CB Questions Only Aug 2010 - Code Blue Instructors Edition...

Code Blue
Instructors Edition-- Discussion Questions and Practice Problems with
Answers
Third Edition
Discussion questions and practice problems are organized by chapter. Due to the textbook/novel
nature of Code Blue, not all chapters have questions or problems.
Chapter One
1. Hap Castleton and Del Cluff have different management styles, and this has caused some friction
in their relationship. As assistant controller, what might Del have done to improve his credibility
with Castleton?
2. What message is conveyed when employees refer to accountants as “ bean counters”? Why do
you think accountants have such an unfavorable image with some managers? What might they
do to change this?
Chapter Two
1. What is the role of the Finance Committee in a hospital?
2. What is the role of the president of the medical staff in a hospital?
Chapter Three—Including Supplement One
1. Wycoff firmly believes in the diversification of management teams. Do you agree with him? If
so, what factors would you look for in diversification?
2. How is it possible that hospitals didn’t know the costs of their products? Without accurate
procedure costs, how did they determine prices?
3. What is a prospective payment system, and how did it change the need for cost accounting?
4. Evaluate the incentives for cost control under cost reimbursement and prospective
reimbursement.
5. Do you believe there are any down sides to incentive reimbursement in healthcare?
6. What is the difference between a financial accounting system and a cost accounting system?
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7. A cost objective is defined as a function, organizational subdivision, contract, or other work unit
for which cost data are desired, and for which provision is made to accumulate and measure the
costs of contracts, products, etc. A final cost objective is a cost objective that has allocated to it
both direct and indirect costs and is one of the final accumulation points. What were the final
cost objectives under cost reimbursement? What would you speculate they might be under
prospective reimbursement?
8. What problems was the lack of a cost accounting system causing for Peter Brannan Hospital?
9. What is the difference between DRG and Capitation Payment reimbursement systems?
10. How a manager does something is often as important as what he or she does. Assuming Selman
needed to be terminated, do you agree with the manner in which it was done?
11. Is there anything that Wycoff might have done to make Douglas’s transition into his new position
less difficult?
Chapter Four
1. Why didn’t Douglas agree to meet with Ulman personally? Do you agree with his decision?
2. Is it appropriate for a board member to assume line responsibility in an organization?
3. The employees’ initial impression of Wes Douglas is not favorable. Why? Is his image that
important given the hospital’s current situation? If you were the new administrator, would you
do anything at this point to change the situation? What?