Graded A+
1. In the routine service cost center, what is the likely outcome of an increase in patient days beyond the
budgeted amount?
- A. The average cost per patient day will rise.
- B. The average cost per patient day will decrease. ✔️
- C. The budgeted fixed costs for the routine service cost center will increase.
- D. There will be no change in the average cost per patient day.
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2. Which balance sheet component would show a discrepancy between for-profit and not-for-profit
healthcare organizations?
- A. Retained earnings. ✔️
- B. Plant, property, and equipment.
- C. Real estate assets.
- D. Investments.
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3. What leadership action most effectively advances an organization's transformation towards total
quality management?
- A. Leading the Quality Council meetings. ✔️
- B. Renaming the quality department from QA to CQI.
- C. Mandating TQM introductory courses for all direct reports.
- D. Adding a customer service representative to the team.
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, 4. How is management accountability in healthcare primarily evaluated?
- A. By assessing the balance between service quality and operational efficiency. ✔️
- B. By reviewing the results on the annual income and expense statement.
- C. By measuring the balance between patient needs and physician contentment.
- D. By determining the extent to which management's requirements are fulfilled.
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5. Why is the creation and distribution of consumer "report cards" increasingly significant for managed
care organizations?
- A. Well-established and standardized performance measurements are now accepted across the
board.
- B. There is increasing pressure from purchasers for clear performance information to guide buyers
and consumers. ✔️
- C. Consumers in the healthcare market are more organized, prompting managed care organizations
to accommodate their needs.
- D. Physicians are actively encouraging patients to assess managed care organizations based on these
evaluations.
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6. Which of the following is not essential for effective strategic adaptation management?
- A. Creating integrated continuums of care.
- B. Establishing successful partnerships between hospitals and physicians.
- C. Engaging in vertical and horizontal integration with providers outside the area. ✔️
- D. Developing strategic leadership development programs for board members, managers, physicians,
and nursing leaders.
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