DPT772: HEALTHCARE REFORM EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
For-Profit Hospital
A hospital that is organized to create a profit for its owners; also called an investor-
owned hospital. For-profit hospitals must pay state and federal taxes and can distribute
profits to their investors and raise money from investors and stock offerings.
- does not have tax breaks and can do whatever they want with the money
Not-for-Profit Hospital
A hospital that is legally organized as a nonprofit corporation and must invest all of its
profits back into the organization. Because of the community benefits they provide, not-
for-profit hospitals are exempt from paying federal and state taxes.
- has tax breaks and government-imposed restrictions
Health Policy
- set at every level of government
- can encompass everything from Medicare reimbursement rates to vaccine campaigns
to NIH research funding to drug regulations to smoking bans
- seeks to design the financing and delivery of health care
- created for a myriad of issues that affect public health
Department of Health and Human Services (HHS)
, - federal agency
- deals with almost all aspects of health in the US
- budget for 2014 was $950 billion (about $300 billion more than the Department of
Defense), which accounts for about 1/4 of the total federal budget
Centers for Medicare and Medicaid Services (CMS)
- division of HHS
- oversees Medicare, Medicaid, and State Children's Health Insurance Program (CHIP)
- administers the Health Insurance Portability and Accountability Act (HIPAA)
Food and Drug Administration (FDA)
- division of HHS
- oversees the safety of food products, pharmaceuticals, biologics, medical devices, and
veterinary products
National Institutes of Health (NIH)
- main government institution responsible for biomedical and health research (combined
with others -- 2% of health care spending)
Centers for Disease Control and Prevention (CDC)
- primary government agency for public health and epidemiology
Agency for Healthcare Research and Quality (AHRQ)
- primary government agency for health systems and outcomes research
- studies focus on cost
Institute of Medicine (IOM)
A branch of the National Academy of Sciences whose goal is to advance and distribute
scientific knowledge with the mission of improving human health (IOM 2013)
ANSWERS WITH COMPLETE SOLUTIONS
For-Profit Hospital
A hospital that is organized to create a profit for its owners; also called an investor-
owned hospital. For-profit hospitals must pay state and federal taxes and can distribute
profits to their investors and raise money from investors and stock offerings.
- does not have tax breaks and can do whatever they want with the money
Not-for-Profit Hospital
A hospital that is legally organized as a nonprofit corporation and must invest all of its
profits back into the organization. Because of the community benefits they provide, not-
for-profit hospitals are exempt from paying federal and state taxes.
- has tax breaks and government-imposed restrictions
Health Policy
- set at every level of government
- can encompass everything from Medicare reimbursement rates to vaccine campaigns
to NIH research funding to drug regulations to smoking bans
- seeks to design the financing and delivery of health care
- created for a myriad of issues that affect public health
Department of Health and Human Services (HHS)
, - federal agency
- deals with almost all aspects of health in the US
- budget for 2014 was $950 billion (about $300 billion more than the Department of
Defense), which accounts for about 1/4 of the total federal budget
Centers for Medicare and Medicaid Services (CMS)
- division of HHS
- oversees Medicare, Medicaid, and State Children's Health Insurance Program (CHIP)
- administers the Health Insurance Portability and Accountability Act (HIPAA)
Food and Drug Administration (FDA)
- division of HHS
- oversees the safety of food products, pharmaceuticals, biologics, medical devices, and
veterinary products
National Institutes of Health (NIH)
- main government institution responsible for biomedical and health research (combined
with others -- 2% of health care spending)
Centers for Disease Control and Prevention (CDC)
- primary government agency for public health and epidemiology
Agency for Healthcare Research and Quality (AHRQ)
- primary government agency for health systems and outcomes research
- studies focus on cost
Institute of Medicine (IOM)
A branch of the National Academy of Sciences whose goal is to advance and distribute
scientific knowledge with the mission of improving human health (IOM 2013)
