CNML EXAMINATION TEST 2026 COMPLETE
QUESTIONS WITH ANSWERS VERIFIED
◉ Zero-Based Budget. 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. 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. Answer: Nurse Time X (Avg.
RN Hourly Rate + Benefits + Indirects) = Total Nursing Cost per DRG
◉ General Nurse Staffing Calculation. Answer: # of RNs needed X
days open / # days worked per RN
◉ FTE Definition & Calculation. Answer: Full-time equivalent = full-
time employee paid for 1 year
FTE = (Hours per shift X # of days worked) / 40 hours
,◉ Fixed Costs. Answer: Stay the same no matter the census:
manager salaries, keeping phones on, rent, etc.
◉ Variable Costs. Answer: Change with census and how much
staffing is used
◉ Net Revenue Calculation. Answer: Gross Revenue - Deductions
from Revenue (DRGs and the Contractual allowances paid by
insurance companies)
◉ UAP. Answer: Unlicensed assistive personnel (CNA's)
◉ ADC. Answer: Average daily census (patients in a bed at midnight)
◉ Total Patient Days Calculation. Answer: ADC X Days open per year
(for SCH - ADC X 365)
◉ Nurse Hours Per Patient Day (HPPD) Calculation. 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. 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
◉ Per Diem Rate. Answer: Negotiated pay for services by insurance
companies regardless of what services were actually completed; per
day admitted
◉ UOS. Answer: Unit of service: patient days for inpatient nursing
but could be visits or # of procedures or whatever that healthcare
organization counts
◉ RVU. Answer: Relative value unit: what ancillary services might
use to add up their UOS; # of hi-flows hooked up or vents started for
RT., for example
◉ ALOS Calculation. Answer: Average length of stay = # of pt. days /
# of discharges (in same time period)
◉ CPUOS. Answer: Cost per unit of service = salaries / UOS
◉ Productivity. Answer: # of staff hours or $'s / # of UOS
QUESTIONS WITH ANSWERS VERIFIED
◉ Zero-Based Budget. 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. 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. Answer: Nurse Time X (Avg.
RN Hourly Rate + Benefits + Indirects) = Total Nursing Cost per DRG
◉ General Nurse Staffing Calculation. Answer: # of RNs needed X
days open / # days worked per RN
◉ FTE Definition & Calculation. Answer: Full-time equivalent = full-
time employee paid for 1 year
FTE = (Hours per shift X # of days worked) / 40 hours
,◉ Fixed Costs. Answer: Stay the same no matter the census:
manager salaries, keeping phones on, rent, etc.
◉ Variable Costs. Answer: Change with census and how much
staffing is used
◉ Net Revenue Calculation. Answer: Gross Revenue - Deductions
from Revenue (DRGs and the Contractual allowances paid by
insurance companies)
◉ UAP. Answer: Unlicensed assistive personnel (CNA's)
◉ ADC. Answer: Average daily census (patients in a bed at midnight)
◉ Total Patient Days Calculation. Answer: ADC X Days open per year
(for SCH - ADC X 365)
◉ Nurse Hours Per Patient Day (HPPD) Calculation. 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. 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
◉ Per Diem Rate. Answer: Negotiated pay for services by insurance
companies regardless of what services were actually completed; per
day admitted
◉ UOS. Answer: Unit of service: patient days for inpatient nursing
but could be visits or # of procedures or whatever that healthcare
organization counts
◉ RVU. Answer: Relative value unit: what ancillary services might
use to add up their UOS; # of hi-flows hooked up or vents started for
RT., for example
◉ ALOS Calculation. Answer: Average length of stay = # of pt. days /
# of discharges (in same time period)
◉ CPUOS. Answer: Cost per unit of service = salaries / UOS
◉ Productivity. Answer: # of staff hours or $'s / # of UOS