Financial Management Flashcards
7 cards from real TAGME practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management flashcards as text
A GME program receives an unexpected mid-year budget shortfall due to increased resident travel costs. Which is the BEST immediate action for the program administrator?
Answer: Identify underspent budget line items that can be reallocated
Identifying underspent line items for reallocation is the most efficient first step before seeking additional funds or cutting resident benefits.
Under the Medicare GME payment system, what does 'IME' stand for and what does it fund?
Answer: Indirect Medical Education — additional costs of teaching hospitals
IME (Indirect Medical Education) payments compensate teaching hospitals for the higher patient care costs associated with operating a training program.
A residency program administrator notices that moonlighting income is being reported inconsistently across residents. What is the primary financial compliance concern?
Answer: Potential violation of duty hour regulations affecting program accreditation
Inconsistent moonlighting reporting raises ACGME duty hour compliance concerns that can jeopardize program accreditation.
Which cost-accounting method allocates shared departmental overhead (e.g., administrative salaries) to individual GME programs based on resident FTE count?
Answer: Step-down allocation
Step-down allocation distributes shared service costs sequentially to departments, often using resident FTE as the allocation driver.
A program administrator is preparing a budget variance report showing that actual resident benefit costs exceeded budget by 18%. Which metric should be analyzed FIRST?
Answer: Changes in resident headcount or benefit enrollment rates
Changes in resident headcount or benefit enrollment directly drive benefit cost variances and should be examined before other factors.
When a teaching hospital negotiates a new Medicare GME cap agreement after acquiring an additional training site, what federal agency must approve the new FTE cap?
Answer: Centers for Medicare & Medicaid Services (CMS)
CMS administers Medicare GME funding and must approve any changes to a hospital's FTE cap, including those resulting from site acquisitions.
A fellowship program considers purchasing simulation equipment costing $80,000. The equipment is expected to save $15,000 annually in outsourced simulation fees. What is the simple payback period?
Answer: 5.3 years
Simple payback = $80,000 ÷ $15,000/year = 5.33 years, approximately 5.3 years.