4055 Final Exam Fall 2023 Questions and Answers Verified
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4055
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4055
4055 Final Exam Fall 2023 Questions and Answers Verified
A considerable barrier to obtaining insurance for young adults was originally addressed with the ACA in the mandatory requirement of insurance for all. To that end, the law specifically provided
coverage for young adults between 19 and 26...
4055 final exam fall 2023 questions and answers ve
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4055 Final Exam Fall 2023 Questions and Answers Verified
A considerable barrier to obtaining insurance for young adults was originally
addressed with the ACA in the mandatory requirement of insurance for all. To
that end, the law specifically provided
coverage for young adults between 19 and 26 on their parents' policies.
ACA stipulates which of the following entities are eligible to participate as ACOs:
All the above
Which of the following statements about regulatory and legal issues is most
correct?
For most providers, the primary legal concern is professional liability.
Which of the following statements about the finance department at a large
healthcare organization is most correct?
All of the above statements are correct.
True or false: The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a multitude of
activities such as cost containment, payer negotiations, and joint venture
activities.
True
Which of the following statements about healthcare providers is incorrect?
There are many more hospitals than there are nursing homes, but nursing homes tend
to have a greater number of beds.
Those with generous insurance plans tend to utilize health care resources
therefore to rein in costs; the ACA limits insurance companies to spend
percentages of premiums on reimbursable services and activities.
True
The Patient Protection and Affordable Care Act (ACA) is also known as
Obamacare because it was legislated during the presidency of President Barak
Obama.
True
The structure of the U.S. healthcare system has five principal components. An
example of delivery services would be
basic diagnostic and preventative treatment by primary care providers.
Which of the following is not a finance activity?
Facilities management
Key stakeholders in the health care system include providers, nurses, suppliers,
hospitals, and retail clinics.
True
The ACA positively impacted nurses by expanding opportunities in which of the
following
A and B
The single largest payer group for health care services is
Government
The ACA was challenged in court in 2010 when over 25 states sued the Federal
government and lost over the constitutionality of the individual mandates and
Medicaid expansion
,True
In the United States, the highest proportion of healthcare expenditures is for
_______________.
hospital care
The ACA is to be phased in over 10 years. The initial impetus and primary focus
of the ACA was
All of the above
True or false: The four Cs (character, capability, charisma, and courtesy) as
described in the textbook summarize the attributes needed to be a good financial
manager.
False
The U.S. government is a major stakeholder and participant in health care as
payer, provider, and supporter of research, education, and training.
True
True or false: Many studies have demonstrated that integrated delivery systems
are able to provide higher-quality care at lower cost than can stand-alone
specialized provider organizations.
False
Which of the following statements about finance, accounting, or financial
management is most correct?
The primary role of finance is to plan for, acquire, and use resources to maximize the
efficiency (and value) of the enterprise.
Which of the following statements about hospitals is most correct?
The majority of hospitals are public or not-for-profit (as opposed to investor owned).
Key stakeholders in the health care system include providers who are identified
as persons and organizations that deliver health care services to patients. All the
following are providers except
suppliers, consumers, and regulators.
Which of the following activities are business characteristics?
The entity raises money in the capital markets.
It uses money raised to purchase assets such as land, buildings, and equipment.
It uses the purchased assets to create goods and/or services.
It sustains itself financially by selling the goods and/or services produced.
All of the above are business characteristics.
Which of the following statements about the legal forms of for-profit business
organization is most correct?
Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations
is incorrect?
When an individual sells his or her stock, the company receives the proceeds from the
sale.
, Which of the following statements about not-for-profit corporations is most
correct?
They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit
corporations?
Stockholders
Assume that Jane Adams pays income taxes at a 35 percent rate. What would be
the after-tax amount on $100 of interest income that she receives?
$65
Assume that John Richards pays income taxes at a 30 percent rate. He currently
owns a not-for-profit (municipal) bond that pays 5 percent interest. What interest
rate would have to be set on a for-profit (corporate) bond to produce the same
amount of usable (after-tax) income?
7.1 percent
Which of the following statements about benefit corporations (B corporations) is
most correct?
They allow corporate boards and managers to sacrifice shareholder value for the
greater good.
Assume that Reginald Worthington, who pays 40 percent in income taxes, plans
to contribute $100,000 to not-for-profit Ravenswood Community Hospital. Without
the contribution, his tax bill would be $500,000. What would be his tax bill if
makes the contribution?
$460,000
True or false: From a financial perspective, businesses and pure charities are
identical (i.e., they operate in a similar fashion).
False
True or false: The primary goal of not-for-profit corporations is expressed in a
mission statement and often involves service to the community.
True
True or false: Because the organizational and financial goals of for-profit and not-
for-profit provider organizations differ, their financial decision-making processes
lead to very different decisions.
False
True or false: Form 990 is a report filed with state regulators that is used to rank
hospitals based on patient satisfaction.
False
To be workable, insurance must have which of the following characteristics?
Pooling of losses
Payment only for random losses
Risk transfer
Indemnification
All of the above
Which of the following statements about adverse selection and underwriting is
incorrect?
Health insurers have unlimited power to set underwriting provisions.
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