CMC Financial Management & Budgeting 5

Question 1

Which cardiac reimbursement mechanism adjusts Medicare DRG payments upward for hospitals that treat a disproportionate share of low-income patients?

Accepted Answer

Disproportionate share hospital (DSH) payment

Answer

DSH payments compensate hospitals that serve a large proportion of Medicaid and low-income Medicare patients who may be costlier to treat.

Question 2

A cardiac line manager is reviewing a flexible budget. What distinguishes a flexible budget from a static budget?

Accepted Answer

A flexible budget adjusts expense benchmarks based on actual volume achieved

Answer

A flexible budget recalculates expected costs at the actual activity level, making variances more meaningful by separating volume effects from efficiency effects.

Question 3

A cardiac center is experiencing a high rate of claim denials related to prior authorization. The MOST effective financial management response is to:

Accepted Answer

Establish a systematic prior authorization process before scheduled procedures

Answer

Proactive prior authorization workflows prevent denials at the source, protecting revenue before services are rendered.

Question 4

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?

Accepted Answer

Projected return on investment (ROI) analysis

Answer

ROI analysis quantifies the financial benefit of the investment relative to its cost, which is the core justification in a capital budget request.

Question 5

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?

Accepted Answer

Case mix index and supply expense per case

Answer

Case mix index reflects patient acuity, and supply expense per case reveals resource utilization — together they explain cost per discharge changes.

CMC - Cardiac Medicine Certification Practice Test

CMC - Cardiac Medicine Certification Practice Test

CMC Financial Management & Budgeting 5