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Healthcare Finance Final Exam Chapters 1-11 questions well answered to pass
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Healthcare Finance Final Exam Chapters 1-11 questions well answered to pass
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Healthcare Finance Final Exam Chapters1-11
Organization structure and key positions found in the finance dpt of large healthcare organizations? -
correct answer ✔✔1-CEO (chief executive officer): responsible for all finance activities within the
organization
2- CFO (chief financial officer): head of the finance dpt...directs two senior managers that help.
Comptroller & treasurer
What is the primary legal issue facing healthcare providers today? - correct answer ✔✔Professional
liability
2-3 of the major concerns of healthcare managers today? - correct answer ✔✔*financial concerns is the
major concern*
-The major current concern of CEO's is reimbursement with Medicare, Medicaid, and bad debt losses.
-For CFO's it is balancing clinical and financial issues.
1-2 differences/advantages of being a for-profit organization/investor-owned? - correct answer ✔✔-may
be either publicly held or privately held.
-The stockholders (aka shareholders) are the owners and they have these basic rights
-also subject to various forms of taxation at the local, state, and federal levels.
1-2 differences/advantages of being a not-for-profit organization? - correct answer ✔✔-Tax-exempt
corporation.
- Must be organized and run so that it operates exclusively for the public, rather than private interest.
-They have no shareholders, which means no single body of individuals has ownership rights to the firms
residual earnings or exercises control of the firm.
-They are also exempt from taxation and have the right to issue tax-exempt debt.
, Difference between fee for service and capitation reimbursement? - correct answer ✔✔-FFS
reimbursement provides payment each time a service is provided.
-Capitation is based on the # of covered lives as opposed to the amount of services provided.
What do HMO and PPO stand for? - correct answer ✔✔-HMO: health maintenance organization
-PPO: preferred provider organization
Which stakeholders have the primary interest in a for-profit organization? - correct answer
✔✔stockholders
Difference between the income statement and the balance sheet in regards to timing? - correct answer
✔✔balance sheet is a snapshot in time and the income statement reports results over a period of time
The best cost structure when a provider is capitated? - correct answer ✔✔fixed cost structure
The best cost structure when a provider is fee-for-service? - correct answer ✔✔variable cost structure
Two characteristics of effective cost drivers? - correct answer ✔✔fair and controls costs
What is most likely to be considered non-operating income on the income statement? - correct answer
✔✔Non-operating income is the earnings of a business that are unrelated to core activities. ex:
contributions, investment income, cafeteria and parking garage operations,
What is most likely considered to be operating income on the income statement? - correct answer
✔✔Operating income is the earnings of a business directly related to core activities. ex: patient services,
premium revenue, government appropriations
What is the difference between patient service revenue and other revenue? - correct answer ✔✔-
Patient service revenue: Patient service revenue is revenue the health center generates from treating
patients. Ex: payments from Medicaid, Medicare, and commercial insurers.
-Other revenue: Revenue that a company derives from any source other then its operations.Ex: company
receives interest on investments or company sells some of equipment's.
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