Answer Options:
True
\nFalse
Answer: True
Question: Numerous external factors play a role in the day-to-day work of health care financial managers.
Answer Options:
True
\nFalse
Answer: True
Question: The operating budget within a health care organization generally looks at which of the following components?
Answer Options:
A. Revenues and expenses
\nB. Investments
\nC. Assets, liabilities, and equity
\nD. Balance sheet
Answer: A. Revenues and expenses
Question: What are some of the ways in which health care organizations protect the rights of their patients?
Answer Options:
A. Utilization review process
\nB. Utilization review boards
\nC. Patient advocacy or ombudsman offices
\nD. Institutional ethics committees
\nE. All of these are correct.
Answer: E. All of these are correct.
Question: True or False? Capitation shifts the risk of coverage to the insurer from the provider of health care.
Answer Options:
True
\nFalse
Answer: False
Question: True or False? Enrollment in Medicare has increased significantly as a result of the Affordable Care Act.
Answer Options:
True
\nFalse
Answer: False
Question: True or False? The chief operating officer (COO) is responsible for the financial management function of an organization.
Answer Options:
True
\nFalse
Answer: False
Question: True or False? ICD stands for Internal Classification of Diseases.
Answer Options:
True
\nFalse
Answer: False
Question: Which of the following is the formula used to calculate ending cash?
Answer Options:
A. Ending cash = cash inflows – cash outflows
\nB. Ending cash = beginning cash + cash inflows – cash outflows
\nC. Ending cash = beginning cash – cash outflows + investment income
\nD. Ending cash = cash inflows – beginning cash – cash outflows
Answer: B. Ending cash = beginning cash + cash inflows – cash outflows
Question: Private health insurance coverage includes all of the following, except:
Answer Options:
A. PPOs.
\nB. HMOs.
\nC. Indemnity plans.
\nD. SNFs.
\nE. HDHPs.
\nF. All of these are types of insurance plans.
Answer: D. SNFs.
Question: Health care managers have two primary roles in managing health insurance: providing coverage for employees and managing the billing and reimbursement process for patient claims.
Answer Options:
True
\nFalse
Answer: True
Question: Why should health care managers be concerned about health care financing and health insurance?
Answer Options:
A. It’s the right thing to do.
\nB. It’s important to the organization’s bottom line and to organizational success.
\nC. Employees are concerned about the increases in their share of premiums and other cost sharing.
\nD. All of these are correct.
Answer: D. All of these are correct.
Question: The development of a strategic plan is most often done on a 1-year time frame.
Answer Options:
True
\nFalse
Answer: False
Question: True or False? For-profit health care organizations may issue stock to raise capital.
Answer Options:
True
\nFalse
Answer: True
Question: A review of the organization’s past strategic performance should be included as part of future strategy development.
Answer Options:
True
\nFalse
Answer: True
Question: Which of the following is a potential barrier to successful execution of a strategic plan?
Answer Options:
A. Not enough strategies to implement
\nB. Strategies that do not align with the organization’s culture
\nC. Lack of focus on the strategies
\nD. Both strategies that do not align with the organization’s culture and a lack of focus on the strategies
\nE. All of these are correct.
Answer: D. Both strategies that do not align with the organization’s culture and a lack of focus on the strategies
Question: True or False? The purposes of the Patient Protection and Affordable Care Act include expanding access to health insurance coverage, efforts to contain costs, and emphasis on prevention and screening, to name a few.
Answer Options:
True
\nFalse
Answer: True
Question: True or False? Virtually all financial experts define working capital as “total current assets.”
Answer Options:
True
\nFalse
Answer: False
Question: True or False? CPT stands for Current Procedural Terminology.
Answer Options:
True
\nFalse
Answer: True