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 sponsoring institution (SI) is required to provide financial support for a resident who goes on medical leave beyond what insurance covers. This obligation falls under which ACGME requirement area?
Answer: Institutional support and resources
ACGME institutional requirements mandate that sponsoring institutions ensure adequate financial and administrative support for residents, including leave situations.
When building a multi-year GME financial model, which assumption has the GREATEST impact on long-term cost projections?
Answer: Annual percentage growth in resident stipend levels
Stipend levels are the largest single cost driver in GME budgets; annual growth rates compound significantly over a multi-year forecast horizon.
A GME administrator discovers that the program has been double-billing both the VA hospital and the sponsoring institution for the same resident's salary during a VA rotation. The appropriate course of action is to:
Answer: Report the discrepancy to institutional compliance and initiate repayment
Double-billing government entities is a serious compliance violation requiring immediate disclosure to institutional compliance officers and repayment of the duplicate charge.
Which financial ratio would a hospital CFO most likely use to assess the GME department's efficiency in converting budget into educational outputs?
Answer: Cost per resident FTE
Cost per resident FTE is the most direct efficiency metric for GME, showing how much the program spends per trainee and enabling benchmarking.
A GME administrator is asked to calculate the 'break-even point' for a new procedural skills lab. In this context, break-even means:
Answer: The lab generates enough revenue to cover all fixed and variable operating costs
Break-even analysis determines the volume or revenue level at which total costs equal total revenues, yielding zero net profit or loss.
A program administrator is reviewing a contract with an outside vendor for board review courses. Which clause is MOST critical from a financial risk management perspective?
Answer: The vendor's refund and cancellation policy
The refund and cancellation clause directly protects the program's financial investment if enrollment changes or the course is cancelled, making it the most critical financial risk term.
Which federal legislation established protections requiring that resident stipends and benefits cannot be reduced mid-contract without consent, relevant to program financial obligations?
Answer: The House Staff Bill of Rights concepts codified in state law and ACGME policy
ACGME policy and many state laws protect residents from unilateral mid-year reductions in compensation or benefits, rooted in house staff rights principles.