MHA Healthcare Finance and Budgeting 2

Question 1

Which financial ratio measures a healthcare organization's ability to meet short-term obligations?

Accepted Answer

Current ratio

Answer

The current ratio (current assets divided by current liabilities) measures an organization's ability to pay short-term obligations with its short-term assets.

Question 2

What is 'payer mix' in the context of hospital revenue?

Accepted Answer

The proportion of revenue from different payer sources such as Medicare, Medicaid, and commercial insurance

Answer

Payer mix describes the distribution of patients or revenue across different payer categories, directly affecting a hospital's financial performance.

Question 3

Which cost classification changes in direct proportion to changes in patient volume?

Accepted Answer

Variable costs

Answer

Variable costs, such as medical supplies and medications, increase or decrease in proportion to the volume of services provided.

Question 4

What is 'net patient service revenue' in healthcare accounting?

Accepted Answer

Gross charges minus contractual adjustments and bad debt

Answer

Net patient service revenue is gross charges reduced by contractual allowances, charity care, and bad debt, representing actual collectible revenue.

Question 5

Under value-based purchasing (VBP), Medicare adjusts hospital payments based primarily on what?

Accepted Answer

Quality and patient experience scores

Answer

Medicare's Hospital Value-Based Purchasing program ties a portion of inpatient payments to quality measures, patient experience, and outcomes rather than volume alone.

MHA - Master of Healthcare Administration Practice Test

MHA - Master of Healthcare Administration Practice Test

MHA Healthcare Finance and Budgeting 2