Question
HIM 206 PRINCIPLE OF MANAGEMENT
1. When evaluating health plan options, the upfront costs patients and employers make to payers for health care insurance coverage are:
a. copayments
b. coinsurance and deductibles
c. premiums
d. all of the above
2. Health care providers increasingly look to nonoperating revenues as a significant source of revenue, examples of which might include:
a. durable medical equipment
b. investment interest
c. prescription drugs
d. all of the above
3. A primary role of the federal government’s Recovery Audit Contractor (RAC) program is to:
a. identify false hospital cost reports
b. identify payment errors due to noncompliance with billing and payment rules
c. detect deliberate upcoding of cases or billed services not actually performed
d. all of the above
4. Which of the following are key principles for effective financial accounting practices?
a. budget preparation
b. productivity analysis
c. cash and accrual systems
d. all of the above
5. The managerial accounting process of forecasting volume and monetary resources needed by the organization is best accomplished through:
a. financial ratio analysis
b. budget preparation
c. matching concept
d. capital expenditure planning
Step 1/5
1. d. all of the above
- Explanation for step 1
When evaluating health plan options, patients and employers may be required to make various upfront costs to payers for health care insurance coverage. These costs can include:
a. Copayments: A fixed amount that a patient must pay for a specific medical service at the time of service. For example, a copayment for a doctor’s visit or prescription medication. Principles of Health Planning and Management Essay Assignment
b. Coinsurance and Deductibles: Coinsurance is a percentage of the cost of a medical service that a patient is responsible for paying, while a deductible is the amount a patient must pay before insurance coverage begins. For example, a plan with 20% coinsurance and a $1,000 deductible means that a patient would pay 20% of the cost of a $5,000 medical procedure and the insurance would pay the remaining 80%.
c. Premiums: A fixed monthly or annual payment made by a patient or employer to the insurance company for health insurance coverage. The premium is usually paid in exchange for access to medical services covered under the health plan.
All of these costs are part of the overall expenses incurred for health care insurance coverage, and patients and employers must consider these costs when evaluating different health plan options.
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Step 2/5
2. d. all of the above
- Explanation for step 2
Health care providers are increasingly looking to non operating revenues as a significant source of revenue. These revenues come from sources that are not directly related to the delivery of patient care. Examples of nonoperating revenues in health care include:
a. Durable Medical Equipment: Sales of medical equipment such as wheelchairs, crutches, and hospital beds, which can be used repeatedly over an extended period of time.
b. Investment Interest: Earnings from investments made by health care providers, such as bonds, stocks, and real estate.
c. Prescription Drugs: Sales of prescription drugs, which can be a significant source of revenue for hospitals and other health care providers.
These non operating revenues can play a significant role in the overall financial health of health care providers and are an important consideration for both providers and patients. By diversifying their revenue streams, providers can help ensure the sustainability of their operations and better manage the financial impact of changes in the health care market.
Step 3/5
3.d. all of the above
- Explanation for step 3
The Recovery Audit Contractor (RAC) program is a federal government program designed to identify and recover improper payments made by Medicare and Medicaid programs. The primary role of the RAC program is to:
a. Identify False Hospital Cost Reports: RACs review hospital cost reports to ensure they accurately reflect the cost of services provided to Medicare and Medicaid beneficiaries.
b. Identify Payment Errors Due to Noncompliance with Billing and Payment Rules: RACs identify instances where hospitals or other health care providers have billed Medicare or Medicaid in a manner that is not compliant with the relevant billing and payment rules.
c. Detect Deliberate Upcoding of Cases or Billed Services Not Actually Performed: RACs look for cases where providers have deliberately inflated the level of services provided or billed for services that were not actually performed.
Overall, the RAC program helps to ensure the integrity of the Medicare and Medicaid programs by identifying and correcting improper payments. This helps to reduce the financial burden on taxpayers and preserve the viability of these important health care programs for future generations. Principles of Health Planning and Management Essay Assignment
Step 4/5
4.d. all of the above
- Explanation for step 4
Budget preparation, productivity analysis, and cash and accrual systems are all considered key principles for effective financial accounting practices.
Budget preparation involves creating a financial plan for the future and helps ensure that a company has sufficient resources to meet its goals and objectives.
Productivity analysis involves evaluating a company’s performance and efficiency in using its resources, such as labor, materials, and capital, to produce goods and services.
Cash and accrual systems refer to the two main methods used to record and report financial transactions in a company’s accounting records. The cash basis records transactions when cash is received or paid, while the accrual basis records transactions when they are incurred, regardless of when cash is received or paid.
Incorporating these principles into financial accounting practices helps provide a comprehensive and accurate picture of a company’s financial situation, which is critical for informed decision-making and achieving long-term success.
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Step 5/5
5.b. budget preparation
- Explanation for step 5
The managerial accounting process of forecasting volume and monetary resources needed by an organization is best accomplished through budget preparation.
Budget preparation involves creating a financial plan for the future, which helps an organization to determine the resources it needs to achieve its goals and objectives. This process involves forecasting future sales and expenditures, and making decisions about how resources will be allocated to various activities. By preparing a budget, an organization can identify potential shortfalls in resources and make adjustments to ensure that it has the necessary resources to meet its goals.
Financial ratio analysis is a tool used to evaluate the financial performance of a company by comparing various financial metrics.
The matching concept is an accounting principle that states that expenses should be recorded in the same accounting period as the related revenue.
Capital expenditure planning involves making decisions about long-term investments in the organization’s capital assets, such as property, equipment, and technology. Principles of Health Planning and Management Essay Assignment
Final answer
1.d. all of the above
2.d. all of the above
3.d. all of the above
4.d. all of the above
5.b. budget preparation