Chapter 4: Financial Management in Health Care, LEADERSHIP 4 with complete solutions

An example of an indirect cost is: A. Cost Center B. Information technology C. Nursing staff D. Delivery of Care - correct answers--Ans: Book says 'A', but probably should be 'B" INFORMATION TECHNOLOGY Page 49-50 For costs other than personnel costs, the nurse manager will have to calculate supply and expense cost, such as supplies, education, travel to conferences, telephone, electricity, and minor equipment. Some health care institutions also require support services (indirect costs) to be included in the budget; and example would be information technology provided by an in-house department to a unit. Page 50 Each nursing unit is usually called a cost center. The cost center is the organizational unit for which costs can be identified and managed. Outside resource: A cost center is a department within an organization that does not directly add to profit but still costs the organization money to operate. Cost centers only contribute to a company's profitability indirectly, unlike a profit center, which contributes to profitability directly through its actions. Nursing Staff is more part of a the personnel budget. The personnel budget requires that the nurse manager forecast the anticipated workload for the year. (Page 48) Delievery of Care - the care delivery system is a system for the delivery of care that delineates the nurse's authrotiy and accountability for clinical decision making and outcomds. The care delivery system is adapted to regulatory considerations and