Galen College NU 180 Exam 3 (pdf) | 2026/2027 | Nursing and
Healthcare II Q&A | Nursing
1. The aim of the Institute of Medicine (IOM) is to increase quality in health
care by being safe, timely, effective, efficient, equitable, and:
A) Affordable
B) Client-centered
C) Accessible
D) Evidence-based
Correct Answer: Client-centered
Rationale: The IOM's six aims for improvement are safe, timely, effective,
efficient, equitable, and client-centered (STEEEP). This framework guides
quality improvement in healthcare systems. The other options, while
important, are not part of the IOM's specific six aims.
2. Which type of health care agency operates for profit?
A) Voluntary agency
B) Proprietary agency
C) Non-profit agency
D) Government agency
Correct Answer: Proprietary agency
Rationale: A proprietary agency operates for profit, typically on a fee-for-
service basis. Voluntary agencies are non-profit and focus on specific health
issues, government agencies are publicly funded, and non-profit agencies
reinvest surplus into their mission.
,3. An example of a voluntary health agency focused on research and public
education is the:
A) Centers for Disease Control and Prevention
B) American Heart Association
C) National Institutes of Health
D) World Health Organization
Correct Answer: American Heart Association
Rationale: The American Heart Association is a voluntary health agency that
focuses on research and education of the public about heart disease and
stroke. It is a non-profit organization that receives no taxpayer money and is
aimed at meeting the needs of a selected population segment.
4. What is the primary purpose of the Affordable Care Act (ACA) regarding
health insurance?
A) To eliminate all private health insurance
B) To establish a health insurance marketplace
C) To provide free healthcare to all citizens
D) To reduce the number of healthcare providers
Correct Answer: To establish a health insurance marketplace
Rationale: The Affordable Care Act established a health insurance
marketplace where individuals and small businesses can compare and
purchase health insurance plans. This was designed to increase access to
affordable health coverage.
5. Which statement accurately describes the difference between fee-for-
service and capitation payment methods?
,A) Fee-for-service pays a fixed amount per patient; capitation pays per
service
B) Fee-for-service pays per service provided; capitation pays a fixed amount
per patient
C) Fee-for-service and capitation are the same payment method
D) Fee-for-service is only used for Medicare patients
Correct Answer: Fee-for-service pays per service provided; capitation pays a
fixed amount per patient
Rationale: Fee-for-service reimburses providers for each individual service
rendered, while capitation pays a fixed, predetermined amount per patient
regardless of the number of services provided. These are the two major ways
to finance healthcare services.
6. Medicare Part B helps pay for which type of services?
A) Hospital inpatient services
B) Diagnostic tests and outpatient services
C) Prescription medications
D) Long-term care
Correct Answer: Diagnostic tests and outpatient services
Rationale: Medicare Part B is medical insurance that helps pay for outpatient
services, physician visits, diagnostic tests, and preventive care. Part A covers
hospital inpatient services, Part D covers prescriptions, and long-term care is
not typically covered by Medicare.
7. What is the prospective payment system (PPS)?
A) A system where hospitals bill patients directly after services
, B) A system where the federal government announces in advance what it will
pay for hospitalization
C) A system where patients pay for services before receiving them
D) A system where insurance companies determine payment after services
Correct Answer: A system where the federal government announces in
advance what it will pay for hospitalization
Rationale: The prospective payment system is a method of reimbursement in
which Medicare payment is made based on a predetermined, fixed amount.
The federal government announces to a hospital in advance what it will pay
for hospitalization based on the patient's diagnosis-related group (DRG).
8. Which government program provides health coverage for low-income
individuals?
A) Medicare
B) Medicaid
C) TRICARE
D) CHIP
Correct Answer: Medicaid
Rationale: Medicaid is a joint federal and state program that provides health
coverage to low-income individuals, including children, pregnant women,
parents, seniors, and people with disabilities. Medicare primarily serves those
65 and older.
9. A nurse aims to leave which impression after a job interview?
A) Friendly and casual
B) Confident and professional
Healthcare II Q&A | Nursing
1. The aim of the Institute of Medicine (IOM) is to increase quality in health
care by being safe, timely, effective, efficient, equitable, and:
A) Affordable
B) Client-centered
C) Accessible
D) Evidence-based
Correct Answer: Client-centered
Rationale: The IOM's six aims for improvement are safe, timely, effective,
efficient, equitable, and client-centered (STEEEP). This framework guides
quality improvement in healthcare systems. The other options, while
important, are not part of the IOM's specific six aims.
2. Which type of health care agency operates for profit?
A) Voluntary agency
B) Proprietary agency
C) Non-profit agency
D) Government agency
Correct Answer: Proprietary agency
Rationale: A proprietary agency operates for profit, typically on a fee-for-
service basis. Voluntary agencies are non-profit and focus on specific health
issues, government agencies are publicly funded, and non-profit agencies
reinvest surplus into their mission.
,3. An example of a voluntary health agency focused on research and public
education is the:
A) Centers for Disease Control and Prevention
B) American Heart Association
C) National Institutes of Health
D) World Health Organization
Correct Answer: American Heart Association
Rationale: The American Heart Association is a voluntary health agency that
focuses on research and education of the public about heart disease and
stroke. It is a non-profit organization that receives no taxpayer money and is
aimed at meeting the needs of a selected population segment.
4. What is the primary purpose of the Affordable Care Act (ACA) regarding
health insurance?
A) To eliminate all private health insurance
B) To establish a health insurance marketplace
C) To provide free healthcare to all citizens
D) To reduce the number of healthcare providers
Correct Answer: To establish a health insurance marketplace
Rationale: The Affordable Care Act established a health insurance
marketplace where individuals and small businesses can compare and
purchase health insurance plans. This was designed to increase access to
affordable health coverage.
5. Which statement accurately describes the difference between fee-for-
service and capitation payment methods?
,A) Fee-for-service pays a fixed amount per patient; capitation pays per
service
B) Fee-for-service pays per service provided; capitation pays a fixed amount
per patient
C) Fee-for-service and capitation are the same payment method
D) Fee-for-service is only used for Medicare patients
Correct Answer: Fee-for-service pays per service provided; capitation pays a
fixed amount per patient
Rationale: Fee-for-service reimburses providers for each individual service
rendered, while capitation pays a fixed, predetermined amount per patient
regardless of the number of services provided. These are the two major ways
to finance healthcare services.
6. Medicare Part B helps pay for which type of services?
A) Hospital inpatient services
B) Diagnostic tests and outpatient services
C) Prescription medications
D) Long-term care
Correct Answer: Diagnostic tests and outpatient services
Rationale: Medicare Part B is medical insurance that helps pay for outpatient
services, physician visits, diagnostic tests, and preventive care. Part A covers
hospital inpatient services, Part D covers prescriptions, and long-term care is
not typically covered by Medicare.
7. What is the prospective payment system (PPS)?
A) A system where hospitals bill patients directly after services
, B) A system where the federal government announces in advance what it will
pay for hospitalization
C) A system where patients pay for services before receiving them
D) A system where insurance companies determine payment after services
Correct Answer: A system where the federal government announces in
advance what it will pay for hospitalization
Rationale: The prospective payment system is a method of reimbursement in
which Medicare payment is made based on a predetermined, fixed amount.
The federal government announces to a hospital in advance what it will pay
for hospitalization based on the patient's diagnosis-related group (DRG).
8. Which government program provides health coverage for low-income
individuals?
A) Medicare
B) Medicaid
C) TRICARE
D) CHIP
Correct Answer: Medicaid
Rationale: Medicaid is a joint federal and state program that provides health
coverage to low-income individuals, including children, pregnant women,
parents, seniors, and people with disabilities. Medicare primarily serves those
65 and older.
9. A nurse aims to leave which impression after a job interview?
A) Friendly and casual
B) Confident and professional
