HAC Healthcare Accounting Financial Reporting & Analysis 4

Question 1

A critical access hospital (CAH) is reimbursed by Medicare primarily on which basis?

Accepted Answer

Cost-based reimbursement at 101% of reasonable costs

Answer

CAHs receive cost-based Medicare reimbursement at 101% of allowable costs, rather than DRG prospective payment, to help ensure rural hospital viability.

Question 2

In healthcare segment reporting, which standard governs disclosure of information about reportable operating segments?

Accepted Answer

ASC 280

Answer

ASC 280 (Segment Reporting) requires entities to disclose information about reportable operating segments based on how management internally reviews financial information.

Question 3

Which of the following would appear in the 'financing activities' section of a hospital's statement of cash flows?

Accepted Answer

Proceeds from issuance of long-term bonds

Answer

Proceeds from bond issuances are financing activities because they relate to borrowing activities used to fund the organization's capital structure.

Question 4

A hospital's payer mix shift from commercial insurance to Medicaid would most likely result in:

Accepted Answer

Lower net patient revenue per adjusted discharge

Answer

Medicaid typically reimburses at significantly lower rates than commercial insurers, so a shift toward Medicaid payers reduces net patient revenue per adjusted discharge.

Question 5

Under GASB Statement No. 68, governmental hospitals must record:

Accepted Answer

Their proportionate share of the net pension liability for defined benefit plans

Answer

GASB 68 requires governmental employers to recognize their proportionate share of the collective net pension liability on the statement of net position.

(HAC) Healthcare Accounting Certification Practice Test

(HAC) Healthcare Accounting Certification Practice Test

HAC Healthcare Accounting Financial Reporting & Analysis 4