Page 1 of 94 1 WGU C429 OPERATIONS MANAGEMENT EXAM ACTUAL EXAM A, B AND STUDY GUIDE COMPLETE 400 QUESTIONS AND DETAILED CORRECT ANSWERS LATEST 2024 -2025 UP DATE WGU C429 OPERATIONS MANAGEMENT EXAM A Hospitals charge insurance companies for products and services rendered to patients. Hospital charges are based on the fees listed in its charge master description. Insurance companies never pay the full charge master rate because they have negotiated cont racts with hospitals to pay amounts that are lower than those listed in the chargemaster. From the list below, select the accounting term that is commonly used to refer to the amount of the discount provided to the insurance company - ANSWER -A) loss leader B) contractual adjustment C) gross revenue D) days in accounts receivable ANSWER: (B) contractual adjustment Every hospital has a charge description master. What information is contained in the master list? - ANSWER -A) every item the hospital can order from suppliers B) a list of everything in central supply C) Every item the hospital charges for and the amount they charge for it D) a list of all procedures done at that hospital ANSWER: (C) every item the hospital charges for and the amount they charg e for it True or False: There is one best tool for identifying opportunities to improve health care quality - ANSWER -False Select for the list below a common way hospitals adjust their financial calculations to account for differing patient mix - ANSWER -A) DRGs Page 2 of 94 2 B) Case mix index C) TEFRA D) Capitation ANSWER: (B) Case mix index This is a method of reimbursement that pays providers a fixed -dollar amount per patient over a given time period. - ANSWER -A) prospective B) Retrospective C) Capitation D) ICD 10 ANSWER: (C) Capitation On the balance sheet, those items listed as non -patient related income might include: - ANSWER -A) contractual adjustment B) Fundraising and donations C) Depreciation D) Employee Benefits ANSWER: (B) Fundraising and Donations Hospital A has 2015 labor costs of $10,364,341. That year is has 18,450 patient discharges Hospital B has 2015 labor costs of $6,456,400. That year it had 15,555 patient discharges. Which hospital was the most effici ent as it relates to labor costs per discharge? - ANSWER -A) Hospital A B) Hospital B C) Can't tell from the information provided Page 3 of 94 3 ANSWER: (B) Hospital B As a leader of the quality team, you have developed a process chart that accurately describes how pati ents move through the ER. Your team decides the process needs changing to reduce cycle time and creates a new process chart. What is that type of chart called? - ANSWER -A) To-
be process chart B) scatter diagram C) fishbone chart D) Pareto chart ANSWER: (A ) To-be process chart Which of the following is not a financial statement used in management of healthcare organizations? - ANSWER -A) income statement B) EBIT C) balance sheet D) Cash flow statement ANSWER: (B) EBIT Working capital is represented by - ANSWER -A) Net patient receivables B) Current Assets minus Current Liabilities C) Fixed Assets, net of depreciation D) Net assets minus long term liabilities ANSWER: (B) Current Assets minus Current Liabilities Productive hours exclude which of the following? - ANSWER -A) regular paid hours B) sick time Page 4 of 94 4 C) overload pay premiums D) contract labor ANSWER: (B) Sick Time You are considering adding two nurses around the clock to staff a new skilled nursing facility. How many FTEs are needed to staff these positions? Round number to tenths. - ANSWER -8.4 In many small ERs, regulations require a minimum level of staff. This hospital department can flex its labor hours up in times of high demand but must always maintain a _______ level regardless of ER patient volumes - ANSWER -A) Base Staffing B) Fixed Staffing C) Regulatory Impacts D) Productive Advantage ANSWER: (A) Base Staffing True or False: increasing capital investments in a process should have little impact in a production function. - ANSWER -False Common issues in productivity measurement for hospitals include: - ANSWER -A) Data too detailed B) Quality of data C) Simplicity of defining outputs D) Steady rates of demand ANSWER: (B) Quality of Data The ______ ___ ___ is a tool used to visualize measurements for key performance indicators for an organization relative to time, and targets - ANSWER -A) Check List
be process chart B) scatter diagram C) fishbone chart D) Pareto chart ANSWER: (A ) To-be process chart Which of the following is not a financial statement used in management of healthcare organizations? - ANSWER -A) income statement B) EBIT C) balance sheet D) Cash flow statement ANSWER: (B) EBIT Working capital is represented by - ANSWER -A) Net patient receivables B) Current Assets minus Current Liabilities C) Fixed Assets, net of depreciation D) Net assets minus long term liabilities ANSWER: (B) Current Assets minus Current Liabilities Productive hours exclude which of the following? - ANSWER -A) regular paid hours B) sick time Page 4 of 94 4 C) overload pay premiums D) contract labor ANSWER: (B) Sick Time You are considering adding two nurses around the clock to staff a new skilled nursing facility. How many FTEs are needed to staff these positions? Round number to tenths. - ANSWER -8.4 In many small ERs, regulations require a minimum level of staff. This hospital department can flex its labor hours up in times of high demand but must always maintain a _______ level regardless of ER patient volumes - ANSWER -A) Base Staffing B) Fixed Staffing C) Regulatory Impacts D) Productive Advantage ANSWER: (A) Base Staffing True or False: increasing capital investments in a process should have little impact in a production function. - ANSWER -False Common issues in productivity measurement for hospitals include: - ANSWER -A) Data too detailed B) Quality of data C) Simplicity of defining outputs D) Steady rates of demand ANSWER: (B) Quality of Data The ______ ___ ___ is a tool used to visualize measurements for key performance indicators for an organization relative to time, and targets - ANSWER -A) Check List
