Page 1 of 164
LSUS MHA 706 FINAL - LORD EXAM
PRACTICE QUESTION BANK | 2026-2027
ACADEMIC YEAR; 100% VERIFIED
SOLUTIONS WITH DETAILED
RATIONALES
# TABLE OF CONTENTS
| Module | Topic | Questions |
|--------|-------|-----------|
| **Module 1** | Healthcare Systems & Delivery Models | 1-25 |
| **Module 2** | Healthcare Financing & Reimbursement | 26-50 |
| **Module 3** | Financial Accounting & GAAP | 51-75 |
| **Module 4** | Financial Ratio Analysis | 76-100 |
| **Module 5** | Cost Classification & Allocation | 101-130 |
| **Module 6** | Activity-Based Costing & Managerial Accounting | 131-155 |
| **Module 7** | Capital Budgeting & Investment Analysis | 156-180 |
| **Module 8** | Bond & Stock Valuation | 181-200 |
| **Module 9** | Budgeting & Variance Analysis | 201-225 |
| **Module 10** | Healthcare Policy, Law & Ethics | 226-250 |
| **Module 11** | Leadership, Strategy & Quality Improvement | 251-275 |
,Page 2 of 164
# MODULE 1: HEALTHCARE SYSTEMS & DELIVERY MODELS
## Questions 1-25
**Question 1**
Which of the following healthcare delivery models is characterized by government ownership of
healthcare facilities and government-employed physicians?
A) Bismarck Model
B) National Health Insurance Model
C) Beveridge Model
D) Out-of-Pocket Model
**Correct Answer: C) Beveridge Model**
**Rationale:** The Beveridge Model features government ownership and operation of
healthcare facilities, with physicians employed by the government. This model is exemplified by
the United Kingdom's National Health Service (NHS). In contrast, the Bismarck Model uses
private providers but is financed through employer-employee insurance funds. The National
Health Insurance Model uses private providers but government financing, and the Out-of-Pocket
Model relies on direct patient payments.
---
**Question 2**
In the U.S. healthcare system, which of the following is NOT considered a component of the
healthcare delivery system?
A) Hospitals
B) Primary care providers
,Page 3 of 164
C) Long-term care facilities
D) Stock market exchanges
**Correct Answer: D) Stock market exchanges**
**Rationale:** The healthcare delivery system comprises hospitals, primary care providers,
long-term care facilities, public health agencies, and other entities that directly deliver care to
patients. Stock market exchanges are financial institutions that facilitate the trading of securities
and are not part of the healthcare delivery system, although they may be relevant to healthcare
financing.
---
**Question 3**
The Patient Protection and Affordable Care Act (ACA) of 2010 included all of the following
major provisions EXCEPT:
A) Banning pre-existing condition coverage limitations
B) Free preventive care services
C) Medicaid expansion
D) Elimination of all private health insurance
**Correct Answer: D) Elimination of all private health insurance**
**Rationale:** The ACA's major provisions included banning pre-existing condition coverage
limitations, requiring free preventive care, expanding Medicaid eligibility, and creating health
insurance marketplaces. The ACA did NOT eliminate private health insurance; rather, it sought
to expand coverage through a combination of public and private options.
---
, Page 4 of 164
**Question 4**
Which type of healthcare organization is legally structured as a tax-exempt entity that reinvests
profits back into the organization rather than distributing them to owners?
A) For-profit corporation
B) Not-for-profit organization
C) Sole proprietorship
D) Limited liability partnership
**Correct Answer: B) Not-for-profit organization**
**Rationale:** Not-for-profit healthcare organizations are tax-exempt entities that must reinvest
any surplus revenues back into the organization to further their charitable mission. Stakeholders
in not-for-profit hospitals include vendors, employees, and the community, but there are no
shareholders entitled to profits.
---
**Question 5**
In the context of healthcare management, EMTALA (Emergency Medical Treatment and Active
Labor Act) requires that:
A) All patients must have health insurance before receiving care
B) Hospitals must provide emergency care to anyone regardless of ability to pay
C) Emergency departments must close after business hours
D) Only Medicare patients can receive emergency care
**Correct Answer: B) Hospitals must provide emergency care to anyone regardless of ability to
pay**
LSUS MHA 706 FINAL - LORD EXAM
PRACTICE QUESTION BANK | 2026-2027
ACADEMIC YEAR; 100% VERIFIED
SOLUTIONS WITH DETAILED
RATIONALES
# TABLE OF CONTENTS
| Module | Topic | Questions |
|--------|-------|-----------|
| **Module 1** | Healthcare Systems & Delivery Models | 1-25 |
| **Module 2** | Healthcare Financing & Reimbursement | 26-50 |
| **Module 3** | Financial Accounting & GAAP | 51-75 |
| **Module 4** | Financial Ratio Analysis | 76-100 |
| **Module 5** | Cost Classification & Allocation | 101-130 |
| **Module 6** | Activity-Based Costing & Managerial Accounting | 131-155 |
| **Module 7** | Capital Budgeting & Investment Analysis | 156-180 |
| **Module 8** | Bond & Stock Valuation | 181-200 |
| **Module 9** | Budgeting & Variance Analysis | 201-225 |
| **Module 10** | Healthcare Policy, Law & Ethics | 226-250 |
| **Module 11** | Leadership, Strategy & Quality Improvement | 251-275 |
,Page 2 of 164
# MODULE 1: HEALTHCARE SYSTEMS & DELIVERY MODELS
## Questions 1-25
**Question 1**
Which of the following healthcare delivery models is characterized by government ownership of
healthcare facilities and government-employed physicians?
A) Bismarck Model
B) National Health Insurance Model
C) Beveridge Model
D) Out-of-Pocket Model
**Correct Answer: C) Beveridge Model**
**Rationale:** The Beveridge Model features government ownership and operation of
healthcare facilities, with physicians employed by the government. This model is exemplified by
the United Kingdom's National Health Service (NHS). In contrast, the Bismarck Model uses
private providers but is financed through employer-employee insurance funds. The National
Health Insurance Model uses private providers but government financing, and the Out-of-Pocket
Model relies on direct patient payments.
---
**Question 2**
In the U.S. healthcare system, which of the following is NOT considered a component of the
healthcare delivery system?
A) Hospitals
B) Primary care providers
,Page 3 of 164
C) Long-term care facilities
D) Stock market exchanges
**Correct Answer: D) Stock market exchanges**
**Rationale:** The healthcare delivery system comprises hospitals, primary care providers,
long-term care facilities, public health agencies, and other entities that directly deliver care to
patients. Stock market exchanges are financial institutions that facilitate the trading of securities
and are not part of the healthcare delivery system, although they may be relevant to healthcare
financing.
---
**Question 3**
The Patient Protection and Affordable Care Act (ACA) of 2010 included all of the following
major provisions EXCEPT:
A) Banning pre-existing condition coverage limitations
B) Free preventive care services
C) Medicaid expansion
D) Elimination of all private health insurance
**Correct Answer: D) Elimination of all private health insurance**
**Rationale:** The ACA's major provisions included banning pre-existing condition coverage
limitations, requiring free preventive care, expanding Medicaid eligibility, and creating health
insurance marketplaces. The ACA did NOT eliminate private health insurance; rather, it sought
to expand coverage through a combination of public and private options.
---
, Page 4 of 164
**Question 4**
Which type of healthcare organization is legally structured as a tax-exempt entity that reinvests
profits back into the organization rather than distributing them to owners?
A) For-profit corporation
B) Not-for-profit organization
C) Sole proprietorship
D) Limited liability partnership
**Correct Answer: B) Not-for-profit organization**
**Rationale:** Not-for-profit healthcare organizations are tax-exempt entities that must reinvest
any surplus revenues back into the organization to further their charitable mission. Stakeholders
in not-for-profit hospitals include vendors, employees, and the community, but there are no
shareholders entitled to profits.
---
**Question 5**
In the context of healthcare management, EMTALA (Emergency Medical Treatment and Active
Labor Act) requires that:
A) All patients must have health insurance before receiving care
B) Hospitals must provide emergency care to anyone regardless of ability to pay
C) Emergency departments must close after business hours
D) Only Medicare patients can receive emergency care
**Correct Answer: B) Hospitals must provide emergency care to anyone regardless of ability to
pay**
