National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

What initial action should an administrator take when actual supply costs exceed expected costs substantially?

1. Tightly control products

2. Investigate probable breach of security

3. Review production schedules

4. Examine methods of inventory

The correct answer is: Investigate probable breach of security

When supply costs exceed expected costs substantially, the initial action an administrator should take is to investigate the probable breach of security. This reflects the need to determine if there are any unauthorized activities or theft occurring within the facility that could be driving costs up. In a long-term care setting, unexpected increases in supply costs can be a red flag. They could indicate that supplies are being misappropriated, or that there is fraud happening within the procurement process. By investigating possible breaches of security, the administrator can identify issues early, allowing for corrective actions to prevent further financial loss. While examining methods of inventory, controlling products, and reviewing production schedules are also important actions to consider subsequently, they typically address operational efficiency and cost management rather than rooting out potential security issues. Identifying any security breaches is imperative so that appropriate measures can be taken right away to safeguard the facility’s resources and finances.