CNML TEST EXAM ACTUAL PAPER QUESTIONS CORRECT ANSWERS GRADED A PLUS
CNML TEST EXAM 2026/2027 Questions and
Answers Verified Solutions Latest Update
Question:
Prospective Payment System.
Answer:
Used by Medicare- participating hospitals: pretreatment diagnosis billings based on DRGs; rate
decided ahead of time between insurance companies and hospitals
Question:
Exclusive Provider.
Answer:
Used by HMO's: insurance coverage for contracted providers or institutions
Question:
HMOs.
Answer:
Health maintenance organizations: comprehensive healthcare to people who pay a fee for a fixed
period of time
Question:
Capitation.
Answer:
Fixed rate paid to provider per member per month for healthcare services; set fee paid by insurance
company per month for all the patient needs
Question:
,PPOs.
Answer:
Preferred provider organizations: special reduced rate for services when customers use certain
providers approved by the insurance company; usually fee-for-service
Question:
IPAs.
Answer:
Individual provider arrangements: provide care in their offices for prepaid plans; coalition of
physicians who serve HMO patients and third-party patients
Question:
Fulltime FTE Hours.
Answer:
2080 hours (1.0 @ 40 hours per week)
Question:
Capital Expenses.
Answer:
Long-term equipment or physical purchases: usually over $500-$1000 that will last years and
depreciate over time and be used multiple times
Question:
Zero-Based Budget.
Answer:
With each new budget (i.e. fiscal year), it is determined which programs/areas get money; no
historical context is used; may rank packages and then only fund top-ranked ones; can be
time-consuming way to create a budget
,Question:
Variance Calculation & Reminders.
Answer:
Variance $ /Budgeted $ X 100 = % difference; contract staff on separate line of budget; many staff
sick costs more than a few staff on LOA
Question:
Cost of Nursing Services Calculation.
Answer:
Nurse Time X (Avg. RN Hourly Rate + Benefits + Indirects) = Total Nursing Cost per DRG
Question:
General Nurse Staffing Calculation.
Answer:
# of RNs needed X days open / # days worked per RN
Question:
FTE Definition & Calculation.
Answer:
Full-time equivalent = full- time employee paid for 1 year FTE = (Hours per shift X # of days
worked) / 40 hours
Question:
Fixed Costs.
Answer:
Stay the same no matter the census: manager salaries, keeping phones on, rent, etc.
, Question:
Variable Costs.
Answer:
Change with census and how much staffing is used
Question:
Net Revenue Calculation.
Answer:
Gross Revenue - Deductions from Revenue (DRGs and the Contractual allowances paid by
insurance companies)
Question:
UAP.
Answer:
Unlicensed assistive personnel (CNA's)
Question:
ADC.
Answer:
Average daily census (patients in a bed at midnight)
Question:
Total Patient Days Calculation.
Answer:
ADC X Days open per year (for SCH - ADC X 365)
CNML TEST EXAM 2026/2027 Questions and
Answers Verified Solutions Latest Update
Question:
Prospective Payment System.
Answer:
Used by Medicare- participating hospitals: pretreatment diagnosis billings based on DRGs; rate
decided ahead of time between insurance companies and hospitals
Question:
Exclusive Provider.
Answer:
Used by HMO's: insurance coverage for contracted providers or institutions
Question:
HMOs.
Answer:
Health maintenance organizations: comprehensive healthcare to people who pay a fee for a fixed
period of time
Question:
Capitation.
Answer:
Fixed rate paid to provider per member per month for healthcare services; set fee paid by insurance
company per month for all the patient needs
Question:
,PPOs.
Answer:
Preferred provider organizations: special reduced rate for services when customers use certain
providers approved by the insurance company; usually fee-for-service
Question:
IPAs.
Answer:
Individual provider arrangements: provide care in their offices for prepaid plans; coalition of
physicians who serve HMO patients and third-party patients
Question:
Fulltime FTE Hours.
Answer:
2080 hours (1.0 @ 40 hours per week)
Question:
Capital Expenses.
Answer:
Long-term equipment or physical purchases: usually over $500-$1000 that will last years and
depreciate over time and be used multiple times
Question:
Zero-Based Budget.
Answer:
With each new budget (i.e. fiscal year), it is determined which programs/areas get money; no
historical context is used; may rank packages and then only fund top-ranked ones; can be
time-consuming way to create a budget
,Question:
Variance Calculation & Reminders.
Answer:
Variance $ /Budgeted $ X 100 = % difference; contract staff on separate line of budget; many staff
sick costs more than a few staff on LOA
Question:
Cost of Nursing Services Calculation.
Answer:
Nurse Time X (Avg. RN Hourly Rate + Benefits + Indirects) = Total Nursing Cost per DRG
Question:
General Nurse Staffing Calculation.
Answer:
# of RNs needed X days open / # days worked per RN
Question:
FTE Definition & Calculation.
Answer:
Full-time equivalent = full- time employee paid for 1 year FTE = (Hours per shift X # of days
worked) / 40 hours
Question:
Fixed Costs.
Answer:
Stay the same no matter the census: manager salaries, keeping phones on, rent, etc.
, Question:
Variable Costs.
Answer:
Change with census and how much staffing is used
Question:
Net Revenue Calculation.
Answer:
Gross Revenue - Deductions from Revenue (DRGs and the Contractual allowances paid by
insurance companies)
Question:
UAP.
Answer:
Unlicensed assistive personnel (CNA's)
Question:
ADC.
Answer:
Average daily census (patients in a bed at midnight)
Question:
Total Patient Days Calculation.
Answer:
ADC X Days open per year (for SCH - ADC X 365)
