CMOM Module 3 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Gross Collection Ratio - CORRECT ANSWER - (Total Collections) / (gross charges)
Average Months in A/R - CORRECT ANSWER - (Total A/R for the past month) /
(average monthly billing for the past 12 months)
Total Expenses Per patient - CORRECT ANSWER - (Total Expense) / (Total Number of
patients)
Average Billing per Patient - CORRECT ANSWER - (Total billing per month or year) /
(total number of patients by month or year)
Average Net Collections Per Patient - CORRECT ANSWER - (total net collections per
month or year) / (Total number of patients by month or year)
Average Cost Per patient - CORRECT ANSWER - (Total Variable expenses per month or
year) / Total number of patients by month or year)
Net Collection Ratio - CORRECT ANSWER - (Total Collections) / (Total Charges -
adjustments)
Expense to Earnings Ratio (Overhead Ratio) - CORRECT ANSWER - (Expenses) / (Net
Collections)
Average Collection Period - CORRECT ANSWER - (Accounts Receivable) / Average
Daily Charges
, Budget - CORRECT ANSWER - -assists the practice in measuring projected financial
goals with the actual financial performance
-projects revenue expenditures
-helps determine cost containment and revenue requirements
Aspects to consider for establishing goals - CORRECT ANSWER - -number of providers
-services provided
-facility
-support personnel
-patient load
-insurance plans
-marketing plan
Objectives - CORRECT ANSWER - must be established for a practice before a budget and
financial policies can be established
Aspects to consider for establishing objectives - CORRECT ANSWER - -capital
-capabilities of the facilities
-inflation
-competition
-trends in reimbursement
-unexpected events
Actual - CORRECT ANSWER - status of the practice that indicates the financial
operations of the last reporting period
Projected - CORRECT ANSWER - status of the practice that indicates the financial
situation for the next reporting period (subject to change)
Exam Questions and CORRECT Answers
Gross Collection Ratio - CORRECT ANSWER - (Total Collections) / (gross charges)
Average Months in A/R - CORRECT ANSWER - (Total A/R for the past month) /
(average monthly billing for the past 12 months)
Total Expenses Per patient - CORRECT ANSWER - (Total Expense) / (Total Number of
patients)
Average Billing per Patient - CORRECT ANSWER - (Total billing per month or year) /
(total number of patients by month or year)
Average Net Collections Per Patient - CORRECT ANSWER - (total net collections per
month or year) / (Total number of patients by month or year)
Average Cost Per patient - CORRECT ANSWER - (Total Variable expenses per month or
year) / Total number of patients by month or year)
Net Collection Ratio - CORRECT ANSWER - (Total Collections) / (Total Charges -
adjustments)
Expense to Earnings Ratio (Overhead Ratio) - CORRECT ANSWER - (Expenses) / (Net
Collections)
Average Collection Period - CORRECT ANSWER - (Accounts Receivable) / Average
Daily Charges
, Budget - CORRECT ANSWER - -assists the practice in measuring projected financial
goals with the actual financial performance
-projects revenue expenditures
-helps determine cost containment and revenue requirements
Aspects to consider for establishing goals - CORRECT ANSWER - -number of providers
-services provided
-facility
-support personnel
-patient load
-insurance plans
-marketing plan
Objectives - CORRECT ANSWER - must be established for a practice before a budget and
financial policies can be established
Aspects to consider for establishing objectives - CORRECT ANSWER - -capital
-capabilities of the facilities
-inflation
-competition
-trends in reimbursement
-unexpected events
Actual - CORRECT ANSWER - status of the practice that indicates the financial
operations of the last reporting period
Projected - CORRECT ANSWER - status of the practice that indicates the financial
situation for the next reporting period (subject to change)
