CHL Financial Planning and Budgeting 4

Question 1

A healthcare organization's days cash on hand is 18 days, well below the industry benchmark of 90 days. What does this indicate?

Accepted Answer

The organization may struggle to meet short-term financial obligations

Answer

Days cash on hand measures liquidity; 18 days means the organization has only 18 days of operating expenses covered by available cash, indicating a precarious financial position.

Question 2

In healthcare financial planning, what is the purpose of a pro forma financial statement?

Accepted Answer

To project future financial performance based on assumptions and planned activities

Answer

Pro forma statements are forward-looking projections that model expected financial outcomes under specified assumptions, used to evaluate strategic decisions.

Question 3

A CHL notices that supply costs per adjusted patient day have risen 15% while volume is flat. Which budgeting action is most appropriate?

Accepted Answer

Conduct a variance analysis to identify specific supply categories driving the increase

Answer

Variance analysis drills into the specific drivers of cost increases, enabling targeted and evidence-based corrective action rather than blunt reductions.

Question 4

Which of the following is a characteristic of a fixed cost in a healthcare setting?

Accepted Answer

It remains constant regardless of patient volume within a relevant range

Answer

Fixed costs such as building lease payments and salaried staff do not change with patient volume within a defined relevant range of activity.

Question 5

A hospital's net days revenue in accounts receivable is 55 days. If the hospital collects $2 million in net patient revenue per day, what is the approximate total amount in accounts receivable?

Accepted Answer

$110 million

Answer

Accounts receivable equals days in AR multiplied by daily net revenue: 55 days × $2 million/day = $110 million.

CHL - Certified Healthcare Leader Practice Test

CHL - Certified Healthcare Leader Practice Test

CHL Financial Planning and Budgeting 4