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
Which cardiac reimbursement mechanism adjusts Medicare DRG payments upward for hospitals that treat a disproportionate share of low-income patients?
Answer: Disproportionate share hospital (DSH) payment
DSH payments compensate hospitals that serve a large proportion of Medicaid and low-income Medicare patients who may be costlier to treat.
A cardiac line manager is reviewing a flexible budget. What distinguishes a flexible budget from a static budget?
Answer: A flexible budget adjusts expense benchmarks based on actual volume achieved
A flexible budget recalculates expected costs at the actual activity level, making variances more meaningful by separating volume effects from efficiency effects.
A cardiac center is experiencing a high rate of claim denials related to prior authorization. The MOST effective financial management response is to:
Answer: Establish a systematic prior authorization process before scheduled procedures
Proactive prior authorization workflows prevent denials at the source, protecting revenue before services are rendered.
When conducting a capital budget request for a new cardiac CT scanner, which element demonstrates the financial return the hospital will receive from the investment?
Answer: Projected return on investment (ROI) analysis
ROI analysis quantifies the financial benefit of the investment relative to its cost, which is the core justification in a capital budget request.
A cardiac program's cost per adjusted discharge has increased 9% year over year. Which operational data point would be MOST useful in determining the cause?
Answer: Case mix index and supply expense per case
Case mix index reflects patient acuity, and supply expense per case reveals resource utilization — together they explain cost per discharge changes.
A cardiac manager who is over budget on disposable supplies but under budget on implantables at the end of Q2 should FIRST:
Answer: Analyze whether the case mix changed to include fewer implantable procedures
A shift in case mix (e.g., fewer device implants, more catheterizations) would logically explain higher disposables and lower implantable spend simultaneously.
Under the Medicare Shared Savings Program (MSSP) for cardiac patients in an ACO, what financial incentive drives care coordination?
Answer: ACOs share in savings when they reduce total cost of care below benchmarks while meeting quality thresholds
MSSP ACOs earn a share of Medicare savings generated when they keep total spending below the benchmark while achieving quality performance standards.