HEALTH SERVICES FINANCE EXAMINATION
TEST PAPER 2026 FULL QUESTIONS AND
SOLUTIONS
◉ T/F A recent trend in healthcare is the growth of public
corporations that own multiple hospitals and other healthcare
facilities
Answer: True
◉ Which of the following financial management issues differentiates
healthcare form other businesses
Answer: third party payers
◉ which type of healthcare reimbursement system pays a fixed
amount per patient
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
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
Answer: Health maintenance organizations
◉ Most proprietorship from professional corporations in order to
____
Answer: reduce malpractice liabilities
◉ A small, closely held corporation is owned by ___
Answer: a proprietorship
◉ Federal tax revenues are based on C Corporations ____
Answer: dividends
◉ A not for profit hospital must ___
Answer: adopt a corporate structure
◉ Nursing home costs for elderly americans
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 ___
Answer: the reimbursement based on patient diagnoses
◉ what factors contributed to the rapid cost increases of the
medicare and medicaid programs in the 1960s
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.
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
Answer: true
◉ t/f the federal governments first involvement in healthcare
financing was based on the social security amendments of 1965
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
Answer: true
◉ What type of healthcare insurance coverage is most common in
America
Answer: Private insurance from employer
◉ Most healthcare providers receive most of their payments from ___
Answer: third party payers
◉ Usual, Customary, and reasonable fees are ___
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 ___
Answer: pays more for the service
◉ Healthcare providers who participate in a capitated payment type
of health maintenance organization ___
Answer: get paid a per member per month rate
TEST PAPER 2026 FULL QUESTIONS AND
SOLUTIONS
◉ T/F A recent trend in healthcare is the growth of public
corporations that own multiple hospitals and other healthcare
facilities
Answer: True
◉ Which of the following financial management issues differentiates
healthcare form other businesses
Answer: third party payers
◉ which type of healthcare reimbursement system pays a fixed
amount per patient
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
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
Answer: Health maintenance organizations
◉ Most proprietorship from professional corporations in order to
____
Answer: reduce malpractice liabilities
◉ A small, closely held corporation is owned by ___
Answer: a proprietorship
◉ Federal tax revenues are based on C Corporations ____
Answer: dividends
◉ A not for profit hospital must ___
Answer: adopt a corporate structure
◉ Nursing home costs for elderly americans
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 ___
Answer: the reimbursement based on patient diagnoses
◉ what factors contributed to the rapid cost increases of the
medicare and medicaid programs in the 1960s
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.
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
Answer: true
◉ t/f the federal governments first involvement in healthcare
financing was based on the social security amendments of 1965
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
Answer: true
◉ What type of healthcare insurance coverage is most common in
America
Answer: Private insurance from employer
◉ Most healthcare providers receive most of their payments from ___
Answer: third party payers
◉ Usual, Customary, and reasonable fees are ___
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 ___
Answer: pays more for the service
◉ Healthcare providers who participate in a capitated payment type
of health maintenance organization ___
Answer: get paid a per member per month rate
