Test Bank For Gapenski's Fundamentals Of Healthcare Finance, 3rd Edition by Kristin l. Reiter | | paula h. song [All Lessons Included+ Solutions latest update 2025!!]

, Table of Contents are Given Below v v v v v




The chapters of "Gapenski's Fundamentals of Healthcare Finance" (3rd Edition) by Kristin L. Reiter
v v v v v v v v v v v v v


and Paula H. Song are structured as follows:
v v v v v v v v




Part I: Foundation Concepts
v v v




1. Introduction to Healthcare Finance v v v




2. Healthcare Business Basics v v




3. Paying for Health Services v v v




Part II: Planning, Managing, and Control
v v v v v




4. Estimating Costs v




5. Pricing Decisions and Profit Analysis v v v v




6. Planning and Budgeting v v




7. Managing Financial Operations v v




Part III: Financing and Capital Investment Decisions
v v v v v v




8. Business Financing and the Cost of Capital v v v v v v




9. Capital Investment Decision Basics v v v




10. Project Cash Flow Estimation and Risk Analysis v v v v v v




Part IV: Reporting Results
v v v v




11. Reporting Profits v




12. Reporting Assets, Financing, and Cash Flows v v v v v




13. Assessing Financial Condition v v




This textbook is tailored to provide a comprehensive foundation in healthcare finance, integrating
v v v v v v v v v v v v


theoretical principles with practical applications specific to healthcare organizations. If you need
v v v v v v v v v v v v


further details or specific topics within these chapters, feel free to ask!
v v v v v v v v v v v v




Section 1: Introduction to Healthcare Finance
v v v v v




1. What is the primary goal of healthcare finance?
v v v v v v v




A) To maximize patient satisfaction
v v v


B) To ensure the financial sustainability of healthcare organizations
v v v v v v v




PAGE 1
v

,C) To increase the number of healthcare providers
v v v v v v


D) To expand healthcare facilities
v v v




Answer: B) To ensure the financial sustainability of healthcare organizations
v v v v v v v v v




Explanation: The primary goal of healthcare finance is to manage resources efficiently to ensure that
v v v v v v v v v v v v v v


healthcare organizations remain financially viable while delivering quality care.
v v v v v v v v v




2. Which of the following best defines "revenue cycle management" in healthcare?
v v v v v v v v v v




A) Managing the flow of patients through a facility
v v v v v v v


B) The process of handling claims from patients to insurers
v v v v v v v v


C) The cycle of investing in new medical technologies
v v v v v v v


D) The hiring and training of healthcare staff
v v v v v v




Answer: B) The process of handling claims from patients to insurers
v v v v v v v v v v




Explanation: Revenue cycle management involves the administration of financial processes related to
v v v v v v v v v v v


patient care, from initial appointment scheduling to the final payment of a balance.
v v v v v v v v v v v v v




3. What does the term "cost of care" refer to in healthcare finance?
v v v v v v v v v v v




A) The price patients pay for their services
v v v v v v


B) The total expenditure incurred by healthcare providers to deliver services
v v v v v v v v v


C) The investment in healthcare infrastructure
v v v v


D) The administrative costs of running a healthcare facility
v v v v v v v




Answer: B) The total expenditure incurred by healthcare providers to deliver services
v v v v v v v v v v v




Explanation: "Cost of care" encompasses all the expenses a healthcare provider incurs to deliver
v v v v v v v v v v v v v


medical services, including salaries, equipment, and supplies.
v v v v v v v




4. Which financial statement provides a snapshot of an organization's financial position at a
v v v v v v v v v v v v


specific point in time?
v v v v




A) Income Statement v


B) Balance Sheet v


C) Cash Flow Statement
v v


D) Statement of Operations v v




Answer: B) Balance Sheet
v v v




Explanation: A balance sheet displays an organization's assets, liabilities, and equity at a specific
v v v v v v v v v v v v v


moment, providing insight into its financial health.
v v v v v v v




PAGE 2 v

, 5. In healthcare finance, what is "working capital"?
v v v v v v




A) The total assets of an organization
v v v v v


B) The difference between current assets and current liabilities
v v v v v v v


C) The long-term investments of a healthcare provider
v v v v v v


D) The capital invested by shareholders
v v v v




Answer: B) The difference between current assets and current liabilities
v v v v v v v v v




Explanation: Working capital measures an organization's short-term financial health and its ability
v v v v v v v v v v v


to cover day-to-day operations.
v v v v




6. Which of the following is a key component of financial management in healthcare?
v v v v v v v v v v v v




A) Clinical decision-making v


B) Marketing strategies v


C) Budgeting and forecasting v v


D) Patient satisfaction surveys v v




Answer: C) Budgeting and forecasting
v v v v




Explanation: Budgeting and forecasting are essential for planning and controlling financial resources
v v v v v v v v v v v


within healthcare organizations.
v v v




7. What is the purpose of financial benchmarking in healthcare?
v v v v v v v v




A) To set clinical performance standards
v v v v


B) To compare financial performance against industry standards
v v v v v v


C) To evaluate patient outcomes
v v v


D) To determine staffing needs
v v v




Answer: B) To compare financial performance against industry standards
v v v v v v v v




Explanation: Financial benchmarking involves comparing an organization's financial metrics to
v v v v v v v v v


industry standards or peers to identify areas for improvement.
v v v v v v v v v




8. Which concept refers to the allocation of resources to different departments or services within a
v v v v v v v v v v v v v v


healthcare organization?
v v




A) Capital budgeting v


B) Resource allocation v


C) Cost containment v


D) Financial auditing v




Answer: B) Resource allocation
v v v




PAGE 3
v