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Pharmacy Management > Exam 1 > Flashcards

Exam 1 Flashcards

(109 cards)

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1
Q

Qualities of a good leader

A

Communication, accountability, emotional intelligence

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2
Q

Fastest growing healthcare spending category

A

Prescription drugs, mainly driven by specialty medications

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3
Q

What is the big L in leadership

A

Big Ls are a formal position of authority expected to lead

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4
Q

What is a little L in leadership

A

Little ls don’t have a formal position of authority yet they lead by example

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5
Q

List the elements of strategic planning

A

Vision, values, focus area, objectives, projects, KPIs

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6
Q

vision statement, focus area, project, strategic objective, values.

List in chronological order

A

Vision statement
Values
Focus area
Strategic objective
Project

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7
Q

What is a vision statement

A

Concise statement about future state of organization. It defines what an organization does and quantifiable factors

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8
Q

How does vision statement differ from mission statement

A

Mission statement is more specific and explains how vision will be achieved

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9
Q

Structure of a vision statement

A

3-5 focus areas with no more than 6 words each.

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10
Q

Strategic objective

A

Action + detail + deadline
Should align with focus area and includes 3-6 objectives

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11
Q

Design structure matrix

A

Shows how each element in the system relates to every other element.

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12
Q

Activity on node diagram

A

Provide a visual of networking logic. Each node indicates an activity and length reflects time.

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13
Q

Gantt Chart

A

Shows elements and timing simultaneously, most efficient method for project completion

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14
Q

Most well-known tool for strategic planning

A

Gantt chart, demonstrates timing and elements together

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15
Q

KPI stands for

A

Key performance indicator, show progress toward objectives

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16
Q

KPIs are used

A

to track, measure, analyze financial health of a company

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17
Q

Categories analyzed with key performance indicators (5)

A
  1. Profitability
  2. Liquidity: How assets can be converted to cash
  3. Solvency: Ability to pay debts
  4. Efficiency
  5. Valuation: Value of company
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18
Q

Where are KPIs often found

A

Located on balance sheets, income statements, cash flow statements, annual reports

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19
Q

True or False: Financial status of organizations dictate quality of their products

A

False

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20
Q

Non-financial KPIs are associated with

A

Indicators that correspond to future change. Supplement financial KPIs and are easier to incorporate into strategic planning

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21
Q

Non-financial measures

A

Customer satisfaction, timeliness, customer retention, new customers, productivity

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22
Q

Customer perspective of KPIs include

A

Length of stay in hospital

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23
Q

Example of internal process KPI

A

During the COVID-19 pandemic, ED visits decreased so staff was relocated to other services which made it difficult to supply meds during surges

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24
Q

Innovation and learning KPI involves

A

Bringing in new technology or education to continuously improve service

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25
Internal process KPIs determine
how to use available resources most efficiently
26
What category is this: Use of a closed system transfer device for chemo compounding
Innovation and learning. Expensive but safer
27
HEDIS
Health Effectiveness Data and Information Set: ONe of most widely used performance improvement tools
28
What does HEDIS measure
Measures across 6 domains: Effectiveness of Care Access to care Experience of care Utilization Health plan descriptive
29
What is the foundation for finance
Accounting
30
What is accounding
Develop financial statements to convey the financial performance of the company
31
What is a balance sheet
Financial statement reporting the company's assets, liabilities, and shareholder equity
32
What are assets
Liabilities and equity, they are owned by a company and have a measurable value
33
Current vs. Noncurrent assets
Current: Have cash value within 1 year Noncurrent: Not expected to be converted to cash within 1 year
34
Type of asset: Accounts receivable
Current asset
35
Type of asset: inventory
Current asset
36
Type of asset: Pre-Paid expenses
Current asset
37
Type of asset: cash
Noncurrent asset
38
Type of asset: property
noncurrent asset
39
Type of asset: Accounts receivable
noncurrent asset
40
Type of asset: debt
neither
41
Type of asset: employees
neither
42
Type of asset: accounts payable
neither
43
Liability
Something owed such as loans, accounts payable, mortgages, tax liabilities
44
What is equity
Shareholders ownership in company. Cash would be returned to shareholders if assets were liquidated and debts paid off
45
Income statement
Focus on revenues and expenses during a period of time
46
Operating revenues
Primary activities like selling products or services
47
Nonoperating revenues
Secondary non-business activities such as interest, partnerships, royalties
48
Gains
Money made from other activities such as sale of long-term assets from non-business activities
49
What expenses are required for normal operations
Primary expenses such as cost of goods sold, selling, general expenses, research and development
50
What are secondary expenses
From non-core business activities such as interest payments
51
Cost of Goods Sold
Direct costs of Goods Sold (such as material and labor costs)
52
True or false: Many large companies operate with a positive net income
False
53
What is net income
(revenue + gains) - (expenses + losses)
54
Income statement conveys
profitability and business activities of company to stakeholders relative to industry peers. They are used for comparison across different businesses and assist with decision-making
55
Cash flow statement
Summarize movement of cash and equivalents. It measures how well the company generates cash to pay debt obligations
56
3 activities included in cash flow statements
Operating (products/services) Investing Financing
57
Shareholder equity statement
Shows owner's claims after subtracting total liabilities from assets
58
Positive shareholder equity statement means
Company has enough assets to cover liabilities
59
GAAP
Generally accepted accounting principals, regulated by the US to improve communication of financial information.
60
Ratio analysis is used for
Investing by evaluating the company's overall financial performance
61
what is a ratio analysis
Standardized ratios to trend performance over time or compared to others
62
Ratio analysis does not always correlate with stock price/performance. TRUE OR FALSE
TRUE
63
Liquidity ratios represent
Ability to pay off current debts with existing capital
64
To cover short-term debt, what must you do with assets
Assets must be converted to cash quickly
65
Profitability
A measure of an organization's profits relative to its expenses
66
Solvency
The ability of a company to meet its long-term debt. The ability to pay off long-term debts (usually longer than 1 year)
67
Efficiency
Peak level of performance that uses least number of inputs to achieve the highest amount of output
68
Valuation
Analytic process of determining the current (or projected) worth of an asset of a company
69
Impact of Net Promotor Score
Can use it to determine which pharmacies can dispense their medications and how much it would cost
70
Fixed productivity
Production is not reflective of outputs. Example: Manager's productivity measure is days worked, does not reflect what they did
71
Variable productivity
Production directly reflect output
72
Elements of a strategic plan: Vision
Short statement about the future and where you want to go
73
Elements of a strategic plan: value
Enablers of the vision statement, how you'll behave on the journey
74
Elements of a strategic plan: objective
Action, detail, and deadline
75
4 financial metrics
Profitability, liquidity, solvency, efficiency
76
Non-financial performance initiatives (3)
customer, internal processes, innovation and learning
77
Net income equation
(revenue + gain) - (expenses + losses)
78
What are some situations that would increase productivity
More output with same input OR More output with less input
79
Money in the present is worth [more/less] than the same amount of money in the future
more
80
Inventory cycle
Amount of time it takes to produce and deliver an order. It takes into account usage rate, quantity on hand, and reorder points.
81
Element of a good KPI
Must be aligned with a specific project and/or objective
82
HEDIS domains (6)
Effectiveness of care, access of care, experience of care, utilization, health plan information, measures using electronic data system
83
HEDIS financial implication
how much you get paid based on performance in 6 domains
84
Future domains of HEDIS
Flexibility, accuracy, ease, insight, access
85
Current ratio
Measures a company's ability to pay its current liabilities with its total current assets. Higher ratio is better
86
Debts to total assets ratio
Total amount of debt relative to assets owned. Higher is riskier
87
Asset turnover ratio
Efficiency of assets generating revenue. Higher is better
88
Accounts receivable turnover ratio
Evaluate efficiency of revenue collection. Measures how often a company collects money. Higher is better
89
Inventory turnover ratio
Number of times an enterprise sells out of its stock of costs within a period. Higher needs more inventory, lower could result in expired products
90
Profitability ratios
Used to assess a business's ability to generate earnings relative to its revenue and costs
91
Margin ratio
Looks at gross profit, compares profit to sales revenue
92
Return ratios
Looks at return on assets and equity
93
Productivity
Universal measurement of efficacy, looks at output and input
94
Productivity equation
P = O/I
95
Factors surrounding productivity
human, tech, managerial, economic, etc
96
Gross Domestic Product
Single-best measure for global comparison. Labor productivity * Fraction of people in workforce
97
What happens when supply > demand
Create waste, expensive
98
What happens when supply < demand
Missed opportunities and dissatisfied customers
99
What happens when supply = demand
Ideal
100
Inventory Management: Purchasing
Buy inventory to sell for more money, do not have too much excess
101
Inventory management: Impact on customers
Right quantity of right goods in right place at right time
102
Buffer inventory
For emergency shortages
103
Seasonal inventory
High demand at certain times of the year
104
Safety inventory
Extra to prevent out of stock situation
105
Cycle inventory
Inventory for minimum needed. Example: Whitfield only gets 1 Orlissa a month so we only keep 1 in stock
106
Pipeline inventory
Products are on route
107
Cost shifting
Occurs when a provider charges an insured patient more than they do an uninsured patients to cover financial loss from patients not paying insurance
108
Cause of cost shifting
Medicare/Medicaid have decreased payments in the hospital over time
109
Implications of cost shifting
Commercial insurance premiums increase yearly because we are paying for people that can't pay for themselves

Pharmacy Management (1 decks)

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