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Nurse Leader & Educator Certs

NE-BC · Domain III · 16% of scored items

Stark vs anti-kickback, HPPD and staffing

Facts checked against nursingworld.org, codeofethics.ana.org and web.archive.org · Last checked Nov 6, 2026 · Not affiliated with ANCC, ANA, AONL, NLN or AACN.

Business Management is the smallest domain, with a lot of arithmetic and two laws that candidates swap. Since 2025 it also holds staffing: models, skill mix and scheduling. This page is the site's reference for a unit's budget and staffing math, and the other exams link here for it.

0 / 15 done · 0 correct15 questions

Two knowledge lines, two skills

From the October 2025 outline:

  • Patient payor mix: value-based purchasing, the care continuum and patient throughput.
  • Financial compliance law: Stark and anti-kickback.
  • Financial management: budgeting, hours per patient day, resource use, cost-benefit analysis.
  • Staffing fundamentals: staffing models, skill mix and scheduling, moved here from human resources in 2025.

Stark Law vs the Anti-Kickback Statute

Both laws target money that could steer referrals in federal health programs. That is where the likeness ends.

  • Who it binds. Stark: physicians, and the entities they refer to. Anti-Kickback: anyone, nurses, managers, vendors and hospitals included.
  • What it forbids. Stark: referrals for designated health services payable by Medicare to an entity with which the physician has a financial relationship, unless an exception applies. Anti-Kickback: knowingly giving or taking payment of any kind meant to win referrals of business paid for by a federal health care program.
  • Intent. Stark is strict liability: intent does not matter. The Anti-Kickback Statute requires knowing and willful conduct.
  • Penalties. Stark: civil, starting with denial of payment and refunds. Anti-Kickback: criminal as well as civil, up to prison and exclusion from federal programs.
  • Ways out. Stark has exceptions; the Anti-Kickback Statute has safe harbors.

Sources: CMS on the physician self-referral law; HHS Office of Inspector General, Fraud & Abuse Laws.

Hours per patient day, worked through

A 28-bed medical unit budgets 8.0 nursing hours per patient day and averages a census of 25.

  1. Nursing hours needed per day: 200 hours

    25 patients × 8.0 HPPD

  2. Twelve-hour shifts that covers: about 16.7 shifts a day

    200 ÷ 12

  3. Hours needed per year: 73,000 hours

    200 × 365

  4. Full-time equivalents for those hours: about 35.1 FTEs

    73,000 ÷ 2,080

15 budget, law and staffing questions

Question 1 of 15 · Business Management · 16%

A unit's census rises about 25% every winter and drops in the summer. Which staffing plan BEST manages this pattern at a reasonable cost?

  1. Relying on mandatory overtime for a recurring, predictable surge raises premium pay and fatigue risk; a planned flexible pool is cheaper and safer.
  2. A flat average leaves the unit short every winter and overstaffed every summer, because it ignores the known seasonal pattern.
  3. Staffing to the peak pays for idle hours through the summer low; the core should match the baseline, not the high point.
  4. Core positions sized to the steady baseline avoid paying for idle summer hours, while float, PRN or seasonal staff absorb the predictable winter rise.
Question 2 of 15 · Business Management · 16%

Last week a unit used 1,120 worked hours for 140 patient days against a target of 7.5 worked hours per patient day. If productivity is earned (target) hours divided by worked hours, what was the result and what does it mean?

  1. Earned hours are 7.5 × 140 = 1,050, and 1,050 ÷ 1,120 = 94%. A result below 100% means the unit used more hours than its workload justified.
  2. This uses the inverted ratio and then misreads it; 8.0 actual hours per patient day against a 7.5 target means more staffing, not less.
  3. 107% is the inverted ratio, worked ÷ earned (1,120 ÷ 1,050); under the formula in the question the result is 94%.
  4. The number is right but the reading is reversed: a productivity index below 100% shows more hours than earned, which is overstaffing for the workload.
Question 3 of 15 · Business Management · 16%

Which purchase belongs in the capital budget rather than the operating budget?

  1. Paid education time is a personnel cost in the operating budget; training does not become capital because it relates to new equipment.
  2. A service contract is a recurring annual expense of operations, even when it supports a capital asset.
  3. Capital budgets hold long-lived assets above the organization's cost threshold; a monitoring system used for years is depreciated over its useful life.
  4. A large dollar amount does not make an item capital; disposables consumed within the year are supply expense in the operating budget.
Question 4 of 15 · Business Management · 16%

A unit schedules 12 RNs, 4 LPNs and 4 unlicensed assistive personnel over 24 hours. What is the unit's RN skill mix?

  1. 150% divides RNs by the non-RN staff (12 ÷ 8); skill mix puts all nursing care staff in the denominator.
  2. RN skill mix is RN staff as a share of all nursing care staff: 12 ÷ (12 + 4 + 4) = 12 ÷ 20 = 60%.
  3. 75% divides RNs by licensed staff only (12 of 16), leaving the unlicensed assistive personnel out of the denominator.
  4. 80% counts RNs and LPNs together (16 of 20), which is the licensed-staff share, not the RN skill mix.
Question 5 of 15 · Business Management · 16%

A cardiologist refers Medicare patients for outpatient imaging to a center in which the cardiologist's spouse holds an ownership interest. Which law MOST directly governs this referral?

  1. The FCA penalizes submitting false claims; it can follow a Stark violation but does not define which referrals are prohibited.
  2. The AKS targets offering or receiving anything of value to induce referrals and requires intent; a family ownership interest in the receiving entity is the Stark trigger.
  3. EMTALA governs emergency screening and stabilization, not physician referrals or financial relationships.
  4. Stark bars a physician from referring Medicare patients for designated health services, which include imaging, to an entity in which the physician or an immediate family member such as a spouse has a financial interest.
Question 6 of 15 · Business Management · 16%

When building a unit's labor budget, which hours are classified as NONPRODUCTIVE?

  1. Overtime raises the pay rate, not the category; overtime hours are worked and therefore productive.
  2. Charge hours are worked hours on the unit; a role without patients is still productive time, often budgeted as non-direct care.
  3. Nonproductive hours are paid hours in which no work is done, such as vacation, holidays and sick time.
  4. Float hours are productive hours for the unit that uses them, whichever cost center pays the nurse.
Question 7 of 15 · Business Management · 16%

Which nursing care delivery model assigns one registered nurse continuous accountability for a patient's plan of care throughout the hospital stay?

  1. Team nursing gives a group of patients to a mixed-skill team led by an RN for one shift; no single RN carries the plan across the stay.
  2. In primary nursing one RN holds 24-hour accountability for a patient's plan of care from admission to discharge, with associate nurses carrying it out on other shifts.
  3. Functional nursing divides the work by task, such as medications or treatments, so no single nurse owns the patient's plan.
  4. Total patient care assigns one nurse to all of a patient's care for a single shift; the accountability ends when the shift does.
Question 8 of 15 · Business Management · 16%

A unit adds a second unit secretary position only when its average census exceeds 30 patients. How is this cost BEST classified?

  1. A step-fixed cost stays flat across a range of volume and then jumps to a new level at a threshold, as when a second secretary is added above a census of 30.
  2. A semi-variable cost has a fixed base plus a part that rises smoothly with each unit of volume; this cost does not rise gradually, it jumps once.
  3. Indirect costs are shared overhead allocated to the unit; the secretary is a direct unit cost, and the question is how that cost behaves with volume.
  4. A variable cost changes in proportion to each patient day, like supplies; the secretary cost stays flat until the threshold.
Question 9 of 15 · Business Management · 16%

A hospital reports $250 million in operating revenue and $240 million in operating expenses for the year. What is its operating margin?

  1. 96% is the expense ratio, expenses ÷ revenue, not the margin left over.
  2. This divides the $10 million gain by expenses ($240 million) instead of revenue.
  3. The decimal is misplaced: 10 ÷ 250 is 0.04, which is 4.0%, not 0.4%.
  4. Operating margin is (operating revenue − operating expenses) ÷ operating revenue: $10 million ÷ $250 million = 4.0%.
Question 10 of 15 · Business Management · 16%

An RN's base rate is $45 an hour, overtime is paid at 1.5 times base, and agency nurses cost $95 an hour. How much less does it cost to cover one 12-hour shift with overtime than with an agency nurse?

  1. $810 is the full cost of the overtime shift, not how much less it costs than the agency shift.
  2. Overtime is $45 × 1.5 = $67.50 an hour, or $810 for 12 hours; agency is $95 × 12 = $1,140; the difference is $1,140 − $810 = $330.
  3. $27.50 is the hourly difference ($95 − $67.50); it has not been multiplied by the 12 hours of the shift.
  4. This uses the $45 base rate instead of the overtime rate: ($95 − $45) × 12 = $600.
Question 11 of 15 · Business Management · 16%

Two units have similar census and acuity, but Unit A's labor cost per patient day is 18% higher than Unit B's. Which analysis should the director perform FIRST?

  1. Perceived workload is context, but it does not explain a dollar gap; the cost data should first show where the gap sits.
  2. Comparing hours alone misses the rate side of the gap, and Unit B with similar census and acuity is already the closer comparison.
  3. Labor cost per patient day equals hours per patient day × cost per hour, so the first step is to see whether Unit A uses more hours, pays more per hour (overtime, agency, skill mix), or both.
  4. Satisfaction is an outcome to watch if staffing changes, but it does not identify why labor cost per patient day is higher.
Question 12 of 15 · Business Management · 16%

A unit's patient days are 50% Medicare paying $2,000 per day, 30% commercial paying $3,000 per day and 20% Medicaid paying $1,500 per day. What is the weighted average revenue per patient day?

  1. Weight each rate by its share of patient days: 0.5 × $2,000 + 0.3 × $3,000 + 0.2 × $1,500 = $1,000 + $900 + $300 = $2,200.
  2. $2,167 is the simple average of the three rates ($6,500 ÷ 3), which ignores how many patient days each payer contributes.
  3. $2,000 is only the Medicare rate: the largest payer is treated as the whole mix.
  4. This swaps the commercial and Medicaid shares (0.5 × $2,000 + 0.3 × $1,500 + 0.2 × $3,000), understating revenue from the higher-paying payer.
Question 13 of 15 · Business Management · 16%

A unit's budget has been built for ten years by adding 3% to the previous year's amounts. What is the MAIN weakness of this approach?

  1. Justifying every line from zero describes zero-based budgeting, the method designed to correct this weakness.
  2. Adjusting to actual volume describes a flexible budget; an incremental budget ignores changes in volume.
  3. A flat percentage increase is itself a crude allowance for inflation; the weakness is the unexamined base, not inflation.
  4. Incremental budgeting starts from last year's base and adds a percentage, so spending that no longer serves the unit is never questioned.
Question 14 of 15 · Business Management · 16%

A 30-bed unit recorded 810 patient days in a 30-day month. What was its occupancy rate?

  1. Occupancy = patient days ÷ (beds × days) = 810 ÷ (30 × 30) = 810 ÷ 900 = 90%.
  2. This inverts the ratio, bed days ÷ patient days (900 ÷ 810); occupancy cannot exceed 100% with these figures.
  3. This reads the 810 patient days as if they were out of 1,000 instead of the 900 available bed days.
  4. 27 is the average daily census (810 ÷ 30 days), a count of patients, not a percentage of beds.
Question 15 of 15 · Business Management · 16%

A unit that relies on travel nurses has had friction and two medication near misses involving travelers unfamiliar with unit routines. What should the nurse manager implement?

  1. Agency checklists confirm general competence, which is not the problem; the near misses came from not knowing this unit's routines.
  2. Travelers know nursing but not this unit's routines, equipment and escalation paths; a focused orientation with a named core-staff resource closes exactly that gap.
  3. Limiting acuity treats experienced nurses as a risk to hide and leaves the unfamiliarity with unit routines in place.
  4. Reading policies passively does not teach workflows or where things are, and it does nothing for integration with staff.

Your score shows up after the last answer.

Budget terms that decide answers

  • Hours per patient day: nursing hours ÷ patient days, the unit's basic productivity yardstick.
  • FTE: 2,080 paid hours a year. One FTE can be two half-time nurses, so head count and FTEs are different numbers.
  • Variance: budget minus actual. A labor overrun in a month when census and acuity rose is a volume variance, not overspending; a flexible budget adjusts for volume before anyone is blamed.
  • Fixed and variable costs: a manager's salary does not move with census; supplies do.
  • Payor mix and value-based purchasing: Medicare's Hospital VBP program withholds part of hospitals' payments and pays it back according to quality results (CMS Hospital VBP), so a unit's quality scores carry a price.
  • Cost-benefit analysis: both sides in dollars, including benefits that are hard to price.

Staffing and care delivery models

Staffing models decide how many staff a shift gets: fixed nurse-to-patient ratios (set by law for hospitals in California), a budgeted grid of hours by census, or an acuity-based system that scores patient needs each shift. Acuity systems follow need more closely and take more work to run; ratios are simple and blind to acuity.

Care delivery models decide who does what for which patients. They differ on two axes: who holds accountability for a patient, and how work is split by role. In total patient care, one nurse gives all the care to assigned patients for a shift; in functional nursing, tasks are divided by role, such as a medication nurse and a treatment nurse, which is efficient but fragmented. Team nursing, primary nursing and partnership models sit between and beyond those two; tell them apart by who holds accountability and how the work is divided.

Where the arithmetic goes wrong

  • Stark for Anti-Kickback. If intent matters to the answer, or the party is not a physician, it is not Stark.
  • A volume variance read as waste. Check census and acuity before calling a labor overrun a problem.
  • FTEs counted as people. Convert hours to FTEs, then FTEs to positions; part-time staff make the two differ.
  • The right number in the wrong unit. Per day or per shift, hours or FTEs, monthly or annual: correct arithmetic on the wrong basis gives a wrong answer.

More of the NE-BC outline

Where this domain sits

Budget math, a few items at a time

The same NE-BC questions with every option explained, in a study app.

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Money and staffing, short answers

Do nurse managers really need Stark and anti-kickback law?

The 2025 outline names both. A manager meets them through vendor offers, physician arrangements and referral patterns, and the Anti-Kickback Statute applies to nurses directly.

What is NHPPD?

Nursing hours per patient day: the same ratio, counting nursing staff only; some reports count RN hours alone. Check which definition a report uses before comparing units.