NURSE EXECUTIVE CERTIFICATION
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● 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.
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● 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.
