COE - Certified Ophthalmic Executive Ophthalmic Financial Management Questions and Answers

Question 1

An ophthalmic practice is analyzing its accounts receivable (A/R).
The industry benchmark for A/R days is typically 30-40 days.
The practice calculates its current A/R days at 55.
Which of the following is the MOST likely cause for this variance?

Accepted Answer

Inefficient claims submission and denial management processes.

Answer

A recent increase in surgical volume.

Answer

High staff-to-provider ratio.

Answer

Successful implementation of a new patient recall system.

Question 2

A practice manager is using benchmarking to evaluate performance. They note the practice's overhead ratio is 70%, while the industry benchmark is closer to 60%. Upon investigation, the staff-per-FTE-provider ratio is in the 90th percentile, and the revenue per encounter is at the 75th percentile. What is the most logical conclusion?

Accepted Answer

The practice may be profitable due to high revenue per encounter, but is likely overstaffed.

Answer

The practice's occupancy and marketing expenses are too high.

Answer

The providers are not seeing enough patients per day.

Answer

The practice is efficient in converting revenue into profit.

Question 3

Which component of the Relative Value Unit (RVU) accounts for the cost of clinical and administrative staff salaries, office space, and medical supplies?

Accepted Answer

Practice Expense (peRVU)

Answer

Physician Work (wRVU)

Answer

Malpractice (mpRVU)

Answer

Geographic Practice Cost Index (GPCI)

Question 4

An ophthalmologist in a group practice has an ownership interest in a separate imaging center. The ophthalmologist refers Medicare patients to this imaging center for diagnostic tests. Which federal law is most directly implicated by this arrangement?

Accepted Answer

Stark Law (Physician Self-Referral Law)

Answer

Health Insurance Portability and Accountability Act (HIPAA)

Answer

Emergency Medical Treatment and Labor Act (EMTALA)

Answer

Anti-Kickback Statute (AKS)

Question 5

When valuing an ophthalmology practice for a potential sale, which of the following is considered an intangible asset?

Accepted Answer

Goodwill

Answer

Diagnostic equipment

Answer

Accounts receivable

Answer

Optical inventory

Question 6

A practice manager is developing a budget for the upcoming year. The first and most critical step in creating a realistic and effective budget is to:

Accepted Answer

Analyze historical revenue and patient volume data.

Answer

Project anticipated capital equipment purchases.

Answer

Set physician and staff salary increase percentages.

Answer

Negotiate new rates with insurance payers.