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!!!]

PAGE 1
m

, Table of Contents are Given Below m m m m m




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


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




Part I: Foundation Concepts
m m m




1. Introduction to Healthcare Finance m m m




2. Healthcare Business Basics m m




3. Paying for Health Services m m m




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




4. Estimating Costs m




5. Pricing Decisions and Profit Analysism m m m




6. Planning and Budgeting m m




7. Managing Financial Operations m m




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




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




9. Capital Investment Decision Basics m m m




10. Project Cash Flow Estimation and Risk
m m m m m




Analysis Part IV: Reporting Results
m m m m m




11. Reporting Profits m




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




13. Assessing Financial Condition m m




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


mtheoretical principles with practical applications specific to healthcare organizations. If you need further
m m m m m m m m m m m m


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




Section 1: Introduction to Healthcare Finance
m m m m m




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




A) To maximize patient satisfaction
m m m


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




PAGE 2
m

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


D) To expand healthcare facilities
m m m




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




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


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




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




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


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


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


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




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




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


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




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




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


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


C) The investment in healthcare infrastructure
m m m m


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




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




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


mservices, including salaries, equipment, and supplies.
m m m m m




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


mpoint in time?
m m




A) Income Statement m


B) Balance Sheet m


C) Cash Flow Statement
m m


D) Statement of Operations m m




Answer: B) Balance Sheet
m m m




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


mproviding insight into its financial health.
m m m m m




PAGE 3
m

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




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


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


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


D) The capital invested by shareholders
m m m m




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




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


mcover day-to-day operations.
m m




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




A) Clinical decision-making m


B) Marketing strategies m


C) Budgeting and forecasting m m


D) Patient satisfaction surveys
m m




Answer: C) Budgeting and forecasting
m m m m




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


mhealthcare organizations. m




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




A) To set clinical performance standards
m m m m


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


C) To evaluate patient outcomes
m m m


D) To determine staffing needs
m m m




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




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


mstandards or peers to identify areas for improvement.
m m m m m m m




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


mhealthcare organization? m




A) Capital budgeting m


B) Resource allocation m


C) Cost containment
m


D) Financial auditing m




Answer: B) Resource allocation
m m m




PAGE 4 m