State of Michigan Nursing Home Administrator
Exam[ACTUAL EXAM] LATEST VERSION [QUESTIONS AND
ANSWERS] WITH PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025
GRADED A
PATIENT TRUST FUNDS - CORRECT ANSWER
1) Policy: - CORRECT ANSWER Must 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: - CORRECT ANSWER This 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 - CORRECT ANSWER Quarterly 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 - CORRECT ANSWER
4) Financial records: - CORRECT ANSWER not less than two (2) hours during
normal business hours.
5) Petty Cash: - CORRECT ANSWER during all normal business hours.
Accounts - CORRECT ANSWER
6) Funds: - CORRECT ANSWER Cannot be CO-MINGLED with any other facility
funds (Can with Residents')
7) Interest Bearing Accounts: - CORRECT ANSWER May 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: - CORRECT ANSWER
Facility 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 - CORRECT ANSWER Written receipt from new
owner acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - CORRECT ANSWER Not 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 - CORRECT ANSWER
11) Department of Community Health (MDCH or DCH) - CORRECT ANSWER DCH
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) - CORRECT ANSWER This 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 - CORRECT ANSWER has 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. - CORRECT ANSWER DCH contracts with Office of Fire Safety to conduct
the Life Safety Code portion of the survey.
15) Michigan Department of Human Services (DHS): - CORRECT ANSWER DCH
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 - CORRECT ANSWER Has this bureau
under its department for oversight and licensing of Nursing Home Administrator (NHA)
17) Michigan Department Community Health - CORRECT ANSWER This
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) - CORRECT ANSWER itself handles two
primary aspects of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - CORRECT ANSWER
19) Providers must adhere to - CORRECT ANSWER ALL POLICIES TO
PARTICIPATE
20) Facility must be licensed - CORRECT ANSWER MANDATORY
21) Certification of Facility - CORRECT ANSWER VOLUNTARY
22) MDCH uses the - CORRECT ANSWER Bureau of Health Systems to perform
surveys for this certification.
23) Delivery of Services (Fairness/Non-Discrimination Doctrine) - CORRECT ANSWER
Services 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: - CORRECT ANSWER Facility must render services in accordance
with all federal and state statutory and regulatory requirements.
25) Medicaid is Payor of : - CORRECT ANSWER LAST RESORT
26) Medicaid Payment is: - CORRECT ANSWER PAYMENT 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 - CORRECT ANSWER The 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 - CORRECT ANSWER
28) Retention: - CORRECT ANSWER Facility services - 6 years
Orders of Contracted Services (Not records) - 6 years
, Attending Physician - CORRECT ANSWER
29) Attending Physicians' responsibility - CORRECT ANSWER Federal and State
regulations require the attending physician (MD or DO licensed in Michigan) to provide
specific services to recipients.
30) Physician Compliance - CORRECT ANSWER It is the facilities responsibility
31) Physician Visits - CORRECT ANSWER Every 30 days for first 90 days, then
every 60 days thereafter (more frequently if medically necessary)
32) Physicians' must have - CORRECT ANSWER Written Plan of Care, signed
Annual Requirements for Inspection of Care - CORRECT ANSWER
33) Under State Plan, DCH utilizes its - CORRECT ANSWER Bureau of Health
Services to complete this during the annual survey.
Process assures that residents are receiving the appropriate care at the
APPROPRIATE level of care.
Grounds for Termination of Enrollment or Refusal to Renew - CORRECT ANSWER
34) Facility actions that: - CORRECT ANSWER Threaten the health, safety, or
welfare of Medicaid recipients (determined through the survey process)
35) Facility actions that: - CORRECT ANSWER Threaten the fiscal integrity of the
Medicaid program.
Abuse of Resident Trust Fund
36) Enforcement actions: - CORRECT ANSWER Failure to meet the federal
conditions of enrollment or participation
Failure to meet the Certification Standards
Termination or suspension of Medicare automatically does the same to Medicaid
37) Patient Pay Amount - CORRECT ANSWER recipient must pay to the nursing
home each month the amount of income determined to be in excess.
Facility is responsible for collecting
May NOT bill Medicaid for uncollected portion.
Exam[ACTUAL EXAM] LATEST VERSION [QUESTIONS AND
ANSWERS] WITH PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025
GRADED A
PATIENT TRUST FUNDS - CORRECT ANSWER
1) Policy: - CORRECT ANSWER Must 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: - CORRECT ANSWER This 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 - CORRECT ANSWER Quarterly 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 - CORRECT ANSWER
4) Financial records: - CORRECT ANSWER not less than two (2) hours during
normal business hours.
5) Petty Cash: - CORRECT ANSWER during all normal business hours.
Accounts - CORRECT ANSWER
6) Funds: - CORRECT ANSWER Cannot be CO-MINGLED with any other facility
funds (Can with Residents')
7) Interest Bearing Accounts: - CORRECT ANSWER May 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: - CORRECT ANSWER
Facility 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 - CORRECT ANSWER Written receipt from new
owner acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - CORRECT ANSWER Not 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 - CORRECT ANSWER
11) Department of Community Health (MDCH or DCH) - CORRECT ANSWER DCH
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) - CORRECT ANSWER This 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 - CORRECT ANSWER has 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. - CORRECT ANSWER DCH contracts with Office of Fire Safety to conduct
the Life Safety Code portion of the survey.
15) Michigan Department of Human Services (DHS): - CORRECT ANSWER DCH
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 - CORRECT ANSWER Has this bureau
under its department for oversight and licensing of Nursing Home Administrator (NHA)
17) Michigan Department Community Health - CORRECT ANSWER This
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) - CORRECT ANSWER itself handles two
primary aspects of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - CORRECT ANSWER
19) Providers must adhere to - CORRECT ANSWER ALL POLICIES TO
PARTICIPATE
20) Facility must be licensed - CORRECT ANSWER MANDATORY
21) Certification of Facility - CORRECT ANSWER VOLUNTARY
22) MDCH uses the - CORRECT ANSWER Bureau of Health Systems to perform
surveys for this certification.
23) Delivery of Services (Fairness/Non-Discrimination Doctrine) - CORRECT ANSWER
Services 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: - CORRECT ANSWER Facility must render services in accordance
with all federal and state statutory and regulatory requirements.
25) Medicaid is Payor of : - CORRECT ANSWER LAST RESORT
26) Medicaid Payment is: - CORRECT ANSWER PAYMENT 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 - CORRECT ANSWER The 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 - CORRECT ANSWER
28) Retention: - CORRECT ANSWER Facility services - 6 years
Orders of Contracted Services (Not records) - 6 years
, Attending Physician - CORRECT ANSWER
29) Attending Physicians' responsibility - CORRECT ANSWER Federal and State
regulations require the attending physician (MD or DO licensed in Michigan) to provide
specific services to recipients.
30) Physician Compliance - CORRECT ANSWER It is the facilities responsibility
31) Physician Visits - CORRECT ANSWER Every 30 days for first 90 days, then
every 60 days thereafter (more frequently if medically necessary)
32) Physicians' must have - CORRECT ANSWER Written Plan of Care, signed
Annual Requirements for Inspection of Care - CORRECT ANSWER
33) Under State Plan, DCH utilizes its - CORRECT ANSWER Bureau of Health
Services to complete this during the annual survey.
Process assures that residents are receiving the appropriate care at the
APPROPRIATE level of care.
Grounds for Termination of Enrollment or Refusal to Renew - CORRECT ANSWER
34) Facility actions that: - CORRECT ANSWER Threaten the health, safety, or
welfare of Medicaid recipients (determined through the survey process)
35) Facility actions that: - CORRECT ANSWER Threaten the fiscal integrity of the
Medicaid program.
Abuse of Resident Trust Fund
36) Enforcement actions: - CORRECT ANSWER Failure to meet the federal
conditions of enrollment or participation
Failure to meet the Certification Standards
Termination or suspension of Medicare automatically does the same to Medicaid
37) Patient Pay Amount - CORRECT ANSWER recipient must pay to the nursing
home each month the amount of income determined to be in excess.
Facility is responsible for collecting
May NOT bill Medicaid for uncollected portion.
