Q1. T/F. There are three primary methods for payment: cost, Fee schedules and price related. (2) T/F. There are two primary methods of unit payment: specific services and bundled services. (3)The following are considered an element of pricing except: (a) discounts on billed-charge patients,(b) reasonable return on investment,(c) average express, (d) losses on third-party fee-schedule payments,(e) average costs. (4) factors The tend to Increase Prices are the following except: (a)increase in uninsured patients,(b)increase in costs, (c) government programs that pay less than cost, (d) reduction in charge-paying patients, (e) managed-care plan fee schedule that do not pay at levels above costs, (f) increase in expenses. (g) increases in required profit, such as debt-service obligations or capital INSERTment. All the above . All except “b”, All except “f “. (5) Accrual accounting is used by accountants to measure profit and loss. All are true statements regarding accrual accounting except: (a) entails deciding when patients have received services for which the organization is entitled to income, (b) income (revenue) is earned when services are provided, (c) Expenses are the costs of providing material and service to the parties that receive the service, when the service is being provided, ((d) income is recognized when the payer pays for the service, (e) accurate measurement of profits or losses depends upon the correct matching of services provided and the costs of providing these services. (6) T/F. Cash accounting is a simple alternative to accrual accounting. (7) T/F. Cash accounting and cash flow is the same thing. (8) T/F. Hospitals receive payments from four chief sources. These sources are local, state, Federal Government,: Public Payers, Patients/Families. (9) T/F. Price transparency requires hospitals to provide the patient with information on the costs associated with a service prior to the provision of the service. (10) Which of the following statements are true regarding prospective reimbursement? (a) approach that assumes the degree of care required (case intensity) is a function of the patient’s diagnosis and that the payment to the provider should be based on the intensity of care and resources required by the specific diagnosis, (b) diagnostic related groups were developed by a group of researchers at Yale University in the late 1960s. (c) Built-in incentive for hospitals and health care organizations to control costs. (d) A no-lose system for hospitals the bill submitted by the hospital was totally covered, ( e) A shorter length of stay is profitable for the hospital, (f) all the above except “e” (g) all the above except ” c” (All the above..
Logon rmu.edu/blackboard, username: jabst156, pw: Comsaf2003. select HSAM1500 for week 6&7 chapters of Essential of Healthcare Finance. Seventh Edition. Author: Willian O Cleverley, Paula H. Song, and James O Cleverley for readings and resources