Healthcare Finance & Economics Flashcards

A CNL is presenting to hospital administration about the financial impact of nurse turnover. Which cost should be included in the turnover cost calculation?

Answer: Recruitment, hiring, orientation, training costs, and productivity loss during vacancy

Total nurse turnover cost includes recruitment, hiring, onboarding, training, lost productivity during orientation, and agency costs to fill vacancies.

Under the Affordable Care Act (ACA), hospital-acquired conditions (HACs) affect Medicare reimbursement in which way?

Answer: Hospitals in the lowest-performing quartile for HACs receive a 1% payment reduction

The HAC Reduction Program penalizes the lowest-performing quartile of hospitals with a 1% reduction in Medicare payments for preventable hospital-acquired conditions.

A CNL is asked to reduce the unit's supply budget by 10% without reducing care quality. Which strategy would be MOST effective?

Answer: Conduct a supply utilization audit and standardize to evidence-based product selection

Supply utilization audits identify waste, redundancy, and non-evidence-based product choices that can be safely eliminated to reduce costs.

Which payment model bundles payments for all services related to a specific episode of care, such as a joint replacement surgery?

Answer: Bundled payment (episode-based payment)

Bundled payments cover all services (hospital, physician, rehabilitation) within a defined episode, incentivizing coordination and efficiency across providers.

A CNL calculates that reducing pressure injuries by 50% would save the hospital $180,000 annually. The prevention program costs $40,000 to implement. What is the return on investment (ROI)?

Answer: 350% ROI [($180,000 - $40,000) / $40,000 × 100]

ROI = (Net benefit / Investment cost) × 100 = ($140,000 / $40,000) × 100 = 350%, meaning every dollar invested returns $3.50.

Which federal agency is the primary payer for inpatient hospital services for patients aged 65 and older in the United States?

Answer: Centers for Medicare & Medicaid Services (CMS) through Medicare Part A

CMS administers Medicare Part A, which covers inpatient hospital stays for eligible beneficiaries aged 65 and older.