EXAM LATEST UPDATED VERSION ACTUAL TEST QUESTIONS AND
CORRECT DETAILED ANSWERS (100% CORRECT VERIFIED
SOLUTIONS) |GUARANTEED PASS. (FULL REVISED EXAM)2026
Definition of Variable Costs
Costs that vary w/ changes in volumes of service units
Examples of Variable Costs
Meds Supplies
Direct staffing
Beyond minimum OT
,Definition of Mixed Costs
Costs that include both fixed and variable costs
Examples of mixed costs
Utilities
Minimum costs are fixed, but may vary based on weather extremes or need fo periodic
extended hours
Staffing: minimum level is fixed, w/ variation r/t volume
Definition of Relative Value Unit
Used to approximate work done by physicians based on knowledge & skills required
EST by HCFA/CMS
The 3 elements of a Relative Value Unit
Values for the physician work The
practice expense
Malpractice expense for delivery of service
,Government Funds or Provides health plans (Fed/state/local)
Medicare
Medicaid
Trickle
Indian Health Service
Prisons
Private insurance
Includes commercial INDEMNITY & MANAGED care plans. Individual or employed
chooses insurance
Ex. Aetna/BCBS
Definition of Capitation
Managed care approach that pays providers a flat fee per pt regardless of the care the pt
consumes
Disease Management
Use of standardized, EB care plans to manage pts w/ specific chronic medical conditions to
ensure best practice is employed to manage pt care processes
, Health promotion
Education of pts on illness prevention w/ self care
Case management/care coordination
Population-based management of panels of pts over time that are @ risk for comorbidities, re-
hospitalizations, or adverse outcomes
Focuses on maximizing control of chronic dz & prevent exacerbations
Financial Planning - strategic plan
Spans 3-5 years & used to drive operational goals & short-term budget cycles
Strategic plans have the following Elements
Mission
Long-term goals
Competitive strategy
Policies
Needed Resources key assumptions