HCM Exit Test Questions & Answers
2024/2025
Which of the following is NOT a classical insurance principle? - ANSWERSThe possibility of moral hazard
must exist
Why do physicians like PPOs? - ANSWERSThere is more control over cost
__________ is often identified as the factor most responsible for demand pull inflation in medical care. -
ANSWERSThe presence of third party payers
Who provides most long-term care services? - ANSWERS(Informal) Family caregivers or (Formal) CNA's
A cost that has already occurred or irrevocably committed is a: - ANSWERSSunk Cost
What is an example of variable cost? - ANSWERSDrugs
Explain the sentence: "In the long-term, all costs are variable". - ANSWERSIf a company begins to lose
revenue, the company will begin to shed facilities and employees
If the cafeteria has 3,250,000 in overhead costs to be allocated on patient days and patient days are
18,259,000 then the allocation rate is? - ANSWERS178
Which of the following is an example of direct healthcare cost? - ANSWERSCo-payment paid to a doctor's
office
What two characteristics make a good cost drive? - ANSWERSFairness and cost control
. What are the four steps in the cost allocation process? - ANSWERS1. IDENTIFY COST POOL
,2. DETERMINE COST DRIVER
3. CALCULATE ALLOCATION RATE
4. DETERMINE ALLOCATION AMOUNT
A projected cash flow statement uses.. - ANSWERSCash accounting
In accrual accounting, as opposed to cash accounting: - ANSWERSAccounts receivable are recorded
Which of the following is an example of a partnership? Proprietorship? - ANSWERSEasy to start/ Easy to
form, subject to few regulations, no income tax
The yield to maturity on a bond is the: - ANSWERSExpected rate on return
The coupon rate on a bond is the interest rate you earn on a bond regardless of the price you paid: -
ANSWERSFalse
Which financial statement is a snapshot of the organization's financial picture at one point in time? -
ANSWERSBalance Sheet
Which financial statement presents the activity of the business for the previous time period? -
ANSWERSStatement of cash flows
Which financial statement shows the company's use and acquisition of funds for a given period of time?
- ANSWERSIncome statement
Opportunity cost - ANSWERSReturn of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's tax rate is 28%, what is the
interest's rate? - ANSWERS5.76%
, Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's tax rate is 28%, what is the
interest's rate? - ANSWERS6.48%
What is the primary reason for quality management? - ANSWERSContinuous improvement
What are the common components of quality management? - ANSWERSMeasurement, assessment, and
improvement
Measure that could be used by a rehabilitation facility to evaluate the STRUCTURAL aspects -
ANSWERSNumber of certified nursing assistants on each shift
Percentage of patients who develop deep vein thrombosis following a surgical procedure -
ANSWERSOutcome measure
A PROCESS measure of performance for a hospital emergency department - ANSWERSPercent of time
staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand hygiene requirements" what
population would be included in the numerator? - ANSWERSNumber of staff observed in compliance
with hand hygiene requirements.
A PROCESS measure that could be used by a family practice clinic to evaluate the quality of care provided
to adult patients with asthma. - ANSWERSPercent of patients that receive instructions in the use of their
medications
What are two types of variations in quality management? - ANSWERSCommon cause variation
(predictable) and Special cause variation (Abnormal and not predictable).
The law of demand - ANSWERSStates that if all else is equal (ceteris paribus), as price falls, the quantity
demanded rises, and as price rises, the quantity demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%. Sales of product B also
decrease by 3%. Are products A and B complements or substitutes? - ANSWERSComplements
2024/2025
Which of the following is NOT a classical insurance principle? - ANSWERSThe possibility of moral hazard
must exist
Why do physicians like PPOs? - ANSWERSThere is more control over cost
__________ is often identified as the factor most responsible for demand pull inflation in medical care. -
ANSWERSThe presence of third party payers
Who provides most long-term care services? - ANSWERS(Informal) Family caregivers or (Formal) CNA's
A cost that has already occurred or irrevocably committed is a: - ANSWERSSunk Cost
What is an example of variable cost? - ANSWERSDrugs
Explain the sentence: "In the long-term, all costs are variable". - ANSWERSIf a company begins to lose
revenue, the company will begin to shed facilities and employees
If the cafeteria has 3,250,000 in overhead costs to be allocated on patient days and patient days are
18,259,000 then the allocation rate is? - ANSWERS178
Which of the following is an example of direct healthcare cost? - ANSWERSCo-payment paid to a doctor's
office
What two characteristics make a good cost drive? - ANSWERSFairness and cost control
. What are the four steps in the cost allocation process? - ANSWERS1. IDENTIFY COST POOL
,2. DETERMINE COST DRIVER
3. CALCULATE ALLOCATION RATE
4. DETERMINE ALLOCATION AMOUNT
A projected cash flow statement uses.. - ANSWERSCash accounting
In accrual accounting, as opposed to cash accounting: - ANSWERSAccounts receivable are recorded
Which of the following is an example of a partnership? Proprietorship? - ANSWERSEasy to start/ Easy to
form, subject to few regulations, no income tax
The yield to maturity on a bond is the: - ANSWERSExpected rate on return
The coupon rate on a bond is the interest rate you earn on a bond regardless of the price you paid: -
ANSWERSFalse
Which financial statement is a snapshot of the organization's financial picture at one point in time? -
ANSWERSBalance Sheet
Which financial statement presents the activity of the business for the previous time period? -
ANSWERSStatement of cash flows
Which financial statement shows the company's use and acquisition of funds for a given period of time?
- ANSWERSIncome statement
Opportunity cost - ANSWERSReturn of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's tax rate is 28%, what is the
interest's rate? - ANSWERS5.76%
, Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's tax rate is 28%, what is the
interest's rate? - ANSWERS6.48%
What is the primary reason for quality management? - ANSWERSContinuous improvement
What are the common components of quality management? - ANSWERSMeasurement, assessment, and
improvement
Measure that could be used by a rehabilitation facility to evaluate the STRUCTURAL aspects -
ANSWERSNumber of certified nursing assistants on each shift
Percentage of patients who develop deep vein thrombosis following a surgical procedure -
ANSWERSOutcome measure
A PROCESS measure of performance for a hospital emergency department - ANSWERSPercent of time
staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand hygiene requirements" what
population would be included in the numerator? - ANSWERSNumber of staff observed in compliance
with hand hygiene requirements.
A PROCESS measure that could be used by a family practice clinic to evaluate the quality of care provided
to adult patients with asthma. - ANSWERSPercent of patients that receive instructions in the use of their
medications
What are two types of variations in quality management? - ANSWERSCommon cause variation
(predictable) and Special cause variation (Abnormal and not predictable).
The law of demand - ANSWERSStates that if all else is equal (ceteris paribus), as price falls, the quantity
demanded rises, and as price rises, the quantity demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%. Sales of product B also
decrease by 3%. Are products A and B complements or substitutes? - ANSWERSComplements
