STATE OF MICHIGAN NURSING HOME
ADMINISTRATOR EXAM QUESTIONS
AND ANSWERS LATEST UPDATED
2025
PATIENT TRUST FUNDS - ANSWER
1) Policy: - ANSWERMust have a policy.
May state that the facility will not handle monies in excess of $5,000.00.
The facility may charge a reasonable fee not to exceed the ACTUAL COST of providing
service.
2) Required Printed Information: - ANSWERThis must be given resident upon
admission.
A statement that the facility will handle personnal funds if no other person is available.
Periodic statement of accounts (Minimum: Quarterly)
3) Procedure: American Institute of CPA - ANSWERQuarterly statements including all
activity, (A-H) in easily readable form.
Written account of all personal funds held in trust must be sent to the executor,
administrator, rep payee or next of kin within 10 DAYS OF THE DEATH OF A
PATIENT.
Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
Access to Funds - ANSWER
4) Financial records: - ANSWERnot less than two (2) hours during normal business
hours.
5) Petty Cash: - ANSWERduring all normal business hours.
Accounts - ANSWER
6) Funds: - ANSWERCannot be CO-MINGLED with any other facility funds (Can with
Residents')
7) Interest Bearing Accounts: - ANSWERMay keep up to $200.00 in a non-interest
bearing account of petty cash fund.
,Money in excess of $200.00 shall be deposited in an interest bearing account within 15
days of the date the $200.00 minimum is exceeded.
8) Designation For Patient Unable To Handle Own Funds: - ANSWERFacility notifies
the Family Independence Agency, Adult Protective Services in writing when a mentally
incompetent patient has no one to act on his behalf.
9) Sale Or Transfer of Ownership - ANSWERWritten receipt from new owner
acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - ANSWERNot LESS than $2,000.00 or 125% of the previous year's
patient trust funds average balance held, whichever is greater.
Michigan State Plan For Long Term Care - ANSWER
11) Department of Community Health (MDCH or DCH) - ANSWERDCH is responsible
for the Medicaid Program under contract to the federal agency named Centers for
Medicare and Medicaid Services (CMS).
MDCH also contracts with other departments and agencies to provide specific services.
12) Medical Services Administration (MSA) - ANSWERThis agency, under authority of
MDCH writes policy, acts as fiscal intermediary, designs categorical reimbursement
programs, audits and authorizes facility-specific reimbursement rates.
13) Bureau of Health Systems: DCH - ANSWERhas this bureau under its department
for oversight of the quality of care within nursing homes through the certification
process.
The actual certifying agency is CMS. This is accomplished through the surveys and
inspections.
14) Department of Community Health, Bureau of Construction Codes, Office of Fire
Safety. - ANSWERDCH contracts with Office of Fire Safety to conduct the Life Safety
Code portion of the survey.
15) Michigan Department of Human Services (DHS): - ANSWERDCH contacts with
DHS who determine an individuals Medicaid eligibility and "co-payment" responsibility.
DHS utilized the local offices for direct contract with applicants.
16) Bureau of Health Professions: DCH - ANSWERHas this bureau under its
department for oversight and licensing of Nursing Home Administrator (NHA)
, 17) Michigan Department Community Health - ANSWERThis Department contracts
directly with the federal agency CMS and as such is designated responsibility for Title
XIX of the Social Security Act.
Currently this program is 56% federally funded and 44% state funded.
18) Medical Service Administration (MSA) - ANSWERitself handles two primary aspects
of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - ANSWER
19) Providers must adhere to - ANSWERALL POLICIES TO PARTICIPATE
20) Facility must be licensed - ANSWERMANDATORY
21) Certification of Facility - ANSWERVOLUNTARY
22) MDCH uses the - ANSWERBureau of Health Systems to perform surveys for this
certification.
23) Delivery of Services (Fairness/Non-Discrimination Doctrine) - ANSWERServices
Reimbursed by MSA are listed in the Medicaid manual.
Facilities MUST render covered services to ALL ELIGIBLE recipients in the same
scope, quality, and manner as provided to the general public.
24) Compliance: - ANSWERFacility must render services in accordance with all federal
and state statutory and regulatory requirements.
25) Medicaid is Payor of : - ANSWERLAST RESORT
26) Medicaid Payment is: - ANSWERPAYMENT IN FULL (critical issue)
For covered services the facility must except the Medicaide reimbursement rate as
payment in full for each and every Medicaid recipient.
The facility may not seek additional payment from residents or families for covered
services.
27) For NON-COVERED SERVICES - ANSWERThe facility may seek payment from
the recipient IF the resident chooses the service AND is informed of the charge PRIOR
to receiving the service.
Record Keeping - ANSWER
28) Retention: - ANSWERFacility services - 6 years
ADMINISTRATOR EXAM QUESTIONS
AND ANSWERS LATEST UPDATED
2025
PATIENT TRUST FUNDS - ANSWER
1) Policy: - ANSWERMust have a policy.
May state that the facility will not handle monies in excess of $5,000.00.
The facility may charge a reasonable fee not to exceed the ACTUAL COST of providing
service.
2) Required Printed Information: - ANSWERThis must be given resident upon
admission.
A statement that the facility will handle personnal funds if no other person is available.
Periodic statement of accounts (Minimum: Quarterly)
3) Procedure: American Institute of CPA - ANSWERQuarterly statements including all
activity, (A-H) in easily readable form.
Written account of all personal funds held in trust must be sent to the executor,
administrator, rep payee or next of kin within 10 DAYS OF THE DEATH OF A
PATIENT.
Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
Access to Funds - ANSWER
4) Financial records: - ANSWERnot less than two (2) hours during normal business
hours.
5) Petty Cash: - ANSWERduring all normal business hours.
Accounts - ANSWER
6) Funds: - ANSWERCannot be CO-MINGLED with any other facility funds (Can with
Residents')
7) Interest Bearing Accounts: - ANSWERMay keep up to $200.00 in a non-interest
bearing account of petty cash fund.
,Money in excess of $200.00 shall be deposited in an interest bearing account within 15
days of the date the $200.00 minimum is exceeded.
8) Designation For Patient Unable To Handle Own Funds: - ANSWERFacility notifies
the Family Independence Agency, Adult Protective Services in writing when a mentally
incompetent patient has no one to act on his behalf.
9) Sale Or Transfer of Ownership - ANSWERWritten receipt from new owner
acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - ANSWERNot LESS than $2,000.00 or 125% of the previous year's
patient trust funds average balance held, whichever is greater.
Michigan State Plan For Long Term Care - ANSWER
11) Department of Community Health (MDCH or DCH) - ANSWERDCH is responsible
for the Medicaid Program under contract to the federal agency named Centers for
Medicare and Medicaid Services (CMS).
MDCH also contracts with other departments and agencies to provide specific services.
12) Medical Services Administration (MSA) - ANSWERThis agency, under authority of
MDCH writes policy, acts as fiscal intermediary, designs categorical reimbursement
programs, audits and authorizes facility-specific reimbursement rates.
13) Bureau of Health Systems: DCH - ANSWERhas this bureau under its department
for oversight of the quality of care within nursing homes through the certification
process.
The actual certifying agency is CMS. This is accomplished through the surveys and
inspections.
14) Department of Community Health, Bureau of Construction Codes, Office of Fire
Safety. - ANSWERDCH contracts with Office of Fire Safety to conduct the Life Safety
Code portion of the survey.
15) Michigan Department of Human Services (DHS): - ANSWERDCH contacts with
DHS who determine an individuals Medicaid eligibility and "co-payment" responsibility.
DHS utilized the local offices for direct contract with applicants.
16) Bureau of Health Professions: DCH - ANSWERHas this bureau under its
department for oversight and licensing of Nursing Home Administrator (NHA)
, 17) Michigan Department Community Health - ANSWERThis Department contracts
directly with the federal agency CMS and as such is designated responsibility for Title
XIX of the Social Security Act.
Currently this program is 56% federally funded and 44% state funded.
18) Medical Service Administration (MSA) - ANSWERitself handles two primary aspects
of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - ANSWER
19) Providers must adhere to - ANSWERALL POLICIES TO PARTICIPATE
20) Facility must be licensed - ANSWERMANDATORY
21) Certification of Facility - ANSWERVOLUNTARY
22) MDCH uses the - ANSWERBureau of Health Systems to perform surveys for this
certification.
23) Delivery of Services (Fairness/Non-Discrimination Doctrine) - ANSWERServices
Reimbursed by MSA are listed in the Medicaid manual.
Facilities MUST render covered services to ALL ELIGIBLE recipients in the same
scope, quality, and manner as provided to the general public.
24) Compliance: - ANSWERFacility must render services in accordance with all federal
and state statutory and regulatory requirements.
25) Medicaid is Payor of : - ANSWERLAST RESORT
26) Medicaid Payment is: - ANSWERPAYMENT IN FULL (critical issue)
For covered services the facility must except the Medicaide reimbursement rate as
payment in full for each and every Medicaid recipient.
The facility may not seek additional payment from residents or families for covered
services.
27) For NON-COVERED SERVICES - ANSWERThe facility may seek payment from
the recipient IF the resident chooses the service AND is informed of the charge PRIOR
to receiving the service.
Record Keeping - ANSWER
28) Retention: - ANSWERFacility services - 6 years
