Dr. Heeter Pharm Fina Mgt APP Exam 2

Which of the following concerns the measurement, in financial terms (dollars), of events that reflect resources, operations, and financing of an organization?

• Accounting

• Financial Management

• Tome management

• Finance

• Vertical systems

Which of the following statements best defines the term Accounting?

• Organization with group of related, but not identical providers

• Measurement in dollars ($$) of events that reflect resources, operations, financing within an organization

• Theory, concepts, and tools needed to help managers make better financial decisions

• Organization with group of similar providers

Which of the following statements best defines the term Financial Management?

• Theory, concepts, and tools needed to help managers make better financial decisions

• Measurement ($$) of events that reflect resources, operations, financing within an organization

• Organization with group of related, but not identical providers

• Organization with group of similar providers

Which of the following is TRUE about Accrual Accounting?

• Revenue and expenses only recorded when paid

• Recognizes revenue and expenses when they are incurred, regardless of when provider is paid

• Much simpler than accrual accounting, however it doesn’t work well in healthcare due to the extended time before payments are received

• Expenses only recorded when paid

Which of the following is TRUE about Cash Accounting?

• Recognizes revenue and expenses when they are incurred, regardless of when provider is paid

• More accurate in a given time period (quarter)

• Revenue and expenses only recorded when paid

• Requires specialized software to handle complicated functions includingaccounts payable and receivable

Accounting generates data needed to make sound financial decisions, and financial management provides framework for these decisions.

• True

• False

All of the following statements are TRUE about Capitation, EXCEPT:

• Receive payment at a daily rate

• Providers receive payment regardless of service utilization

• Fixed amount received per patient per month/year

• Providers receive payment no matter of service utilization

Which of the following are TRUE about Capitation? Select all that apply

• Fixed amount received per patient per month/year

• Receive payment at a daily rate

• Providers receive payment regardless of service utilization

• Payment received for number of visits or which services were received

Which of the following statements BEST describes PER DIEM?

• Fixed amount received per patient per month/year

• Receive payment at a daily rate

• Providers receive payment regardless of service utilization

• Payment received for number of visits or which services were received 9

Which of the following statements are TRUE about Value-Based Payments? Select all that apply

• Reimbursement rate based on quality of care received

• Payment received for number of visits or which services were received 9

• Portion of reimbursement is withheld which means higher quality = higher amount of withheld reimbursement received

• Providers receive payment regardless of service utilization