MHA 706 COMPLETE EXAMINATION TEST
QUESTIONS WITH VERIFIED SOLUTIONS
●● The Finance Department at large healthcare organizations
Answer: -The CFO typically reports directly to the chief executive
officer
-CFO assisted by a comptroller and treasurer
-Department is headed by the CFO
●● Stakeholders in a not-for-profit hospital
Answer: -Vendor
-Community
-Employee
●● Stakeholders rights
Answer: -Claim on residual liquidation proceeds
-Right of control
-A possible dividend and/or capital gains
●● Finance, accounting and financial management MOST correct
statement
Answer: financial management provides the theory, concepts and tools
necessary to help managers make better financial decisions
,●● What is a disadvantage of being a corporation
Answer: external reporting
●● Finance activities
Answer: -financial reporting
-planning and budgeting
-financing decisions
●● NOT an advantage of a proprietorship
Answer: Unlimited liability
●● Medicare Part A
Answer: Covers hospital and some skilled nursing home coverage
●● Medicare Part B
Answer: Physician services, ambulatory surgical services
●● Medicare Part C
Answer: often called "medicare advantage"
●● Medicare Part D
, Answer: Covers prescription drugs
●● Prospective Payment
Answer: -have a fixed payment determined beforehand that is unrelated
to either costs or charges
-Are used to pay for either a predefined procedure, diagnosis, per diem
or bundled service
-may result in up-coding
●● Charge-Based
Answer: -Payers pay based off of pre-determined "chargemaster."- rate
schedule
These payments are usually discounted up to 20% to 50%
-Has potential to result in "gamesmanship" that can inflate healthcare
charges
●● Cost-Based
Answer: -Providers were reimbursed for "actual" costs
-No incentive to control costs
●● Capitation
Answer: -Payment is (usually) made on a per member per month basis
-Providers may have incentive to reduce utilization
QUESTIONS WITH VERIFIED SOLUTIONS
●● The Finance Department at large healthcare organizations
Answer: -The CFO typically reports directly to the chief executive
officer
-CFO assisted by a comptroller and treasurer
-Department is headed by the CFO
●● Stakeholders in a not-for-profit hospital
Answer: -Vendor
-Community
-Employee
●● Stakeholders rights
Answer: -Claim on residual liquidation proceeds
-Right of control
-A possible dividend and/or capital gains
●● Finance, accounting and financial management MOST correct
statement
Answer: financial management provides the theory, concepts and tools
necessary to help managers make better financial decisions
,●● What is a disadvantage of being a corporation
Answer: external reporting
●● Finance activities
Answer: -financial reporting
-planning and budgeting
-financing decisions
●● NOT an advantage of a proprietorship
Answer: Unlimited liability
●● Medicare Part A
Answer: Covers hospital and some skilled nursing home coverage
●● Medicare Part B
Answer: Physician services, ambulatory surgical services
●● Medicare Part C
Answer: often called "medicare advantage"
●● Medicare Part D
, Answer: Covers prescription drugs
●● Prospective Payment
Answer: -have a fixed payment determined beforehand that is unrelated
to either costs or charges
-Are used to pay for either a predefined procedure, diagnosis, per diem
or bundled service
-may result in up-coding
●● Charge-Based
Answer: -Payers pay based off of pre-determined "chargemaster."- rate
schedule
These payments are usually discounted up to 20% to 50%
-Has potential to result in "gamesmanship" that can inflate healthcare
charges
●● Cost-Based
Answer: -Providers were reimbursed for "actual" costs
-No incentive to control costs
●● Capitation
Answer: -Payment is (usually) made on a per member per month basis
-Providers may have incentive to reduce utilization
