Quiz About Services

20 Questions

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Service Quizzes & Trivia

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Questions and Answers
  • 1. 
    Setting charges on the basis of consensus provokes
    • A. 

      Competition from insurance companies

    • B. 

      cost shifting

    • C. 

      cost cutting

    • D. 

      providers to search for sources of revenue other than patient care

  • 2. 
    What factors are taken into consideration when using financial expediency as a method of setting charges? 
    • A. 

      Cost of providing services to charge-based patients

    • B. 

      Losses to Medicare and Medicaid

    • C. 

      Cost of bad debt and charity care

    • D. 

      All of the above

  • 3. 
    • A. 

      healthcare organizations are charging only for items third-party payers recognize as legitimate charges

    • B. 

      Charges set for specific items result in maximum benefit

    • C. 

      healthcare organizations do not lose charges

    • D. 

      None of the above

  • 4. 
    Price-driven costing is the practice of 
    • A. 

      Cutting costs to break even with charges

    • B. 

      Cutting charges to break even with costs

    • C. 

      Setting charges equal to costs

    • D. 

      Setting costs equal to charges

  • 5. 
    Charge capture assessment ensures that 
    • A. 

      Charges set for specific items result in maximum reimbursement

    • B. 

      Healthcare organizations do not lose charges

    • C. 

      healthcare organizations are charging only for items that third-party payers recognize as legitimate charges D. none of the above

    • D. 

      None of the above

  • 6. 
    Financial expediency is a method of setting charges on the basis of
    • A. 

      The financial needs of the provider

    • B. 

      How quickly a provider can be reimbursed for services

    • C. 

      How quickly services can be performed

    • D. 

      How quickly a patient recover

  • 7. 
    Cost shifting is the practice of
    • A. 

      charging certain populations more for services

    • B. 

      Charging more for costlier procedures

    • C. 

      shifting costs from some payers to offset losses from another

    • D. 

      None of the above

  • 8. 
    What two factors have led to lower charges in the healthcare industry? 
    • A. 

      Managed care; advances in information technology

    • B. 

      Managed care; prospective payment systems

    • C. 

      Prospective payment systems; advances in information technology

    • D. 

      prospective payment systems; decreased demand for services

  • 9. 
    Pricing products or services relative to the market leader is known as _________ pricing. 
    • A. 

      Slash

    • B. 

      Preemptive

    • C. 

      Follower

    • D. 

      Skim

  • 10. 
    Charging analysis ensures that 
    • A. 

      healthcare organizations are charging only for items that third-party payers recognize as legitimate charges

    • B. 

      Healthcare organizations do not lose charges

    • C. 

      Charges set for specific items result in maximum reimbursement

    • D. 

      None of the above

  • 11. 
    Departments that use the hourly rate method of setting charges 
    • A. 

      Include physical therapy and radiology

    • B. 

      Charge per hour or modality of time for services

    • C. 

      set their charges to break even or realize a gain

    • D. 

      (a) and (b)

  • 12. 
    What does the Patient Protection and Affordable Care Act of 2010 require not-for-profit hospitals to do regarding charges? 
    • A. 

      Report their charges to the government on an annual basis

    • B. 

      Charge less for services to maintain a tax-exempt status

    • C. 

      Allow patients to view a list of charges for services

    • D. 

      Limit charges to patients who are eligible for assistance

  • 13. 
    Using the surcharge method of setting charges, calculate the charge necessary to cover total costs for 250,000 admission kits given that at East Side Clinic total projected cost of kits and administration = $375,000 and total projected cost of admission kits = $250,000.    
    • A. 

      $1.00

    • B. 

      $1.50

    • C. 

      50 cents

    • D. 

      $3.00

  • 14. 
    Providers set charges on the basis of _________ in competition-driven charging. 
    • A. 

      DRGs

    • B. 

      What other providers are charging

    • C. 

      what the market will bear

    • D. 

      Medicare’s fee schedule

  • 15. 
    Using the __________ method of setting charges, providers can set charges to break even or realize a profit. 
    • A. 

      hourly rate

    • B. 

      surcharge

    • C. 

      RVU

    • D. 

      DRG

  • 16. 
    Most providers agree that the following method of reimbursement is the least favorable.     
    • A. 

      Charges minus a discount

    • B. 

      Capitation

    • C. 

      cost

    • D. 

      charges

  • 17. 
    Departments that know the cost of their products use which method of setting charges? 
    • A. 

      DRG method

    • B. 

      Surcharge method

    • C. 

      RVU method

    • D. 

      Hourly rate method

  • 18. 
    Pricing products and services low in the long term by making fundamental changes to the products or services is known as ______ pricing.   
    • A. 

      Slash

    • B. 

      Follower

    • C. 

      Skim

    • D. 

      Preemptive

  • 19. 
    Using the hourly rate method of setting charges, calculate the charge per modality necessary to recover total costs given that at Stretch Sports Medicine Clinic total projected costs per year = $600,000, total projected hours of use per year = 15,000, and modality = 20 minutes. 
    • A. 

      $10

    • B. 

      $25

    • C. 

      $13.33

    • D. 

      $12.50

  • 20. 
    Most providers agree that the following method of reimbursement is the most favorable. 
    • A. 

      charges minus a discount

    • B. 

      Capitation

    • C. 

      Cost

    • D. 

      Charges