CHC LATEST 2026 CORE EXAM MANUAL QUESTIONS AND
SOLUTIONS RATED A+
✔✔A healthcare facility's income statement is an example of:
a. baseline audit
b. retrospective audit
c. concurrent audit
d. snapshot audit - ✔✔b. retrospective audit
Concurrent audit is real-time evaluations of records/policies.
Snapshot audit is a comprehensive picture of the organization at a particular time.
Baseline audit is also a comprehensive evaluation but undertaken for establishing
benchmarks against which future performance may be compared.
✔✔Hospitals that implement Computerized Provider Order Entry (CPOE) almost always
see a decline in:
a. medication errors
b. diagnostic errors
c. adverse events
d. latent errors - ✔✔a. medication errors
CPOE programs diminish error related to faulty transcript or unclear handwriting, and
simplify inventory and decrease delays in order completion.
✔✔In the Current Procedural Terminology (CPT) code set, Category II codes are for:
a. emerging technology
b. evaluation & management
c. performance measurement
d. medicine - ✔✔c. performance measurement
CPT category I: evaluation & management.
CPT category II: performance measurement.
CPT category III: emerging technology.
✔✔Because of a doctor's poor handwriting, a prescription must be reworked before it
leaves the pharmacy. Which of the following is true?
a. the doctor should be reprimanded
b. the pharmacy should incorporate bar coding
c. the prescription should not count towards the pharmacy's yield
d. the error should be reported to the FDA - ✔✔c. the prescription should not count
towards the pharmacy's yield
✔✔The legal doctrine that assigns responsibility to a doctor for the behavior of his or
her employee is:
a. Good Samaritan
, b. Qui Tam
c. Respondeat superior
d. Res ipsa loquitor - ✔✔c. Respondeat superior
Res ipsa loquitor means "the facts speak for themselves"
✔✔In general, how many steps should a failure modes and effects analysis (FMEA)
proceed in each direction?
a. one
b. two
c. five
d. ten - ✔✔b. two
Two-part process:
1. identification of errors/defects (failure modes).
2. consideration of consequences (effect analysis).
✔✔Which piece of legislation mandates the companies with securities listed in the
United States abide by generally accepted accounting practices?
a. Foreign Corrupt Practices Act
b. Emergency Medical Treatment and Active Labor Act
c. False Claims Act
d. Civil Monetary Penalties Act - ✔✔a. Foreign Corrupt Practices Act
✔✔Which piece of legislation made qui tam lawsuits possible?
a. Fair Labor Standards Act
b. False Claims Act
c. Freedom of Information Act
d. Emergency medical Treatment and Active Labor Act - ✔✔b. False Claims Act
✔✔The unethical practice of billing for a more expensive service than is actually
provided is known as:
a. upcoding
b. DRG creep
c. unbundling
d. overdiagnosis - ✔✔b. DRG creep
DRG Creep refers to upcoding but specifically referring to inpatient hospital billing codes
(DRG codes), and the higher reimbursement code is not accurately reflecting the same
service provided to patient (DRG codes a very complex). From the example Frank
provided below, sprained ankle is not the same as broken ankle.
Example from Frank a while back:
"you have a cold but the physician bills for treating you with the flu. In other words, you
have a sprained ankle but I bill that you have a more complex issue like a broken ankle"
SOLUTIONS RATED A+
✔✔A healthcare facility's income statement is an example of:
a. baseline audit
b. retrospective audit
c. concurrent audit
d. snapshot audit - ✔✔b. retrospective audit
Concurrent audit is real-time evaluations of records/policies.
Snapshot audit is a comprehensive picture of the organization at a particular time.
Baseline audit is also a comprehensive evaluation but undertaken for establishing
benchmarks against which future performance may be compared.
✔✔Hospitals that implement Computerized Provider Order Entry (CPOE) almost always
see a decline in:
a. medication errors
b. diagnostic errors
c. adverse events
d. latent errors - ✔✔a. medication errors
CPOE programs diminish error related to faulty transcript or unclear handwriting, and
simplify inventory and decrease delays in order completion.
✔✔In the Current Procedural Terminology (CPT) code set, Category II codes are for:
a. emerging technology
b. evaluation & management
c. performance measurement
d. medicine - ✔✔c. performance measurement
CPT category I: evaluation & management.
CPT category II: performance measurement.
CPT category III: emerging technology.
✔✔Because of a doctor's poor handwriting, a prescription must be reworked before it
leaves the pharmacy. Which of the following is true?
a. the doctor should be reprimanded
b. the pharmacy should incorporate bar coding
c. the prescription should not count towards the pharmacy's yield
d. the error should be reported to the FDA - ✔✔c. the prescription should not count
towards the pharmacy's yield
✔✔The legal doctrine that assigns responsibility to a doctor for the behavior of his or
her employee is:
a. Good Samaritan
, b. Qui Tam
c. Respondeat superior
d. Res ipsa loquitor - ✔✔c. Respondeat superior
Res ipsa loquitor means "the facts speak for themselves"
✔✔In general, how many steps should a failure modes and effects analysis (FMEA)
proceed in each direction?
a. one
b. two
c. five
d. ten - ✔✔b. two
Two-part process:
1. identification of errors/defects (failure modes).
2. consideration of consequences (effect analysis).
✔✔Which piece of legislation mandates the companies with securities listed in the
United States abide by generally accepted accounting practices?
a. Foreign Corrupt Practices Act
b. Emergency Medical Treatment and Active Labor Act
c. False Claims Act
d. Civil Monetary Penalties Act - ✔✔a. Foreign Corrupt Practices Act
✔✔Which piece of legislation made qui tam lawsuits possible?
a. Fair Labor Standards Act
b. False Claims Act
c. Freedom of Information Act
d. Emergency medical Treatment and Active Labor Act - ✔✔b. False Claims Act
✔✔The unethical practice of billing for a more expensive service than is actually
provided is known as:
a. upcoding
b. DRG creep
c. unbundling
d. overdiagnosis - ✔✔b. DRG creep
DRG Creep refers to upcoding but specifically referring to inpatient hospital billing codes
(DRG codes), and the higher reimbursement code is not accurately reflecting the same
service provided to patient (DRG codes a very complex). From the example Frank
provided below, sprained ankle is not the same as broken ankle.
Example from Frank a while back:
"you have a cold but the physician bills for treating you with the flu. In other words, you
have a sprained ankle but I bill that you have a more complex issue like a broken ankle"
