HSA 528 Midterm Exam | Questions with 100% Correct Answers

HSA 528 Midterm Exam | Questions with 100% 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: efficient but not effective One use of financial information is to assess the efficiency of operations. In that context, efficiency refers to: 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): 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. 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. True T or F: the earnings of a standard ("C") corporation can be subject to double taxation. True What is the primary goal of a NFP healthcare organization? 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. 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. True T or F: claims editing is initiated once the claim has been submitted to the payer for payment. False T or F: data in the medical record is the primary source for documenting the provision of services. True T or F: HIPAA requires that two categories of information be reported to payers: diagnosis codes and procedure codes. True T or F: healthcare facilities use CPT coding in order to be reimbursed inpatient procedures provided to patients. 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. 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. True T or F: Payers, as well as providers, often employ some type of claim-editing software. True T or F: since most hospitals are NFP, they are not generally business oriented. False T or F: a hospital that is caring for a Medicare patient on an inpatient basis generally can increase its reimbursement by providing additional services. False T or F: a hospital that is caring for a Medicare patient on an outpatient basis generally can increase its reimbursement by providing additional services. True T or F: all outpatient procedures have an assigned Ambulatory Payment Classification (APC) code. False T or F: Medicare uses Resource Utilization Groups III as its basis for reimbursement to home health agencies. False T or F: some benefits under Medicare part A include hospital stays, skilled nursing care, and home health care. True What is an element of budgeted financial requirements that is NOT included in budgeted expenses? Increase in working capital T or F: a typical health care provider that increases its prices by 10% will usually realize a 10% increase in revenue. False T or F: in the health care marketplace, market share has the most pervasive influence on prices. False T or F: providing higher-quality care can ultimately lead to increased revenues. True T or F: the growth of managed-care plans and subsequent consolidation is a major reason why managed-care contract negotiation is an important element in revenue management. True What can a health care provider vary across different payers? Discounts What is the best way to compare hospital costs? On the basis of individual assessment of cost for inpatient and outpatient services. What is not used directly as one of the means of determining the reasonableness of a hospital's charges? Prices of peer hospitals Why should providers seek whenever possible to minimize health plan rate differentials? So that plans with smaller discounts are not forced out of the market/business Accounts receivable increased by $500,000 during the year. This increase has what effect on cash flow? Reduces it During the year. Calabash Clinic made a $50,000 cash payment toward its bank loan which it had previously recorded; $40,000 for principal, and $10,000 was to pay the full amount of interest due. How should this transaction be recorded? Decrease cash $50,000, decrease notes payable $40,000, and decrease equity $10,000