Session 11 - organization of practice Flashcards
(306 cards)
1
Q
What is turnover ratio?
A
The measure of how effectively inventory is managed and sold
It indicates how many times inventory is sold during a specific period.
2
Q
What is procurement?
A
The act of obtaining and buying goods
It encompasses the entire process of acquiring products and services.
3
Q
Define supply and demand.
A
The relationship between the availability of a product and the need for that product
4
Q
What are back orders?
A
Orders that cannot be fulfilled at the moment due to insufficient supply
They arise from the imbalance in supply and demand.
5
Q
What is replacement cost?
A
The price paid to replace an existing inventory asset with the same or similar product
This cost is critical for financial planning and inventory management.
6
Q
What is inventory control?
A
The process of maintaining sufficient inventory to meet operational demand against the monetary cost of carrying the inventory
It aims to optimize inventory levels.
7
Q
What does optimal inventory control ensure?
A
Frequently used items are always available and that return on investment for carrying and managing inventory is at highest possible level
This minimizes issues like expired, redundant, or obsolete products.
8
Q
What types of inventory are distinguished in the text?
A
- Products purchased for resale to clients
- Products purchased for in-house use (professional or medical supply inventory)
This distinction affects inventory management strategies.
9
Q
What does the term ‘optimal inventory’ encompass?
A
- Minimizing expiring products
- Reducing redundant products
- Eliminating obsolete products
This is crucial for maintaining profitability.
10
Q
All goods owned and held for sale or use in a regular course of business
A
Inventory
11
Q
A decrease in on hand inventory that is caused by use that is not recorded or invoiced
A
Shrinkage
12
Q
______ makes up the second largest expense category second only two staffing costs
A
Inventory
High awareness of inventory management is necessary
13
Q
Products purchased for resale to clients
A
Merchandise inventory
14
Q
Items using the course of providing veterinary medicine and surgical services
A
Medical supply inventory, a.k.a. professional inventory
15
Q
Receiving a product just as needed versus storing the project
A
 just in time
16
Q
Pros for Just in time and cons
A
Pros are low holding costs no expired product
Cons are high, ordering costs stock, outs, and back orders
17
Q
What are the two key considerations when assigning inventory roles?
A
Each role should be viewed as important and undertaken with care;
there should be enough separation of duties to protect the inventory asset and the practice.
Ensuring that roles are important helps in maintaining accountability and security within inventory management.
18
Q
Who is responsible for overseeing inventory on a global level?
A
Inventory manager.
The inventory manager oversees other role responsibilities related to inventory management.
19
Q
What are the responsibilities of the inventory manager?
A
- Tracking documentation
- Receiving shipments
- Transferring departments
- Managing any movement of inventory within the practice
These responsibilities are essential for maintaining accurate inventory metrics and software.
20
Q
What is the role of the inventory receiver?
A
Unpack inventory and ensure the quantity on hand matches the amount in management software.
Stocking
This role is critical for maintaining inventory accuracy.
21
Q
What is the responsibility of the bookkeeper as it relates to inventory?
A
Responsible for the chart of accounts, entering costs of goods data, purchasing budgets, and reports
This role is typically held by the manager and is important for financial accuracy.
22
Q
Fill in the blank: The inventory manager oversees other role responsibilities related to _______.
A
inventory management.
This includes tracking, receiving, and documenting inventory.
23
Q
What is the importance of having enough people in the inventory receiver role?
A
To handle inventory protocol effectively during daily operations.
Adequate staffing ensures that inventory is managed properly and discrepancies are minimized.
24
Q
This person identifies products products means, and places the orders using the suppliers chosen by the inventory researcher
A
Inventory purchaser
25
This person can be any employee who performs physical inventory counts
 Inventory counter 
26
What are losses due to poor inventory management?
* Too much product sitting on shelf
* Not enough product on shelf to meet needs of clients or patients
* Frequent ordering
* Shrinkage
* Theft
* Back orders
* Expired product
* Incorrect products ordered or received
* High cost of overnight or rush shipment for products needed asap
* Shipping costs associated with smaller orders
## Footnote
Important to identify and mitigate these losses to improve inventory management efficiency.
27
Define Unit/Product Cost.
Total amount paid to vendor divided by the number of units ordered
## Footnote
This metric helps in understanding the cost per unit of inventory.
28
What are Replacement Costs?
The price that will be paid to replace the inventory with the same or similar item
## Footnote
Critical for budgeting and financial forecasting.
29
What are Ordering Costs?
Labor related expenses such as employee compensation, including benefits and taxes paid to employees to perform the various duties associated with ordering, receiving, unpacking, manage payment and records
## Footnote
These costs can significantly impact overall inventory expenses.
30
What are Holding Costs?
Costs invested in keeping the inventory on premises while waiting to use or sell, including:
* Personal property tax
* Insurance
* Pharmacy licensing/DEA fees
* Utilities
* Loss due to expiration/waste/spoilage
* OSHA regulations regarding safe handling of inventory
* Routine product maintenance
## Footnote
Holding costs typically range from 8%-15% of the true total cost.
31
What percentage do combined ordering and holding costs account for?
Approx. 25%-35% of the total true cost
## Footnote
Understanding these percentages is essential for managing overall inventory costs effectively.
32
What are DVM Costs? As relates to inventory
If DVMs in the practice are paid on production and inventory is included in their commission, then allocation of a portion of their pay is considered an actual cost of inventory
## Footnote
This cost consideration is important for accurate financial reporting.
33
Fill in the blank: Holding costs typically range from ______% of the true total cost.
[8%-15%]
34
True or False: Shipping costs associated with smaller orders can contribute to losses in inventory management.
True
## Footnote
Smaller orders often lead to higher per-unit shipping costs, impacting overall profitability.
35
What is Shrinkage in inventory management?
Loss of inventory due to factors such as theft or damage
## Footnote
Shrinkage can significantly affect the financial health of a business.
36
_______ Should be used for product pricing rather than the cost paid at time of purchase
Present time replacement costs
37
Elements of an inventory manual
Define cost of goods
Describe how to calculate inventory needs
Document the ordering receiving process
Describe invoicing and data entry
Discuss methods of inventory protection 
38
Benefits of an inventory manual
 keeps consistency in the inventory manager's role
 gives role clarity
 Provides team members with the understanding of the science behind inventory manager 
39
Four steps and getting your inventory under control ( designing your system)
Print your code or product list
Rec code using the a-ha/VMG chart accounts
Consolidate inventory
Begin to enter/receive inventory, efficiently and accurately as it is delivered to the practice
40
What is the main purpose of a practice management software in inventory?
To serve as the backbone of your inventory system and generate inventory reports
## Footnote
Inventory reports include report points and quantities, and allow for orders to be generated.
41
What must be ensured for the inventory system to function properly?
The system must be set up properly, entered correctly, and the product must be calculated accurately.
42
What does the AAHA/VMG chart account provide?
A category system and codes for each product carried in the hospital.
43
List the minimum categories recommended for inventory management.
* Lab or laboratory
* Diets
imaging
* flea/tick/heartworm prevention
* Injections
* Prescription medications-Pill capsule or liquid
retail and over-the-counter products
* Medical supplies
44
What should be evaluated when overhauling the inventory system?
Items entered multiple times under different codes that are incorrectly classified.
45
What should be done with items no longer carried in the inventory?
Activate it or rename it, but do not use codes that make it easy for employees to find and accidentally use.
46
True or False: It is acceptable to delete items from the inventory system.
False
47
What is the importance of not deleting items from the inventory system?
It allows the historic data to remain in the management system and medical history.
48
True or false too many duplicate products will have a negative effect on your cash flow
True
49
Steps to consolidate inventory
Produce a report for a particular category example heartworm prevention
Determine how many units were purchased and sold of each product over a period of time
Determine how much of the product expired
Identify the top two items that were purchased and sold without expiring and produce a report showing profitability
Producer report showing the losses associated with the remaining items
Have a discussion with the doctors to determine what products will carry and shift the remaining items to your online pharmacy 
50
 if there are products that are not used frequently but need to be kept in hospital then....
The markup should be increased, so the practice doesn't suffer a loss
51
What are the control functions of inventory systems?
Preparing and distributing written policies and procedures, creating and maintaining security and safety protocol, and regular monitoring of the system via counts and accountability. Needs to be flexible to change.
## Footnote
Control functions ensure effective management and oversight of inventory.
52
What is a Perpetual inventory system?
A system that provides an accurate idea of inventory quantities at any time by immediately adding received items to the inventory records and removing sold or used items.
## Footnote
This system allows for real-time tracking of inventory levels.
53
How does a Periodic Inventory System operate?
Uses data from manual product counts at the end of every financial period.
## Footnote
This system does not provide real-time inventory data and relies on periodic counts.
54
What are internal controls in inventory systems?
All measures, systems, and protocols used to prevent errors, waste, and fraud.
## Footnote
Internal controls are essential for maintaining the integrity of inventory management.
55
PIMS
Practice inventory management software
56
Process for inventory variance evaluation
Add the beginning count and ordered/receive quantity for the selected item
From that number, subtract the number sold in the same. Period.
Compare that number to physical inventory count at the end of that period
Those numbers should match
If they do not match, the difference is the variance
57
Any variance is an indication of
Weakness or problem
58
What variance on high turn items can be acceptable
1 to 4%
59
True or false there should be no variance on your low turnover products
True
Example bags of food 
60
Time between ordering an item and receiving an item
Lead time
61
What should the inventory system include regarding forecasting functions?
The ability to signal when an item needs to be reordered to avoid an outage.
## Footnote
This ensures that inventory levels are maintained and prevents stockouts.
62
What should the re-order timing account for?
The estimated delay between ordering and receiving.
## Footnote
This is crucial for ensuring that items are available when needed.
63
What is recommended for items with longer lead times?
A higher re-order level.
## Footnote
This helps to mitigate the risk of running out of stock due to extended delays.
64
What is the formula for calculating the Re-order Point?
(Average Daily Use) x (Lead Time) = Re-order Point.
## Footnote
This formula helps in determining the optimal time to reorder stock.
65
What is the Re-order Quantity?
The amount of product to order once the Re-order Point has been reached.
66
How is the Re-order Quantity calculated?
(Average Daily Use) x (Turnover Goal in days)
67
What should be considered when calculating Re-order Quantity?
Rounding up to take into consideration potential growth expectations or supply and demand challenges.
68
What should turnover goals try to match?
The vendor's billing cycle.
69
What is the objective of matching turnover goals to the vendor's billing cycle?
To attempt to sell the product before the practice has to actually pay for the product.
70
What are the elements of an inventory system that deal with profit?
* Price setting
* Tracking profit margin
* Compare inventory and supply expense to revenue generated
71
What is Gross Profit?
The difference between the price of a product to the client and the total cost of that product to the practice.
72
Fill in the blank: Gross Profit is the difference between the price of a product to the client and the _______.
[total cost of that product to the practice]
73
What is the Red Tag System?
A system where each item has a tag with necessary ordering information placed on the bottle or package to indicate reorder points.
## Footnote
The tag is placed on the next to last bottle of a product, and must be monitored by the inventory manager.
74
What is the responsibility of the team member when the bottle with the red tag is opened or sold?
To place the red tag in a box that the inventory manager monitors.
## Footnote
This process ensures that reorder points are compared regularly.
75
What are some cautions associated with the Red Tag System?
Packages getting out of order, tag falling off, team member losing or forgetting to place the tag in the box.
## Footnote
These issues can lead to inventory mismanagement or ordering errors.
76
Fill in the blank: The Red Tag System helps indicate _______.
reorder points
77
True or False: The Red Tag System only works if team members consistently place the tag in the designated box.
True
78
What are two important inventory organization techniques?
Zoning and central supply
## Footnote
These techniques help streamline inventory management in healthcare settings.
79
What is the purpose of zoning in inventory management?
To create a map of inventory locations throughout the hospital and mobile trucks
## Footnote
Zoning helps maintain organization and tracking of supplies.
80
What should inventory management team members create for effective zoning?
A list of supplies they are responsible for and their locations
## Footnote
This list helps prevent inventory from floating or changing locations.
81
What is the benefit of having a stocking list in inventory management?
It establishes minimum reorder amounts for each item
## Footnote
Stocking lists aid in determining what needs restocking or ordering.
82
How can team members use the stocking list?
To spot check what needs to be restocked or ordered for that location
## Footnote
This ensures that all team members can assist in inventory management.
83
Why are stocking lists particularly useful for mobile trucks?
They are great organizational tools
## Footnote
Mobile trucks require efficient inventory management to ensure supplies are readily available.
84
What is the Central Supply System also known as?
Ration Based Inventory
## Footnote
This system is designed for efficient inventory management in large practices.
85
What is the primary purpose of the Central Supply System?
To control internal theft and waste, and aid in greater organization and tracking of products
## Footnote
It helps maintain accurate inventory levels.
86
How are supplies and inventories managed in the Central Supply System?
Stored in a main highly secured area and systematically rationed out to other areas in smaller quantities.
87
What types of storage locations are created in the Central Supply System?
Primary (majority) and secondary storage locations.
88
Who should have access to the primary storage in the Central Supply System?
One or two individuals only.
89
How should primary storage be safeguarded?
With a keyed lock or an electronic key pad.
90
What is a key security measure for the keys to the primary storage?
Keys must not be hidden and must not be accessible to non-authorized individuals.
91
What is required when physically removing products from primary storage to secondary locations?
Sign out reports with description and quantities moved.
92
What is a key principle regarding control over assets in the Central Supply System?
No one person should have control over the asset and the record of the asset's movement.
93
What is Selective Inventory Control?
A profit-based management system that prioritizes inventory based on value and importance.
## Footnote
It focuses on managing the most valuable items in terms of sales revenue.
94
What does Pareto's 80/20 rule state in the context of inventory?
20% of the items account for 80% of the sales revenue, 80% of the costs exist in 20% of the items, and 80% of the profit can be predicted to come from 20% of the products sold.
## Footnote
This rule highlights the disproportionate relationship between a small number of items and overall financial performance.
95
According to Selective Inventory Control, where should most management efforts be focused?
On the top 20% of products.
## Footnote
This is where the majority of sales revenue and profit are generated.
96
What is the ideal goal for ordering inventory in Selective Inventory Control?
Order your top 20% of items once a month.
## Footnote
This minimizes the number of times orders are placed per week.
97
Fill in the blank: Selective Inventory Control uses _______ to prioritize inventory.
[profit-based management system].
98
True or False: According to the 80/20 rule, most costs are concentrated in a small number of items.
True.
## Footnote
This indicates that a few items significantly impact overall costs.
99
What is the formula to calculate Average Inventory on Hand (Al)?
(BI + El) / 2
100
What does DMSP stand for?
Sum total of drug and medical supply purchases (in dollars) made over the course of the year
Drug and medical supply purchases
101
How do you calculate the Inventory Turnover Ratio?
DMSP / Al
Aka COGS/AI
AI is in dollars
102
What does a higher Inventory Turnover Ratio indicate?
Tighter inventory control
103
What is the average turnover in companion practices?
Around 6 times a year
104
What is the formula to calculate Average Shelf Life of Inventory in Days (ASLD)?
365 / annual turnover ratio
105
What is the significance of Average Shelf Life of Inventory in Days (ASLD)?
It is useful in determining the efficiency of inventory management
106
Fill in the blank: Average Inventory on Hand (Al) is calculated using the formula _______.
(BI + El) / 2
107
True or False: A lower turnover ratio indicates better inventory management.
False
108
What is mark-up in pricing methods?
Multiplying acquisition cost by a specific factor.
109
How does a 100% mark-up affect acquisition cost?
It doubles the acquisition cost.
110
What does a 200% mark-up do to the acquisition cost?
It triples the acquisition cost.
111
What is the likely result of a 40% mark-up on cost in veterinary medicine?
It will likely result in break even for the practice once all costs of operations are considered.
112
What is margin pricing?
Predetermines the amount of profit desired and adds that to the acquisition cost.
113
How does margin pricing compare to mark-up pricing regarding price increases for clients?
Margin pricing decreases the rate at which the price increases for the client.
Margin pricing means you set a selling price so that a specific percentage of the final price is your profit (margin).
Example: If you want a 20% margin on the final price, you solve:
Cost ÷ (1 - Margin) →
$100 ÷ (1 - 0.20) = $125
Markup is based on cost.
• Margin is based on sales price.
114
Fill in the blank: A 300% mark-up will _______ the acquisition cost.
[quadruple]
115
True or False: Margin pricing results in a higher price increase for clients compared to mark-up pricing.
False
116
Margin
Sales minus cost of good sold
117
Markup
Amount by which the cost of a product is increased in order to derive the selling price
118
What is Break Even Analysis?
An analysis that is used to determine when your business will be able to cover all of its expenses and begin to make a profit
## Footnote
It helps businesses understand the relationship between costs, sales volume, and profit.
119
Define Break Even Point.
The amount of revenue that covers all fixed and variable costs, without generating either profit or loss
## Footnote
It is a crucial concept for understanding financial viability.
120
What is the Break Even Sales Price Equation?
SP = FC + VC + P
## Footnote
Where SP = Sales price, FC = Fixed costs, VC = Variable costs, P = Profit.
121
What does SP stand for in the Break Even Sales Price Equation?
Sales price
## Footnote
It represents the price at which a product must be sold to cover costs.
122
What do FC and VC represent in the Break Even Sales Price Equation?
FC = Fixed costs, VC = Variable costs
## Footnote
Variable costs examples Dvm production percent, and associated payroll cost, and taxes
Fix costs could be unit cost, estimated ordering and holding costs 
123
What is the typical profit target (P) that practices aim for?
12%
## Footnote
This percentage is often used to assess profitability in various business models.
124
Variable costs can include which types of expenses?
Almost any liability, including production and associated payroll costs
## Footnote
They are costs that vary directly with the level of production.
125
What does the Equipment Budget include?
Maintenance of existing equipment and purchase cost of new equipment
## Footnote
This includes considerations for both new purchases and replacements.
126
When purchasing new equipment, what should be considered regarding existing equipment?
Whether the equipment is new to the practice or replacing existing equipment and the benefits it has over the existing equipment
How will the equipment be paid for cash lease finance?
What will the client be charged and where is break even?
.
127
What are the payment options to consider when purchasing equipment?
Cash, lease, finance
## Footnote
Each option has different implications for cash flow and long-term costs.
128
What should be determined regarding client charges and break-even?
What will the client be charged and where is the break-even?
## Footnote
Understanding this helps in pricing and financial planning.
129
What is typically the smartest way to purchase equipment?
Cash
## Footnote
Cash purchases often avoid interest and finance charges.
130
What is the purpose of performing a break-even analysis prior to purchase?
To determine when the business will recover all expenses and begin to make a profit
## Footnote
This analysis aids in financial planning and decision-making.
131
What factors are included in a break-even analysis? For new equipment
Price of equipment and any support or maintenance, client invoiced cost, cost to actually produce the service
## Footnote
All these elements contribute to understanding profitability.
132
How is the number of times a service must be performed to break even calculated?
Price of equipment and any support or maintenance/(client invoiced cost minus cost to actually produce the service)
-price divided by the profit
-profit is what we're charging for it minus the cost to produce the service
133
What is the Tax Act of 2003 known for regarding small business owners?
It has improved benefits for small business owners.
## Footnote
This act provides various tax incentives and deductions to support small businesses.
134
What did Section 179 of the Tax Act of 2003 significantly increase?
The amount of eligible property that can be written off in the first year.
## Footnote
In 2012, this amount was $139,000.
135
What does Section 168K provide for equipment purchased above the $139,000 limit?
An additional deduction of 50% of the remaining balance.
## Footnote
This allows businesses to recover costs more quickly.
136
How is the remainder of the purchases depreciated after applying Section 179 and Section 168K?
On a straight line depreciation schedule.
## Footnote
This method spreads the cost of the asset evenly over its useful life.
137
Calculate the remaining balance after applying Section 179 and Section 168K on equipment costing $150,000.
$4,400.
## Footnote
Calculation steps: Cost = $150,000, Section 179 = $139,000, Section 168K = $5,500, MACRS depreciation = $1,100.
138
What does MACRS stand for?
Modified Accelerated Cost Recovery System.
## Footnote
It is a method used by the IRS to calculate depreciation for tax purposes.
139
True or False: The MACRS depreciation is calculated using a formulaic table established by the IRS.
True.
## Footnote
This table simplifies the depreciation calculation process.
140
Medical records definition 
A permanent written account of the professional interaction and services rendered in a valid patient client relationship
141
What are veterinary medical records mandated by?
Each individual state
142
What principles influence the documentation of veterinary medical records?
The AVMA principles of veterinary medical ethics
143
What are the minimum requirements for medical records according to veterinary ethics?
Confidentiality and only shared via court order or with authorization of the owner or patient
144
What happens to treatment if it is not documented in the medical record?
It is presumed absent during litigation
145
Complete the statement: 'If it is not written down, it _____.'
did not happen
146
Who owns the medical records in a veterinary practice?
The practice and practice owners
147
What must be provided to clients upon request?
Copies of medical records
148
What often triggers investigations by state licensing boards?
Medical record violations
149
True or False: Medical records can be shared freely without any restrictions.
False
150
What is a common saying heard in human nursing related to medical documentation?
'If it is not written down, it did not happen'
151
What can medical record documentation impact in legal cases?
The outcome of lawsuits
152
What is a common violation related to patient and client identification in veterinary medicine?
Lack of complete patient and client identification
## Footnote
This violation can lead to issues in treatment continuity and accountability.
153
What must be included in a system-by-system description according to medical record standards?
Annotated exam notes
## Footnote
Annotated notes provide clarity and context to the examination findings.
154
What is presumed if a treatment or diagnosis is not documented?
It is presumed to not have happened
## Footnote
Documentation is essential for legal and medical accountability.
155
True or False: Medical record violations are a minor part of investigations by state licensing boards.
False
## Footnote
Medical record violations are part of the large majority of investigations.
156
What can lead to a veterinarian being cited for medical record violations even if they are acquitted of a client's complaint?
Not meeting the minimum standards
## Footnote
Standards must be adhered to regardless of the outcome of client complaints.
157
What does a lack of clients informed consent or waiver indicate in medical records?
Lack of treatment specified
## Footnote
Informed consent is critical for ethical and legal compliance.
158
What is considered equivalent to having no medical record?
Illegible medical records
## Footnote
Illegibility undermines the utility and reliability of medical records.
159
List thcommon examples of license board violations in veterinary medicine.
* Lack of complete patient and client identification
* Lack of tentative diagnosis and/or lack of prognosis
* Illegible entries and alterations or deletions of record after a reasonable contemporaneous period
-lack of complete system by system description with annotated exam notes
-lack of treatment specified, especially lack of clients informed consent or waiver, denial of recommendation 
## Footnote
These violations can lead to disciplinary actions against veterinarians.
160
What does POMR stand for?
Problem Oriented Medical Record
## Footnote
POMR is the most common medical record format.
161
List the components of the POMR format.
* Defined database
* Problem list (master list)
* Plan
* Progress section
-SOAP is within the progress section 
Defined Database – the complete patient information
2. Problem List – all current and past diagnoses/issues
3. Initial Plans – diagnostic, therapeutic, and patient education plans
4. Progress Notes – often in SOAP format (Subjective, Objective, Assessment, Plan)
162
What does the SOAP format stand for in medical records?
* Subjective
* Objective
* Assessment
* Plan
163
What type of information is included in the Subjective section of the SOAP format?
Most critical information for support staff, including reason for visit, history, and client observations.
164
What is documented in the Objective section of the SOAP format?
Information collected via physical exam, diagnostics, and interpretation.
This section is factual
165
What does the Assessment section contain?
Conclusions reached from subjective and objective data, including multiple or tentative diagnoses.
Use rule in or rule out
166
What is included in the Plan section of the POMR?
Treatment, surgery, medication, intended diagnostics, or intended communication with the owner.
167
What does SOMR stand for?
Source Oriented Medical Records
## Footnote
SOMRs organize data by the information source.
168
How is data organized in a Source Oriented Medical Record (SOMR)?
Data is grouped by information source and organized chronologically by date of patient encounter.
169
Give examples of information sources in a SOMR.
* Client oral history
* Physical exam findings
* Imaging studies
* Laboratory results
170
What is a potential drawback of SOMRs?
The date-to-date history may be disjointed depending on the doctor's organizational skills
SOMR's can be effective if well organized
Use of checklist can increase probability of capturing necessary data.
171
What is a recommended method for organizing medical records effectively?
A combination of SOMR and POMR.
172
What components are included in the combination of SOMR and POMR?
* Major problem list
* Vaccination history
* Exam using the SOAP format with major problems, entered using the POMR source oriented format 
173
The defined database section of the POMR contains
Chief presenting complaint
Patient's profile
History
Exam findings
Diagnostic reports
174
The problem list section of the POMR contains
It's divided into three sections
-major problem list
-minor problem list
-medication table
175
The plan section of the POMR contains
Planned course of action for the current active problems, including diagnostics, therapy, client, education
176
The progress section of the POMR contains
Dvm and technician notes on the case
Observations, changes and progress
*SOAP
177
According to practice made perfect applying Peretto's 8020 rule to inventory helps
Prioritizing inventory time investment. Since 20% of our product bring in 80% of our produce revenue, we should concentrate on the line share of our efforts on that top 20%.
178
Ideally, the top 20% of the inventory items should be ordered how often
Monthly
179
To maintain tight internal controls of the role of inventory purchaser should always be separate individual from who
The inventory receiver and the inventory documentary and tracker
180
The tax act of 2003 provided what increased benefit to small business owners
-significantly increase the amount of eligible property that could be written off in the first year
-gave an additional deduction of 50% of the remaining balance of the equipment purchase that is above the 139,000
-the remainder of the tortoises can also be depreciated on a straight line depreciation schedule
181
Practices should plan to reinvest about what percent of gross revenue for replacing or requiring equipment annually
One percent
182
Digital radiography unit in your practice is considered capital in inventory yes or no
Yes, if it is in usable condition
183
What are three benefits of using logs in vet med
To comply with legal requirements, such as controlled substance logs
Provide evidence in the event of a malpractice claim
Convenient for a quick data analysis and auditing
184
The state veterinary practice act defines minimum medical record documentation for each state. What other entities define minimal requirements of that med records?
The AVMA principles of veterinary medical ethics and AAHA
185
Software and hardware purchases will show great return on investment than any other capital expense in VM due to increase efficiency in every department. True or false.
True
186
Hardware and software are both examples of information systems true or false
True
187
Ideally, no less than _____ of on-site training should accompany any major software conversion
 1/2 day
188
Which of the four phases of strategic planning is focused on how practice will get from point a now two point B the future
 development
189
Leadership fatigue can be experienced by both owners and managers, and usually results from
Lack of communication
Lack of delineation or clarity of job duties
Feeling that they are constantly haggling with the team to carry out policies and procedures
190
Leadership fatigue can be experienced by both owners and managers. Which element of the strategic plan addresses this dynamic
Organizational design
191
How long can it take to prepare a team member for a leadership position?
12 to 36 months
192
What is the ultimate goal for managers regarding practice technology?
To develop effective, automated information and processing systems that can evolve with practice growth and take advantage of new technology as it is developed.
193
Name three applications of technology in veterinary practice.
* Online continuing education
* Computerized appointment system
* Consultation with specialists and experts
194
Fill in the blank: An example of technology used in veterinary practice is _______.
[Digital photographs]
195
What is one benefit of using a computerized appointment system in veterinary practice?
Improves scheduling efficiency and reduces booking errors.
196
True or False: Digital radiographs are an application of technology in veterinary practice.
True
197
List two ways technology can assist with client communication in veterinary practice.
* E-mail reminders
* SMS reminders
198
What does the use of electronic medical records in veterinary practice enhance?
Record-keeping efficiency and accessibility.
199
Fill in the blank: Technology applications in veterinary practice include _______ for supply purchases.
[Online supply purchases]
200
What role does webpage design and maintenance play in veterinary practice?
It enhances online presence and client engagement.
201
Name two types of digital imaging used in veterinary practices.
* Digital photographs
* Digital radiographs
202
What is the ultimate goal for managers regarding practice technology?
To develop effective, automated information and processing systems that can evolve with practice growth and take advantage of new technology as it is developed.
203
Name applications of technology in veterinary practice.
* Online continuing education
* Computerized appointment system
* Consultation with specialists and experts
-digital photographs
-digital radiology
-credit card processing
-email/SMS reminder reminders
-electronic medical records
-online office procedural manual
-supply purchases
-webpage design and maintenance 
204
List two ways technology can assist with client communication in veterinary practice.
* E-mail reminders
* SMS reminders
205
What should be considered regarding team anxiety during software implementation?
Some team members may need extra training, especially if they are not confident with technology.
## Footnote
Acknowledging team anxiety can help in managing the transition effectively.
206
What is the ideal duration for on-site training when new software is implemented?
No less than ½ day of on-site training.
## Footnote
This ensures that the team can focus on learning the software without distractions.
207
What should be minimized during on-site training for new software?
Appointments should be kept to a minimum.
## Footnote
This allows the team to concentrate on learning the new software.
208
What strategy should be considered if multiple software applications are purchased?
Implement them in phases as the team masters one component.
## Footnote
This gradual approach can enhance learning and adaptation.
209
What is recommended if the new software aims to make the practice paperless?
A gradual training transition is recommended.
## Footnote
This helps in easing the team into the new paperless environment.
210
What additional infrastructure should be purchased and implemented alongside new software?
New hardware throughout the practice.
## Footnote
This is essential for supporting the new software effectively.
211
For how long should new software be implemented before completing the transition?
6 - 12 months.
## Footnote
This duration allows adequate time for adjustment and mastery of the software.
212
What is the final phase of transitioning to a paperless practice?
Begin final phase of going paperless.
## Footnote
This phase follows the implementation of new software and hardware.
213
What are the phases of the Business Life Cycle?
Introductory, Growth, Maturity, Decline
## Footnote
Each phase represents a different stage in the development of a business.
214
What characterizes the Introductory phase of the Business Life Cycle?
Vision, innovation, and energy.
## Footnote
This phase typically occurs before the business opens for operations.
215
What is critical during the Growth phase of the Business Life Cycle?
Efficiency, discipline, and talent development.
## Footnote
These elements are essential for scaling the business effectively.
216
What should be managed during the Maturity phase of the Business Life Cycle?
Risks, problem solving, and searching for continuous growth opportunities.
## Footnote
This phase focuses on sustaining the business's success.
217
What signifies the Decline phase of the Business Life Cycle?
Decreased demand for services.
## Footnote
Revisiting the strategic plan for revitalizing the practice is vital in this phase.
218
Fill in the blank: The __________ phase is characterized by vision, innovation, and energy.
Introductory
219
True or False: The Growth phase emphasizes creativity and innovation above all else.
False
## Footnote
The Growth phase focuses more on efficiency, discipline, and talent development.
220
What is a key action to take during the Decline phase?
Revisit the strategic plan for revitalizing the practice.
## Footnote
This helps address the issues of decreased demand.
221
What are the four phases of strategic planning?
Formulation, development, implementation, evaluation
222
What is the first phase of Strategic Planning?
Formulation
223
What does SWOT stand for in Strategic Planning?
Strengths, Weaknesses, Opportunities, and Threats
## Footnote
This analysis helps organizations understand internal and external factors.
224
What is the purpose of Gap Analysis in Strategic Planning?
To compare current performance with potential or desired performance . This is done during the formulation phase 
## Footnote
This leads to the development phase of the strategic plan.
225
Which phase of strategic planning is the development of mission, vision, and values that represents the goals of the organization and the basis, for however, every decision is made. Every member of the team must embrace submission, vision, and values of the practice.
Formulation
226
What phase of strategic planning is the SWAT and gap analysis done in?
Formulation
227
What questions can be asked when making a gap analysis?
What services are delivered today and what services are desired to be offered in the future
What skills, knowledge and abilities does the team need to get to your goal?
What is the employee retention rate and are there true career opportunities?
228
What is the second phase of strategic planning?
Development
229
Which phase of strategic planning uses the results of the mission, vision, and values, the SWOT, and the gap to create a plan to achieve the desired goals
Development 
230
What are things to consider during the development phase of strategic planning?
Team members-skill level, training, retention, and current or future
Clients -who is your target market? How will you find and retain them?
Patient -what equipment or tools are needed to reach your patient care goals
Budget -what investments are needed to reach your goals and how will the practice obtain those funds? 
231
The outcome of the development phase is to
Create a strategy that has a strategic fit, where the practices activities interact with and support the strategy and each one optimize the other to reach the goal
232
What is the phase of strategic planning that the strategic intent is translated into specific plans of action?
Implementation
233
What is the main focus of the implementation phase in strategic planning?
Translating strategic intent into specific plans of action
## Footnote
This involves allocating resources, communicating with team members, and managing initiatives effectively.
234
What are the necessary components to achieve strategic goals?
Education, team knowledge, skills, abilities, and appropriate staffing
## Footnote
These components ensure effective execution of the strategic plan.
235
What does 'Systems Thinking' involve in the context of strategic planning?
Considering how each department affects another
## Footnote
This approach helps in understanding interdependencies within the organization.
236
What are the key elements to include in a Plan of Action?
Specific objectives, measurement of success, methods to obtain objectives, needed resources, and time frame
## Footnote
Each element ensures clarity and accountability in the strategic plan.
237
Fill in the blank: During the implementation phase, it is crucial to __________ resources to the right initiatives.
allocate
238
True or False: Effective communication with team members is not important during the implementation phase of strategic planning.
False
239
What is the primary focus during the Evaluation phase of Strategic Planning?
Evaluating the success of the objectives set during the Development phase
## Footnote
This includes assessing if the original objectives were met and how effective the strategies were.
240
What should ideally be established during the Development phase for project monitoring?
Project 'check-in' points and regular monitoring of KPIs
## Footnote
KPIs are Key Performance Indicators that help in measuring the success of objectives.
241
What is a 'Balance Scorecard' used for in Strategic Planning?
To illustrate the state of the practice across various metrics
## Footnote
It provides a comprehensive view of organizational performance.
242
List three metrics that can be included in a Balance Scorecard.
* Client satisfaction
* Financial status
* Learning and development progress
## Footnote
These metrics help in evaluating the effectiveness of strategies.
243
True or False: The Balance Scorecard can show the side effects of your strategy.
True
## Footnote
It helps in understanding the broader impact of strategic changes on the business.
244
Fill in the blank: The scorecard metrics can show the _______ of your strategy and its successful implementation.
side effects
## Footnote
This includes understanding both positive and negative impacts of the strategy.
245
What is Organizational Design?
The methodology that identifies aspects of workflow, procedures, roles, and systems and aligns them to fit current business realities and goals.
## Footnote
Organizational Design clearly defines roles within the practice and aims to empower team members through clear responsibilities and effective communication.
246
What is the importance of clearly defining roles within an organization?
It empowers team members due to clear responsibilities, clear goals, and effective communication.
## Footnote
Clear role definitions facilitate better teamwork and accountability.
247
What should be considered when exploring Organizational Development?
* How the team helps achieve the goals
* Manage team training and engagement
* Manage leveraging and staffing levels
* Ensure organizational hierarchy does not interfere with care delivery
* Clearly define job responsibilities
* Establish a Mission, Vision, and Values that resonate with the team
* Clearly communicate goals
## Footnote
These considerations help align the organization with its objectives.
248
True or False: Organizational hierarchy should interfere with the delivery of relationship-centered care.
False
## Footnote
A well-structured hierarchy should support, not hinder, the delivery of care.
249
Fill in the blank: Organizational Design aligns aspects of workflow, procedures, roles, and systems to fit current __________.
[business realities and goals]
250
What are the key components of effective team management in Organizational Development?
* Team training
* Engagement
* Leveraging and staffing levels
* Communication of goals
## Footnote
Effective management ensures that the team is aligned with organizational objectives.
251
What should a Mission, Vision, and Values do in an organization?
They should resonate with the team and guide the organization’s objectives.
## Footnote
These elements are crucial for fostering a unified organizational culture.
252
What is a learning organization?
A learning organization is characterized by the ability to adapt to change and respond quickly to environmental/consumer changes.
## Footnote
Learning organizations continuously evolve by fostering a culture of learning and innovation among their members.
253
Name areas to evaluate for potential change or training needs in a learning organization.
* Client Services
* Patient Care
* Team Development
* Revenue Centers
## Footnote
These areas are critical as they directly impact organizational performance and adaptability.
254
What is a common reason for the failure of organizational development?
* Leadership did not support or commit to change
* Wrong message or message did not resonate with the team
* Changes were forceful instead of collaborative
* Lack of clear communication
* Change does not align with Mission, Vision and Values
## Footnote
Understanding these reasons can help organizations avoid pitfalls when implementing changes.
255
How does systems thinking relate to being a learning organization?
* Every team member must generate ideas and create solutions for all parties involved.
* Mission, Vision, and Values are a critical element to systems thinking.
* Team members need to know that leadership readily embraces change and accepts recommendations.
* Failures create learning opportunities and empower team members to continue being engaged in the process.
## Footnote
Systems thinking encourages a holistic approach to problem-solving and innovation within the organization.
256
Fill in the blank: A learning organization must ensure that every team member generates ideas and creates solutions for _______.
[all parties involved]
## Footnote
This emphasizes collaboration and inclusivity in problem-solving.
257
True or False: In a learning organization, failures are seen as setbacks rather than opportunities for learning.
False
## Footnote
Failures are viewed as learning opportunities that engage team members in the improvement process.
258
What elements are crucial for systems thinking in a learning organization?
Mission, Vision, and Values
## Footnote
These elements guide the organizational culture and decision-making processes.
259
What is Inventory Control?
The process whereby the need to maintain sufficient inventory to meet operating demands is weighed against the monetary cost of carrying the inventory.
260
List 10 inventory control goals.
* Products are available to treat patients when needed.
* Quantities are controlled to minimize expenses.
* Clients can conveniently obtain refills.
* Regular evaluation of preferred pharmaceuticals and supplies to avoid redundancy, streamline storage, ordering, and training
-Employees can efficiently order, stock and dispense needed items
-controlled drugs are properly maintained
-appropriate security, systems, and safeguards exist to ensure proper use
-employees are well-versed in communicating the value of products dispensed at the practice and can also confidently field. Client inquiries regarding online pharmacies or big box stores.
--fees are adjusted regularly
-profit margins are set and accomplished
261
What is the percentage range of combined ordering and holding costs accounting for total true costs?
25%-35%
262
What is the term for an inventory system where items received are immediately added and sold items are immediately subtracted?
Perpetual.
263
Define gross profit on product.
The difference between the price of a product to the client and the cost of that product to the practice.
264
What are the two main benefits of using a Central Supply Inventory System?
* Reduce theft and waste
* Better organization and tracking of products.
265
What are the five steps in the ABC Inventory Analysis?
* Create spreadsheet and calculate Annual Usage Volume.
* Calculate cumulative Annual Usage Volume.
* Calculate the Cumulative Percentage of Annual Usage Volume.
* Calculate the Annual Usage Distribution.
* Group items into classes A, B, C.
266
What should be ensured regarding security in inventory management?
Appropriate security, systems, and safeguards exist to ensure proper use.
267
True or False: Employees should be well versed in communicating the value of products dispensed at the practice.
True.
268
What should be adjusted regularly in inventory management?
Fees.
269
What needs to be set and accomplished in inventory management?
Profit margins.
270
What is the calculation to determine Average Inventory on Hand (AI)?
(BI + El) / 2
271
The higher the inventory turnover ratio indicates _______ inventory control.
Tighter
272
What mathematical formula allows calculation of ideal inventory ordering by recognizing unit cost, ordering cost, and holding cost?
Economic Order Quantity (EOQ)
273
Which pricing structure is useful where there are large differences in the end resulting price based on the size of the patient?
Margin pricing method
274
Which category of drugs is likely to have a higher mark-up?
Drugs used to treat chronic conditions
275
True or False: Itemizing the various fees associated with dispensing medication on the client invoice improves perceived value.
False
Clients do not have a complete understanding or appreciation of the cost associated with dispensing medication 
276
Calculate the inventory variance using the following data: Beginning quantity = 250, Amount ordered and received = 1000, Amount sold = 942, Physical count of quantity on hand = 298. What is the variance?
(10)
277
What are the benefits of Just In Time ordering?
Low holding costs, no expired product
278
What are the disadvantages of Just In Time ordering?
High ordering costs, stock outs and back orders
279
What are the two main inventory organizational techniques?
* Zoning
* Central Supply
280
What are the four steps to Inventory Budgeting?
1 - Project Revenue
2 - Project COG Expenses
3 - Project COG Subsection Expenses
4 - Share the Budget and Communicate Expectations
## Footnote
COG stands for Cost of Goods.
281
What information should a running capital inventory list contain about the equipment?
* Equipment name
* Manufacturer
* Model/serial number
* Purchase date
* Amount paid
* Purchase location
## Footnote
This information is crucial for tracking assets and managing inventory effectively.
282
What is the break-even number for a potential Laser machine purchase with the following metrics: Purchase price $25,000, Client cost $65, Technician time to perform the service $15?
500 invoiced uses to break-even
## Footnote
The break-even point is calculated by dividing the total costs by the profit per use.
283
The practice purchased a digital radiography unit for $35,000. Shipping charges were $2525. Installation and training costs were 2750. The practice is planning on the equipment serving them for minimum of 10 years.
Using the formula for calculating equipment expense for profit center use
What is the estimated monthly expense for the digital radiology unit if it serves for a minimum of 10 years?
$335.62
## Footnote
This calculation is important for budgeting and determining the impact on profit centers.
284
What is the most significant drawback to paper medical records and why?
For eligibility, which can lead to patient care mistakes and confusion. Illegible records will also likely work against the practice of ever needed in a court case.
285
How should a written mistake be corrected on a paper medical record?
A one line strike through with the author's initials
## Footnote
Correction fluid cannot be used on any medical record, release, or authorization form.
286
What happens to entries in electronic medical records after a backup is completed?
They will be documented as an addendum
## Footnote
Software should have an automatic lock-out time frame after a backup.
287
What can an incomplete, illegible medical record be considered?
An admission of professional incompetence
## Footnote
It implies that the care provided was sub-standard.
288
Can a veterinarian be cited for medical record violations if the client complaint did not concern medical records?
Yes
## Footnote
The board will investigate the records to rule on the complaint, regardless of acquittal.
289
What is the significance of a veterinarian being acquitted of a client's complaint?
They could still be cited for medical record violations if they do not meet minimum standards
## Footnote
Client complaints are rarely about records, but records are investigated.
290
In the medical record, only abnormal results are recommended to be occupied in the patient medical record, true or false
False
291
Medical (medicine) documentation must include
Name of medication, strength, dose given, and route administered
292
Element that should be included in the auditing of medical records
Data entry
Initials of all team members writing in the record
A complete SOAP format
All authorization forms signed by the client
Missed charges
Recheck and recall compliance
Compliance with practic medical standards
Medical service compliance
293
The system or program the computer follows is called
Software
294
the four priorities of general emergency management
Mitigation, preparation, response, recovery
295
Define mitigation
Strategies and actions that reduce the likelihood, an impact of a threat
296
Define preparation
Planning and training action steps that develop the capacity to respond to a threat
297
Define response
Actions taken in the face of an emergency situation
298
Define recovery
Process of returning to normal after emergency event this could be like the process
299
A relationship center practice is to find as utilizing empowered, veterinary team members who share veterinary knowledge to develop long lasting relationships with clients and patients. Which element of strategic planning best addresses this dynamic.
Organizational design
300
I can follow through from management, push form of learning versus pull, and negative peer pressure from team members who have plateau, are all common reasons for what?
Resistance for learning
301
Long-term written action plan that will define and achieve future business goals
Strategic planning
302
_________Set up businesses for the future by making decisions today to accomplish future goals
Strategic planning
303
During the _____ phase efforts must be made to Keep the practice, culture, relevant, and vibrant to meet the changing needs of the team
Maturity phase
304
A lot of companies struggles during the maturity phase because ......
Embracing technology, innovation and fostering employee engagement is critical, and if overlooked business decline may follow
305
Holding costs typically range from ______ of the true total cost.
8%-15%
306
Calculation for margin 
Cost/(1-margin %)
