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Financial Practices in Healthcare Quiz

#1

Which financial statement provides a snapshot of a healthcare organization's financial health at a specific point in time?

Balance sheet
Explanation

Summarizes assets, liabilities, and equity at a given moment.

#2

What does the acronym EHR stand for in healthcare finance?

Electronic Health Record
Explanation

Digital records of patients' medical history and treatments.

#3

Which regulatory body is responsible for overseeing Medicare and Medicaid programs in the United States?

Centers for Medicare & Medicaid Services (CMS)
Explanation

Manages federal healthcare programs.

#4

What is the primary objective of medical coding in healthcare finance?

To assign standardized codes to medical procedures and diagnoses
Explanation

Ensuring accurate billing and reimbursement.

#5

Which financial statement is also known as the statement of operations?

Income statement
Explanation

Summarizes revenues, expenses, and profits.

#6

What is the role of a Chief Financial Officer (CFO) in a healthcare organization?

To manage financial operations and strategy
Explanation

Overseeing financial aspects and planning.

#7

What is the primary goal of revenue cycle management in healthcare?

To maximize reimbursement and cash flow
Explanation

Efficiently managing claims and payments for financial stability.

#8

Which of the following is NOT a typical component of healthcare financial planning?

Marketing strategy
Explanation

Not directly related to financial operations.

#9

What does the term 'cost containment' refer to in healthcare finance?

Implementing strategies to control and reduce healthcare expenses
Explanation

Efforts to manage and reduce healthcare costs.

#10

Which financial ratio measures a healthcare organization's ability to meet its short-term obligations with its most liquid assets?

Current ratio
Explanation

Indicator of liquidity and short-term financial health.

#11

What is the main purpose of a cost report in healthcare finance?

To report costs incurred by a healthcare facility for services rendered
Explanation

Detailing expenses for services provided.

#12

What is the primary purpose of conducting a financial audit in healthcare?

To identify areas of financial risk and ensure compliance
Explanation

Evaluating financial practices for risk and compliance.

#13

In healthcare finance, what does the term 'capitation' refer to?

A payment arrangement where providers are paid a fixed amount per patient
Explanation

Fixed payment per patient regardless of services rendered.

#14

What is the concept of 'value-based healthcare' primarily focused on?

Improving patient outcomes while controlling costs
Explanation

Emphasizing quality of care and cost-effectiveness.

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