HSA 528 Midterm UPDATED Exam
Questions and CORRECT Answers
What is an element of budgeted financial requirements that is NOT included in budgeted
expenses? - CORRECT ANSWER Increase in working capital
T or F: a typical health care provider that increases its prices by 10% will usually realize a 10%
increase in revenue. - CORRECT ANSWER False
T or F: in the health care marketplace, market share has the most pervasive influence on prices. -
CORRECT ANSWER False
T or F: providing higher-quality care can ultimately lead to increased revenues. - CORRECT
ANSWER True
T or F: the growth of managed-care plans and subsequent consolidation is a major reason why
managed-care contract negotiation is an important element in revenue management. - CORRECT
ANSWER True
What can a health care provider vary across different payers? - CORRECT
ANSWER Discounts
What is the best way to compare hospital costs? - CORRECT ANSWER On the basis of
individual assessment of cost for inpatient and outpatient services.
What is not used directly as one of the means of determining the reasonableness of a hospital's
charges? - CORRECT ANSWER Prices of peer hospitals
Why should providers seek whenever possible to minimize health plan rate differentials? -
CORRECT ANSWER So that plans with smaller discounts are not forced out of the
market/business
Questions and CORRECT Answers
What is an element of budgeted financial requirements that is NOT included in budgeted
expenses? - CORRECT ANSWER Increase in working capital
T or F: a typical health care provider that increases its prices by 10% will usually realize a 10%
increase in revenue. - CORRECT ANSWER False
T or F: in the health care marketplace, market share has the most pervasive influence on prices. -
CORRECT ANSWER False
T or F: providing higher-quality care can ultimately lead to increased revenues. - CORRECT
ANSWER True
T or F: the growth of managed-care plans and subsequent consolidation is a major reason why
managed-care contract negotiation is an important element in revenue management. - CORRECT
ANSWER True
What can a health care provider vary across different payers? - CORRECT
ANSWER Discounts
What is the best way to compare hospital costs? - CORRECT ANSWER On the basis of
individual assessment of cost for inpatient and outpatient services.
What is not used directly as one of the means of determining the reasonableness of a hospital's
charges? - CORRECT ANSWER Prices of peer hospitals
Why should providers seek whenever possible to minimize health plan rate differentials? -
CORRECT ANSWER So that plans with smaller discounts are not forced out of the
market/business
