C236 HRM 3600
Compensation & Benefits
Comprehensive OA Review (Qns & Ans)
2025
1. Which of the following is a primary objective of a
compensation strategy in the healthcare industry?
A) Minimize employee turnover
B) Maximize revenue
C) Reduce training costs
D) Comply with labor regulations
ANS: A) Minimize employee turnover
©2024/2025
, Rationale: A strong compensation strategy aims to attract and
retain skilled employees, thereby reducing turnover and
maintaining continuity in patient care.
2. Which healthcare compensation model incorporates both base
salary and performance incentives?
A) Fee-for-service
B) Salary-only
C) Pay-for-performance
D) Capitation
ANS: C) Pay-for-performance
Rationale: Pay-for-performance combines a base salary with
performance incentives to encourage higher quality and efficiency
in healthcare services.
3. What is the main disadvantage of using a fee-for-service
compensation model in healthcare?
A) Encourages comprehensive care
B) Promotes unnecessary treatments
C) Simplifies billing
D) Aligns provider and patient goals
ANS: B) Promotes unnecessary treatments
©2024/2025
, Rationale: Fee-for-service may incentivize providers to
perform more treatments or procedures than necessary to increase
their revenue.
Fill-in-the-Blank Questions
4. Reimbursement models that promote high-quality and
efficient care are often referred to as __________ models.
ANS: value-based
Rationale: Value-based models incentivize providers to
improve patient outcomes and focus on the quality of care rather
than volume.
5. A compensation strategy where employees receive a
guaranteed minimum salary plus bonuses for meeting specified
objectives is known as __________.
ANS: performance-based pay
Rationale: Performance-based pay combines a guaranteed
salary with merit-based bonuses, aligning compensation with the
achievement of organizational goals.
True/False Questions
©2024/2025
Compensation & Benefits
Comprehensive OA Review (Qns & Ans)
2025
1. Which of the following is a primary objective of a
compensation strategy in the healthcare industry?
A) Minimize employee turnover
B) Maximize revenue
C) Reduce training costs
D) Comply with labor regulations
ANS: A) Minimize employee turnover
©2024/2025
, Rationale: A strong compensation strategy aims to attract and
retain skilled employees, thereby reducing turnover and
maintaining continuity in patient care.
2. Which healthcare compensation model incorporates both base
salary and performance incentives?
A) Fee-for-service
B) Salary-only
C) Pay-for-performance
D) Capitation
ANS: C) Pay-for-performance
Rationale: Pay-for-performance combines a base salary with
performance incentives to encourage higher quality and efficiency
in healthcare services.
3. What is the main disadvantage of using a fee-for-service
compensation model in healthcare?
A) Encourages comprehensive care
B) Promotes unnecessary treatments
C) Simplifies billing
D) Aligns provider and patient goals
ANS: B) Promotes unnecessary treatments
©2024/2025
, Rationale: Fee-for-service may incentivize providers to
perform more treatments or procedures than necessary to increase
their revenue.
Fill-in-the-Blank Questions
4. Reimbursement models that promote high-quality and
efficient care are often referred to as __________ models.
ANS: value-based
Rationale: Value-based models incentivize providers to
improve patient outcomes and focus on the quality of care rather
than volume.
5. A compensation strategy where employees receive a
guaranteed minimum salary plus bonuses for meeting specified
objectives is known as __________.
ANS: performance-based pay
Rationale: Performance-based pay combines a guaranteed
salary with merit-based bonuses, aligning compensation with the
achievement of organizational goals.
True/False Questions
©2024/2025
