Introduction to Health Care Management
Sharon B. Buchbinder, Nancy H. Shanks, and Rachel K. Rogers
5th Edition
,Table of Contents
eBook Quizzes 1
Chapter 01 An Overview of Health Care Management 1
Chapter 02 Leadership 8
Chapter 03 Management and Motivation 15
Chapter 04 Organizational Behavior and Management Thinking 21
Chapter 05 Strategic Planning 27
Chapter 06 Health Care Marketing 33
Chapter 07 Quality and Performance Improvement Basics 39
Chapter 08 Health Information Systems and Technologies 46
Chapter 09 Financing Health Care and Health Insurance 52
Chapter 10 Managing Costs and Revenues 58
Chapter 11 Managing Health Care Professionals 63
Chapter 12 Strategic Management of Human Resources 69
Chapter 13 Teamwork 75
Chapter 14 Addressing Health Disparities Through Culturally Responsive Care 81
Chapter 15 Law and Ethics 86
Chapter 16 Health Care Regulation and Compliance 92
Chapter 17 Special Topics and Emerging Issues in Health Care Management 97
Test Bank Quizzes 101
Chapter 01 An Overview of Health Care Management 101
Chapter 02 Leadership 112
Chapter 03 Management and Motivation 120
Chapter 04 Organizational Behavior and Management Thinking 131
Chapter 05 Strategic Planning 142
Chapter 06 Health Care Marketing 148
Chapter 07 Quality and Performance Improvement Basics 158
Chapter 08 Health Information Systems and Technologies 167
Chapter 09 Financing Health Care and Health Insurance 180
Chapter 10 Managing Costs and Revenues 197
Chapter 11 Managing Health Care Professionals 213
Chapter 12 Strategic Management of Human Resources 223
Chapter 13 Teamwork 231
Chapter 14 Addressing Health Disparities Through Culturally Responsive Care 242
Chapter 15 Law and Ethics 252
Chapter 16 Health Care Regulation and Compliance 264
Chapter 17 Special Topics and Emerging Issues in Health Care Management 275
Midterm Exam 279
Final Exam 295
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
Import Settings:
Base Settings: Brownstone Default
Information Field: Ahead
Information Field: Complexity
Information Field: Subject
Information Field: Title
Highest Answer Letter: E
Multiple Keywords in Same Paragraph: No
Chapter: Chapter 01 An Overview of Health Care Management - eBook Quiz
Multiple Choice
1. An organization's mission is defined as its:
A) goals.
B) desired future state.
C) values.
D) purpose.
E) ownership.
Ans: C
Ahead: Role of the Manager in Establishing and Maintaining Organizational Culture
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Culture is shaped by the values, mission, and vision for the organization. Values are
principles the organization believes in and that shape the organization's purpose, goals, and day-to-day
behaviors. Adopted values provide the foundation for the organization's activities and include such
principles as respect, quality service, and innovation. The mission of the organization is its fundamental
purpose, or what the organization seeks to achieve. The vision of the organization specifies the desired
future state for the organization and reflects what the organization wants to be known and recognized for
in the future. Statements of values, mission, and vision result from the organizational strategic planning
process. These statements are communicated widely throughout the organization and to the community,
and they shape organizational strategic and operational actions.
2. As compared to senior managers, lower-level managers have:
A) more authority.
B) the same authority.
C) less authority.
D) authority that depends on experience.
E) authority that depends on education.
Ans: C
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
Ahead: Management Positions: The Control in the Organizational Hierarchy
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Management positions within health care organizations are not confined to the top level;
because of the size and complexity of many health care organizations, management positions are found
throughout the organization. Management positions exist at the lower, middle, and upper levels; the upper
level is referred to as senior management. The hierarchy of management means that authority, or power,
is delegated downward in the organization, and lower-level managers have less authority than
higher-level managers, whose scope of responsibility is much greater.
3. Employment of medical and health services managers is expected to change by what percentage
between 2022 and 2032?
A) Plus 12.3%
B) Plus 50.5%
C) Minus 10.8%
D) Plus 28.4%
E) Minus 12.6%
Ans: D
Ahead: Introduction
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Plus 28.4% from 2022 to 2032, faster than the average for all occupations
4. Health care management as a profession is characterized by all of the following, except:
A) education.
B) knowledge.
C) values.
D) skills.
E) roles.
Ans: E
Ahead: Introduction
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Health care management is the profession that provides leadership and direction to
organizations that deliver personal and consumer health services and to divisions, departments, units, or
services within those organizations; those organizations will include direct care settings, as well as
traditional and alternative non–direct care settings. Like other professions, health care management is
characterized by formal education and training, common values, specialized knowledge and skills,
professional development, credentialing, and continuing education. Health care management provides
significant rewards and personal satisfaction for those who want to make a difference in the lives of
others.
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
5. Larger organizations are more likely to have all of the following, except:
A) vertical structure.
B) formal chain of command.
C) larger spans of control.
D) informal chain of command.
E) vertical structure and formal chain of command.
Ans: D
Ahead: Management Positions: The Control in the Organizational Hierarchy
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Larger organizations—such as large community hospitals, hospital systems, and academic
medical centers—will likely have deep vertical structures reflecting varying levels of administrative control
for the organization. This structure is necessary due to the large scope of services provided and the
corresponding vast array of administrative and support services that are needed to enable the delivery of
clinical services. Other characteristics associated with this functional structure include a strict chain of
command and line of reporting, which ensures communication, and assignment and evaluation of tasks
are carried out in a linear command and control environment. This structure offers key advantages, such
as specific divisions of labor and clear lines of reporting and accountability.
6. Recent research in health care management focuses on:
A) organizational best practices and leader behaviors.
B) organizational failures.
C) mentoring.
D) succession planning.
E) None of these is correct.
Ans: A
Ahead: Opportunities for Research on Health Care Management
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Two key focal areas are the subject of current research in health care management: best
practices of managers and leaders, and leader behaviors.
7. Succession planning is:
A) planning a career path within an organization.
B) a celebration of an organization's success.
C) not important anymore.
D) an approach to replace managers who retire or move on.
E) None of these is correct.
Ans: D
Ahead: Role of the Manager in Leadership Development and Succession Planning
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Due to the competitive nature of health care organizations and the need for highly motivated
and skilled employees, managers are faced with the challenge of succession planning for their
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
organizations. Succession planning refers to the concept of taking actions to ensure staff can move up in
management roles within the organization to replace those managers who retire or move to other
opportunities in other organizations. Succession planning is hard, complex, and requires an
“eyes-wide-open” approach (Schlichting, 2020). To continue the emphasis on high performance within
health care organizations, CEOs and other senior managers are interested in finding and nurturing
leadership talent within their organizations who can assume the responsibility and carry forward the
important work of these organizations.
8. The internal domain of health care management includes which of the following?
A) Community demographics
B) Regulations
C) Budgeting
D) Managed care organizations/insurers
E) Competitors
Ans: C
Ahead: The Need for Managers and Their Perspectives
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Table 1-2, Domains of Health Services Administration
9. The Patient Protection and Affordable Care Act (ACA), a major health care reform initiative, has had
significant implications for health care organizations in terms of which the following?
A) Patient volumes
B) The movement to improve population health and develop value-based purchasing
C) Reimbursement for previously uninsured patients
D) All of these are correct.
E) None of these is correct.
Ans: D
Ahead: Role of the Manager in Health Care Policy
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: The Patient Protection and Affordable Care Act (ACA), signed into law in 2010 as a major
health care reform initiative, has had significant implications for health care organizations in terms of
patient volumes, reimbursement for previously uninsured patients, and the movement to improve
population health and develop value-based purchasing. However, legislative changes have been made to
this law at the federal level that will impact health care organizations in the future. Other recent federal
policy changes include cuts in Medicare reimbursement and increases in reporting requirements.
10. To ensure a positive patient experience, a manager should do which of the following?
A) Understand all interactions between a patient and the organization.
B) Understand and meet patient needs and expectations.
C) Create a comfortable physical environment for receiving care.
D) None of these is correct.
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
E) All of these are correct.
Ans: E
Ahead: Role of the Manager in Ensuring a Positive Patient Experience
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: The patient experience is defined as “the sum of all interactions, shaped by an organization's
culture, that influence patient perceptions across the continuum of care” (Beryl Institute, 2018, para.1). To
ensure a positive patient experience, managers first need to understand the organizational processes of
providing care and support services, and the interactions of the patient with the organization. Many
managers have chosen to establish patient journeys and graphically portray them as patient journey
maps that depict the steps in receiving care from the perspective of the patient and the patient's family
(Trebble et al, 2010). Such maps portray all interactions and touchpoints between the patient and the
organization. Managers also need to understand the needs and expectations of patients. Patients want to
be informed, respected, supported, and treated in a courteous and friendly way with empathy and
compassion. On the technical care side, patients want appropriate and timely care, provided in the right
way and at the right time. To the degree that these needs and expectations are met, patients tend to view
their experience positively. Finally, managers need to focus on and improve the physical environment of
care, which promotes access, comfort, and convenience for patients (Birkelien, 2017).
11. What is the primary role of managers in relation to high performance within their organizations?
A) To focus solely on financial outcomes
B) To ensure that units, services, or divisions achieve high performance by setting and meeting goals
and objectives
C) To minimize employee workload and maintain a relaxed work environment
D) To implement strict regulations without consideration for organizational goals
E) To prioritize personal relationships over organizational goals
Ans: B
Ahead: Role of the Manager in Ensuring High Performance
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: At the end of the day, the role of managers is to ensure that the units, services, divisions, or
organizations they lead achieve high performance. What exactly is meant by high performance? To
understand performance, one must appreciate the value of setting and meeting goals and objectives for
the unit/service and organization as a whole, in terms of the work that is being carried out. Goals and
objectives are desired end points for activity and reflect strategic and operational directions for the
organization. They are specific, measurable, meaningful, and time oriented. Goals and objectives for
individual units should reflect the overarching needs and expectations of the organization as a whole
because all entities are working together to achieve high levels of overall organizational performance.
12. Which of the following is a key management function that focuses on setting priorities and
determining performance targets?
A) Organizing
B) Directing
C) Staffing
D) Planning
E) Controlling
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
Ans: D
Ahead: Management: Definition, Functions, and Competencies
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management Question
Feedback: The planning function in management involves setting a direction, establishing what needs to
be accomplished, setting priorities, and determining performance targets. It is the first step in ensuring
that an organization is moving toward its goals.
13. Which of the following is a primary responsibility of managers in talent management within health
care organizations?
A) Filling vacancies with available candidates as quickly as possible
B) Promoting employee engagement and addressing workforce issues
C) Minimizing employee training and development costs
D) Reducing the frequency of employee performance reviews
E) Eliminating informal methods of managing employee relations
Ans: B
Ahead: Role of the Manager in Talent Management
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Managers in talent management focus on securing and retaining the right talent for the
organization, rather than simply filling roles (Jooss et al., 2024). One of their key responsibilities is
promoting employee engagement, which is crucial for organizational performance. Managers use both
formal and informal strategies to develop and sustain employee engagement and ensure excellent
performance, such as offering training, conducting employee reviews, and soliciting feedback.
14. Which of the following is part of self-management?
A) Managing time and information
B) Being responsive
C) Keeping current
D) All of these are correct.
E) None of these is correct.
Ans: D
Ahead: Focus of Management: Self, Unit/Team, and Organization
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Effective health care management involves exercising professional judgment and skills and
carrying out the aforementioned managerial functions at three levels: self, unit/team, and
organization-wide. First and foremost, individual managers must be able to effectively manage
themselves. This means managing time, information, space, and materials; being responsive and
following through with peers, supervisors, and clients; maintaining a positive attitude and high motivation;
and keeping a current understanding of management techniques and substantive issues of health care
management. Drucker (2005) suggests that managing yourself also involves knowing your strengths, how
you perform, your values, where you belong, and what you can contribute, as well as taking responsibility
for your relationships. Managing yourself also means developing and applying appropriate technical,
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
interpersonal, and conceptual skills and competencies and being comfortable with them, in order to be
able to effectively move to the next level —that of supervising others.
15. Which of the following is the process of identifying a desired future state for an organization and a
means to achieve it?
A) Patient journey maps
B) Employee engagement
C) Strategic planning
D) Talent management
E) None of these is correct.
Ans: C
Ahead: Role of the Manager in Strategic Planning and Strategy Development
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Strategic planning is the process of identifying a desired future state for an organization and
a means to achieve it. Through an ongoing analysis of the organization's operating environment, matched
against its own internal capabilities, an organization's leadership can identify strategies that will drive the
organization from its present condition to that desired future state.
16. Which of the following specific skills is needed by managers to be innovators in management?
A) Willingness to test innovative practices and assess their impact
B) Thinking creatively about ways to proactively change operational and management practices
C) Facilitating recruitment and development of employees
D) All of these are correct.
E) None of these is correct.
Ans: D
Ahead: Role of the Manager in Innovation and Change Management
Complexity: Easy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: There are specific skills needed by managers to be innovators in management. These skills
include thinking creatively about ways to proactively change operational and management practices to
improve the organization. It also involves a willingness to test these innovative practices and assess their
impact. Also, a manager must facilitate recruitment and development of employees who embrace
creativity and innovation. Having innovative clinical and administrative staff is critical to implementing
operational innovation.
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Test Bank - Introduction to Health Care Management, 5th Edition (Buchbinder, 2026)
Import Settings:
Base Settings: Brownstone Default
Information Field: Ahead
Information Field: Complexity
Information Field: Subject
Information Field: Title
Highest Answer Letter: E
Multiple Keywords in Same Paragraph: No
Chapter: Chapter 02 Leadership - eBook Quiz
Multiple Choice
1. From the leadership styles for health care, which one focuses on the leader setting high performance
standards for their followers?
A) Participative style
B) Coaching style
C) Coercive style
D) Pacesetting style
E) None of these is correct.
Ans: D
Ahead: Leadership Styles
Complexity: Easy
Subject: Chapter 2
Title: Leadership
Feedback: See Table 2-5. The participative style focus is on soliciting input and allowing for decision
making. The coaching style focus is on personal development. The coercive style focus is on demanding
and is power based. Pacesetting style focus is on setting high performance standards.
2. The health care leader must consider which of the following special research issues if they are
concerned about the future?
A) Evidence-based management
B) Innovation
C) Use of big data sets for analyzing, reporting, and decision making
D) All of these are correct.
E) None of these is correct
Ans:
Ahead: Opportunities for Research on Health Care Leadership
Complexity: Easy
Subject: Chapter 2
Title: Leadership
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