Healthcare Finance Final Exam
Question and answers correctly
solved 2025/2026
T/F Healthcare is more heavily regulated than most other businesses in the U.S. - correct answer ✔True
T/F A recent trend in healthcare is the growth of public corporations that own multiple hospitals and
other healthcare facilities - correct answer ✔True
Which of the following financial management issues differentiates healthcare form other businesses -
correct answer ✔third party payers
which type of healthcare reimbursement system pays a fixed amount per patient - correct 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 - correct
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 - correct answer ✔Health maintenance organizations
Most proprietorship from professional corporations in order to ____ - correct answer ✔reduce
malpractice liabilities
A small, closely held corporation is owned by ___ - correct answer ✔a proprietorship
Federal tax revenues are based on C Corporations ____ - correct answer ✔dividends
,A not for profit hospital must ___ - correct answer ✔adopt a corporate structure
Nursing home costs for elderly americans - correct 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 ___ - correct
answer ✔the reimbursement based on patient diagnoses
what factors contributed to the rapid cost increases of the medicare and medicaid programs in the
1960s - correct 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. - correct 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 - correct answer ✔true
t/f the federal governments first involvement in healthcare financing was based on the social security
amendments of 1965 - correct 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 - correct answer ✔true
What type of healthcare insurance coverage is most common in America - correct answer ✔Private
insurance from employer
, Most healthcare providers receive most of their payments from ___ - correct answer ✔third party
payers
Usual, Customary, and reasonable fees are ___ - correct 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 ___ - correct answer ✔pays more for
the service
Healthcare providers who participate in a capitated payment type of health maintenance organization
___ - correct 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 __ - correct
answer ✔pay directly for routine care
Americans without heath insurance (private or government) - correct 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 ____ - correct answer ✔dropping part-time positions in favor of fewer full
time positions
The social security act of 1935 ___ - correct 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 - correct 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.
Question and answers correctly
solved 2025/2026
T/F Healthcare is more heavily regulated than most other businesses in the U.S. - correct answer ✔True
T/F A recent trend in healthcare is the growth of public corporations that own multiple hospitals and
other healthcare facilities - correct answer ✔True
Which of the following financial management issues differentiates healthcare form other businesses -
correct answer ✔third party payers
which type of healthcare reimbursement system pays a fixed amount per patient - correct 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 - correct
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 - correct answer ✔Health maintenance organizations
Most proprietorship from professional corporations in order to ____ - correct answer ✔reduce
malpractice liabilities
A small, closely held corporation is owned by ___ - correct answer ✔a proprietorship
Federal tax revenues are based on C Corporations ____ - correct answer ✔dividends
,A not for profit hospital must ___ - correct answer ✔adopt a corporate structure
Nursing home costs for elderly americans - correct 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 ___ - correct
answer ✔the reimbursement based on patient diagnoses
what factors contributed to the rapid cost increases of the medicare and medicaid programs in the
1960s - correct 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. - correct 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 - correct answer ✔true
t/f the federal governments first involvement in healthcare financing was based on the social security
amendments of 1965 - correct 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 - correct answer ✔true
What type of healthcare insurance coverage is most common in America - correct answer ✔Private
insurance from employer
, Most healthcare providers receive most of their payments from ___ - correct answer ✔third party
payers
Usual, Customary, and reasonable fees are ___ - correct 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 ___ - correct answer ✔pays more for
the service
Healthcare providers who participate in a capitated payment type of health maintenance organization
___ - correct 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 __ - correct
answer ✔pay directly for routine care
Americans without heath insurance (private or government) - correct 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 ____ - correct answer ✔dropping part-time positions in favor of fewer full
time positions
The social security act of 1935 ___ - correct 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 - correct 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.
