LSUS MHA 706 Midterm
The major provisions of the Patient Protection & Affordable Care Act of 2010 were? -
answer-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
Which of the following statement(s) about the finance department a t large healthcare
organization is/are correct? - answer-The CFO typically reports directly to the chief
executive officer (CEO)
-The CFO is usually assisted by a controller and treasurer
-The department is headed by the chief financial officer (CFO) (sometimes called the
vice president-finance)
In a not-for-profit hospital, the following are example(s) of a stakeholder. - answer-
Vendor
-Employee
-Community
Stockholders have all of the following right(s)... - answer-Claim on residual liquidation
proceeds
-Right of control
-A possible dividend and/or capital gains
Which of the following statements about finance accounting, and financial management
is most correct? - answerFinancial management provides the theory, concepts, and
tools necessary to help managers make better financial decisions.
External reporting - answerWhat is a DISADVANTAGE of being a corporation?
Facilities management - answerWhich of the following are not finance activities?
What is NOT a advantage of proprietorship? - answerUnlimited liability
A not-for-profit corporation can also be called a 529(b). - answerFalse
The primary goal of investor-owned corporations is shareholder wealth maximization. -
answerTrue
Copayments - answerThe fixed amount for a covered service that the insurer mandates
that the patient pay to the provider before the patient receives service from the provider.
, Coinsurance - answerRequires an individual to pay for a certain percentage of the
eligible medical expenses.
Adverse selection - answerIndividuals at greater risk of needing health care are more
likely to purchase insurance.
Deductibles - answerThe amount that must be paid out of pocket by the policyholder
before an insurance provider will pay any expenses.
Moral hazard - answerThe risk of overuse of health services because the insured does
not bear the full cost of the consequences.
Medicare Part B - answerCovers physician services, ambulatory surgical services,
outpatient services, and certain other miscellaneous services.
Medicare Part A - answerCovers hospital and some skilled nursing coverage
Medicare Part D - answerCovers prescription drugs
Medicare Part C - answerIs often called Medicare Advantage
Charge-Based - answerPayers pay based off of pre-determined "chargemaster." These
payments are usually discounted up to 20% to 50%.
Cost-Based - answerProviders were reimbursed for "actual" costs.
Capitation - answerPayment is (usually) made on a per member per month basis
Prospective Payment - answerAre use to pay for either a predefined procedure,
diagnosis, per diem or bundled service
Has potential to result in 'gamesmanship that can inflate healthcare charges -
answerCharge-Based
May result in up-coding - answerProspective Payment
No incentive to control costs - answerCost-Based
Providers may have an incentive to reduce utilization - answerCapitation
Under the broad category of fee-for-service (FFS), what are the three main types of fee-
for-service methodologies that were discussed in class? - answer-Cost-Based
-Charge-Based
-Prospective Payments
The major provisions of the Patient Protection & Affordable Care Act of 2010 were? -
answer-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
Which of the following statement(s) about the finance department a t large healthcare
organization is/are correct? - answer-The CFO typically reports directly to the chief
executive officer (CEO)
-The CFO is usually assisted by a controller and treasurer
-The department is headed by the chief financial officer (CFO) (sometimes called the
vice president-finance)
In a not-for-profit hospital, the following are example(s) of a stakeholder. - answer-
Vendor
-Employee
-Community
Stockholders have all of the following right(s)... - answer-Claim on residual liquidation
proceeds
-Right of control
-A possible dividend and/or capital gains
Which of the following statements about finance accounting, and financial management
is most correct? - answerFinancial management provides the theory, concepts, and
tools necessary to help managers make better financial decisions.
External reporting - answerWhat is a DISADVANTAGE of being a corporation?
Facilities management - answerWhich of the following are not finance activities?
What is NOT a advantage of proprietorship? - answerUnlimited liability
A not-for-profit corporation can also be called a 529(b). - answerFalse
The primary goal of investor-owned corporations is shareholder wealth maximization. -
answerTrue
Copayments - answerThe fixed amount for a covered service that the insurer mandates
that the patient pay to the provider before the patient receives service from the provider.
, Coinsurance - answerRequires an individual to pay for a certain percentage of the
eligible medical expenses.
Adverse selection - answerIndividuals at greater risk of needing health care are more
likely to purchase insurance.
Deductibles - answerThe amount that must be paid out of pocket by the policyholder
before an insurance provider will pay any expenses.
Moral hazard - answerThe risk of overuse of health services because the insured does
not bear the full cost of the consequences.
Medicare Part B - answerCovers physician services, ambulatory surgical services,
outpatient services, and certain other miscellaneous services.
Medicare Part A - answerCovers hospital and some skilled nursing coverage
Medicare Part D - answerCovers prescription drugs
Medicare Part C - answerIs often called Medicare Advantage
Charge-Based - answerPayers pay based off of pre-determined "chargemaster." These
payments are usually discounted up to 20% to 50%.
Cost-Based - answerProviders were reimbursed for "actual" costs.
Capitation - answerPayment is (usually) made on a per member per month basis
Prospective Payment - answerAre use to pay for either a predefined procedure,
diagnosis, per diem or bundled service
Has potential to result in 'gamesmanship that can inflate healthcare charges -
answerCharge-Based
May result in up-coding - answerProspective Payment
No incentive to control costs - answerCost-Based
Providers may have an incentive to reduce utilization - answerCapitation
Under the broad category of fee-for-service (FFS), what are the three main types of fee-
for-service methodologies that were discussed in class? - answer-Cost-Based
-Charge-Based
-Prospective Payments
