LSUS MHA 706 TEST BANK QUESTIONS
WITH VERIFIED ANSWERS FULL REVIEW
●● During which phase of strategic planning must value-based care be
assessed?
Answer: Strategic assessment phase
●● During which phase are value-based goals and initiatives defined?
Answer: Strategy formulation phase
●● What long-term effort is often used to describe movement toward
value-based care?
Answer: Journey
●● What traditional payment model paid for each individual healthcare
service?
Answer: Fee-for-service
●● What percentage of healthcare payments included a value component
in 2022?
Answer: More than half
,●● What legislation accelerated the evolution toward value-based care
in 2010?
Answer: Affordable Care Act
●● What organization develops and tests value-based payment programs
for Medicare?
Answer: Center for Medicare & Medicaid Innovation
●● What fundamental flaw is associated with fee-for-service?
Answer: Incentivizes volume over outcomes
●● What percentage of U.S. GDP was spent on healthcare in 2021?
Answer: 17.8 percent
●● What key outcome is lower in the United States despite high
spending?
Answer: Life expectancy
●● What equation defines value in healthcare?
Answer: Quality divided by cost
●● What three elements comprise quality in the value equation?
Answer: Experience, outcomes, safety
,●● What do value-based payment models reward?
Answer: High-quality cost-effective care
●● What HCP-LAN Category 1 represents?
Answer: Fee-for-service without quality link
●● What distinguishes HCP-LAN Category 2 contracts?
Answer: Bonuses tied to quality
●● What infrastructure payments may Category 2 include?
Answer: Population health infrastructure
●● What type of arrangement characterizes HCP-LAN Category 3?
Answer: Shared savings
●● What is compared to determine shared savings?
Answer: Actual spending versus benchmark
●● What occurs if spending exceeds the benchmark in downside risk
models?
Answer: Provider repays payer
, ●● What is another name for prospective population-based payment?
Answer: Capitation
●● What defines HCP-LAN Category 4 models?
Answer: Population-based payments
●● What is meant by providers having 'skin in the game'?
Answer: Bearing financial risk
●● Why is value-based care not considered a fad?
Answer: Steady evolution
●● What type of hospital may remain fee-for-service longer?
Answer: Critical access hospital
●● What financial concern do CFOs have about value-based care?
Answer: Reduced utilization reduces revenue
●● What new revenue stream comes from achieving savings targets?
Answer: Shared savings payments
WITH VERIFIED ANSWERS FULL REVIEW
●● During which phase of strategic planning must value-based care be
assessed?
Answer: Strategic assessment phase
●● During which phase are value-based goals and initiatives defined?
Answer: Strategy formulation phase
●● What long-term effort is often used to describe movement toward
value-based care?
Answer: Journey
●● What traditional payment model paid for each individual healthcare
service?
Answer: Fee-for-service
●● What percentage of healthcare payments included a value component
in 2022?
Answer: More than half
,●● What legislation accelerated the evolution toward value-based care
in 2010?
Answer: Affordable Care Act
●● What organization develops and tests value-based payment programs
for Medicare?
Answer: Center for Medicare & Medicaid Innovation
●● What fundamental flaw is associated with fee-for-service?
Answer: Incentivizes volume over outcomes
●● What percentage of U.S. GDP was spent on healthcare in 2021?
Answer: 17.8 percent
●● What key outcome is lower in the United States despite high
spending?
Answer: Life expectancy
●● What equation defines value in healthcare?
Answer: Quality divided by cost
●● What three elements comprise quality in the value equation?
Answer: Experience, outcomes, safety
,●● What do value-based payment models reward?
Answer: High-quality cost-effective care
●● What HCP-LAN Category 1 represents?
Answer: Fee-for-service without quality link
●● What distinguishes HCP-LAN Category 2 contracts?
Answer: Bonuses tied to quality
●● What infrastructure payments may Category 2 include?
Answer: Population health infrastructure
●● What type of arrangement characterizes HCP-LAN Category 3?
Answer: Shared savings
●● What is compared to determine shared savings?
Answer: Actual spending versus benchmark
●● What occurs if spending exceeds the benchmark in downside risk
models?
Answer: Provider repays payer
, ●● What is another name for prospective population-based payment?
Answer: Capitation
●● What defines HCP-LAN Category 4 models?
Answer: Population-based payments
●● What is meant by providers having 'skin in the game'?
Answer: Bearing financial risk
●● Why is value-based care not considered a fad?
Answer: Steady evolution
●● What type of hospital may remain fee-for-service longer?
Answer: Critical access hospital
●● What financial concern do CFOs have about value-based care?
Answer: Reduced utilization reduces revenue
●● What new revenue stream comes from achieving savings targets?
Answer: Shared savings payments
