HSMT 2103 TEST 3 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026

HSMT 2103 TEST 3 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026 Healthcare Financial Management - Answers The process of: Providing oversight of the health organization's day-to-day financial operations. Planning the organization's long range financial direction ( both internal and external ). Increasing the organization's revenues and decreasing its costs. Major Objectives of Financial Management - Answers Generate a reasonable net income Set prices for services Facilitate relationships and manage contracts with 3rd party payers Prepare and analyze cost information Prepare, audit and disseminate the organizations financial reports Invest in long-capital assets Finance - Answers Borrowing and investing funds Analyzing accounting information to evaluate past decisions and make sound decisions that will affect the future of the organization For-Profit (Investor Owned) - Answers Serve private interests and pay taxes Goal is to maximize profits for the owner Must also serve the community Not-For Profit - Answers Serve public interest and are not tax exempt Goal is to provide community benefit and optimal patient care ( including the indigent) MUST ALSO TURN A PROFIT FOR SUSTAINABILITY Not - For Profit (2 types) - Answers Business - owned (private) And government - owned Retrospective Reimbursement - Answers Determined AFTER service delivery Charges Charges minus a discount Cost Plus BASED ON QUALITY OR PATIENT SATISFACTION Prospective Reimbursement - Answers Determined BEFORE service delivery Per Diem Per Diagnosis Capitation BUNDLED PAYMENTS Agreement under which a healthcare provider is paid a fixed amount per enrollee per month by a health plan in exchange for a contractually specified set of medical services in the future. Medical Home - Answers This model focuses on connecting patients to primary care, and developing a system that encourages and assures quality of care. Also referred to as the patient-centered medical home (PCMH) International Classification of Disease (ICD) - Answers RBRVS Inpatient diagnosis and procedure codes ICD - 10 is taxonomy Common Procedural Technology (CPT) - Answers Physician procedure and visit codes CPT is taxonomy for billing Also used ICD - 10 taxonomy for diagnosis Cost Allocation - Answers Involved the determination of the total cost of producing a health care service through assigning cost to revenue-producing departments. Purpose is to: Ensure that patients are (theoretically) paying only for services and products received. Separate cost at the unit-of-service level to allow managers to measure changes in intensity and case mix. Identify cost that can be converted from fixed to variable and,