Healthcare Finance Assignments 5-10
Question and answers already passed
2025/2026
From what source of payment do nursing homes get their reimbursement from? - correct answer
✔Medicaid
What is a CCRC? - correct answer ✔Continuing Care Retirement Communities (apartments, assisted
living, nursing home)
What is capitation? - correct answer ✔Payment based on a PMPM basis - single payment per time
period to cover healthcare services
What are the organization models that physicians are adapting to and why? - correct answer ✔Larger
physician groups, hospitals, insurance companies - mainly due to lifestyle changes and flexibility
How is charity care usually defined? - correct answer ✔Unreimbursed cost of providing care. Health
care provider must not have billed the patient for the portion of the bill that is being recognized as
charity care.
Why is tax-exempt financing cited as a benefit received by not-for-profit health care providers? - correct
answer ✔Pay a lower interest rate - bond holders do not pay taxes on this income.
Explain the concept of cost allocation. - correct answer ✔Way to distribute cost from support
departments to revenue producing departments.
From a hospital's perspective, which reimbursement method would be most likely to be the highest risk
arrangement, and why? (DRG, Per Diem, Capitation, Discounted Charges) - correct answer
✔Capitation-risk having to render care for a population with a fixed payment stream (PMPM)
Question and answers already passed
2025/2026
From what source of payment do nursing homes get their reimbursement from? - correct answer
✔Medicaid
What is a CCRC? - correct answer ✔Continuing Care Retirement Communities (apartments, assisted
living, nursing home)
What is capitation? - correct answer ✔Payment based on a PMPM basis - single payment per time
period to cover healthcare services
What are the organization models that physicians are adapting to and why? - correct answer ✔Larger
physician groups, hospitals, insurance companies - mainly due to lifestyle changes and flexibility
How is charity care usually defined? - correct answer ✔Unreimbursed cost of providing care. Health
care provider must not have billed the patient for the portion of the bill that is being recognized as
charity care.
Why is tax-exempt financing cited as a benefit received by not-for-profit health care providers? - correct
answer ✔Pay a lower interest rate - bond holders do not pay taxes on this income.
Explain the concept of cost allocation. - correct answer ✔Way to distribute cost from support
departments to revenue producing departments.
From a hospital's perspective, which reimbursement method would be most likely to be the highest risk
arrangement, and why? (DRG, Per Diem, Capitation, Discounted Charges) - correct answer
✔Capitation-risk having to render care for a population with a fixed payment stream (PMPM)
