HSMA 4055 FINAL EXAM REVIEW QUESTIONS AND ANSWERS
Which of the following is not a finance activity? - CORRECT ANSWER✅✅Facilities management
A considerable barrier to obtaining insurance for young adults was originally addressed with the ACA in
the mandatory requirement of insurance for all. To that end, the law specifically provided - CORRECT
ANSWER✅✅coverage for young adults between 19 and 26 on their parents' policies.
In the United States, the highest proportion of healthcare expenditures is for _______________. -
CORRECT ANSWER✅✅hospital care
Which of the following statements about the finance department at a large healthcare organization is
most correct? - CORRECT ANSWER✅✅All of the above statements are correct.
Which of the following statements about finance, accounting, or financial management is most correct?
- CORRECT ANSWER✅✅The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following statements about hospitals is most correct? - CORRECT ANSWER✅✅The
majority of hospitals are public or not-for-profit (as opposed to investor owned).
Key stakeholders in the health care system include providers who are identified as persons and
organizations that deliver health care services to patients. All the following are providers except -
CORRECT ANSWER✅✅suppliers, consumers, and regulators.
The ACA is to be phased in over 10 years. The initial impetus and primary focus of the ACA was -
CORRECT ANSWER✅✅All of the above
ACA stipulates which of the following entities are eligible to participate as ACOs: - CORRECT
ANSWER✅✅All the above
The structure of the U.S. healthcare system has five principal components. An example of delivery
services would be - CORRECT ANSWER✅✅basic diagnostic and preventative treatment by primary care
providers.
,The single largest payer group for health care services is - CORRECT ANSWER✅✅Government
Which of the following statements about healthcare providers is incorrect? - CORRECT
ANSWER✅✅There are many more hospitals than there are nursing homes, but nursing homes tend to
have a greater number of beds.
Which of the following statements about regulatory and legal issues is most correct? - CORRECT
ANSWER✅✅For most providers, the primary legal concern is professional liability.
The ACA positively impacted nurses by expanding opportunities in which of the following - CORRECT
ANSWER✅✅A and B
Which of the following activities are business characteristics? - CORRECT ANSWER✅✅All of the above
are business characteristics.
Which of the following statements about the legal forms of for-profit business organization is most
correct? - CORRECT ANSWER✅✅Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect? -
CORRECT ANSWER✅✅When an individual sells his or her stock, the company receives the proceeds
from the sale.
Which of the following statements about not-for-profit corporations is most correct? - CORRECT
ANSWER✅✅They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? - CORRECT
ANSWER✅✅Stockholders
Assume that Jane Adams pays income taxes at a 35 percent rate. What would be the after-tax amount
on $100 of interest income that she receives? - CORRECT ANSWER✅✅$65
, Assume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-profit
(municipal) bond that pays 5 percent interest. What interest rate would have to be set on a for-profit
(corporate) bond to produce the same amount of usable (after-tax) income? - CORRECT
ANSWER✅✅7.1 percent
Which of the following statements about benefit corporations (B corporations) is most correct? -
CORRECT ANSWER✅✅They allow corporate boards and managers to sacrifice shareholder value for the
greater good.
Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute $100,000
to not-for-profit Ravenswood Community Hospital. Without the contribution, his tax bill would be
$500,000. What would be his tax bill if makes the contribution? - CORRECT ANSWER✅✅$460,000
To be workable, insurance must have which of the following characteristics? - CORRECT ANSWER✅✅All
of the above
Which of the following statements about adverse selection and underwriting is incorrect? - CORRECT
ANSWER✅✅Health insurers have unlimited power to set underwriting provisions.
Which of the following statements about fee-for-service reimbursement is incorrect? - CORRECT
ANSWER✅✅Payment may be based on the number of covered lives.
Pay-for-performance (P4P) plans typically ________________________________. - CORRECT
ANSWER✅✅reward providers for meeting specified quality (and sometimes cost) standards
Which of the following statements about the Medicare payment system for hospital inpatient care
(IPPS) is most correct? - CORRECT ANSWER✅✅All of the above statements are correct.
From a provider's perspective, which of the following third-party payment methods has utilization risk? -
CORRECT ANSWER✅✅Capitation
Which of the following statements about Medicare reimbursement of physicians is most correct? -
CORRECT ANSWER✅✅The payment is based on relative value units (RVUs).
Which of the following is not a finance activity? - CORRECT ANSWER✅✅Facilities management
A considerable barrier to obtaining insurance for young adults was originally addressed with the ACA in
the mandatory requirement of insurance for all. To that end, the law specifically provided - CORRECT
ANSWER✅✅coverage for young adults between 19 and 26 on their parents' policies.
In the United States, the highest proportion of healthcare expenditures is for _______________. -
CORRECT ANSWER✅✅hospital care
Which of the following statements about the finance department at a large healthcare organization is
most correct? - CORRECT ANSWER✅✅All of the above statements are correct.
Which of the following statements about finance, accounting, or financial management is most correct?
- CORRECT ANSWER✅✅The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following statements about hospitals is most correct? - CORRECT ANSWER✅✅The
majority of hospitals are public or not-for-profit (as opposed to investor owned).
Key stakeholders in the health care system include providers who are identified as persons and
organizations that deliver health care services to patients. All the following are providers except -
CORRECT ANSWER✅✅suppliers, consumers, and regulators.
The ACA is to be phased in over 10 years. The initial impetus and primary focus of the ACA was -
CORRECT ANSWER✅✅All of the above
ACA stipulates which of the following entities are eligible to participate as ACOs: - CORRECT
ANSWER✅✅All the above
The structure of the U.S. healthcare system has five principal components. An example of delivery
services would be - CORRECT ANSWER✅✅basic diagnostic and preventative treatment by primary care
providers.
,The single largest payer group for health care services is - CORRECT ANSWER✅✅Government
Which of the following statements about healthcare providers is incorrect? - CORRECT
ANSWER✅✅There are many more hospitals than there are nursing homes, but nursing homes tend to
have a greater number of beds.
Which of the following statements about regulatory and legal issues is most correct? - CORRECT
ANSWER✅✅For most providers, the primary legal concern is professional liability.
The ACA positively impacted nurses by expanding opportunities in which of the following - CORRECT
ANSWER✅✅A and B
Which of the following activities are business characteristics? - CORRECT ANSWER✅✅All of the above
are business characteristics.
Which of the following statements about the legal forms of for-profit business organization is most
correct? - CORRECT ANSWER✅✅Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect? -
CORRECT ANSWER✅✅When an individual sells his or her stock, the company receives the proceeds
from the sale.
Which of the following statements about not-for-profit corporations is most correct? - CORRECT
ANSWER✅✅They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? - CORRECT
ANSWER✅✅Stockholders
Assume that Jane Adams pays income taxes at a 35 percent rate. What would be the after-tax amount
on $100 of interest income that she receives? - CORRECT ANSWER✅✅$65
, Assume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-profit
(municipal) bond that pays 5 percent interest. What interest rate would have to be set on a for-profit
(corporate) bond to produce the same amount of usable (after-tax) income? - CORRECT
ANSWER✅✅7.1 percent
Which of the following statements about benefit corporations (B corporations) is most correct? -
CORRECT ANSWER✅✅They allow corporate boards and managers to sacrifice shareholder value for the
greater good.
Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute $100,000
to not-for-profit Ravenswood Community Hospital. Without the contribution, his tax bill would be
$500,000. What would be his tax bill if makes the contribution? - CORRECT ANSWER✅✅$460,000
To be workable, insurance must have which of the following characteristics? - CORRECT ANSWER✅✅All
of the above
Which of the following statements about adverse selection and underwriting is incorrect? - CORRECT
ANSWER✅✅Health insurers have unlimited power to set underwriting provisions.
Which of the following statements about fee-for-service reimbursement is incorrect? - CORRECT
ANSWER✅✅Payment may be based on the number of covered lives.
Pay-for-performance (P4P) plans typically ________________________________. - CORRECT
ANSWER✅✅reward providers for meeting specified quality (and sometimes cost) standards
Which of the following statements about the Medicare payment system for hospital inpatient care
(IPPS) is most correct? - CORRECT ANSWER✅✅All of the above statements are correct.
From a provider's perspective, which of the following third-party payment methods has utilization risk? -
CORRECT ANSWER✅✅Capitation
Which of the following statements about Medicare reimbursement of physicians is most correct? -
CORRECT ANSWER✅✅The payment is based on relative value units (RVUs).
