HCM Exit Exam | Complete Verified Solution 100%
2023 All Correct Answers
Which of the following is NOT a classical insurance principle?
The possibility of moral hazard must exist
Why do physicians like PPOs?
There is more control over cost
__________ is often identified as the factor most responsible for demand pull
inflation in medical care.
The presence of third party payers
Who provides most long-term care services?
(Informal) Family caregivers or (Formal) CNA's
A cost that has already occurred or irrevocably committed is a:
Sunk Cost
What is an example of variable cost?
Drugs
Explain the sentence: "In the long-term, all costs are variable".
If a company begins to lose revenue, the company will begin to shed facilities and
employees
If the cafeteria has 3,250,000 in overhead costs to be allocated on patient days
and patient days are 18,259,000 then the allocation rate is?
178
Which of the following is an example of direct healthcare cost?
Co-payment paid to a doctor's office
What two characteristics make a good cost drive?
Fairness and cost control
. What are the four steps in the cost allocation process?
1. IDENTIFY COST POOL
2. DETERMINE COST DRIVER
3. CALCULATE ALLOCATION RATE
4. DETERMINE ALLOCATION AMOUNT
A projected cash flow statement uses..
Cash accounting
In accrual accounting, as opposed to cash accounting:
Accounts receivable are recorded
Which of the following is an example of a partnership? Proprietorship?
Easy to start/ Easy to form, subject to few regulations, no income tax
The yield to maturity on a bond is the:
Expected rate on return
The coupon rate on a bond is the interest rate you earn on a bond regardless of
the price you paid:
False
Which financial statement is a snapshot of the organization's financial picture at
one point in time?
Balance Sheet
, Which financial statement presents the activity of the business for the previous
time period?
Statement of cash flows
Which financial statement shows the company's use and acquisition of funds for
a given period of time?
Income statement
Opportunity cost
Return of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's tax
rate is 28%, what is the interest's rate?
5.76%
Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's tax
rate is 28%, what is the interest's rate?
6.48%
What is the primary reason for quality management?
Continuous improvement
What are the common components of quality management?
Measurement, assessment, and improvement
Measure that could be used by a rehabilitation facility to evaluate the
STRUCTURAL aspects
Number of certified nursing assistants on each shift
Percentage of patients who develop deep vein thrombosis following a surgical
procedure
Outcome measure
A PROCESS measure of performance for a hospital emergency department
Percent of time staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand hygiene
requirements" what population would be included in the numerator?
Number of staff observed in compliance with hand hygiene requirements.
A PROCESS measure that could be used by a family practice clinic to evaluate
the quality of care provided to adult patients with asthma.
Percent of patients that receive instructions in the use of their medications
What are two types of variations in quality management?
Common cause variation (predictable) and Special cause variation (Abnormal and not
predictable).
The law of demand
States that if all else is equal (ceteris paribus), as price falls, the quantity demanded
rises, and as price rises, the quantity demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%. Sales
of product B also decrease by 3%. Are products A and B complements or
substitutes?
Complements
What happens to inferior goods as incomes rise and price remains constant?
Demand falls
Market elasticity is estimated to be -0.2. My organization enjoys a 10% share of
the market. What is my firm (organizational) elasticity?
2023 All Correct Answers
Which of the following is NOT a classical insurance principle?
The possibility of moral hazard must exist
Why do physicians like PPOs?
There is more control over cost
__________ is often identified as the factor most responsible for demand pull
inflation in medical care.
The presence of third party payers
Who provides most long-term care services?
(Informal) Family caregivers or (Formal) CNA's
A cost that has already occurred or irrevocably committed is a:
Sunk Cost
What is an example of variable cost?
Drugs
Explain the sentence: "In the long-term, all costs are variable".
If a company begins to lose revenue, the company will begin to shed facilities and
employees
If the cafeteria has 3,250,000 in overhead costs to be allocated on patient days
and patient days are 18,259,000 then the allocation rate is?
178
Which of the following is an example of direct healthcare cost?
Co-payment paid to a doctor's office
What two characteristics make a good cost drive?
Fairness and cost control
. What are the four steps in the cost allocation process?
1. IDENTIFY COST POOL
2. DETERMINE COST DRIVER
3. CALCULATE ALLOCATION RATE
4. DETERMINE ALLOCATION AMOUNT
A projected cash flow statement uses..
Cash accounting
In accrual accounting, as opposed to cash accounting:
Accounts receivable are recorded
Which of the following is an example of a partnership? Proprietorship?
Easy to start/ Easy to form, subject to few regulations, no income tax
The yield to maturity on a bond is the:
Expected rate on return
The coupon rate on a bond is the interest rate you earn on a bond regardless of
the price you paid:
False
Which financial statement is a snapshot of the organization's financial picture at
one point in time?
Balance Sheet
, Which financial statement presents the activity of the business for the previous
time period?
Statement of cash flows
Which financial statement shows the company's use and acquisition of funds for
a given period of time?
Income statement
Opportunity cost
Return of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's tax
rate is 28%, what is the interest's rate?
5.76%
Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's tax
rate is 28%, what is the interest's rate?
6.48%
What is the primary reason for quality management?
Continuous improvement
What are the common components of quality management?
Measurement, assessment, and improvement
Measure that could be used by a rehabilitation facility to evaluate the
STRUCTURAL aspects
Number of certified nursing assistants on each shift
Percentage of patients who develop deep vein thrombosis following a surgical
procedure
Outcome measure
A PROCESS measure of performance for a hospital emergency department
Percent of time staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand hygiene
requirements" what population would be included in the numerator?
Number of staff observed in compliance with hand hygiene requirements.
A PROCESS measure that could be used by a family practice clinic to evaluate
the quality of care provided to adult patients with asthma.
Percent of patients that receive instructions in the use of their medications
What are two types of variations in quality management?
Common cause variation (predictable) and Special cause variation (Abnormal and not
predictable).
The law of demand
States that if all else is equal (ceteris paribus), as price falls, the quantity demanded
rises, and as price rises, the quantity demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%. Sales
of product B also decrease by 3%. Are products A and B complements or
substitutes?
Complements
What happens to inferior goods as incomes rise and price remains constant?
Demand falls
Market elasticity is estimated to be -0.2. My organization enjoys a 10% share of
the market. What is my firm (organizational) elasticity?
