WGU D580 TASK 2 – HEALTH CARE
ADMINISTRATION CAPSTONE 2026 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 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
