MRO Contract Types & Administration 3

Question 1

A third-party administrator (TPA) contracts with an MRO on behalf of multiple small employers. Under DOT rules, which statement is correct regarding the TPA's role?

Accepted Answer

The TPA may manage logistics but each employer retains regulatory compliance responsibility

Answer

TPAs facilitate program administration but each regulated employer remains individually responsible for compliance under 49 CFR Part 40.

Question 2

An MRO contract renewal negotiation reveals the vendor has increased per-test fees by 30% due to lab cost increases. The existing contract contains an 'economic price adjustment' (EPA) clause. What does this clause typically allow?

Accepted Answer

Automatic fee increases tied to a specified index or cost trigger

Answer

EPA clauses permit price adjustments based on predefined indices or cost-change triggers, protecting both parties from extreme market fluctuations.

Question 3

An MRO discovers a conflict of interest: the laboratory the employer's contract mandates is owned by a family member of the MRO. The most appropriate action is to:

Accepted Answer

Disclose the conflict to the employer and recuse from reviewing that lab's specimens

Answer

Professional ethics and most MRO contracts require disclosure of conflicts of interest and recusal from affected decisions.

Question 4

When an MRO services contract is transferred to a new employer following a corporate acquisition, which action is most important before the new employer continues using the existing contract?

Accepted Answer

Verify the contract contains an assignment clause permitting transfer

Answer

Without a valid assignment clause, the contract cannot legally transfer to the acquiring entity, requiring a new contract or amendment.

Question 5

A performance bond requirement in an MRO services contract primarily protects the employer against:

Accepted Answer

MRO failure to perform contracted services

Answer

A performance bond provides financial assurance that the MRO vendor will fulfill contractual obligations or the surety will compensate the employer.

(MRO) Medical Review Officer Certification Practice Test

(MRO) Medical Review Officer Certification Practice Test

MRO Contract Types & Administration 3