MHA Master of Healthcare Administration MCQ 4 — Questions and Answers
Question 1: Which payment model bundles a single payment for all services provided during an episode of care across providers?
- Fee-for-service
- Capitation
- Bundled payment (Correct answer)
- Per diem payment
Correct answer: Bundled payment
Bundled (episode-based) payments consolidate reimbursement for all services related to a defined clinical episode to incentivize coordination and efficiency.
Question 2: Under the ACA's accountable care organization (ACO) model, providers share savings when they:
- Increase the volume of specialist referrals
- Reduce per-capita spending below a benchmark while meeting quality thresholds (Correct answer)
- Achieve 100% electronic health record adoption
- Eliminate all preventable readmissions
Correct answer: Reduce per-capita spending below a benchmark while meeting quality thresholds
ACOs earn shared savings when total spending for their attributed population falls below a set benchmark and quality standards are met.
Question 3: Horizontal integration in healthcare occurs when:
- A hospital acquires a home health agency
- A health system acquires another hospital of the same type (Correct answer)
- A physician group merges with an insurance company
- A clinic adds pharmacy services
Correct answer: A health system acquires another hospital of the same type
Horizontal integration involves combining organizations at the same level of the care continuum, such as two acute-care hospitals.
Question 4: The 'triple aim' framework in healthcare improvement focuses on improving population health, enhancing patient experience, AND:
- Increasing provider salaries
- Reducing per capita healthcare costs (Correct answer)
- Expanding hospital bed capacity
- Achieving full EHR interoperability
Correct answer: Reducing per capita healthcare costs
The IHI Triple Aim targets simultaneously better health outcomes, better patient experience, and lower per capita costs.
Question 5: A hospital's contribution margin is calculated as:
- Total revenue minus total expenses
- Revenue minus variable costs (Correct answer)
- Fixed costs minus depreciation
- Net income plus interest expense
Correct answer: Revenue minus variable costs
Contribution margin equals revenue minus variable (direct) costs, showing what remains to cover fixed costs and generate profit.
Question 6: Which federal agency oversees the Medicare and Medicaid programs in the United States?
- Department of Veterans Affairs (VA)
- Centers for Medicare & Medicaid Services (CMS) (Correct answer)
- Agency for Healthcare Research and Quality (AHRQ)
- Health Resources and Services Administration (HRSA)
Correct answer: Centers for Medicare & Medicaid Services (CMS)
CMS, a component of the Department of Health and Human Services, administers Medicare, Medicaid, and CHIP.
Question 7: When a healthcare organization uses a balanced scorecard, it typically measures performance across how many perspectives?
- Two
- Three
- Four (Correct answer)
- Six
Correct answer: Four
Kaplan and Norton's balanced scorecard uses four perspectives: financial, customer, internal processes, and learning & growth.
Which payment model bundles a single payment for all services provided during an episode of care across providers?