HFMA CRCR Healthcare Financial Exam 2026-
2027: Complete 200-Question Practice Exam with
Verified Correct Answers and Detailed
Explanations for Healthcare Finance
Professionals
Overview:
This practice exam is designed to help healthcare finance professionals prepare for
the HFMA CRCR (Certified Revenue Cycle Representative) exam 2025. It
contains 200 multiple-choice questions covering:
Revenue cycle management principles
Accounts receivable management
Healthcare reimbursement models
Regulatory compliance and Medicare/Medicaid policies
Financial ratios, load calculations, and operational metrics
Patient billing, ABNs, and insurance communications
Cost analysis, budgeting, and financial planning
Each question includes the correct answer in bold with a detailed explanation to
reinforce key concepts, making this exam a comprehensive study tool for
certification preparation, practical knowledge, and exam success.
Question 1:
A patient receives an ABN before a scheduled procedure. How should the patient
interpret this notice, and what actions might they consider taking?
A. The procedure is guaranteed to be covered by Medicare, and no further action is
needed.
B. The patient should seek clarification on the potential costs and consider
alternative options if they are concerned about expenses.
C. The patient must pay the full amount upfront without any questions.
D. The notice indicates that the procedure will not be performed under any
circumstances.
,Explanation:
An Advance Beneficiary Notice (ABN) informs the patient that Medicare may not
cover the procedure. The patient should clarify potential costs and consider
alternatives if concerned about out-of-pocket expenses.
Question 2:
What does the acronym ACS stand for in the context of healthcare services?
A. Ambulatory Care Services
B. Advanced Care Systems
C. Acute Care Solutions
D. Allied Care Services
Explanation:
ACS commonly refers to Ambulatory Care Services, which encompasses
outpatient care that doesn’t require overnight hospitalization.
Question 3:
If a health plan collects $1,000,000 in premiums and spends $150,000 on
administrative costs, what is the Administrative Load Ratio, and what does this
indicate about the plan's financial management?
A. 15% - indicating efficient management of administrative costs
B. 10% - suggesting excessive spending on administration
C. 20% - showing a balanced approach to administrative expenses
D. 25% - reflecting poor financial management
Explanation:
Administrative Load Ratio = Administrative Costs ÷ Total Premiums = $150,000 ÷
$1,000,000 = 0.15 or 15%, which generally indicates efficient administrative
spending.
Question 4:
What is the formula used to calculate the Accounts Receivable (A/R) collections
period?
,A. Accounts Receivable Turnover divided by Number of Days
B. Number of Days divided by Accounts Receivable Turnover
C. Accounts Receivable Turnover multiplied by Number of Days
D. Accounts Receivable divided by Total Revenue × Number of Days
Explanation:
A/R Collection Period = (Accounts Receivable ÷ Total Revenue) × Number of
Days. This measures the average time to collect receivables.
Question 5:
If a healthcare provider implements an all-inclusive rate for a rehabilitation
program, how might this affect patient care and service delivery?
A. Patients may receive more comprehensive care as all necessary services are
included in one rate.
B. Patients will likely experience longer wait times as services are billed
separately.
C. Healthcare providers may reduce the number of services offered to stay within
the all-inclusive rate.
D. Patients will have to pay additional fees for any services not covered by the all-
inclusive rate.
Explanation:
All-inclusive rates encourage comprehensive care because all services are
bundled into one price, improving coordination and patient experience.
Question 6:
What is the definition of 'acuity' in the context of healthcare?
A. A measure of patient satisfaction with healthcare services
B. A measurement of the severity of an illness or the resources required to
treat an illness or injury
C. A classification of healthcare providers based on their experience
D. A coding system for insurance claims
Explanation:
Acuity refers to the severity of a patient’s condition and the corresponding
, resources required to care for them, which helps in staffing and cost
management.
Question 7:
Which of the following best describes the purpose of an Advance Beneficiary
Notice (ABN)?
A. To notify the provider that Medicare will automatically pay for a procedure
B. To guarantee the patient will not incur any out-of-pocket costs
C. To inform the patient that Medicare may not cover a service and the
patient may be financially responsible
D. To provide a detailed invoice for all charges after service delivery
Explanation:
The ABN allows the patient to make an informed decision about proceeding with
a service that Medicare may not cover, protecting both the patient and provider.
Question 8:
A hospital's net collection rate is 95%. What does this indicate?
A. The hospital collects exactly the billed charges
B. The hospital successfully collects 95% of expected payments from patients
and insurers
C. The hospital is underbilling 5% of its services
D. The hospital's accounts receivable are increasing
Explanation:
Net Collection Rate = (Total Payments Received ÷ Total Expected Payments) ×
100%. A 95% rate indicates the hospital is efficiently collecting the majority of
expected revenue.
Question 9:
Which financial ratio measures the hospital’s ability to cover short-term
obligations?
2027: Complete 200-Question Practice Exam with
Verified Correct Answers and Detailed
Explanations for Healthcare Finance
Professionals
Overview:
This practice exam is designed to help healthcare finance professionals prepare for
the HFMA CRCR (Certified Revenue Cycle Representative) exam 2025. It
contains 200 multiple-choice questions covering:
Revenue cycle management principles
Accounts receivable management
Healthcare reimbursement models
Regulatory compliance and Medicare/Medicaid policies
Financial ratios, load calculations, and operational metrics
Patient billing, ABNs, and insurance communications
Cost analysis, budgeting, and financial planning
Each question includes the correct answer in bold with a detailed explanation to
reinforce key concepts, making this exam a comprehensive study tool for
certification preparation, practical knowledge, and exam success.
Question 1:
A patient receives an ABN before a scheduled procedure. How should the patient
interpret this notice, and what actions might they consider taking?
A. The procedure is guaranteed to be covered by Medicare, and no further action is
needed.
B. The patient should seek clarification on the potential costs and consider
alternative options if they are concerned about expenses.
C. The patient must pay the full amount upfront without any questions.
D. The notice indicates that the procedure will not be performed under any
circumstances.
,Explanation:
An Advance Beneficiary Notice (ABN) informs the patient that Medicare may not
cover the procedure. The patient should clarify potential costs and consider
alternatives if concerned about out-of-pocket expenses.
Question 2:
What does the acronym ACS stand for in the context of healthcare services?
A. Ambulatory Care Services
B. Advanced Care Systems
C. Acute Care Solutions
D. Allied Care Services
Explanation:
ACS commonly refers to Ambulatory Care Services, which encompasses
outpatient care that doesn’t require overnight hospitalization.
Question 3:
If a health plan collects $1,000,000 in premiums and spends $150,000 on
administrative costs, what is the Administrative Load Ratio, and what does this
indicate about the plan's financial management?
A. 15% - indicating efficient management of administrative costs
B. 10% - suggesting excessive spending on administration
C. 20% - showing a balanced approach to administrative expenses
D. 25% - reflecting poor financial management
Explanation:
Administrative Load Ratio = Administrative Costs ÷ Total Premiums = $150,000 ÷
$1,000,000 = 0.15 or 15%, which generally indicates efficient administrative
spending.
Question 4:
What is the formula used to calculate the Accounts Receivable (A/R) collections
period?
,A. Accounts Receivable Turnover divided by Number of Days
B. Number of Days divided by Accounts Receivable Turnover
C. Accounts Receivable Turnover multiplied by Number of Days
D. Accounts Receivable divided by Total Revenue × Number of Days
Explanation:
A/R Collection Period = (Accounts Receivable ÷ Total Revenue) × Number of
Days. This measures the average time to collect receivables.
Question 5:
If a healthcare provider implements an all-inclusive rate for a rehabilitation
program, how might this affect patient care and service delivery?
A. Patients may receive more comprehensive care as all necessary services are
included in one rate.
B. Patients will likely experience longer wait times as services are billed
separately.
C. Healthcare providers may reduce the number of services offered to stay within
the all-inclusive rate.
D. Patients will have to pay additional fees for any services not covered by the all-
inclusive rate.
Explanation:
All-inclusive rates encourage comprehensive care because all services are
bundled into one price, improving coordination and patient experience.
Question 6:
What is the definition of 'acuity' in the context of healthcare?
A. A measure of patient satisfaction with healthcare services
B. A measurement of the severity of an illness or the resources required to
treat an illness or injury
C. A classification of healthcare providers based on their experience
D. A coding system for insurance claims
Explanation:
Acuity refers to the severity of a patient’s condition and the corresponding
, resources required to care for them, which helps in staffing and cost
management.
Question 7:
Which of the following best describes the purpose of an Advance Beneficiary
Notice (ABN)?
A. To notify the provider that Medicare will automatically pay for a procedure
B. To guarantee the patient will not incur any out-of-pocket costs
C. To inform the patient that Medicare may not cover a service and the
patient may be financially responsible
D. To provide a detailed invoice for all charges after service delivery
Explanation:
The ABN allows the patient to make an informed decision about proceeding with
a service that Medicare may not cover, protecting both the patient and provider.
Question 8:
A hospital's net collection rate is 95%. What does this indicate?
A. The hospital collects exactly the billed charges
B. The hospital successfully collects 95% of expected payments from patients
and insurers
C. The hospital is underbilling 5% of its services
D. The hospital's accounts receivable are increasing
Explanation:
Net Collection Rate = (Total Payments Received ÷ Total Expected Payments) ×
100%. A 95% rate indicates the hospital is efficiently collecting the majority of
expected revenue.
Question 9:
Which financial ratio measures the hospital’s ability to cover short-term
obligations?
