1. Which of the following characteristics of the health services industry warrant a specific focus on healthcare finance?

a. A majority of payments to healthcare providers are made by third-party payers.

b. The provision of healthcare services is dominated by not-for-profit corporations.

c. The primary role of finance in health services organizations is to plan for, acquire, and use resources enterprise.

d. Answers a. and b. are correct.

e. Answers a., b., and c. correct.

2. True or False: An investor-owned business obtains revenues by selling goods or services, while a not-for-profit business has a fixed budget.

3. True or False: The specific amount of charity care not-for-profit hospitals must provide in order to maintain their tax-exempt status is defined by an existing federal legislative standard.

4. True or False: All prospective payment methods of reimbursement involve a transfer of risk from insurers to providers.

5. Which of the following statements about bundled payments is most correct?

a. Bundled payments are a single payment that is made to a group of like providers, such as three hospitals in a single service area.

b. Bundled payments are meant to encourage different providers (such as a hospital and physician group) to work together to lower costs and improve quality.

c. Bundled payments are a single payment made to one provider for all services provided for a single diagnosis, say, a broken arm.

d. Statements a. and b. are both correct.

e. Statements b. and c. are both correct.

6. Which of the following statements about the financial risk to providers under different reimbursement methods is most correct?

a. Risk is the least under cost-based reimbursement. b. Risk is the most under capitation.

c. Risk is the most under charge-based reimbursement. d. Statements a. and b. are both correct.

e. Statements a. and c. are both correct.

7. Which of the following statements about the financial risk to providers under different reimbursement methods is most correct?

a. Different payers use different reimbursement methods, so providers face varying levels of risk.

b. Prospective payment transfers the cost risk (of each reimbursable episode) from insurers to providers.

c. Capitation transfers both cost risk and utilization risk to providers.

d. Statements a. and b. are both correct.

e. Statements a., b., and c. are all correct.

8. True or False: Medicare has a single payment methodology that is applied to all providers, such as hospitals, physicians, and ambulatory (outpatient) surgery centers.

9. True or False: The revenue section of the income statement provides information about the amount of discounts, contractual allowances, and charity care provided by a healthcare organization.