COE Strategic Planning and Leadership 2 — Questions and Answers
Question 1: Which governance structure is most commonly used by larger ophthalmic group practices to oversee strategic decisions?
- Sole proprietorship model
- Board of directors or advisory board (Correct answer)
- Silent partnership
- Franchise agreement
Correct answer: Board of directors or advisory board
Larger group practices often establish a board of directors or advisory board to provide oversight, strategic direction, and accountability.
Question 2: In succession planning for an ophthalmic practice, the primary goal is to:
- Reduce payroll costs
- Ensure continuity of leadership and operations (Correct answer)
- Increase patient volume
- Negotiate better vendor contracts
Correct answer: Ensure continuity of leadership and operations
Succession planning ensures that the practice can continue to operate smoothly when key leaders or physicians depart or retire.
Question 3: A mission statement for an ophthalmic practice should primarily communicate:
- Annual revenue goals
- The organization's purpose and core values (Correct answer)
- Staff scheduling policies
- Payer mix targets
Correct answer: The organization's purpose and core values
A mission statement articulates the organization's fundamental purpose, values, and the patients or communities it serves.
Question 4: When benchmarking, an ophthalmic executive compares their practice's metrics against:
- Prior-year internal data only
- Industry standards or peer practices to identify performance gaps (Correct answer)
- Patient satisfaction scores only
- Federal reimbursement rates
Correct answer: Industry standards or peer practices to identify performance gaps
Benchmarking involves comparing performance data with industry peers or national standards to identify areas for improvement.
Question 5: Which of the following best describes a PEST analysis in strategic planning?
- Patient, Employee, Staff, Technology review
- Political, Economic, Social, and Technological environmental scan (Correct answer)
- Performance, Efficiency, Safety, and Training audit
- Process, Evaluation, Scheduling, and Throughput analysis
Correct answer: Political, Economic, Social, and Technological environmental scan
PEST analysis examines external macro-environmental factors: Political, Economic, Social, and Technological, that could impact an organization.
Question 6: A COE executive is tasked with expanding into a new subspecialty service line. The FIRST step should be:
- Hire subspecialty staff
- Purchase new equipment
- Conduct a market and feasibility analysis (Correct answer)
- Negotiate with insurers
Correct answer: Conduct a market and feasibility analysis
A market and feasibility analysis determines demand, competition, financial viability, and operational requirements before committing resources.
COE Strategic Planning and Leadership 2
Which governance structure is most commonly used by larger ophthalmic group practices to oversee strategic decisions?