stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Practice Management Exam 1 Flashcards | StudBud
Explore
/
Practice Management Exam 1
Components of a P+L
Which of the following describes a "buy in" ownership
Practice Management Exam 1
50 terms
·
StudBud Administration
·
10 plays
Lecture 1-5
Flashcards
50 cards
F
Practice quiz
P
Host live
L
Questions
50
Answers
1
Which of the following describes a "buy in" ownership
buy entire existing practice - more finance options, staff turnover
start your own practice-cheaper overall, flexible, initially most expensive
buy % of existing hospital - less $ risk, good investment, slow process pos
buying small % of practice now but owner never actually sells rest later
2
Components of a P+L
Rent
Gross income
COGS
Payroll
3
Financial statement of assets, liabilities, capital of practice at point in time
profit and loss
Goodwill
key performance indicators
balance sheet
4
Working capital should cover...
4mo expenses
employee payroll
1mo expenses
only your own payroll
5
Cons of ownership
leaders eat last
24/7 job
All on you
6
Not getting commission a following month if you do not make production quota the month before
negative accural
punishment
positive accural
illegal
7
A practice loan is 10yr and a real estate loan is 20-25yr.
True
False
8
A good leader looks in the mirror first
False
True
9
practice management software services (Dvmax, avimark)
accounts receivable
PIMS
Goodwill
key performance indicators
10
Goodwill is an accurate estimate of practice worth.
True
False
11
Annual production should = base x 5 while monthly production is annual / 12
True
False
12
Which of the following describe an "turns" hospital
more cases
lower ADT needed
can be repetitive
shorter appt time
13
Which of the following are the average appt time and average pets/vet/day
20 min appt
18 pets / vet / day
13 pets / vet / day
40 min appt
14
What is split rate production?
paying more in products and less on production/services
paying more in production and less on highly competitive products
splitting total production amongst hospital staff
15
Which of the following describes a "start up" ownership
buying small % of practice now but owner never actually sells rest later
buy entire existing practice - more finance options, staff turnover
start your own practice-cheaper overall, flexible, initially most expensive
buy % of existing hospital - less $ risk, good investment, slow process pos
16
What are the most common forms of benefits vets get?
Health care
CE expenses
PTO
Licenses + Association fee reimbursement
17
What are included in your "hedgehog"
what you would like to become
what you love
what you're good at
what drives your economic engine
18
Which of the following describes Golden Handcuffs
buying small % of practice now but owner never actually sells rest later
start your own practice-cheaper overall, flexible, initially most expensive
buy entire existing practice - more finance options, staff turnover
buy % of existing hospital - less $ risk, good investment, slow process pos
19
Which of the following is using a loan type option to pay for your practice?
private financing
bank financing
owner financing
20
Which speciality has the average production of 21%
small animal
bovine
equine
mixed
21
Getting paid a guaranteed base and percent of commission off production (most common way vets get paid)
sole production
pro-sal
straight sal
22
What are the two main reasons for vet turnover?
toxic work culture
money
philosophy of care
poor mentorship
23
60% of hospitals have no added value than the hospital itself.
True
False
24
How much should you store away for your first month practice loan paymentn of your salary?
3-5%
25%
0%
20%
25
What are the pros of practice ownership?
freedom to practice how you want
$$$ in yo bank
In charge
build your own team
26
Two ways to decrease losses of a hospital
decrease monetary value of payroll
increase production
increase your prices
fire everyone
27
legally enforceable invoices for payments not yet received by hospital for services performed
key performance indicators
PIMS
accounts receivable
Goodwill
28
What are the two biggest expenses a hospital has?
hospital improvements
rent
Payroll
inventory / COGS
29
What is the collective average of $ between all cases a doctor sees in a day?
average doctor transaction
average vet production
average credit received
average patient cost
30
Summary of revenue, expenses and profit/losses for practice over a period of time - shows ability to generate income
key performance indicators
Goodwill
profit and loss
PIMS
31
Doctor A does more "treat and street" practicing while Doctor B offers golden standard of care. What is this call?
mass confusion (true but not term)
wage gap
incompetence
service gap
32
What percent of practices are privately owned?
50%
75%
20%
25%
33
Metrics used to track and evaluate performance of hospital toward an achievable goal - what is important to the hospital
Goodwill
key performance indicators
PIMS
accounts receivable
34
Which of the following describes a "buy out" ownership
buying small % of practice now but owner never actually sells rest later
buy entire existing practice - more finance options, staff turnover
start your own practice-cheaper overall, flexible, initially most expensive
buy % of existing hospital - less $ risk, good investment, slow process pos
35
Which of the following describes "Earn out" ownership
buying small % of practice now but owner never actually sells rest later
buy % of existing hospital - less $ risk, good investment, slow process pos
buy 100K of hosp now, 50K in a year and rest in documented/signed timeline
buy entire existing practice - more finance options, staff turnover
36
Which of the following is paying the "owner" directly to pay for your practice?
private financing
bank financing
owner financing
37
The perks of a hospital - staff, area, clients, profit based on brand
key performance indicators
PIMS
Goodwill
accounts receivable
38
A hospital can afford to pay you ____% of what you produce.
40
60
80
20
39
What is included in fair market rent?
Real Estate Entity
Practice Entity
Combined real estate and practice entity
40
What makes up a doctor's production?
Volume pets/day
ADT
HWP sold
Client satisfaction
41
How much should you pay a practice manager (even if its yourself)?
20% gross revenue
25% gross revenue
0% gross revenue
3-5% gross revenue
42
What is the first thing to do when prepping to buy a practice?
Assess financial stability of practice
Pros and Cons list
Find your "why"
43
Which of the following describe an "earns" hospital
fewer cases
higher communication skills needed for success
treat whole patient more effectively
longer appt time
44
What is included in a non-compete clause?
length of time
damages if broken
cost of termination
distance from hosp
45
Which speciality has the highest average production %?
bovine
equine
small animal
46
What 3 questions about a hospital should you ask at an interview?
who the best tech is
New clients/month
Annual revenue per FTM DVM
ADT per FTM DVM
47
Any report indicating financial condition of practice
balance sheet
pims
financial statement
profit and loss
48
Examples of key performance indicators
retention/turnover
yelp reviews
>10% net income of gross revenue
client satisfaction
49
Which of the following is paying a private entity that invests your money in return for a hospital?
owner financing
bank financing
private financing
50
Most hospitals can afford to pay 25% in compensation and benefits
False
True
