MHA 706 - Module 1 Quiz Questions with Complete Solutions Graded A+

The major provisions of the Patient Protection and Affordable Care Act of 2010 were: - Answer: a. Free preventative b. Medicaid expansion c. Banning of preexisting condition coverage limitations T/F CFO usually is assisted by a comptroller and treasurer - Answer: TRUE T/F The department is headed by the CFO sometimes called the VP-finance - Answer: TRUE T/F The CFO typically reports directly to the chief executive officer (CEO) - Answer: TRUE In a not-for-profit hospital, the following are example(s) of a stakeholder: - Answer: employee, vendor, and community Stakeholders have the right(s): - Answer: a. Right of control b. A possible dividend and/or capital gain c. Claim on residual liquidation proceeds provides the theory, concepts, and tools necessary to help managers make better financial decisions. - Answer: Financial management What is a disadvantage of being a corporation? - Answer: external reporting What are finance activities: - Answer: a. Planning and budgeting b. Financing decisions c. Financial reporting What is an advantage of proprietorship? - Answer: a. No corporate income taxes b. Ease of formation T/F A not-for-profit corporation can also be called 529 (b): - Answer: FALSE T/F The primary goal of investor-owned corporations is shareholder wealth maximation: - Answer: TRUE The amount that must be paid out of pocket by the policyholder before an insurance provider will pay any expenses - Answer: deductible Individuals at greater risk of needing health care are more likely to purchase insurance - Answer: adverse selection The risk of overuse of health services because the insured does not bear the full cost of consequences - Answer: moral hazard Requires an individual to pay for a certain percentage of the eligible medical expenses - Answer: coinsurance The fixed amount for a cover service that the insurer mandates that the patient pay to the provider before the patient receives services from physicians - Answer: copayments covers hospital and some skilled nursing home coverage - Answer: Medicare A covers physician services, ambulatory surgical services, outpatient - Answer: Medicare B is often called Medicare Advantage - Answer: Medicare C covers prescription drugs - Answer: Medicare D are uses to pay for either a predefined procedure, diagnosis, per diem, or bundled service - Answer: Prospective payment payment is (usually) made on a per member per month basis - Answer: capitation