HCAD 375 Final Exam Questions with Verified Solutions Latest 2025
3 managerial viewpoints and how that influences $ management - Answers Financial: work with
finance on a daily basis, responsible for the reporting function
Process: work with the system of the organization, responsible for data accumulation
Clinical: usually work with and interact directly with patients, responsible for service delivery
also responsible for clinical outcomes
Proprietary vs not-for-profit - Answers -pay all taxes
-corporations, partnerships, or individuals
-do not pay income, property, or sales tax (do pay payroll)
-voluntary or government
stand alone or part of a larger organization
affect structure and organizational goals
Managerial vs. Financial accounting - Answers Financial:
-generally for outside, or third-party use
-emphasizes external reporting
-must use GAAP
-retrospective
Managerial:
-generally for inside, or internal use
-used by managers
-not bound by GAAP
-prospective as well as retrospective
Journal transactions and ledger - Answers
Assets, Liabilities, Net Worth -what, examples, how fit together - Answers Assets: economic
resources that have expected future benefits to the business. Ex: cash, accounts receivable,
,notes receivable, inventory, land
Liabilities: "outsider claims"/Economic obligations/debts/payable to outsiders. Ex: accounts
payable, payroll taxes due, notes payable, mortgage payable
Net Worth: "equity", insiders claims held by the owners of the business For profit sole- "Owners
equity" For profit corp.- "Capital Stock" Not for profit-"Fund Balance" or "Net Assets"
Cash vs accrual - Answers Cash: recording assets when you collect cash or spend cash
Accrual: record revenues when they are earned and when the resources are used
Payer mix - Answers proportion of revenues from different payers. Balance in payers is key.
Medicare PPS: RVUs, DRGs, Episodes of Care - Answers
RUGs - Answers -66 resource utilization groups
Settings effect payment:
-nursing home pays per diem/day
-hospital pays per case
-home health is based on a 60 day period of care
MDS & OASIS - Answers 153 case mix groups called Home Health Resource Groups. Outcome
and assessment information set level of assistance based on a set number of days of
observation
Contractual allowance - Answers Contractual allowance =full established rate -agreed upon
contractual rate
may differ from plan to plan
Be able to calculate
A/R Management - Answers -pt. revenues vs non patient revenues
-custom pay to categorize patient payer type
-need a clear collections policy and accurate documentation of efforts
-should meet with administrator monthly
Aging Report & uncollectable likelihood - Answers -review report monthly with admin
, -ask detailed questions/offer incentives
implementation of collections policy: calls, letters, collections agency, small claims court,
termination of care
Likely Uncollectable
5% 1-30 days
50% 91-120 days
"Typical" Wisconsin Benchmarks for Day O/S in A/R by payer - Answers
Trade Credit/when take discount - Answers typically no interest if paid when due according to
the terms
2/10 net 30
A/P management strategies - Answers -delay payment until due date (or discount rate)
-stretch accounts payable
-bank in a distant city for "float" time
-keep a daily cash report
-reduce payroll strain on cash
Exempt vs Non-Exempt - Answers Exempt- (salary pay) aren't entitled to overtime pay
Non Exempt- are entitled to overtime pay
40hr/wk vs 8:80 - Answers 8 hours a day or 80 hours over two weeks (when handling weekend
work)
Payroll responsibilities for managers - Answers -provide staff coverage/proper staffing
-monitor workload
-note if employees work different shifts (shift differentials)
-ensure employee's status and schedule are properly established at time of employment
Req'd payroll deductions, common/others - Answers MUST: Federal, State, Local income taxes
FICA (half of the Medicare and SS tax) payroll taxes
MAY:Employee portion of health insurance premiums
3 managerial viewpoints and how that influences $ management - Answers Financial: work with
finance on a daily basis, responsible for the reporting function
Process: work with the system of the organization, responsible for data accumulation
Clinical: usually work with and interact directly with patients, responsible for service delivery
also responsible for clinical outcomes
Proprietary vs not-for-profit - Answers -pay all taxes
-corporations, partnerships, or individuals
-do not pay income, property, or sales tax (do pay payroll)
-voluntary or government
stand alone or part of a larger organization
affect structure and organizational goals
Managerial vs. Financial accounting - Answers Financial:
-generally for outside, or third-party use
-emphasizes external reporting
-must use GAAP
-retrospective
Managerial:
-generally for inside, or internal use
-used by managers
-not bound by GAAP
-prospective as well as retrospective
Journal transactions and ledger - Answers
Assets, Liabilities, Net Worth -what, examples, how fit together - Answers Assets: economic
resources that have expected future benefits to the business. Ex: cash, accounts receivable,
,notes receivable, inventory, land
Liabilities: "outsider claims"/Economic obligations/debts/payable to outsiders. Ex: accounts
payable, payroll taxes due, notes payable, mortgage payable
Net Worth: "equity", insiders claims held by the owners of the business For profit sole- "Owners
equity" For profit corp.- "Capital Stock" Not for profit-"Fund Balance" or "Net Assets"
Cash vs accrual - Answers Cash: recording assets when you collect cash or spend cash
Accrual: record revenues when they are earned and when the resources are used
Payer mix - Answers proportion of revenues from different payers. Balance in payers is key.
Medicare PPS: RVUs, DRGs, Episodes of Care - Answers
RUGs - Answers -66 resource utilization groups
Settings effect payment:
-nursing home pays per diem/day
-hospital pays per case
-home health is based on a 60 day period of care
MDS & OASIS - Answers 153 case mix groups called Home Health Resource Groups. Outcome
and assessment information set level of assistance based on a set number of days of
observation
Contractual allowance - Answers Contractual allowance =full established rate -agreed upon
contractual rate
may differ from plan to plan
Be able to calculate
A/R Management - Answers -pt. revenues vs non patient revenues
-custom pay to categorize patient payer type
-need a clear collections policy and accurate documentation of efforts
-should meet with administrator monthly
Aging Report & uncollectable likelihood - Answers -review report monthly with admin
, -ask detailed questions/offer incentives
implementation of collections policy: calls, letters, collections agency, small claims court,
termination of care
Likely Uncollectable
5% 1-30 days
50% 91-120 days
"Typical" Wisconsin Benchmarks for Day O/S in A/R by payer - Answers
Trade Credit/when take discount - Answers typically no interest if paid when due according to
the terms
2/10 net 30
A/P management strategies - Answers -delay payment until due date (or discount rate)
-stretch accounts payable
-bank in a distant city for "float" time
-keep a daily cash report
-reduce payroll strain on cash
Exempt vs Non-Exempt - Answers Exempt- (salary pay) aren't entitled to overtime pay
Non Exempt- are entitled to overtime pay
40hr/wk vs 8:80 - Answers 8 hours a day or 80 hours over two weeks (when handling weekend
work)
Payroll responsibilities for managers - Answers -provide staff coverage/proper staffing
-monitor workload
-note if employees work different shifts (shift differentials)
-ensure employee's status and schedule are properly established at time of employment
Req'd payroll deductions, common/others - Answers MUST: Federal, State, Local income taxes
FICA (half of the Medicare and SS tax) payroll taxes
MAY:Employee portion of health insurance premiums
