QUESTIONS AND ANSWERS 2026
PPS (Prospective Payment System) - ANSWERS(1983) Program attempted to balance
the payment made for the same services rendered by different providers and pay the
providers on the basis of the diagnosis at a fixed rate.
Per Diem - ANSWERSestablished payment for a days worth of services
Third- party concept - ANSWERSpays for services provided by health care
organizations or practitioners to the "insured"
Participation Provider - ANSWERSAfter a provider has come to terms with a payer and
is under an approved contractual agreement is called?
Master Charge List (charge master, charge description master(CDM), fee schedule) -
ANSWERSreflects the charge for each item that may be used in the treatment of a
patient and the charge for most services (respiratory therapy treatments)
DRG - ANSWERSan example of a per case or fixed payment system
Capitation - ANSWERSmanaged care is a dominate method of insurance
Zero based budget - ANSWERSmust complete a program assessment and define
consequences if specific programs are terminated or reduced. Starting from nothing.
Variance Report - ANSWERSreflects the budget that was prepared and approved and
shows the actual results on at least a monthly basis.
Business Plan - ANSWERSformal written document that evolves from the input of
others, listing objectives that support the organizational goals.
Productive Time - ANSWERSworker is present and working
Step-down method - ANSWERStechnique that is supported by Medicare in its cost
reporting requirements. indirect department that receives the least amount of service
from other indirect departments has its cost allocated first.
Management Accounting - ANSWERSprovides economic information about an internal
framework to enable health care leaders to make effective decision concerning the
activities and overall performance within an organization.
Budgets - ANSWERSdetailed numerical documents that translate the goals, objectives,
and action steps into forecasts of volume and monetary resources needed.