Page 1 of 51
MHA 706 FINAL EXAMNATION QUESTIONS WITH DETAILED
RATIONALES
Healthcare Finance / Healthcare Administration & Management / Public Health
Exam Coverage:
• Section 1, Questions 1-25: Healthcare Systems, Policy
& The Triple Aim: Covers CMS, ACA, regulatory bodies
(Stark, EMTALA, HIPAA), quality frameworks, and
leadership models.
• Section 2, Questions 26-50: Healthcare Finance &
Financial Management: Focuses on operating margin,
break-even analysis, cost allocation, ratios, bond
valuation, and capital budgeting.
• Section 3, Questions 51-75: Operations, Quality
Improvement & Strategic Management: Emphasizes
Lean, Six Sigma, SWOT, balanced scorecard, change
management, and strategic planning.
• Section 4, Questions 76-100: Regulations, Ethics,
Informatics & Advanced Scenarios: Covers HIPAA,
ethics, telehealth, risk management, and advanced
healthcare administration scenarios.
, Page 2 of 51
Section 1: Question 1-25: Healthcare Systems, Policy &
The Triple Aim
1. Which federal agency is primarily responsible for
administering the Medicare and Medicaid programs in the
United States?
A. Food and Drug Administration (FDA)
B. Centers for Medicare & Medicaid Services (CMS)
C. National Institutes of Health (NIH)
D. Health Resources and Services Administration (HRSA)
CORRECT ANSWER: B
RATIONALE: The Centers for Medicare & Medicaid Services
(CMS) is the federal agency within the Department of Health
and Human Services responsible for administering
Medicare, Medicaid, the Children's Health Insurance
Program (CHIP), and the Health Insurance Marketplace .
2. The Affordable Care Act (ACA) established which
mechanism to expand health insurance coverage?
A. Health savings accounts only
B. Health insurance exchanges and Medicaid expansion
C. Employer mandate only
D. Single-payer system
CORRECT ANSWER: B
RATIONALE: The ACA expanded coverage through two
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primary mechanisms: establishing health insurance
exchanges (Marketplaces) where individuals can compare
and purchase insurance plans, and expanding Medicaid
eligibility to adults with incomes up to 138% of the federal
poverty level in participating states .
3. Which type of healthcare system is characterized by a
single government entity financing and delivering
healthcare services?
A. Socialized medicine
B. Multi-payer system
C. Managed care organization
D. Accountable care organization
CORRECT ANSWER: A
RATIONALE: Socialized medicine refers to a system where
the government both finances and delivers healthcare
services, employing healthcare providers and owning
facilities. Examples include the British National Health
Service (NHS) .
4. The Triple Aim framework in healthcare focuses on
which three objectives?
A. Cost reduction, profit maximization, and market share
B. Improving patient experience, improving population
health, and reducing per capita cost
C. Increasing admissions, expanding facilities, and hiring
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more staff
D. Regulatory compliance, accreditation, and risk
management
CORRECT ANSWER: B
RATIONALE: The Triple Aim, developed by the Institute for
Healthcare Improvement, focuses on three interdependent
objectives: improving the individual patient experience of
care (quality and satisfaction), improving the health of
populations, and reducing the per capita cost of healthcare .
5. Which policy mechanism uses financial incentives to
encourage healthcare providers to meet quality and
efficiency benchmarks?
A. Fee-for-service payment
B. Value-based purchasing
C. Capitation payment
D. Out-of-pocket payment
CORRECT ANSWER: B
RATIONALE: Value-based purchasing programs tie a portion
of provider reimbursement to performance on quality
metrics, patient experience measures, and efficiency
indicators .
6. The Hill-Burton Act of 1946 primarily aimed to:
MHA 706 FINAL EXAMNATION QUESTIONS WITH DETAILED
RATIONALES
Healthcare Finance / Healthcare Administration & Management / Public Health
Exam Coverage:
• Section 1, Questions 1-25: Healthcare Systems, Policy
& The Triple Aim: Covers CMS, ACA, regulatory bodies
(Stark, EMTALA, HIPAA), quality frameworks, and
leadership models.
• Section 2, Questions 26-50: Healthcare Finance &
Financial Management: Focuses on operating margin,
break-even analysis, cost allocation, ratios, bond
valuation, and capital budgeting.
• Section 3, Questions 51-75: Operations, Quality
Improvement & Strategic Management: Emphasizes
Lean, Six Sigma, SWOT, balanced scorecard, change
management, and strategic planning.
• Section 4, Questions 76-100: Regulations, Ethics,
Informatics & Advanced Scenarios: Covers HIPAA,
ethics, telehealth, risk management, and advanced
healthcare administration scenarios.
, Page 2 of 51
Section 1: Question 1-25: Healthcare Systems, Policy &
The Triple Aim
1. Which federal agency is primarily responsible for
administering the Medicare and Medicaid programs in the
United States?
A. Food and Drug Administration (FDA)
B. Centers for Medicare & Medicaid Services (CMS)
C. National Institutes of Health (NIH)
D. Health Resources and Services Administration (HRSA)
CORRECT ANSWER: B
RATIONALE: The Centers for Medicare & Medicaid Services
(CMS) is the federal agency within the Department of Health
and Human Services responsible for administering
Medicare, Medicaid, the Children's Health Insurance
Program (CHIP), and the Health Insurance Marketplace .
2. The Affordable Care Act (ACA) established which
mechanism to expand health insurance coverage?
A. Health savings accounts only
B. Health insurance exchanges and Medicaid expansion
C. Employer mandate only
D. Single-payer system
CORRECT ANSWER: B
RATIONALE: The ACA expanded coverage through two
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primary mechanisms: establishing health insurance
exchanges (Marketplaces) where individuals can compare
and purchase insurance plans, and expanding Medicaid
eligibility to adults with incomes up to 138% of the federal
poverty level in participating states .
3. Which type of healthcare system is characterized by a
single government entity financing and delivering
healthcare services?
A. Socialized medicine
B. Multi-payer system
C. Managed care organization
D. Accountable care organization
CORRECT ANSWER: A
RATIONALE: Socialized medicine refers to a system where
the government both finances and delivers healthcare
services, employing healthcare providers and owning
facilities. Examples include the British National Health
Service (NHS) .
4. The Triple Aim framework in healthcare focuses on
which three objectives?
A. Cost reduction, profit maximization, and market share
B. Improving patient experience, improving population
health, and reducing per capita cost
C. Increasing admissions, expanding facilities, and hiring
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more staff
D. Regulatory compliance, accreditation, and risk
management
CORRECT ANSWER: B
RATIONALE: The Triple Aim, developed by the Institute for
Healthcare Improvement, focuses on three interdependent
objectives: improving the individual patient experience of
care (quality and satisfaction), improving the health of
populations, and reducing the per capita cost of healthcare .
5. Which policy mechanism uses financial incentives to
encourage healthcare providers to meet quality and
efficiency benchmarks?
A. Fee-for-service payment
B. Value-based purchasing
C. Capitation payment
D. Out-of-pocket payment
CORRECT ANSWER: B
RATIONALE: Value-based purchasing programs tie a portion
of provider reimbursement to performance on quality
metrics, patient experience measures, and efficiency
indicators .
6. The Hill-Burton Act of 1946 primarily aimed to:
