HEALTH SERVICES FINANCE REVIEW
MODULE QUESTION BANK 2026 WITH
DETAILED EXPLANATIONS
◉ Has the role increased or decreased in importance over the years?
Answer: It has increased
◉ hospitals
Answer: provide diagnostic and therapeutic services to individuals
who require more than several hours of care, although most
hospitals are actively engaged in ambulatory services as well
- open 24 hours
- of beds is a concern
- Must be licensed by the state and comply with regulations
- Aaccredited by The Joint Commission
- Provides eligibility for participation in the Medicare and Medicaid
programs
- Environmental and operational changes create challenges for
hospital managers
- Hospitals are considered as general acute care facilities or specialty
facilities
- The number of specialty hospitals has increased
, - They require lower costs because they don't require the overhead
associated with providing many services
- Hospitals vary in size, general acute care hospitals tend to be larger
- Optimal size is 400-500 beds
- Labor intensive b/c they provide continuous nursing supervision
to patients
-Physicians play a role in determining a hospital's costs and
revenues and hence its financial condition
◉ Small hospitals
Answer: Don't benefit from economies of scale
2. Located in rural areas
3. Experience fin. Difficulties because of less flexibility to lower costs
to tightening reimbursement rates
◉ Big Hospitals
Answer: Too big to manage efficiently (diseconomies of scale)
2. Academic health centers/teaching hospitals
3. Offer a wide range of services
◉ Government hospitals
Answer: Make up 25% of all hospitals
2. Broken down into federal and public (nonfederal) entitities
MODULE QUESTION BANK 2026 WITH
DETAILED EXPLANATIONS
◉ Has the role increased or decreased in importance over the years?
Answer: It has increased
◉ hospitals
Answer: provide diagnostic and therapeutic services to individuals
who require more than several hours of care, although most
hospitals are actively engaged in ambulatory services as well
- open 24 hours
- of beds is a concern
- Must be licensed by the state and comply with regulations
- Aaccredited by The Joint Commission
- Provides eligibility for participation in the Medicare and Medicaid
programs
- Environmental and operational changes create challenges for
hospital managers
- Hospitals are considered as general acute care facilities or specialty
facilities
- The number of specialty hospitals has increased
, - They require lower costs because they don't require the overhead
associated with providing many services
- Hospitals vary in size, general acute care hospitals tend to be larger
- Optimal size is 400-500 beds
- Labor intensive b/c they provide continuous nursing supervision
to patients
-Physicians play a role in determining a hospital's costs and
revenues and hence its financial condition
◉ Small hospitals
Answer: Don't benefit from economies of scale
2. Located in rural areas
3. Experience fin. Difficulties because of less flexibility to lower costs
to tightening reimbursement rates
◉ Big Hospitals
Answer: Too big to manage efficiently (diseconomies of scale)
2. Academic health centers/teaching hospitals
3. Offer a wide range of services
◉ Government hospitals
Answer: Make up 25% of all hospitals
2. Broken down into federal and public (nonfederal) entitities
