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 teaching hospital's GME cap is set at 250 FTE residents. It currently trains 310 residents. Medicare pays for how many FTEs at the direct GME rate?
Answer: 250 FTEs only; the remaining 60 receive no Medicare GME funding
CMS pays direct GME at the full per-resident amount only up to the hospital's FTE cap; residents above the cap generate no additional Medicare GME payment.
Which of the following is a direct cost typically included in calculating the per-resident amount (PRA) for Medicare GME funding?
Answer: Resident salaries, benefits, and program administrative costs
The PRA is based on direct costs attributable to training residents, including salaries, benefits, and program administration, not faculty malpractice or hospital overhead.
A GME administrator is asked to perform a 'gap analysis' for the upcoming budget cycle. What does this process involve?
Answer: Identifying the difference between projected funding and projected program expenses
A budget gap analysis identifies the shortfall or surplus between anticipated revenue sources and expected expenditures for the planning period.
A program is considering adding two new fellowship positions. The incremental cost per fellow is $95,000/year. If the hospital's Medicare GME cap has room for two additional FTEs and the PRA is $60,000, what is the net annual cost to the program per fellow?
Answer: $35,000
Net cost per fellow = $95,000 total cost − $60,000 Medicare PRA reimbursement = $35,000 annual net cost to the program.
Under IRS rules, resident stipends are subject to which of the following?
Answer: Federal income tax withholding as employee compensation
Resident stipends are treated as wages and are subject to federal income tax withholding; they are generally also subject to FICA unless a student FICA exception applies.
A GME budget includes a line item for 'fringe benefits' at 32% of resident salaries. If total resident salaries are $2.4 million, what is the fringe benefit budget?
Answer: $768,000
$2,400,000 × 0.32 = $768,000 in fringe benefits.
Which type of financial audit focuses specifically on whether GME funds were spent in compliance with federal regulations and institutional policies?
Answer: Compliance audit
A compliance audit evaluates whether spending conforms to applicable laws, regulations, and institutional policies—exactly the scope needed for GME fund oversight.