Certified Nurse Manager and Leader (CNML) Practice Test

Which metric is crucial for determining the financial performance of nursing services?

1. Patient satisfaction scores

2. Net revenue

3. Number of beds in use

4. Staff turnover rates

The correct answer is: Net revenue

Net revenue is a crucial metric for determining the financial performance of nursing services because it directly reflects the income generated from patient care activities after accounting for the costs associated with providing those services. It is an essential aspect of a healthcare organization's overall financial health. High net revenue indicates that the services provided are not only in demand but also profitable, contributing to the organization's ability to operate and invest in further improvements. In contrast, while patient satisfaction scores are important for assessing the quality of care and the patient experience, they do not directly measure financial performance. The number of beds in use can indicate operational capacity but doesn’t provide a clear picture of revenue generation or profitability. Staff turnover rates, while critical for staffing stability and quality of care, also do not directly reflect the financial status of nursing services. Therefore, net revenue serves as the most appropriate metric for evaluating financial performance in this context.