HSA 528 Midterm UPDATED ACTUAL
Exam Questions and CORRECT Answers
Culver County Hospital has the lowest cost of an hospital in its region. However, it has
continually reported very large operating losses and has depended upon tax support for the
county. Assuming that positive operating margins are an objective of Culver County Hospital,
the hospital could be described as: - CORRECT ANSWER efficient but not effective
One use of financial information is to assess the efficiency of operations. In that context,
efficiency refers to: - CORRECT ANSWER the ratio of the organization's outputs to its
inputs.
The controller in a hospital is usually responsible for which of the following activities (choose all
that apply): - CORRECT ANSWER 1. collection of accounts receivable
2. filing Medicare cost reports
3. developing budgets
T or F: governmental health care organizations are able to raise funds through equity
investments. - CORRECT ANSWER False
T or F: one of the advantages of a nonprofit organization compared with an investor-owned
company is that the investor-owned company is subject to federal income taxes. - CORRECT
ANSWER True
T or F: the earnings of a standard ("C") corporation can be subject to double taxation. -
CORRECT ANSWER True
What is the primary goal of a NFP healthcare organization? - CORRECT ANSWER To
serve the community through the provision of health care services.
T or F: both DRGs and APCs are assigned based upon data in the CMS-1500 form. - CORRECT
ANSWER False
, T or F: CMS developed the National Correct Coding Initiative (NCCI) to promote national
correct coding methodologies and to control improper coding that leads to inappropriate payment
of Part B health insurance claims. - CORRECT ANSWER True
T or F: claims editing is initiatied once the claim has been submitted to the payer for payment. -
CORRECT ANSWER False
T or F: data in the medical record is the primary source for documenting the provision of
services. - CORRECT ANSWER True
T or F: HIPAA requires that two categories of information be reported to payers: diagnosis codes
and procedure codes. - CORRECT ANSWER True
T or F: healthcare facilities use CPT coding in order to be reimbursed inpatient procedures
provided to patients. - CORRECT ANSWER False
T or F: lost charges resulting from improper documentation or poor coding and billing practices
do not have a major impact on the finances of healthcare providers. - CORRECT
ANSWER False
T or F: Medicare payment for hospital outpatient services is based on APCs and each APC is
related to one of more HCPCS/CPT code. - CORRECT ANSWER True
T or F: Payers, as well as providers, often employ some type of claim-editing software. -
CORRECT ANSWER True
T or F: since most hospitals are NFP, they are not generally business oriented. - CORRECT
ANSWER False
Exam Questions and CORRECT Answers
Culver County Hospital has the lowest cost of an hospital in its region. However, it has
continually reported very large operating losses and has depended upon tax support for the
county. Assuming that positive operating margins are an objective of Culver County Hospital,
the hospital could be described as: - CORRECT ANSWER efficient but not effective
One use of financial information is to assess the efficiency of operations. In that context,
efficiency refers to: - CORRECT ANSWER the ratio of the organization's outputs to its
inputs.
The controller in a hospital is usually responsible for which of the following activities (choose all
that apply): - CORRECT ANSWER 1. collection of accounts receivable
2. filing Medicare cost reports
3. developing budgets
T or F: governmental health care organizations are able to raise funds through equity
investments. - CORRECT ANSWER False
T or F: one of the advantages of a nonprofit organization compared with an investor-owned
company is that the investor-owned company is subject to federal income taxes. - CORRECT
ANSWER True
T or F: the earnings of a standard ("C") corporation can be subject to double taxation. -
CORRECT ANSWER True
What is the primary goal of a NFP healthcare organization? - CORRECT ANSWER To
serve the community through the provision of health care services.
T or F: both DRGs and APCs are assigned based upon data in the CMS-1500 form. - CORRECT
ANSWER False
, T or F: CMS developed the National Correct Coding Initiative (NCCI) to promote national
correct coding methodologies and to control improper coding that leads to inappropriate payment
of Part B health insurance claims. - CORRECT ANSWER True
T or F: claims editing is initiatied once the claim has been submitted to the payer for payment. -
CORRECT ANSWER False
T or F: data in the medical record is the primary source for documenting the provision of
services. - CORRECT ANSWER True
T or F: HIPAA requires that two categories of information be reported to payers: diagnosis codes
and procedure codes. - CORRECT ANSWER True
T or F: healthcare facilities use CPT coding in order to be reimbursed inpatient procedures
provided to patients. - CORRECT ANSWER False
T or F: lost charges resulting from improper documentation or poor coding and billing practices
do not have a major impact on the finances of healthcare providers. - CORRECT
ANSWER False
T or F: Medicare payment for hospital outpatient services is based on APCs and each APC is
related to one of more HCPCS/CPT code. - CORRECT ANSWER True
T or F: Payers, as well as providers, often employ some type of claim-editing software. -
CORRECT ANSWER True
T or F: since most hospitals are NFP, they are not generally business oriented. - CORRECT
ANSWER False
