CMC Financial Management & Budgeting 2

Question 1

A cardiac catheterization lab is evaluating whether to purchase a new imaging system. Which financial metric best measures the time required to recover the initial investment from net cash flows?

Accepted Answer

Payback period

Answer

The payback period measures how long it takes for cumulative net cash inflows to equal the initial capital outlay.

Question 2

A cardiac unit's supply budget shows a 12% unfavorable variance at mid-year. The FIRST step the manager should take is to:

Accepted Answer

Identify the specific supply categories driving the variance

Answer

Root-cause analysis of the variance by supply category is required before any corrective action can be targeted effectively.

Question 3

Which reimbursement model pays a fixed amount per cardiac patient discharge regardless of length of stay or resources consumed?

Accepted Answer

Diagnosis-related group (DRG)

Answer

DRG-based payment bundles reimbursement into a single prospective amount determined by the patient's discharge diagnosis and procedure.

Question 4

A cardiac program wishes to add a structural heart disease service line. Which document projects anticipated revenues, expenses, and volumes over a multi-year horizon for the new program?

Accepted Answer

Pro forma financial statement

Answer

A pro forma financial statement projects future financial performance under assumed conditions for a proposed program or venture.

Question 5

When negotiating a managed care contract for cardiac services, which metric directly reflects the hospital's cost efficiency and is most critical to review before setting contracted rates?

Accepted Answer

Cost-to-charge ratio

Answer

The cost-to-charge ratio translates billed charges into actual costs, revealing whether contracted rates will cover expenses.

CMC - Cardiac Medicine Certification Practice Test

CMC - Cardiac Medicine Certification Practice Test

CMC Financial Management & Budgeting 2