Practice Test GeeksCMC - Cardiac Medicine Certification Practice Test
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Financial Management & Budgeting Flashcards

7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Budgeting flashcards as text

  1. A cardiac surgery program is analyzing its payer mix and finds 60% Medicare, 15% Medicaid, 20% commercial, and 5% self-pay. Which payer group typically offers the highest reimbursement rates relative to cost?

    Answer: Commercial insurance

    Commercial insurers generally negotiate rates that exceed Medicare and Medicaid reimbursement, often producing the highest margins per case.

  2. A hospital's cardiac program has a contribution margin of $2,400 per case and fixed costs of $3,600,000 annually. What volume is required to break even?

    Answer: 1,500 cases

    $3,600,000 ÷ $2,400 = 1,500 cases needed to cover fixed costs at the break-even point.

  3. Which financial statement provides a snapshot of an organization's assets, liabilities, and net assets at a specific point in time?

    Answer: Balance sheet

    The balance sheet (or statement of financial position) reflects assets, liabilities, and net assets as of a single date.

  4. A cardiac manager is asked to prepare a zero-based budget. This approach requires that:

    Answer: Every budget line must be justified from scratch each cycle regardless of history

    Zero-based budgeting requires full justification of all expenditures each period rather than incremental adjustments from prior budgets.

  5. Which cost behavior pattern describes expenses such as cardiac cath lab equipment depreciation that remain constant regardless of procedure volume?

    Answer: Fixed costs

    Fixed costs, like depreciation, do not change with volume within a relevant range of activity.

  6. A cardiac program is evaluating two capital projects with equal initial investment. Project A has an NPV of $450,000 and Project B has an NPV of $310,000. Which project should be selected and why?

    Answer: Project A, because higher NPV indicates greater value creation

    NPV measures the net value added to the organization; the project with the higher positive NPV creates more financial value.

  7. The cardiac catheterization lab's charge capture rate is found to be 94%. The MOST direct impact of closing this charge capture gap is:

    Answer: Increased net revenue from services already rendered

    Improving charge capture ensures that services provided are billed and reimbursed, directly increasing net revenue without additional volume.