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HEALTHCARE FINANCE FINAL EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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HEALTHCARE FINANCE FINAL EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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HEALTHCARE FINANCE FINAL EXAMQUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
T/F Healthcare is more heavily regulated than most other businesses in the U.S. - ANSWER True
T/F A recent trend in healthcare is the growth of public corporations that own multiple hospitals and
other healthcare facilities - ANSWER True
Which of the following financial management issues differentiates healthcare form other businesses -
ANSWER third party payers
which type of healthcare reimbursement system pays a fixed amount per patient - ANSWER capitation
when medicare and medicaid were established in 1965, their costs increased much more than
government planners expected. What was changed in 1982 in an attempt to keep costs down - ANSWER
payments to healthcare providers were based on patients diagnoses
which type of healthcare insurance plan uses primary care clinician gatekeepers to coordinate the care of
plan participants - ANSWER Health maintenance organizations
Most proprietorship from professional corporations in order to ____ - ANSWER reduce malpractice
liabilities
A small, closely held corporation is owned by ___ - ANSWER a proprietorship
Federal tax revenues are based on C Corporations ____ - ANSWER dividends
A not for profit hospital must ___ - ANSWER adopt a corporate structure
Nursing home costs for elderly americans - ANSWER are mostly covered by long term care insurance
The change that had the biggest financial impact on hospitals in the 1980s and 1990s was ___ - ANSWER
the reimbursement based on patient diagnoses
what factors contributed to the rapid cost increases of the medicare and medicaid programs in the 1960s
- ANSWER yes, this was when fee-for-service reimbursement was in place.
describe financial advantages of not for profit hospital over for a profit hospital. - ANSWER not for profit-
do not pay taxes, service the needs of community, must prove beneficial to community to stay afloat. For
profit--rely on investors of hospital, have more services available, repay investors who invest in their
company
t/f preferred provider organizations PPO plans are a form of managed care - ANSWER true
,t/f the federal governments first involvement in healthcare financing was based on the social security
amendments of 1965 - ANSWER true
t/f TRICARE insurance is a private pay company contracted by the federal government to provide
healthcare insurance to members of the armed forces - ANSWER true
What type of healthcare insurance coverage is most common in America - ANSWER Private insurance
from employer
Most healthcare providers receive most of their payments from ___ - ANSWER third party payers
Usual, Customary, and reasonable fees are ___ - ANSWER based on surveys conducted by insurance
companies
When a person injured with a preferred provider organization plan receives health services from a
provider who does not participate in the plan, the insured person ___ - ANSWER pays more for the
service
Healthcare providers who participate in a capitated payment type of health maintenance organization
___ - ANSWER get paid a per member per month rate
Individuals covered by a high deductible health plan within a preferred provider organization use fewer
outpatient services and shop around for lower cost outpatient services because they __ - ANSWER pay
directly for routine care
Americans without heath insurance (private or government) - ANSWER pay directly for routine medical
care
Rising health care insurance costs in a tight employment (fewer jobs and many qualified applicants) will
likely result in employers ____ - ANSWER dropping part-time positions in favor of fewer full time
positions
The social security act of 1935 ___ - ANSWER was part of Truman's Fair Deal
Describe the American Recovery and Reinvestment Act of 2009(ARRA), its relation to COBRA, and how
costs are paid - ANSWER created new obligations for COBRA. COBRA provides coverage for indviduals
who are laid off and want to continue w/ health insurance. The gov pays 65% of premiums for period of
time.
Describe the Childrens Health Insurance Program of 1997 - ANSWER increased poverty levels (up to
200%) for children to be granted Medicaid healthcare coverage.
Why are hospitals most affected by large numbers of uninsured persons - ANSWER do not have PCPs.
receive some/all care thru ER. Unable to afford PCP. Do not follow up from ER w/ PCP. wait till super sick
and most of time get admitted
T/F Healthcare spending in America has risen faster than the cost of living index for decades - ANSWER
true
, t/f new medical diagnostic technologies and new therapies reduce healthcare costs by reducing the time
between disease onset and proper treatmnet - ANSWER false
T/F the patient protection and affordable care act of 2010 eliminated the donut hole in prescription drug
benefits for medicare beneficiaries - ANSWER true
Many healthcare insurance companies offer incentives for covered persons to improve their health by
exercising, not using tobacco products, and losing weight. When such incentives work, the insurance
companies' costs should go __ and future medicare costs of inviduals should go __ - ANSWER Down, up
which factor is most responsible for causing rapid rises in the salaries of healthcare professionals -
ANSWER a shortage of qualified professionals
what is the most likely reason that some individuasl in Massachusetts pays the fine of approx $1000 each
year for not having approved healthcare insurance policy - ANSWER they do not expect to need
healthcare, and the fine is less than the premiums
Healthcare insurance premiums increased significantly shortly after passage of the patient protection
and affordable care act of 2010. A part of the increased premiums was due to ___ - ANSWER no
deductibles or co payments for preventative care services
which program provides federal funds for the automation of electronic medical records - ANSWER health
information technology for economic and clinical health act
t/f proponents of government run or government funded healthcare for all residents call such a system
universal healthcare - ANSWER true
Why will medicare cost rise of the next two decades even if cost control efforts prevent an increase in
the average cost per medicare benficiary per year - ANSWER baby boomers. They will go to nursing
homes with limited coverage for nursing homes. d/t chronic conditions, cont with med care. average age
of living continues to increase, more chronic conditions constant med care.
Explain why widespread use of high deductible healthcare insurance plans would probably reduce the
costs of routine outpatient services - ANSWER individual has to pay more for care they are more liekly to
ask about costs of services and choose less expensive testing or services or decline unnecessary testing
What are the economic justification for specialist physicians receiving high fees for services - ANSWER
more school to pay for and enter the work force later d/t school requirements.
t/f manual accounting systems use records referred to as ledgers - ANSWER true
t/f the amount of money owed to a medical practice for service provided today is entered as a credit in
the expense account - ANSWER false
t/f in double entry accounting, interest paid on a loan is posted as an expense - ANSWER true
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