Chfp Ratios Exam 204-2025 (100% pass)
Contractual Discount % - Answer Deductions to Gross Patient Service Revenue divided
by Gross Patient Services Revenue.
Markup - Answer Gross Patient Services Revenue + Other Operating Revenue dividende
by operating expenses.
Operating Margin- Answer Total operating revenue — Operating Expense divide by
Total Operating Revenue.
Non operating gains - Answer Non operating Gains divide by Net Income.
Net Income - Answer Revenues - Expenses
Income index-reported Net income/Change in net assets.
Return on total assets Net income/total assets
Return on Equity Net income/Net assets
Current ratio Current assets/Current liabilities
Quick Ratio
________________________________
Current Liabilities
Days Net Revenue in net Patient Accounts Receivable Net patient accounts
receivable/Net patient revenue - bad debt expense
Days Cash on Hand formula - Answer Cash +Marketable securities. + unrestricted LT
investments/operating expenses- Depreciation/365
,Total Asset Turnover - Answer Total operating Revenue / Total Assets
Fixed Asset Turnover - Answer Total operating revenue/net fixed Assets
Current Asset Turnover - Answer Total operating revenue /current assets
Inventory Turnover - Answer Total Operating Revenue /inventory
Length of stay (LOS) - Answer Total inpatient days /total discharges
Occupancy Rate- Answer Total inpatient days /staffed beds x days in period
Case Mix Index- Answer Sum of (Cases in each DRG x weight for that DRG) /Total cases
Adjusted Admissions- Answer Total gross charges /inpatient charges x inpatient
discharged.
Adjusted patient days - Answer Total gross charges /inpatient charges x inpatient days
Average daily census - Answer Inpatient days /365
case mix adjusted cost per patient - Answer Cost per patient day / case mix index
Revenue Variance - Answer Actual-Budget = Revenue Variance
Expense Variance - Answer Budget-Actual = Expense Variance
, 835 record - Answer A standard electronic message between health plan and provider
sending remittance data on a claim to the provider
837 record - Answer A standard electronic message between provider and health plan
sending data on a claim to the health plan.
ACO accountable care organization - Answer A coordinated group of health care
providers including physicians hospitals and other types of providers organized to
improve quality and lower the costs of care to a defined group of patients
Accounting identity - Answer Also called accounting equation, Assets = liabilities +
equity.
Accounts Payable - Answer A current liability where funds are owed to suppliers
Accounts payable distribution - Answer An accounting computer system report that
details the amounts paid to vendors by date purchase order and expense classification
Accounts receivable aging - Answer A report that summarizes accounts receivable from
various sources such as Medicare or commercial insurance by 30 day increments
Accrual - Answer Accounting methodology that records revenue as it is earned (not
received) and expenses when they are incurred (not paid)
Accrual basis of accounting - Solution Instead of the cash basis of accounting the
accrual basis of accounting uses estimates of revenue and expense to match revenue in
the period they are earned with the expenses incurred in that same period.
Accrued payroll and benefits - Answer An estimate of salaries and related benefit costs
(such as payroll tax matching) earned by employees but not yet paid by employer
Contractual Discount % - Answer Deductions to Gross Patient Service Revenue divided
by Gross Patient Services Revenue.
Markup - Answer Gross Patient Services Revenue + Other Operating Revenue dividende
by operating expenses.
Operating Margin- Answer Total operating revenue — Operating Expense divide by
Total Operating Revenue.
Non operating gains - Answer Non operating Gains divide by Net Income.
Net Income - Answer Revenues - Expenses
Income index-reported Net income/Change in net assets.
Return on total assets Net income/total assets
Return on Equity Net income/Net assets
Current ratio Current assets/Current liabilities
Quick Ratio
________________________________
Current Liabilities
Days Net Revenue in net Patient Accounts Receivable Net patient accounts
receivable/Net patient revenue - bad debt expense
Days Cash on Hand formula - Answer Cash +Marketable securities. + unrestricted LT
investments/operating expenses- Depreciation/365
,Total Asset Turnover - Answer Total operating Revenue / Total Assets
Fixed Asset Turnover - Answer Total operating revenue/net fixed Assets
Current Asset Turnover - Answer Total operating revenue /current assets
Inventory Turnover - Answer Total Operating Revenue /inventory
Length of stay (LOS) - Answer Total inpatient days /total discharges
Occupancy Rate- Answer Total inpatient days /staffed beds x days in period
Case Mix Index- Answer Sum of (Cases in each DRG x weight for that DRG) /Total cases
Adjusted Admissions- Answer Total gross charges /inpatient charges x inpatient
discharged.
Adjusted patient days - Answer Total gross charges /inpatient charges x inpatient days
Average daily census - Answer Inpatient days /365
case mix adjusted cost per patient - Answer Cost per patient day / case mix index
Revenue Variance - Answer Actual-Budget = Revenue Variance
Expense Variance - Answer Budget-Actual = Expense Variance
, 835 record - Answer A standard electronic message between health plan and provider
sending remittance data on a claim to the provider
837 record - Answer A standard electronic message between provider and health plan
sending data on a claim to the health plan.
ACO accountable care organization - Answer A coordinated group of health care
providers including physicians hospitals and other types of providers organized to
improve quality and lower the costs of care to a defined group of patients
Accounting identity - Answer Also called accounting equation, Assets = liabilities +
equity.
Accounts Payable - Answer A current liability where funds are owed to suppliers
Accounts payable distribution - Answer An accounting computer system report that
details the amounts paid to vendors by date purchase order and expense classification
Accounts receivable aging - Answer A report that summarizes accounts receivable from
various sources such as Medicare or commercial insurance by 30 day increments
Accrual - Answer Accounting methodology that records revenue as it is earned (not
received) and expenses when they are incurred (not paid)
Accrual basis of accounting - Solution Instead of the cash basis of accounting the
accrual basis of accounting uses estimates of revenue and expense to match revenue in
the period they are earned with the expenses incurred in that same period.
Accrued payroll and benefits - Answer An estimate of salaries and related benefit costs
(such as payroll tax matching) earned by employees but not yet paid by employer
