CPPM Practice Exam Review Questions and Answers 100% Already Graded A+ Excel

CPPM Practice Exam Review Questions and Answers 100% Already Graded A+ Excel Which of the following scenarios is appropriate incident-to billing? - CORRECT ANSWER-D. A physician's assistant at an OB/GYN practice sees patients for their follow up OB appointments while the physician sees new OB patients in the office. In the practice you manage, the medical assistants are responsible for preparing the patients for the physician. The medical assistants place a green folder in the door so the physician knows which patient is next to be seen. The physician refuses to follow the system and determines who he will see next, which is angering the patients because they are waiting too long in the exam room. The medical assistant is extremely upset and close to tears. Which of the following responses is an example of effective communication in this situation? - CORRECT ANSWER-B. "I understand your frustration. Since this system does not appear to be working, what do you suggest?" During the typical patient flow for an encounter, when should the copayment be collected? - CORRECT ANSWER-A. When the patient checks in with the front desk prior to the appointment. Which of the following is NOT a typical duty of a practice manager? A. Developing a strategy to increase patient referrals. B. Inventory control for vaccines needed for school physicals. C. Processing prior authorizations for minor surgeries performed in the office. D. Implement strategies to reduce the days in A/R. - CORRECT ANSWER-C. Processing prior authorizations for minor surgeries performed in the office. Which statement regarding insurance reform is TRUE? A. A requirement to permit adult children to stay on family policies until age 26.B. Require pre-authorizations for only emergency department services.C. Limit the lifetime limits on the dollar amount of the coverage for which insurers will pay.D. Insurers must limit any waiting periods for coverage to 30 days. - CORRECT ANSWER-A. A requirement to permit adult children to stay on family policies until age 26. A patient is very upset because her insurance denied her claim. She was seen for a routine physical which is not covered by her insurance. The patient asks you to change the diagnosis code in order for the insurance company to pay the claim. Which of the following should be done? A. Explain to the patient the codes are correct and you cannot change the diagnosis unless you have her consent in writing. B. Have the provider or coder review the encounter to see if another diagnosis is appropriate before making any changes to the codes. C. Change the diagnosis so that the insurance company will pay the claim because a service was rendered and should be paid. D. Submit an appeal for the insurance company to reconsider the claim and include a copy of the medical record for the date of service in question. - CORRECT ANSWER-B. Have the provider or coder review the encounter to see if another diagnosis is appropriate before making any changes to the codes. Which of the following sites of service must adhere to EMTALA? I. Physician office II. Ambulatory surgical center III. Emergency department IV. Intensive care unit - CORRECT ANSWER-III is correct Under OSHA, an emergency action plan should include: I. Evacuation procedures II. Fire extinguisher locations III. Emergency contacts and contact information IV. Designated meeting location V. Staff assignments and responsibilities - CORRECT ANSWER-The emergency action plan should include: • Procedures for reporting a fire or emergency • Evacuation procedures • Fire extinguisher locations • Emergency contacts and contact information • Designated meeting location • Staff assignments and responsibilities To perform CLIA waived tests, a practice must have a - CORRECT ANSWER-Certificate of Waiver A hospital provides free office space to providers who admit patients for inpatient procedures. Which law(s) does this violate? - CORRECT ANSWER-B. Anti-Kickback Law Which of the following is the best example of quality care improvement? A. Increase insurance claim submission accuracy to decrease denials. B. Flexibility in the training schedule to accommodate all employees. C. Effective communication between staff regarding sterilization of equipment. D. Monitor the no show rate to determine the cause and possible solution. - CORRECT ANSWER-C. Effective communication between staff regarding sterilization of equipment. On an income statement, which of the following expense categories would best represent a variable expense? A. Physicians salary B. Medical supplies C. Office rent D. Utilities - CORRECT ANSWER-A variable expense is one that can vary based on the volume in a clinic. Physician salary, office rent, and utilities are usually considered fixed expenses that do not vary. Medical supply costs will vary depending on the number of patients that are seen. B. As a manager, you are considering whether to purchase a new diagnostic device. The price of the device is $20,000 which will be paid in equal payments over 4 years. The average revenue you can expect per test is $40. The cost of supplies for each test is $5. Not accounting for staff costs, how many tests would need to be performed each year to break even? - CORRECT ANSWER-This is found by dividing the yearly cost of the equipment (20,000/4= 5,000) by the profit from each test performed (40-5=35). The result is 5,000 / 35 = 142.9. Therefore, 143 tests would need to be performed to cover the cost of the equipment and break even. Medical practices can operate their financials either under a cash-based accounting system or an accrual-based accounting system. Which of the following is the best advantage for using an accrual-based accounting system? - CORRECT ANSWER-The accrual method of accounting records revenues when they are earned and expenses when they have been incurred and provides a more accurate reflection of your current financial position. Cash-based accounting is generally simpler because it recognizes revenues only when cash is collected and recognizes expenses only when cash is paid. Cash-based accounting provides a truer reflection of actual cash on hand and requires less reconciliation such as contractual adjustments. B. During a specific month, your practice appears to have consistent productivity and charges submitted. Expenses also appear to be in line and consistent. However, you notice your accounts receivable has increased dramatically over the month. Based on this information, which of the following statements would be accurate? I. The income on a cash-based income statement should decrease II. The income on an accrual-based income statement would decreaseIII. There should not be a significant difference in beginning and ending cash amounts on your cash flow statement IV. The equity on your balance sheet should remain fairly constant V. The amount of assets on your balance sheet will grow higher than will your liabilities and equity. - CORRECT ANSWER-If accounts receivable spike during a month, that means fewer payments have been received, which will decrease collections and the income on the income statement. Decreased collections will also negatively impact your cash flow statement which monitors cash levels in your practice. Because accrual based accounting measures income based on charges, it would not be affected. Equity on your balance sheet is not directly affected by a change in cash flow as assets include both cash and accounts receivable. Finally, assets must always equal liabilities and equity on a balance sheet. I and IV are correct As a manager you are preparing to apply for a large bank loan. In so doing, you will need to represent to the bank the overall financial strength of your business including money coming in, money owed to you, and money that you owe to other people. Which financial statement is best used to represent the current status of your practice in this regard? - CORRECT ANSWER-The balance sheet is a snapshot of a business' financial condition at a specific point in time. It includes values for assets, liabilities, and stockholders' equity.