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Healthcare Management Final
Terms in this set (56)
A system can be subdivided into
processes, subprocesses, and tasks
The PDCA cycle means
Plan, do check, act to hold the gains
Process flow can be improved by using which two key strategies?
. Determine which tasks can be automated and then automate them
Tom Stinson is the chief operating officer of Memorial Hospital. He is receiving complaints about
waiting times in the emergency department. Which services other than emergency should be a
priority for analysis?
Which is the most important reason to create a process map?
It provides a visual representation of a process that can be used to identify opportunities to
What is the "capacity of a process"?
The maximum possible output (goods or service) that a process or resource can produce or
What is "throughput time"?
The average of the sum of processing time and waiting time for all units
Tom is watching a football game he prerecorded. He is fast-forwarding the video to watch only
the plays. What is he doing?
Using only the value-added time
Susan is the director of Memorial Hospital's emergency department. She has redefined the triage
nurses' role to increase the number of tasks they can perform so that they can assist other staff.
Susan's approach is known as?
Susan has increased staffing levels on some evenings (e.g., first of the month, paydays) to reduce
patient waiting time. Susan's approach is known as
matching capacity to demand
Rough-cut hospital capacity planning is used to
plan staffing resources for each day of the month, using a mix of permanent and contractor
What mathematical tool can be used for staff scheduling?
The scheduling rule called shortest processing time (SPT) means
the job that takes the least amount of time to complete is done first, followed by the job that
takes the next shortest amount of time, and so on
VVH has separated emergency department cases into two streams of patients-those with severe
problems and those with relatively minor problems. This approach is an example of what type of
Shortest processing time
Which of the following is not a valid method of scheduling appointments in a clinic?
Appointments based on source of payment
The Bailey-Welch rule schedules
two patients at the beginning of a clinic session followed by equally spaced appointments
What is the most important characteristic of advanced-access scheduling?
The PCP coverage metric is
the percentage of same-day patients seen by any physician
Which issue is part of implementing advanced access?
Working down the backlog of appointments
3. Which of the following priority rules used in scheduling the sequence of production is calculated as the time remaining before the due date minus the remaining processing time, with the smallest value being run first?
What is supply chain management?
A. The management of all activities and processes related to both upstream vendors and
downstream customers in the value chain
B. Tracking and managing demand, inventory, and delivery
C. Procurement and vendor relationship management
D. All of the above
Which goal is not part of inventory management?
Having a variety of clinical devices available for physicians
The ABC classification system is used in inventory management to
divide inventory into three categories based on cost and then focus management on the most
The most accurate way to determine current inventory is by
doing a physical inventory
John, the manager of a growing emergency department, wants to order supplies. He knows that
the ED patient demand is stronger in the summer than in any other season. Which forecasting
method(s) should he use?
Trend and seasonal
John is forecasting daily demand for laundry in the ED. He has limited historical data. Which
forecasting method should he use?
A metric for determining the accuracy of a forecast is
mean absolute deviation
. Which of these forecasts is the BEST?
A. The one with a MAD of zero.
B. The one with the tracking signal of +4.
C. The one with the tracking signal of -4.
D. The one where the tracking signal times the MAD equals zero.
The one with a MAD of zero.
The theory that provides optimal levels of stock on hand, order levels, and order frequency is
economic order quantity (EOQ)
Julie enters a storeroom to get a special syringe for her patients but finds none there. This situation
is called a
Which assumption is not part of the basic EOQ model?
Back orders and stockouts are allowed.
One result of using the EOQ model is
as holding costs increase, the optimal order quantity decreases
In the basic EOQ model, if annual demand doubles, the effect on the EOQ is
It increases by about 40 percent.
The two-bin system is used to
signal a need to order when only one bin is full
Material planning and enterprise planning systems are used for
synchronizing materials and supply availability with forecasted demand
Which of the following is not a current trend in vendor supply chain relationships?
Bidding strictly on the basis of cost
What is the purpose of MedPAC?
To advise Congress on payment rates and methods for Medicare
What is not a major factor contributing to the increasing costs of healthcare in the United States?
What is an important measure of financial performance?
Cash on hand
A good approach to cost reduction is to
perform a systemic analysis of costs followed by targeted improvements
Which of the following is the smallest unit of cost that should be analyzed when beginning a cost
Fee for service
Once a cost reduction project is chartered, the first step should be to
identify key cost drivers and collect cost data related to each fee for service
Which of the following is not an effective cost reduction tool for a cost reduction project?
Reassignment of ineffective employees
Activity-based costing should be used to
find an optimal staffing mix
Which of the following approaches is(are) an effective tool for reducing the cost of an activity?
A. Process improvement with Lean Six Sigma
B. Evidence-based medicine
C. Supply chain management
D. All of the above
Which of the following approaches is not a method of bundling payments?
Payment for a clinical service (e.g., CT scan)
Which approach should you use to identify bundled payments that are a priority for cost
Identify bundles with high volume, high cost relative to benchmarks from other organizations,
and high use where costs are highly variable
The most important data to track for a shared savings (accountable care organization) program
individual patient costs over time
. Which of the following tools is not an important cost management approach for an organization
taking full capitation risk?
High patient copayments and deductibles
Financial penalties and rewards in the contemporary payment system are designed to
provide incentives for providers to improve quality
The use of all the cost management tools discussed in the text will have the largest financial impact
on which type of payment?
Which of the following approaches is not an effective means of reducing the cost of overhead?
A. Reducing executive salaries
B. Implementing process improvement on all routine overhead processes (e.g., hiring new
C. Consolidating activities (e.g., memberships)
D. Reducing the number of staffing layers
When prioritizing activities for overhead cost reduction, one should consider
activity cost versus its importance to operations
Which of the following activities will not result in a significant increase in revenue?
Measuring revenue per billing employee and replacing the lowest performers every quarter
What are the six forces to drive innovation
Three problems solved
Virtual visits: improving access and population health in chronic disease management
Evisits: providing on demand virtual urgent care for simple symptoms
E-consultants: broadening reach of specialty care
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