BU.883.706
HC Organization & Management
LATEST MIDTERMS GUIDE
Q&S
©2024/2025
,1. In the context of health care management, which of the
following best describes the term 'capitation'?
A) A payment model where providers receive a fixed
amount per patient
B) A fee-for-service payment model
C) A management strategy for reducing patient
readmissions
D) A regulatory requirement for health care
documentation
Correct Answer: A
Rationale: Capitation is a payment model in health care
where providers are paid a set fee per patient regardless of
how many services the patient receives, incentivizing cost-
effective care.
2. What is the primary purpose of 'utilization review' in
health care organizations?
A) To assess the necessity and efficiency of health care
services provided
B) To manage the organization's financial investments
C) To oversee employee performance and productivity
D) To ensure compliance with health care regulations
Correct Answer: A
Rationale: Utilization review is a process used by health
care organizations to evaluate the appropriateness, medical
need, and efficiency of health care services to ensure cost-
effective care delivery.
3. Which of the following is a key feature of 'Managed Care
Organizations' (MCOs)?
A) They provide care based on a fee-for-service model
©2024/2025
, B) They focus solely on acute care services
C) They integrate the financing and delivery of health care
services
D) They are typically government-run institutions
Correct Answer: C
Rationale: MCOs are designed to manage both the
financing and delivery of health care to members, often
through a network of approved providers and negotiated
rates.
4. In health care management, 'benchmarking' is used
primarily for:
A) Setting prices for health care services
B) Comparing organizational performance against
industry standards
C) Recruiting health care professionals
D) Managing patient health records
Correct Answer: B
Rationale: Benchmarking in health care is a process of
comparing an organization's performance metrics to
industry standards or best practices to identify areas for
improvement.
5. The 'Triple Aim' framework in health care focuses on
improving which of the following?
A) Patient experience, population health, and reducing
costs
B) Provider satisfaction, patient safety, and facility
modernization
C) Health care policies, medical research, and community
outreach
D) Insurance coverage, medication affordability, and
treatment outcomes
©2024/2025
, Correct Answer: A
Rationale: The Triple Aim is a framework developed to
optimize health system performance by simultaneously
pursuing improved patient care experience, better
population health, and reduced per capita costs.
6. 'Evidence-based practice' in health care management is
important because it:
A) Allows for personalized treatment plans for each
patient
B) Ensures that management decisions are based on the
latest research findings
C) Guarantees increased profitability for health care
organizations
D) Provides legal protection against malpractice lawsuits
Correct Answer: B
Rationale: Evidence-based practice involves making
health care decisions based on the best available, current,
and valid research evidence to ensure effective and efficient
patient care.
7. The 'Donabedian Model' is used in health care to
evaluate:
A) The financial stability of health care institutions
B) The quality of care based on structure, process, and
outcomes
C) The effectiveness of marketing strategies in health
care
D) The impact of health care policies on patient
satisfaction
Correct Answer: B
Rationale: The Donabedian Model is a conceptual model
that provides a framework for examining health services
©2024/2025
HC Organization & Management
LATEST MIDTERMS GUIDE
Q&S
©2024/2025
,1. In the context of health care management, which of the
following best describes the term 'capitation'?
A) A payment model where providers receive a fixed
amount per patient
B) A fee-for-service payment model
C) A management strategy for reducing patient
readmissions
D) A regulatory requirement for health care
documentation
Correct Answer: A
Rationale: Capitation is a payment model in health care
where providers are paid a set fee per patient regardless of
how many services the patient receives, incentivizing cost-
effective care.
2. What is the primary purpose of 'utilization review' in
health care organizations?
A) To assess the necessity and efficiency of health care
services provided
B) To manage the organization's financial investments
C) To oversee employee performance and productivity
D) To ensure compliance with health care regulations
Correct Answer: A
Rationale: Utilization review is a process used by health
care organizations to evaluate the appropriateness, medical
need, and efficiency of health care services to ensure cost-
effective care delivery.
3. Which of the following is a key feature of 'Managed Care
Organizations' (MCOs)?
A) They provide care based on a fee-for-service model
©2024/2025
, B) They focus solely on acute care services
C) They integrate the financing and delivery of health care
services
D) They are typically government-run institutions
Correct Answer: C
Rationale: MCOs are designed to manage both the
financing and delivery of health care to members, often
through a network of approved providers and negotiated
rates.
4. In health care management, 'benchmarking' is used
primarily for:
A) Setting prices for health care services
B) Comparing organizational performance against
industry standards
C) Recruiting health care professionals
D) Managing patient health records
Correct Answer: B
Rationale: Benchmarking in health care is a process of
comparing an organization's performance metrics to
industry standards or best practices to identify areas for
improvement.
5. The 'Triple Aim' framework in health care focuses on
improving which of the following?
A) Patient experience, population health, and reducing
costs
B) Provider satisfaction, patient safety, and facility
modernization
C) Health care policies, medical research, and community
outreach
D) Insurance coverage, medication affordability, and
treatment outcomes
©2024/2025
, Correct Answer: A
Rationale: The Triple Aim is a framework developed to
optimize health system performance by simultaneously
pursuing improved patient care experience, better
population health, and reduced per capita costs.
6. 'Evidence-based practice' in health care management is
important because it:
A) Allows for personalized treatment plans for each
patient
B) Ensures that management decisions are based on the
latest research findings
C) Guarantees increased profitability for health care
organizations
D) Provides legal protection against malpractice lawsuits
Correct Answer: B
Rationale: Evidence-based practice involves making
health care decisions based on the best available, current,
and valid research evidence to ensure effective and efficient
patient care.
7. The 'Donabedian Model' is used in health care to
evaluate:
A) The financial stability of health care institutions
B) The quality of care based on structure, process, and
outcomes
C) The effectiveness of marketing strategies in health
care
D) The impact of health care policies on patient
satisfaction
Correct Answer: B
Rationale: The Donabedian Model is a conceptual model
that provides a framework for examining health services
©2024/2025
