BHS Healthcare Administration and Management 2 — Questions and Answers
Question 1: What is the primary goal of a Balanced Scorecard in healthcare management?
- To measure organizational performance across financial, patient, process, and learning dimensions (Correct answer)
- To balance nurse-to-patient staffing ratios
- To equally distribute hospital costs among departments
- To score patient satisfaction surveys
Correct answer: To measure organizational performance across financial, patient, process, and learning dimensions
The Balanced Scorecard is a strategic management tool that tracks performance across four perspectives: financial, customer/patient, internal processes, and learning and growth.
Question 2: Which US legislation requires hospitals to provide emergency care to anyone regardless of ability to pay?
- EMTALA (Correct answer)
- HIPAA
- COBRA
- ERISA
Correct answer: EMTALA
EMTALA (Emergency Medical Treatment and Labor Act) mandates that hospitals with emergency departments must screen and stabilize all patients regardless of insurance or payment status.
Question 3: In healthcare finance, what does a 'days in accounts receivable' metric measure?
- The average number of days to collect payment after services are rendered (Correct answer)
- The number of days a patient is hospitalized
- The billing cycle duration for insurance claims
- The time between diagnosis and treatment
Correct answer: The average number of days to collect payment after services are rendered
Days in accounts receivable (AR) measures how long it takes a healthcare organization to collect payments owed, indicating billing efficiency.
Question 4: Which leadership style is most associated with building consensus among healthcare teams and encouraging staff input in decision-making?
- Democratic (participative) leadership (Correct answer)
- Autocratic leadership
- Transactional leadership
- Laissez-faire leadership
Correct answer: Democratic (participative) leadership
Democratic leadership involves seeking input from team members before making decisions, which tends to improve staff satisfaction and buy-in in healthcare settings.
Question 5: What is 'capitation' as a payment model in US managed care?
- A fixed payment per patient per period regardless of services used (Correct answer)
- Payment based on the number of procedures performed
- A percentage of charges billed to insurance
- Fee-for-service reimbursement
Correct answer: A fixed payment per patient per period regardless of services used
Capitation pays providers a fixed monthly fee per enrolled patient, incentivizing preventive care since providers bear financial risk for excess utilization.
Question 6: Which term describes the process of verifying a healthcare professional's education, training, and licensure before granting clinical privileges?
- Credentialing (Correct answer)
- Accreditation
- Licensure renewal
- Peer review
Correct answer: Credentialing
Credentialing is the formal process hospitals use to verify and assess the qualifications of healthcare providers before allowing them to practice.
BHS Healthcare Administration and Management 2
What is the primary goal of a Balanced Scorecard in healthcare management?