MHA Healthcare Operations and Supply Chain 2 — Questions and Answers
Question 1: What is a 'charge description master' (CDM) in hospital billing operations?
- A master list of physician credentials
- A comprehensive listing of all billable services, procedures, and supplies with associated charge codes (Correct answer)
- The hospital's negotiated rate schedule with payers
- A CMS-required report on patient outcomes
Correct answer: A comprehensive listing of all billable services, procedures, and supplies with associated charge codes
The CDM (chargemaster) is the hospital's internal price list containing every service, item, and procedure that can be billed, along with standard charges and billing codes.
Question 2: Which capacity management strategy involves holding beds or rooms in reserve for anticipated surges in patient demand?
- Diversion management
- Surge capacity planning (Correct answer)
- Block booking
- Ambulatory conversion
Correct answer: Surge capacity planning
Surge capacity planning prepares hospitals to rapidly expand bed capacity and resources during unexpected high-demand events such as mass casualty incidents or pandemics.
Question 3: What does 'average length of stay' (ALOS) directly impact in hospital operations?
- Staff credentialing timelines
- Bed availability, throughput, and overall capacity (Correct answer)
- Physician compensation levels
- Outpatient appointment wait times
Correct answer: Bed availability, throughput, and overall capacity
ALOS directly affects how quickly beds become available for new patients, impacting overall hospital capacity, revenue, and operating efficiency.
Question 4: In healthcare operations, what is a 'kanban' system used for?
- Physician performance evaluation
- A visual inventory management system that signals when supplies need to be reordered (Correct answer)
- Electronic health record data entry
- Scheduling operating room cases
Correct answer: A visual inventory management system that signals when supplies need to be reordered
Kanban is a pull-based inventory control system using visual signals (cards or bins) to trigger reordering only when supplies reach a set minimum level.
Question 5: What is the purpose of a 'materials management information system' (MMIS) in hospital operations?
- To track patient medical records
- To automate supply ordering, receiving, and inventory tracking across departments (Correct answer)
- To manage physician scheduling
- To process insurance claims
Correct answer: To automate supply ordering, receiving, and inventory tracking across departments
An MMIS integrates supply chain functions including purchasing, receiving, inventory management, and distribution to improve efficiency and reduce supply costs.
Question 6: Which accreditation standard requires hospitals to have an environment of care (EOC) management plan?
- NCQA HEDIS
- The Joint Commission Environment of Care standards (Correct answer)
- CMS Conditions of Participation
- DNV GL-Healthcare
Correct answer: The Joint Commission Environment of Care standards
The Joint Commission's Environment of Care standards require hospitals to develop and implement management plans for safety, security, hazardous materials, fire safety, and utilities.
MHA Healthcare Operations and Supply Chain 2
What is a 'charge description master' (CDM) in hospital billing operations?