QUESTIONS + RATIONALES | VERSIONS A & B | FULL
CURRICULUM COVERAGE
1. Through what document does a hospital establish compliance
standards?
A. Corporate bylaws
B. Medical staff rules
C. Code of Conduct
D. Policies and procedures manual
Correct Answer: C. Code of Conduct
Rationale: The Code of Conduct formally establishes organizational
expectations for ethical behavior and compliance with laws and
regulations. While policies and bylaws support operations, the Code of
Conduct is the primary compliance standard document referenced by
HFMA and OIG.
2. What is the purpose of the OIG Work Plan?
A. To outline hospital billing policies
B. To identify acceptable compliance programs in various provider
settings
C. To establish Medicare payment rates
D. To regulate private insurance plans
,Correct Answer: B. To identify acceptable compliance programs in
various provider settings
Rationale: The OIG Work Plan identifies areas of risk, enforcement
priorities, and compliance expectations across healthcare provider
types. It guides organizations in building and maintaining effective
compliance programs.
3. If a Medicare patient is admitted on Friday, which services fall
within the three-day DRG window rule?
A. Diagnostic services provided Monday–Friday
B. All outpatient services provided during the week
C. Non-diagnostic services provided Tuesday through Friday
D. Only services provided on the admission date
Correct Answer: C. Non-diagnostic services provided Tuesday through
Friday
Rationale: Under the DRG window rule, non-diagnostic outpatient
services provided within three days prior to admission (or one day for
non-IPPS hospitals) are bundled into the inpatient claim.
4. What does a modifier allow a provider to do?
A. Change the CPT code definition
B. Increase reimbursement automatically
C. Report a specific circumstance without changing the code definition
D. Replace a diagnosis code
,Correct Answer: C. Report a specific circumstance without changing
the code definition
Rationale: Modifiers clarify special circumstances (e.g., bilateral
procedures) but do not alter the core definition of the CPT/HCPCS code.
5. If outpatient diagnostic services are provided within three days of
admission to an IPPS hospital, what must happen to these charges?
A. They are bundled into the inpatient claim
B. They are denied by Medicare
C. They must be billed separately to the Part B carrier
D. They are written off
Correct Answer: C. They must be billed separately to the Part B carrier
Rationale: Diagnostic services are excluded from DRG bundling and are
billed separately under Medicare Part B, even if provided within the
three-day window.
6. What is a recurring or series registration?
A. A registration created daily
B. A new registration for each encounter
C. One registration record for multiple days of service
D. A temporary registration
Correct Answer: C. One registration record for multiple days of service
Rationale: Recurring registrations are used for services such as therapy
or dialysis where multiple visits occur over a defined period.
, 7. What are non-emergency patients who arrive without prior
notification called?
A. Scheduled patients
B. Direct admissions
C. Unscheduled patients
D. Observation patients
Correct Answer: C. Unscheduled patients
Rationale: Unscheduled patients present without appointments or
advance notice but do not meet emergency criteria.
8. Which statement applies to the observation patient type?
A. Observation replaces inpatient admission
B. Observation is billed as inpatient care
C. Observation is used to evaluate need for inpatient admission
D. Observation lasts longer than inpatient stays
Correct Answer: C. Observation is used to evaluate need for inpatient
admission
Rationale: Observation status allows providers to monitor and assess a
patient before deciding on inpatient admission.
9. Which services are hospice programs required to provide around
the clock?
A. Social work and counseling
B. Nursing, pharmacy, and physician services