Chapter 16: Managing Finances

MULTIPLE CHOICE

1. Which nursing action can have a direct impact on budgeting for the nursing unit?

1. A nurse administers pain medication to a patient after performing a pain assessment.

2. A registered nurse (RN) delegates the task of performing a dressing change to a licensed practical nurse (LPN).

3. A nurse makes an attempt to initiate intravenous therapy on a patient only to find that one of the catheters was defective, and thus an additional catheter had to be used.

4. A nurse calls the respiratory therapy department to request a breathing treatment for a patient.

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2. When calculating a full-time equivalent (FTE), which information is needed?

1. Productive hours of nursing staff per nursing shift

2. Amount of time that an employee works during the period of a year

3. Average number of patients on a nursing unit on any given day

4. Number of staff who have worked during a 24-hour period

ANS:

3. A nurse is receiving a telephone order from a physician related to a patient concern. How would the nurse manager classify this nurse activity?

1. Value care

2. Necessary care

3. Non–value-added care

4. Indirect care

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4. Nurse managers from different departments within the hospital are meeting to discuss requests to be submitted for consideration for the hospital’s capital budget. Which information should be submitted for budgetary approval?

1. Requests for additional staffing

2. Need for equipment that is projected at a cost greater than nursing unit budget

3. Salaries for staff

4. Advertising requests to promote nursing unit

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5. Which budgeting method is reflected by establishment of prioritization at the start of each fiscal year?

1. Zero based

2. Performance

3. Incremental

4. Flat percentage

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6. Nurse managers are attending a training session to help them understand and apply concepts relative to budget planning. Which statement by a nurse manager would indicate that the training session has been effective?

1. “Incremental budgeting reflects prioritization of care.”
2. “Performance budgeting focuses on individual measurement.”
3. “Performance budgeting requires considerable time to implement.”
4. “Zero-based budgeting encourages waste.”

ANS:

MULTIPLE RESPONSE

7. A nurse manager has to submit a budget for the medical-surgical unit. Which considerations should the nurse manager include when planning the budget? Select all that apply.

1. Amount of resources that are available to support the nursing unit

2. Responsibility for cost centers within the hospital facility

3. Awareness of patient needs

4. Staffing patterns

5. Identification of the type of nursing care delivered

ANS:

8. When planning a budget for a nursing unit, some variables cannot be controlled but still must be accounted for in order to prepare a fiscally responsible budget. Which variables cannot be controlled by nurse managers? Select all that apply.

1. Number of beds on unit

2. Patient acuity

3. Benefit package for staff members

4. Amount of money that the unit makes

5. Inventory of supplies

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9. Which activities would be included in the evaluation phase of budget planning? Select all that apply.

1. Estimating cost of supplies

2. Exploring productivity

3. Examining for variance

4. Comparing actual versus projected results

5. Starting once the budget has been implemented

ANS:

10. Which information is needed to be able to calculate FTEs for a nursing unit? Select all that apply.

1. Acuity level of patients

2. Staffing of unit

3. Physicians with hospital privileges who provide care to patients on nursing unit

4. Staff needed to cover days off

5. Productive as well as nonproductive time

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