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Exam (elaborations)

HCM 416 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS

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HCM 416 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS What are the 4 finance activities? (i.e the 4 C's) Cost minimization Cash sufficiency Capital access Control 4 major categories of business organizations Proprietorship Partnership Corporation Hybrid forms Advantages of proprie...

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  • November 10, 2024
  • 6
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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HCM 416 EXAM QUESTIONS AND ANSWERS WITH COMPLETE

SOLUTIONS


What are the 4 finance activities? (i.e the 4 C's)

Cost minimization

Cash sufficiency

Capital access

Control

4 major categories of business organizations

Proprietorship

Partnership

Corporation

Hybrid forms

Advantages of proprietorships/partnerships

Ease of formation

Subject to few regulations

No corporate income taxes

Disadvantages of proprietorships/partnerships

Limited life

Difficult to transfer ownership

Unlimited liability

Difficult to raise capital

, Advantages of corporations

Unlimited life

Easy transfer of ownership

Limited liability

Ease of raising capital

Disadvantages of corporations

Cost of formation and reporting

Double (or triple) taxation for investor-

owned corporations

S corporations

corporations with a limited number of stockholders that is taxed as a proprietorship or

partnership

gatekeeper physicians

must authorize any specialized or referral services using: utilization review to ensure

that services rendered are appropriate and needed, discounted rate schedules for

providers, and payment methods that transfer some risk to providers. This allows them

to limit patients to particular providers

Capitation

most risky form of reimbursement methods! based on the number of covered lives as

opposed to the amount of services provided

Fee-for-service

reimbursement methodology that provides payment each time a service is provided

cost-based reimbursement

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