TAGME Financial Management 5

Question 1

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?

Accepted Answer

Institutional support and resources

Answer

ACGME institutional requirements mandate that sponsoring institutions ensure adequate financial and administrative support for residents, including leave situations.

Question 2

When building a multi-year GME financial model, which assumption has the GREATEST impact on long-term cost projections?

Accepted Answer

Annual percentage growth in resident stipend levels

Answer

Stipend levels are the largest single cost driver in GME budgets; annual growth rates compound significantly over a multi-year forecast horizon.

Question 3

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:

Accepted Answer

Report the discrepancy to institutional compliance and initiate repayment

Answer

Double-billing government entities is a serious compliance violation requiring immediate disclosure to institutional compliance officers and repayment of the duplicate charge.

Question 4

Which financial ratio would a hospital CFO most likely use to assess the GME department's efficiency in converting budget into educational outputs?

Accepted Answer

Cost per resident FTE

Answer

Cost per resident FTE is the most direct efficiency metric for GME, showing how much the program spends per trainee and enabling benchmarking.

Question 5

A GME administrator is asked to calculate the 'break-even point' for a new procedural skills lab. In this context, break-even means:

Accepted Answer

The lab generates enough revenue to cover all fixed and variable operating costs

Answer

Break-even analysis determines the volume or revenue level at which total costs equal total revenues, yielding zero net profit or loss.

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME Financial Management 5