Healthcare Finance Final Exam
Question and answers verified to pass
2025/2026
Define the time value of money - correct answer ✔the concept of interest: a dollar today is worth more
than a dollar received in the future
Define the Rule of 72 and use it in a calculation - correct answer ✔a way to estimate the approx.
number of years required for an investment to double. 72 is divided by the annual interest rate to
determine the number of years required for an investment to double.
$500,000 earning 6%: 72/6=12 years to double
Describe the relationship of a change in interest rates and a bond's value - correct answer ✔inverse
relationship: Interest rates go up, bond value goes down. If interest rates go up, bond value goes down
Describe the relationship between credit rating and interest rates - correct answer ✔-inverse
relationship: the higher credit rating, the lower the rate of interest offered to the investor due to the
lower risk of default.
Define Revenue Cycle management - correct answer ✔collection of the full amount of funds owed for
medical services as quickly and efficiently as possible
What does it mean to scrub a claim? - correct answer ✔process of verifying the accuracy of the claim
prior to submitting it for insurance reimbursement
List the benefits of rapid collection of revenues - correct answer ✔More cash on hand to meet
operating needs, avoidance of loans and interest costs, greater probability of collecting payments
(collection rates fall as receivables get older)
Question and answers verified to pass
2025/2026
Define the time value of money - correct answer ✔the concept of interest: a dollar today is worth more
than a dollar received in the future
Define the Rule of 72 and use it in a calculation - correct answer ✔a way to estimate the approx.
number of years required for an investment to double. 72 is divided by the annual interest rate to
determine the number of years required for an investment to double.
$500,000 earning 6%: 72/6=12 years to double
Describe the relationship of a change in interest rates and a bond's value - correct answer ✔inverse
relationship: Interest rates go up, bond value goes down. If interest rates go up, bond value goes down
Describe the relationship between credit rating and interest rates - correct answer ✔-inverse
relationship: the higher credit rating, the lower the rate of interest offered to the investor due to the
lower risk of default.
Define Revenue Cycle management - correct answer ✔collection of the full amount of funds owed for
medical services as quickly and efficiently as possible
What does it mean to scrub a claim? - correct answer ✔process of verifying the accuracy of the claim
prior to submitting it for insurance reimbursement
List the benefits of rapid collection of revenues - correct answer ✔More cash on hand to meet
operating needs, avoidance of loans and interest costs, greater probability of collecting payments
(collection rates fall as receivables get older)
