HSA 400 Midterm Chapters 1-11 Exam With
Complete Solutions
Describe the major aspects of Medicare benefits. - ANSWER -Part A (hospital
insurance).
-Part B (medical insurance).
-Part C (medicare advantage plans).
-Part D (prescription drugs)
Describe how Medicare reimburses the major types of providers & discuss the
implications of these methods for an organization's resource management. - ANSWER
-Bundled Services Arrangement.
-Prospective Payment System (PPS).
Describe the balanced scorecard & dashboard reporting. - ANSWER -Tools that help in
the collection & communication of financial & operating information.
-Neatly formatted reports that display the organization's performance for "key
indicators".
Describe the four key elements of dashboard reporting. - ANSWER -1) What is most
important to the firm's success?
-2)What are the critical drivers that influence performance attainment?
-3) What are the most relevant measures that reflect critical driver relationships?
-4) What relevant bench-marking data are available to assess performances?
Describe how legal & regulatory issues shape & define good financial management of an
HCO. - ANSWER -Enactment of the ACA represented landmark change in the federal law
that shapes virtually every financial aspect of the nation's healthcare delivery system.
-Were designed to address longstanding problems with availability & affordability of
health insurance.
,Appreciate the consequences of failing to manage the finances of an HCO with regard
for the complex & ever changing array of laws & regulations that are unique to this
industry. - ANSWER -Develop a compliance plan that is well-written & helps an
organization's employees understand how laws & regulations relate to their jobs &
enables management to know that these legal requirements are being followed.
Identify the major components of corporate compliance plan, including the
establishment of internal controls to the finances of an organization. - ANSWER -Control
environment.
-Risk assessment.
-Control activities.
-Information & communication.
-Monitoring.
Explain what is most important in long-term financial success. - ANSWER -Sustainable
growth.
-Over the long term, no business can grow assets faster than equity.
Describe the Control Environment of a corporate compliance plan. - ANSWER -Sets the
tone of an organization influencing the control consciousness of its people.
-The foundation for all other components of internal control, providing discipline and
structure.
Describe the Risk Assessment portion of the corporate compliance plan. - ANSWER
-The entity's identification & analysis of relevant risks to achievement of its objectives,
forming a basis for determining how the risks should be managed.
Describe the Control Activities portion of the corporate compliance plan. - ANSWER
-The policies & procedures that help ensure management directives are carried out.
Explain what a healthcare firm's primary financial objective should be. - ANSWER
, -Equity Growth.
(Formula on flashcard)
Describe the information & communication portion of the corporate compliance plan. -
ANSWER -The identification, capture & exchange of information in a form & time frame
that enables people to carry out their responsibilities.
Describe methods that are used to assess price defensibility prices in a real setting. -
ANSWER -Two ways of assessing:
-1) Return-on-Investment (ROI)
-2) Comparison with other healthcare firms.
Describe the Monitoring portion of the corporate compliance plan. - ANSWER -a process
that accesses the quality of internal control performance over time.
List some of the important considerations when negotiating a managed-care contract. -
ANSWER -Critical to continued financial solvency.
-Contract language.
-Payment rates.
Describe the critical drivers of financial performance. - ANSWER -If an organization
needs to be focused on return on equity, then we should explore the critical drivers in
the ROE formula.
Discuss the importance & types of performance measures. - ANSWER -Must be limited.
-Naturally related to the key driver map.
-Be capable of external validation or bench-marking.
Types: Market factors, pricing, coding, contract negotiation, overall cost, labor costs,
supply & drug costs, departmental costs, non-operating income, investment efficiency,
and capital position.
Complete Solutions
Describe the major aspects of Medicare benefits. - ANSWER -Part A (hospital
insurance).
-Part B (medical insurance).
-Part C (medicare advantage plans).
-Part D (prescription drugs)
Describe how Medicare reimburses the major types of providers & discuss the
implications of these methods for an organization's resource management. - ANSWER
-Bundled Services Arrangement.
-Prospective Payment System (PPS).
Describe the balanced scorecard & dashboard reporting. - ANSWER -Tools that help in
the collection & communication of financial & operating information.
-Neatly formatted reports that display the organization's performance for "key
indicators".
Describe the four key elements of dashboard reporting. - ANSWER -1) What is most
important to the firm's success?
-2)What are the critical drivers that influence performance attainment?
-3) What are the most relevant measures that reflect critical driver relationships?
-4) What relevant bench-marking data are available to assess performances?
Describe how legal & regulatory issues shape & define good financial management of an
HCO. - ANSWER -Enactment of the ACA represented landmark change in the federal law
that shapes virtually every financial aspect of the nation's healthcare delivery system.
-Were designed to address longstanding problems with availability & affordability of
health insurance.
,Appreciate the consequences of failing to manage the finances of an HCO with regard
for the complex & ever changing array of laws & regulations that are unique to this
industry. - ANSWER -Develop a compliance plan that is well-written & helps an
organization's employees understand how laws & regulations relate to their jobs &
enables management to know that these legal requirements are being followed.
Identify the major components of corporate compliance plan, including the
establishment of internal controls to the finances of an organization. - ANSWER -Control
environment.
-Risk assessment.
-Control activities.
-Information & communication.
-Monitoring.
Explain what is most important in long-term financial success. - ANSWER -Sustainable
growth.
-Over the long term, no business can grow assets faster than equity.
Describe the Control Environment of a corporate compliance plan. - ANSWER -Sets the
tone of an organization influencing the control consciousness of its people.
-The foundation for all other components of internal control, providing discipline and
structure.
Describe the Risk Assessment portion of the corporate compliance plan. - ANSWER
-The entity's identification & analysis of relevant risks to achievement of its objectives,
forming a basis for determining how the risks should be managed.
Describe the Control Activities portion of the corporate compliance plan. - ANSWER
-The policies & procedures that help ensure management directives are carried out.
Explain what a healthcare firm's primary financial objective should be. - ANSWER
, -Equity Growth.
(Formula on flashcard)
Describe the information & communication portion of the corporate compliance plan. -
ANSWER -The identification, capture & exchange of information in a form & time frame
that enables people to carry out their responsibilities.
Describe methods that are used to assess price defensibility prices in a real setting. -
ANSWER -Two ways of assessing:
-1) Return-on-Investment (ROI)
-2) Comparison with other healthcare firms.
Describe the Monitoring portion of the corporate compliance plan. - ANSWER -a process
that accesses the quality of internal control performance over time.
List some of the important considerations when negotiating a managed-care contract. -
ANSWER -Critical to continued financial solvency.
-Contract language.
-Payment rates.
Describe the critical drivers of financial performance. - ANSWER -If an organization
needs to be focused on return on equity, then we should explore the critical drivers in
the ROE formula.
Discuss the importance & types of performance measures. - ANSWER -Must be limited.
-Naturally related to the key driver map.
-Be capable of external validation or bench-marking.
Types: Market factors, pricing, coding, contract negotiation, overall cost, labor costs,
supply & drug costs, departmental costs, non-operating income, investment efficiency,
and capital position.
