CHFP SECTION I EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
CHFP Module I
Big Picture of Healthcare Finance
Hospital-based physician
Offers most of their services within a hospital; does not equal a hospitalist
Which providers can patients receive bills from during episodes of care?
Patients can receive bills from any provider who provided services during an episode of
care
Biggest differences between healthcare finance and other areas of finance
In healthcare, there is a third party that exists between consumer and provider.
Additionally, payment is almost never done in full when the actual service is provided.
Breakdown of the health insurance market
50% commercial, 20% Medicaid, 14% Medicare, 9% uninsured, 6% ACA marketplaces
Medicare Part A: patient payments
Patient pays a deductible for each hospital, usually equal to the cost of one night of
hospital stay.
Days 2-60 are fully covered by Medicare, 60-180 the patient begins paying coinsurance,
and after day 180 that year is not covered.
,Medicare Part B: patient payments
Patient voluntarily enrolls and pays a small deductible and 20% coinsurance on services
provided.
Do emergency services apply to the key principles of preferred provider networks
or health maintenance organizations?
No. Providers are required to stabilize the patient and then present options for transfer
under EMTALA.
Will the government pay for hospital acquired conditions or hospital falls? Why?
No - government will not reimburse for any condition not present when patient was
admitted.
What were the key provisions of Affordable Care Act?
Health insurance marketplace reform, health service delivery transformation, and
Medicaid expansion
Basic equation of value
Quality / cost
CHFP Module II
Financial Accounting
What is the most basic accounting principle as applicable to healthcare?
Double entry system - each transaction generates two entries that must balance
Elements of a balance sheet
Assets, liabilities, and net assets (not-for-profit) or equity (for profit)
Basic accounting identity
Net assets = assets - liabilities, or assets = net assets + liabilities
, Matching principle
Revenues should be recorded in the same time period as the expenses that were
incurred to generate that revenue
What is the basis of accrual based accounting?
Matching principle
Accrual based accounting
method of accounting that meets the matching principle by recognizing transactions
when expenses were incurred that is generating the revenue
What does accrual based accounting lead to?
Accounts payable and accounts receivable
What is the alternative to accrual based accounting and which is accepted by
governing bodies?
Cash based accounting. Only accrual based accounting is recognized by Medicare and
accounting governing bodies
Key financial statements
Balance sheet, income statement, statement of cash flows
Balance sheet
Describes an organization's assets, liabilities, and net assets at one specific point in
time
Components of the balance sheet
Current assets, long assets, current liabilities
Current assets
Convertible to cash within one year: cash, short-term investments, accounts receivable
COMPLETE SOLUTIONS VERIFIED
CHFP Module I
Big Picture of Healthcare Finance
Hospital-based physician
Offers most of their services within a hospital; does not equal a hospitalist
Which providers can patients receive bills from during episodes of care?
Patients can receive bills from any provider who provided services during an episode of
care
Biggest differences between healthcare finance and other areas of finance
In healthcare, there is a third party that exists between consumer and provider.
Additionally, payment is almost never done in full when the actual service is provided.
Breakdown of the health insurance market
50% commercial, 20% Medicaid, 14% Medicare, 9% uninsured, 6% ACA marketplaces
Medicare Part A: patient payments
Patient pays a deductible for each hospital, usually equal to the cost of one night of
hospital stay.
Days 2-60 are fully covered by Medicare, 60-180 the patient begins paying coinsurance,
and after day 180 that year is not covered.
,Medicare Part B: patient payments
Patient voluntarily enrolls and pays a small deductible and 20% coinsurance on services
provided.
Do emergency services apply to the key principles of preferred provider networks
or health maintenance organizations?
No. Providers are required to stabilize the patient and then present options for transfer
under EMTALA.
Will the government pay for hospital acquired conditions or hospital falls? Why?
No - government will not reimburse for any condition not present when patient was
admitted.
What were the key provisions of Affordable Care Act?
Health insurance marketplace reform, health service delivery transformation, and
Medicaid expansion
Basic equation of value
Quality / cost
CHFP Module II
Financial Accounting
What is the most basic accounting principle as applicable to healthcare?
Double entry system - each transaction generates two entries that must balance
Elements of a balance sheet
Assets, liabilities, and net assets (not-for-profit) or equity (for profit)
Basic accounting identity
Net assets = assets - liabilities, or assets = net assets + liabilities
, Matching principle
Revenues should be recorded in the same time period as the expenses that were
incurred to generate that revenue
What is the basis of accrual based accounting?
Matching principle
Accrual based accounting
method of accounting that meets the matching principle by recognizing transactions
when expenses were incurred that is generating the revenue
What does accrual based accounting lead to?
Accounts payable and accounts receivable
What is the alternative to accrual based accounting and which is accepted by
governing bodies?
Cash based accounting. Only accrual based accounting is recognized by Medicare and
accounting governing bodies
Key financial statements
Balance sheet, income statement, statement of cash flows
Balance sheet
Describes an organization's assets, liabilities, and net assets at one specific point in
time
Components of the balance sheet
Current assets, long assets, current liabilities
Current assets
Convertible to cash within one year: cash, short-term investments, accounts receivable
