MHA 706 – Healthcare Finance Midterm Exam (80 Questions) – Insurance Models, GAAP, Financial Ratios, ACA | Louisiana State University Shreveport

This document includes 80 updated and verified midterm exam questions with correct answers for the MHA 706: Healthcare Financial Management course at Louisiana State University Shreveport (LSUS) for the 2025/2026 academic year. It comprehensively covers key financial concepts, regulatory policies, and accounting principles critical to understanding the financial structure and operations of healthcare organizations. Main topics include: The Patient Protection & Affordable Care Act (ACA) provisions and implications for coverage, cost control, and Medicaid expansion Health insurance fundamentals: copayments, deductibles, adverse selection, coinsurance, capitation, prospective payment, and managed care plans (HMOs, PPOs, POS) Medicare Parts A, B, C, and D: coverage categories and their operational scope Financial accounting vs. managerial accounting: principles of GAAP, income statements, balance sheets, and cash flow statements Corporate finance and governance in healthcare: roles of CFO, financial objectives, stakeholder rights, and differences between nonprofit and for-profit entities Key financial ratios and performance metrics: ROE via DuPont analysis, liquidity, debt management, asset turnover, and profitability Cost behavior and CVP analysis: fixed, variable, semi-fixed costs, break-even analysis, and contribution margin in healthcare Budgeting, cash management, and statement interpretation across for-profit and not-for-profit systems This study guide is tailored for graduate-level MHA students, and is also suitable for students in health economics, hospital management, public health finance, and accounting for healthcare administrators. It serves as both a midterm preparation tool and a foundational review of health financial systems. Keywords: ACA, healthcare finance, GAAP, capitation, insurance reimbursement, Medicare, financial ratios, DuPont analysis, break-even analysis, contribution margin, nonprofit healthcare, cost control, PPO HMO POS, accounting principles, revenue cycles, cash budgeting