Top Score.
DRGs - correct answer. Diagnostic-Related Groups: payment rate based on specific
diagnoses
Prospective Payment System - correct answer. Used by Medicare-participating
hospitals: pretreatment diagnosis billings based on DRGs; rate decided ahead of time
between insurance companies and hospitals
Exclusive Provider - correct answer. Used by HMO's: insurance coverage for
contracted providers or institutions
HMOs - correct answer. Health maintenance organizations: comprehensive
healthcare to people who pay a fee for a fixed period of time
Capitation - correct answer. Fixed rate paid to provider per member per month for
healthcare services; set fee paid by insurance company per month for all the patient
needs
PPOs - correct answer. Preferred provider organizations: special reduced rate for
services when customers use certain providers approved by the insurance company;
usually fee-for-service
IPAs - correct answer. Individual provider arrangements: provide care in their offices
for prepaid plans; coalition of physicians who serve HMO patients and third-party
patients
Fulltime FTE Hours - correct answer. 2080 hours (1.0 @ 40 hours per week)
Capital Expenses - correct answer. Long-term equipment or physical purchases:
usually over $500-$1000 that will last years and depreciate over time and be used
multiple times
, Zero-Based Budget - correct answer. With each new budget (i.e. fiscal year), it is
determined which programs/areas get money; no historical context is used; may rank
packages and then only fund top-ranked ones; can be time-consuming way to create a
budget
Variance Calculation & Reminders - correct answer. Variance $ /Budgeted $ X 100 =
% difference; contract staff on separate line of budget; many staff sick costs more than
a few staff on LOA
Cost of Nursing Services Calculation - correct answer. Nurse Time X (Avg. RN Hourly
Rate + Benefits + Indirects) = Total Nursing Cost per DRG
General Nurse Staffing Calculation - correct answer. # of RNs needed X days open / #
days worked per RN
FTE Definition & Calculation - correct answer. Full-time equivalent = full-time
employee paid for 1 year
FTE = (Hours per shift X # of days worked) / 40 hours
Fixed Costs - correct answer. Stay the same no matter the census: manager salaries,
keeping phones on, rent, etc.
Variable Costs - correct answer. Change with census and how much staffing is used
Net Revenue Calculation - correct answer. Gross Revenue - Deductions from
Revenue (DRGs and the Contractual allowances paid by insurance companies)
UAP - correct answer. Unlicensed assistive personnel (CNA's)
ADC - correct answer. Average daily census (patients in a bed at midnight)
Total Patient Days Calculation - correct answer. ADC X Days open per year (for SCH
- ADC X 365)
Nurse Hours Per Patient Day (HPPD) Calculation - correct answer. Total Direct Care
Hours / Total Patient Days = # of RN hours needed to provide care for a pt. for 24
hours.
For example - for 12 hour staff and 12 workers each shift you multiply 12 staff X 2 shifts
= 24 staff X 12 hours each = 288 divided by midnight census of 31 = NHPPD
VBP - correct answer. Value-based purchasing: how CMS determines how much to
reimburse a hospital for care (benchmarked standards and how they are meeting it);
quality of care & following best practice & patient experience