CPE Healthcare Finance & Operations 2

Question 1

A hospital's accounts receivable days outstanding increases from 45 to 68 days. Which action most directly addresses this operational problem?

Accepted Answer

Accelerating charge capture and claims submission

Answer

Faster charge capture and claims submission directly shortens the revenue cycle and reduces days in accounts receivable.

Question 2

Under a global capitation contract, a physician executive's primary financial risk management strategy should be to:

Accepted Answer

Control total cost of care through utilization management

Answer

Under capitation, the health system receives a fixed payment per member, so controlling utilization and total cost is the essential financial strategy.

Question 3

Which financial metric best measures a hospital's ability to service its long-term debt obligations?

Accepted Answer

Debt service coverage ratio

Answer

The debt service coverage ratio compares operating income to annual debt payments, directly measuring capacity to meet long-term obligations.

Question 4

A medical group is evaluating whether to bring lab services in-house versus continuing to outsource. This analysis is best performed using:

Accepted Answer

Break-even analysis comparing fixed/variable costs at projected volume

Answer

Break-even analysis identifies the volume at which in-house costs equal outsourcing costs, informing the make-or-buy decision.

Question 5

Medicare's Two-Midnight Rule primarily affects which type of hospital reimbursement?

Accepted Answer

Inpatient vs. observation status classification

Answer

The Two-Midnight Rule requires a physician to expect a patient to need care spanning two midnights for inpatient admission to be appropriate under Medicare.

(CPE) Certified Physician Executive Practice Test

(CPE) Certified Physician Executive Practice Test

CPE Healthcare Finance & Operations 2