HSM 340 Week 8 Quiz

Week 8: Final Exam

 HSM 340 Week 8 Quiz | Devry University

Question 1

 (CO 2) The heading of every financial statement should contain the:  

·         name, title, and specific date of statement  

·         name, title, and place of business  

·         name, title, specific date of statement, and unit of measurement  

·         title of statement, name of entity, and unit of measurement  

·         title, name, type of ownership, and unit of measurement

 

Question 2

 (CO 2) Which method(s) of financial reporting does (do) not recognize the impact of changes in unrealized gains in replacement value? 

·         HC and CV 

·         CV and CV-GPL  

·         HC-GPL and CV-GPL    

·         HC and HC-GPL

 

Question 3

 (CO 2) _____ is the most important financial metric to review to determine long-term financial viability.  

·         None of the above  

·         Return on equity  

·         Days cash on hand  

·         Total margin  

·         Hospital cost index

 

Question 4

 (CO 2) What is/(are) the primary determinant(s) of firm value?  

·         Profit  

·         All of above 

·         Investment

·         Cost of capital

 

 

Question 5

(CO 3) The breakeven point occurs where:

·         total costs and total revenue intersect

·         total variable costs and total revenue intersect  

·         total revenue outpaces total avoidable fixed costs  

·         total profit margin and total costs intersect  

·         total fixed costs and total revenue intersect

 

Question 6

 (CO 3) To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with:  

·         Low charge payer mix/high write-offs for bad debt, charity, & discounts  

·         High charge payer mix/low write-offs for bad debt, charity, & discounts  

·         Low charge payer mix/low write-offs for bad debt, charity, & discounts  

·         High charge payer mix/high write-offs for bad debt, charity, & discounts

 

Question 7

 (CO 3) Assume that the clinic used the price that they need to exactly break even at 10,000 shots. Fewer people than expected showed up and purchased the flu shot. The clinic would:  

·         none of the above.  

·         break-even.  

·         have a reduced unit contribution margin.  

·         earn a profit.  

·         have a loss.

 

Question 8

 (CO 3) You increased rates by 10 percent across all services and profits decreased by 5 percent. Cost per unit remained constant. What could account for this change?  

·         Negative price elasticity  

·         High proportion of cost payers 

·         Positive price elasticity

·         High proportion of fixed price payers

Question 9

 (CO 4) Budgets normally cover a period of:  

·         2 years  

·         3 years  

·         5 years  

·         1 year

 

Question 10

 (CO 4) The following is an example of a _____________ budget:

"The budget for the radiology department is different at 90 percent occupancy than at 80 percent occupancy."  

·         rolling    

·         flexible  

·         fixed  

·         forecast

 

Question 11

 (CO 4) Because prices are often fixed in the health care industry, it is increasingly important to: 

·         Control costs 

·         Measure effectiveness 

·         Measure efficiency 

·         None of the above

 

Question 12

 (CO 3) Assume that the clinic used the price that they need to exactly break even at 10,000 shots. Fewer people than expected showed up and purchased the flu shot. The clinic would:  

·         earn a profit.  

·         have a reduced unit contribution margin.  

·         none of the above.  

·         have a loss. 

·         break-even.

 

Question 13

 (CO 5) Variable costs change as the:  

·         Revenue changes  

·         Indirect costs change    

·         Volume of production or services changes 

·         Semifixed costs change

 

 

Question 14

 (CO 2) The heading of every financial statement should contain the:  

·         title, name, type of ownership, and unit of measurement  

·         title of statement, name of entity, and unit of measurement  

·         name, title, and place of business 

·         name, title, and specific date of statement 

·         name, title, specific date of statement, and unit of measurement

 

Question 15

 (CO 2) _____ is the most important financial metric to review to determine long-term financial viability.

·         Return on equity

·         Hospital cost index  

·         None of the above 

·         Days cash on hand 

·         Total margin

 

Question 16

 (CO 7) Employee covered health plans are most likely to be?  

·         High deductible health plans with a savings option.  

·         PPOs. 

·         Traditional indemnity plans 

·         HMOs.

 

Question 17

 (CO 7) Capitation plans are more common for physician payment because:

  

·         physicians want more risk in their payment plans. 

·         physicians have larger reserves and can assume more risk.  

·         they can better control utilization. 

·         they are concerned about adverse selection.

 

Question 18

 (CO 7) Employer premium costs for health care coverage are often lowest in which type of health plan:  

·         POS.  

·         High deductible health plans with savings options. 

·         HMO 

·         PPO.

 

Question 19

 (CO 7) The following reasons are good motives for mergers except:  

·         Increased purchasing power  

·         Economies of scale

·         Unused tax shields    

·         Increased value for acquiring company's shareholders

 

Question 20

 (CO 1) Which of the following is an element of the charge master? 

·         Item description  

·         Department number  

·         All of the above  

·         Charge code

 

Question 21

 (CO 3) You are attempting to develop a break-even for a capitation contract with a major HMO. Your hospital has agreed to provide all inpatient hospital services for 10,000 covered lives. You will receive $40 per member per month to cover all inpatient services. It is anticipated that 100 admissions per 1,000 covered lives will be provided with an average length of stay equal to 5.0, or 465 days per 1,000.

You anticipate that your hospital will incur fixed costs, or readiness to serve costs, of $1,860,000 for these 10,000 covered lives. Variable costs per patient-day are expected to be $600. Calculate the break-even point in patient days under this contract.

  

·         4500 patients  

·         4800 patient days  

·         4500 patient days 

·         4900 patient days

  

Question 22

 (CO 6) Sunrise has received an invoice for medical supplies for $5,000 with terms of a 3% discount if paid within 10 days. The invoice is due on the thirtieth day. What is the annual effective cost of interest on this invoice?  

54% 

36%  

27%

65, (CO 6) Sunrise has negotiated a $1,500,000 line of credit with the local bank. The terms of the line of credit call for an interest rate of 2% above prime on any borrowing plus 0.6% on any unused balance. If the line is not used during the year, what cost will Sunrise incur?

·         $5,000

·         $1,500

·         *c. $9,000

·         $90,000  

·         5.4%