CPPM EXAM SCRIPT 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Capitation payment - ✔✔A prospective method of payment. Payments are based on
a physician fee schedules negotiated with the payer.
✔✔What accounts should be considered for collection? - ✔✔90+ days with a balance
greater than $10
✔✔What should you consider when conducting a registration audit? - ✔✔Address,
phone #, employer, insurance verification, and co-pay collected
✔✔Three indicators for monitoring receivables - ✔✔Net collection rate, denials, and A/R
days
✔✔Three components to having claims paid by payer - ✔✔Procedure code, diagnosis
code(s), and insurance policy number
✔✔What payments should be collected by the front desk - ✔✔Any balance due that is
the patients responsibility
✔✔Which denials should be a priority? - ✔✔Inclusive service as this is typically the
highest dollar amount. To verify the validity, check the payers bundling edits and payer
contracts.
✔✔What report and/or measurement identifies how well a practice collects on allowable
charges - ✔✔
✔✔Common performance indicators for charge entry includes - ✔✔Days to enter
charges, missing charges, coding accuracy
✔✔Prospective Fee Schedule - ✔✔The type of reimbursement used by payers to pay a
predetermined set amount for each procedure code
✔✔What tools should be considered when developing a budget? - ✔✔Balance sheet,
chart of accounts and expenses from current/past year
✔✔Refunds due pts for overpayment on their accoitn - ✔✔Accounts payable
✔✔S corporation - ✔✔Similar to a C corp as they can issue stock but limited to the # of
shareholders. All profit must be distributed in proportion to ownership %. Net income is
not taxed at the entity level rather flows through the physicians personal tax return.
✔✔What tool is used to determine where costs could be made? - ✔✔Income statement
, ✔✔Cash-based Accounting System - ✔✔When purchases and expenses are reported
the same month even if not being used until future dates.
✔✔Marketing fres - ✔✔not reveue
✔✔Cash Flow Statement - ✔✔A financial statement that shows the flow of money in
and out of the business.
✔✔What is the benefit of involving staff in a meeting to discuss reducing costs -
✔✔They maybe creative In cost savings measures to protect their jobs
✔✔What is the advantage Of leasing equipment? - ✔✔Leased payments are deductible
for income tax purposes
✔✔Is the use of a budget useful to monitor the debt to equity ratio? - ✔✔No
✔✔Accounts Payable - ✔✔Amounts to be paid in the future for goods or services
already acquired
✔✔Activity Based Costing - ✔✔A method of allocating overhead based on each
product's use of activities in making the product.
✔✔What items should be reviewed to reduce ongoing practice cost? - ✔✔Supplies,
phone data plans, malpractice insurance and purchased services
✔✔Limited liability corporation - ✔✔This structure allows unlimited owners and limits the
amount of taxes
✔✔What type of organization is beneficial in managing cost? - ✔✔GPO
✔✔Salaries, rent and malpractice are examples of what type of expenses? - ✔✔Fixed
expenses
✔✔Value-based purchasing is a reimbursement model that pays hospitals based on
performance around What activities? - ✔✔Patient satisfaction scores, quality of care
and efficiency
✔✔True or faults. The future of healthcare will likely see a shift from acute care to
prevention and wellness. - ✔✔True. Preventive care visits are on the rise, as a result of
health insurance is redesigning the benefits offered
SOLUTIONS RATED A+
✔✔Capitation payment - ✔✔A prospective method of payment. Payments are based on
a physician fee schedules negotiated with the payer.
✔✔What accounts should be considered for collection? - ✔✔90+ days with a balance
greater than $10
✔✔What should you consider when conducting a registration audit? - ✔✔Address,
phone #, employer, insurance verification, and co-pay collected
✔✔Three indicators for monitoring receivables - ✔✔Net collection rate, denials, and A/R
days
✔✔Three components to having claims paid by payer - ✔✔Procedure code, diagnosis
code(s), and insurance policy number
✔✔What payments should be collected by the front desk - ✔✔Any balance due that is
the patients responsibility
✔✔Which denials should be a priority? - ✔✔Inclusive service as this is typically the
highest dollar amount. To verify the validity, check the payers bundling edits and payer
contracts.
✔✔What report and/or measurement identifies how well a practice collects on allowable
charges - ✔✔
✔✔Common performance indicators for charge entry includes - ✔✔Days to enter
charges, missing charges, coding accuracy
✔✔Prospective Fee Schedule - ✔✔The type of reimbursement used by payers to pay a
predetermined set amount for each procedure code
✔✔What tools should be considered when developing a budget? - ✔✔Balance sheet,
chart of accounts and expenses from current/past year
✔✔Refunds due pts for overpayment on their accoitn - ✔✔Accounts payable
✔✔S corporation - ✔✔Similar to a C corp as they can issue stock but limited to the # of
shareholders. All profit must be distributed in proportion to ownership %. Net income is
not taxed at the entity level rather flows through the physicians personal tax return.
✔✔What tool is used to determine where costs could be made? - ✔✔Income statement
, ✔✔Cash-based Accounting System - ✔✔When purchases and expenses are reported
the same month even if not being used until future dates.
✔✔Marketing fres - ✔✔not reveue
✔✔Cash Flow Statement - ✔✔A financial statement that shows the flow of money in
and out of the business.
✔✔What is the benefit of involving staff in a meeting to discuss reducing costs -
✔✔They maybe creative In cost savings measures to protect their jobs
✔✔What is the advantage Of leasing equipment? - ✔✔Leased payments are deductible
for income tax purposes
✔✔Is the use of a budget useful to monitor the debt to equity ratio? - ✔✔No
✔✔Accounts Payable - ✔✔Amounts to be paid in the future for goods or services
already acquired
✔✔Activity Based Costing - ✔✔A method of allocating overhead based on each
product's use of activities in making the product.
✔✔What items should be reviewed to reduce ongoing practice cost? - ✔✔Supplies,
phone data plans, malpractice insurance and purchased services
✔✔Limited liability corporation - ✔✔This structure allows unlimited owners and limits the
amount of taxes
✔✔What type of organization is beneficial in managing cost? - ✔✔GPO
✔✔Salaries, rent and malpractice are examples of what type of expenses? - ✔✔Fixed
expenses
✔✔Value-based purchasing is a reimbursement model that pays hospitals based on
performance around What activities? - ✔✔Patient satisfaction scores, quality of care
and efficiency
✔✔True or faults. The future of healthcare will likely see a shift from acute care to
prevention and wellness. - ✔✔True. Preventive care visits are on the rise, as a result of
health insurance is redesigning the benefits offered
