clear communication
o Stakeholder engagement
o Training and transparency
• Staff buy-in = sustainability
2. Quality Improvement & Patient Safety
Quality Improvement (QI)
• PDSA Cycle
, o Plan → Do → Study → Act
o Continuous, data-driven improvement
• Lean
o Eliminates waste
o Improves workflow efficiency
• Six Sigma
o Reduces variation and defects
Patient Safety
• Root Cause Analysis (RCA)
o Identifies system failures
o Focuses on prevention, not blame
• Sentinel Events
o Unexpected events causing serious harm or
death
o Require immediate investigation and reporting
High-Reliability Organizations (HROs)
• Preoccupation with failure
• Reluctance to simplify
• Sensitivity to operations
, • Commitment to resilience
Quality Metrics
• Hospital-acquired infections (HAIs)
• Readmission rates
• Medication error rates
• Patient satisfaction (CAHPS)
3. Healthcare Finance & Economics
Reimbursement Models
• Fee-for-Service → Volume-based
• Value-Based Purchasing → Quality & outcomes
• Capitation → Fixed payment per patient
Key Financial Statements
• Income Statement → Profitability
• Balance Sheet → Assets, liabilities, equity
• Cash Flow Statement → Liquidity
Key Financial Concepts
• Operating Margin → Core profitability
• Fixed Costs → Rent, salaries
ADMINISTRATION CAPSTONE 2026/2027 UPDATE
NOTES AND CORRECT QUESTIONS AND
COMPLETE SOLUTIONS
1. Leadership & Strategic Management
Leadership Styles in Healthcare
• Transformational → Drives change, motivates staff,
improves culture (BEST for capstone initiatives)
• Transactional → Task-based, performance incentives
• Autocratic → Crisis situations only
• Servant Leadership → Staff empowerment, trust
building
Strategic Planning Components
• Mission → Why the organization exists
• Vision → Future state
• Values → Guiding principles
• Goals → Broad outcomes
• Objectives → Specific, measurable actions (SMART)
,Strategic Tools
• SWOT Analysis
o Strengths & Weaknesses (internal)
o Opportunities & Threats (external)
• Balanced Scorecard
o Financial
o Customer/Patient
o Internal Processes
o Learning & Growth
Change Management
• Resistance is reduced by:
o Clear communication
o Stakeholder engagement
o Training and transparency
• Staff buy-in = sustainability
2. Quality Improvement & Patient Safety
Quality Improvement (QI)
• PDSA Cycle
, o Plan → Do → Study → Act
o Continuous, data-driven improvement
• Lean
o Eliminates waste
o Improves workflow efficiency
• Six Sigma
o Reduces variation and defects
Patient Safety
• Root Cause Analysis (RCA)
o Identifies system failures
o Focuses on prevention, not blame
• Sentinel Events
o Unexpected events causing serious harm or
death
o Require immediate investigation and reporting
High-Reliability Organizations (HROs)
• Preoccupation with failure
• Reluctance to simplify
• Sensitivity to operations
, • Commitment to resilience
Quality Metrics
• Hospital-acquired infections (HAIs)
• Readmission rates
• Medication error rates
• Patient satisfaction (CAHPS)
3. Healthcare Finance & Economics
Reimbursement Models
• Fee-for-Service → Volume-based
• Value-Based Purchasing → Quality & outcomes
• Capitation → Fixed payment per patient
Key Financial Statements
• Income Statement → Profitability
• Balance Sheet → Assets, liabilities, equity
• Cash Flow Statement → Liquidity
Key Financial Concepts
• Operating Margin → Core profitability
• Fixed Costs → Rent, salaries
