HSA 400 Midterm Chapters 1-11 Exam Questions with Correct Answers Latest Update
2025/2026
Describe the major aspects of Medicare benefits. - Answers -Part A (hospital insurance).
-Part B (medical insurance).
-Part C (medicare advantage plans).
-Part D (prescription drugs)
Describe how Medicare reimburses the major types of providers & discuss the implications of
these methods for an organization's resource management. - Answers -Bundled Services
Arrangement.
-Prospective Payment System (PPS).
Describe the balanced scorecard & dashboard reporting. - Answers -Tools that help in the
collection & communication of financial & operating information.
-Neatly formatted reports that display the organization's performance for "key indicators".
Describe the four key elements of dashboard reporting. - Answers -1) What is most important to
the firm's success?
-2)What are the critical drivers that influence performance attainment?
-3) What are the most relevant measures that reflect critical driver relationships?
-4) What relevant bench-marking data are available to assess performances?
Describe how legal & regulatory issues shape & define good financial management of an HCO. -
Answers -Enactment of the ACA represented landmark change in the federal law that shapes
virtually every financial aspect of the nation's healthcare delivery system.
-Were designed to address longstanding problems with availability & affordability of health
insurance.
Appreciate the consequences of failing to manage the finances of an HCO with regard for the
complex & ever changing array of laws & regulations that are unique to this industry. - Answers -
Develop a compliance plan that is well-written & helps an organization's employees understand
how laws & regulations relate to their jobs & enables management to know that these legal
requirements are being followed.
Identify the major components of corporate compliance plan, including the establishment of
internal controls to the finances of an organization. - Answers -Control environment.
-Risk assessment.
, -Control activities.
-Information & communication.
-Monitoring.
Explain what is most important in long-term financial success. - Answers -Sustainable growth.
-Over the long term, no business can grow assets faster than equity.
Describe the Control Environment of a corporate compliance plan. - Answers -Sets the tone of
an organization influencing the control consciousness of its people.
-The foundation for all other components of internal control, providing discipline and structure.
Describe the Risk Assessment portion of the corporate compliance plan. - Answers -The entity's
identification & analysis of relevant risks to achievement of its objectives, forming a basis for
determining how the risks should be managed.
Describe the Control Activities portion of the corporate compliance plan. - Answers -The policies
& procedures that help ensure management directives are carried out.
Explain what a healthcare firm's primary financial objective should be. - Answers -Equity Growth.
(Formula on flashcard)
Describe the information & communication portion of the corporate compliance plan. - Answers
-The identification, capture & exchange of information in a form & time frame that enables
people to carry out their responsibilities.
Describe methods that are used to assess price defensibility prices in a real setting. - Answers -
Two ways of assessing:
-1) Return-on-Investment (ROI)
-2) Comparison with other healthcare firms.
Describe the Monitoring portion of the corporate compliance plan. - Answers -a process that
accesses the quality of internal control performance over time.
List some of the important considerations when negotiating a managed-care contract. -
Answers -Critical to continued financial solvency.
-Contract language.
-Payment rates.
Describe the critical drivers of financial performance. - Answers -If an organization needs to be
2025/2026
Describe the major aspects of Medicare benefits. - Answers -Part A (hospital insurance).
-Part B (medical insurance).
-Part C (medicare advantage plans).
-Part D (prescription drugs)
Describe how Medicare reimburses the major types of providers & discuss the implications of
these methods for an organization's resource management. - Answers -Bundled Services
Arrangement.
-Prospective Payment System (PPS).
Describe the balanced scorecard & dashboard reporting. - Answers -Tools that help in the
collection & communication of financial & operating information.
-Neatly formatted reports that display the organization's performance for "key indicators".
Describe the four key elements of dashboard reporting. - Answers -1) What is most important to
the firm's success?
-2)What are the critical drivers that influence performance attainment?
-3) What are the most relevant measures that reflect critical driver relationships?
-4) What relevant bench-marking data are available to assess performances?
Describe how legal & regulatory issues shape & define good financial management of an HCO. -
Answers -Enactment of the ACA represented landmark change in the federal law that shapes
virtually every financial aspect of the nation's healthcare delivery system.
-Were designed to address longstanding problems with availability & affordability of health
insurance.
Appreciate the consequences of failing to manage the finances of an HCO with regard for the
complex & ever changing array of laws & regulations that are unique to this industry. - Answers -
Develop a compliance plan that is well-written & helps an organization's employees understand
how laws & regulations relate to their jobs & enables management to know that these legal
requirements are being followed.
Identify the major components of corporate compliance plan, including the establishment of
internal controls to the finances of an organization. - Answers -Control environment.
-Risk assessment.
, -Control activities.
-Information & communication.
-Monitoring.
Explain what is most important in long-term financial success. - Answers -Sustainable growth.
-Over the long term, no business can grow assets faster than equity.
Describe the Control Environment of a corporate compliance plan. - Answers -Sets the tone of
an organization influencing the control consciousness of its people.
-The foundation for all other components of internal control, providing discipline and structure.
Describe the Risk Assessment portion of the corporate compliance plan. - Answers -The entity's
identification & analysis of relevant risks to achievement of its objectives, forming a basis for
determining how the risks should be managed.
Describe the Control Activities portion of the corporate compliance plan. - Answers -The policies
& procedures that help ensure management directives are carried out.
Explain what a healthcare firm's primary financial objective should be. - Answers -Equity Growth.
(Formula on flashcard)
Describe the information & communication portion of the corporate compliance plan. - Answers
-The identification, capture & exchange of information in a form & time frame that enables
people to carry out their responsibilities.
Describe methods that are used to assess price defensibility prices in a real setting. - Answers -
Two ways of assessing:
-1) Return-on-Investment (ROI)
-2) Comparison with other healthcare firms.
Describe the Monitoring portion of the corporate compliance plan. - Answers -a process that
accesses the quality of internal control performance over time.
List some of the important considerations when negotiating a managed-care contract. -
Answers -Critical to continued financial solvency.
-Contract language.
-Payment rates.
Describe the critical drivers of financial performance. - Answers -If an organization needs to be
