HSMA 4055 Chapter 4 Exam Questions And
Accurate Answers
In 1991, the IRS initiated an auditing system for not-for-profit health care organizations
called - coordinated examination programs
The Patient Protection and Affordable Care Act imposes which of the following
provisions on tax-exempt hospitals? - All: They must avoid extraordinary billing and
collection policies, limit charges to patients who qualify for assistance to the lowest
amount charged to insured patients, complete a community health needs assessment
To be considered tax exempt, a corporation must meet certain criteria set forth by
which government organization? - Internal Revenue Service
For-profit organizations ______ taxes; not-for-profit organizations _______ taxes. - pay; do
not pay
The federal government grants tax-exempt status to organizations to - choices a & b:
relieve the government of having to provide the services itself and reward the
corporation for providing services that enhance community goals and values
The tax-exempt status eliminates the burden of tax liabilities and - most business and
licensure fees
To qualify for tax-exempt status, a corporation must do which of the following? - all: not
engage in prohibited actions, serve public rather than private interests, operate on a
charitable, educational, or research basis
Prohibited actions, as defined by the IRS when applying for tax-exempt status, include -
attempting to influence legislation
A hospital is considered a charitable organization if it - provides care to people who
cannot pay
IRS Revenue Ruling 56-185 is also known as the - community benefits standard
According to Arnold Relman, the medical-industrial complex puts the interests of the
_________ before the interests of the __________ - stockholders; community
Research has indicated that _______ hospitals and _______ hospitals provide roughly the
same amount of community benefits. - not-for-profit; for-profit
Richard Scruggs sought class-action lawsuits against not-for-profit hospitals, claiming
these entities - overcharged uninsured patients and used aggressive collection policies
The AHA argues that - the cost of bad debt, charity care, and losses to Medicare and
Accurate Answers
In 1991, the IRS initiated an auditing system for not-for-profit health care organizations
called - coordinated examination programs
The Patient Protection and Affordable Care Act imposes which of the following
provisions on tax-exempt hospitals? - All: They must avoid extraordinary billing and
collection policies, limit charges to patients who qualify for assistance to the lowest
amount charged to insured patients, complete a community health needs assessment
To be considered tax exempt, a corporation must meet certain criteria set forth by
which government organization? - Internal Revenue Service
For-profit organizations ______ taxes; not-for-profit organizations _______ taxes. - pay; do
not pay
The federal government grants tax-exempt status to organizations to - choices a & b:
relieve the government of having to provide the services itself and reward the
corporation for providing services that enhance community goals and values
The tax-exempt status eliminates the burden of tax liabilities and - most business and
licensure fees
To qualify for tax-exempt status, a corporation must do which of the following? - all: not
engage in prohibited actions, serve public rather than private interests, operate on a
charitable, educational, or research basis
Prohibited actions, as defined by the IRS when applying for tax-exempt status, include -
attempting to influence legislation
A hospital is considered a charitable organization if it - provides care to people who
cannot pay
IRS Revenue Ruling 56-185 is also known as the - community benefits standard
According to Arnold Relman, the medical-industrial complex puts the interests of the
_________ before the interests of the __________ - stockholders; community
Research has indicated that _______ hospitals and _______ hospitals provide roughly the
same amount of community benefits. - not-for-profit; for-profit
Richard Scruggs sought class-action lawsuits against not-for-profit hospitals, claiming
these entities - overcharged uninsured patients and used aggressive collection policies
The AHA argues that - the cost of bad debt, charity care, and losses to Medicare and
