Healthcare Finance Practice Exam
Course Introduction
Healthcare Finance is a course that explores the fundamental principles and practices related to the financial management of healthcare organizations. It covers core topics such as budgeting, accounting, financial statement analysis, reimbursement methods, and the economic forces affecting the healthcare industry. Students analyze the unique financial challenges faced by hospitals, clinics, and other healthcare providers while learning to apply financial tools and concepts to decision-making and strategic planning. Emphasis is placed on cost control, revenue cycle management, capital investment decisions, and the impact of regulatory policies on financial operations within the healthcare sector.
Recommended Textbook
Health Economics 6th Edition by
Rexford E. Santerre
Available Study Resources on Quizplus
16 Chapters
240 Verified Questions
240 Flashcards
Source URL: https://quizplus.com/study-set/3933
Page 2
Chapter 1: Introduction
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78432
Sample Questions
Q1) Physicians are a scarce resource in health care markets.
A)True
B)False
Answer: True
Q2) _______ is the largest source of health care funds in the U.S.
A) Out-of-pocket
B) Medicaid
C) Medicare
D) Private health insurance
E) Workers' compensation Answer: D
Q3) Opportunity costs only occur when there is government involvement in markets such as health care.
A)True
B)False
Answer: False
Q4) Since 1975, the uninsurance rate in the U.S. has increased.
A)True
B)False
Answer: True
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Health and Medical Care: an Economic Perspective
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78431
Sample Questions
Q1) _______ can help avoid the problem of diminishing marginal productivity of medical care.
A) Increases in the number of physicians
B) Increases in the number of nurses
C) Advancements in medical technology
D) both a and b are correct
E) All of the above
Answer: C
Q2) Which of the following is not a characteristic of medical care that distinguishes it from other goods?
A) Investment
B) Inventory
C) Intangibility
D) Inconsistency
E) Inseparability
Answer: A
Q3) Better macroeconomic conditions have a positive overall impact on health.
A)True
B)False
Answer: False
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Cost and Benefit Analysis
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78430
Sample Questions
Q1) Rationality implies that people will always make the correct choice.
A)True
B)False
Answer: False
Q2) Economists assume people behave rationally. If this were true, then the U.S. Surgeon General would only make decisions that benefit him/her financially.
A)True
B)False
Answer: False
Q3) The _______ equates the value of a life to the market value of the output produced by an individual during his / her expected lifetime.
A) willingness-to-pay approach
B) cost-benefit approach
C) cost-effectiveness approach
D) human capital approach
E) cost-utility approach
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Health Care Systems and Institutions
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78429
Sample Questions
Q1) The purchase of insurance eliminates the risk of financial loss for all parties.
A)True
B)False
Q2) Which of the following countries provides universal health insurance coverage?
A) United States
B) Germany
C) Switzerland
D) United Kingdom
E) Canada
Q3) Medical care providers in the U.S. are reimbursed through the use of _______.
A) fixed payment systems
B) variable payment systems
C) out-of-pocket fees
D) All of the above
E) both a and c
Q4) Fee-for-service reimbursement systems help reduce health care expenditures.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: The Demand for Medical Care
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78428
Sample Questions
Q1) Demand for most medical services in the U.S. has been found to be inelastic.
A)True
B)False
Q2) Larger deductible requirements decrease the risk of moral hazard.
A)True
B)False
Q3) A _______ represents a fixed amount paid by the consumer that is independent of the market price or actual costs of medical care.
A) deductible
B) loading charge
C) coinsurance rate
D) claim
E) copayment
Q4) As consumers purchase more medical care, the marginal utility per dollar spent on medical care increases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Demand for Medical Insurance: Traditional and Managed Care Coverage
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78427
Sample Questions
Q1) Consumer-driven healthcare attempts to _______ moral hazard costs by _______ out-of-pocket expenditures faced by consumers.
A) increase; decreasing
B) decrease; decreasing
C) increase; increasing
D) decrease; increasing
E) None of the above
Q2) According to John Nyman, classic economic theory overstates the degree of overconsumption of medical services by only considering ______.
A) inefficient moral hazard
B) pure premiums
C) risk-averse consumers
D) efficient moral hazard
E) income effects
Q3) Capitation payments made to physician group practices reduce the financial incentive for physicians to provide excessive medical services.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Medical Care Production and Costs
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78426
Sample Questions
Q1) _______ occur when the cost of producing a medical service decreases as the quantity produced increases.
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Diseconomies of scope
E) None of the above
Q2) If the marginal product is greater than the average product of physicians, then the average product of physicians must be increasing.
A)True
B)False
Q3) Previously paid sunk costs do not factor into most decisions since they can't be recouped.
A)True
B)False
Q4) Short-run average variable costs decrease initially, but then begin to rise due to diminishing marginal productivity of labor.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Structure, Conduct, Performance, and Market Analysis
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78425
Sample Questions
Q1) A decrease in the demand for medical care will cause the real hourly wage of physicians to increase.
A)True
B)False
Q2) The net benefit received through the purchase and consumption of medical care is referred to as _______.
A) economic surplus
B) deadweight loss
C) consumer surplus
D) producer surplus
E) None of the above
Q3) Barriers to entry are not present in which type of industry?
A) Perfect Competition
B) Monopolistic Competition
C) Oligopolies
D) Monopolies
E) None of the above
Q4) Collusion is most likely to occur within monopolistic competition.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Government, Health, and Medical Care
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78424
Sample Questions
Q1) Flu vaccinations are an example of _______.
A) positive demand-side externality
B) negative supply-side externality
C) no externality
D) negative demand-side externality
E) positive supply-side externality
Q2) Medical care is a public good, as it is both non-rival and non-excludable.
A)True
B)False
Q3) Cigarette smoking is an example of _______.
A) positive demand-side externality
B) negative supply-side externality
C) no externality
D) negative demand-side externality
E) positive supply-side externality
Q4) A price ceiling will increase the quantity of medical care produced in a monopoly market.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Government As Health Insurer
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78423
Sample Questions
Q1) At the age of 65, individuals are automatically enrolled in Medicare Part B.
A)True
B)False
Q2) Medicare Part A is financed primarily through _______.
A) individual premiums
B) state governments
C) sales tax revenue
D) charitable care
E) payroll taxes
Q3) Though eligibility varies from state to state, _______ is a public insurance program intended to cover low-income individuals, children, and pregnant women.
A) Medicare
B) Medicaid
C) charitable care
D) Blue Cross
E) Blue Shield
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: The Private Health Insurance Industry
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78422
Sample Questions
Q1) _______ occurs when high-risk individuals subscribe to an insured group of low-risk individuals.
A) Moral Hazard
B) Asymmetric Information
C) Rationality
D) Scale Economies
E) Adverse Selection
Q2) People obtaining health insurance as part of a group are likely to pay higher premiums than those who acquire coverage individually.
A)True
B)False
Q3) Scale economies may serve as a barrier to entry in the private health insurance market by mandating a tiered benefit system.
A)True
B)False
Q4) Third-party payments provide incentives for the adoption of new technologies that may carry low benefits with high costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Physician Services Industry
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78421
Sample Questions
Q1) Which of the following exemplifies the principal-agent theory within medical care?
A) The doctor-patient relationship
B) The doctor-payer relationship
C) The patient-payer relationship
D) Both a and c
E) All of the above
Q2) What are the two primary goals of the malpractice system?
A) Reduce the number of claims and deter negligence
B) Compensate victims and deter negligence
C) Reduce the number of claims and limit the size of awards
D) Increase the number of claims and compensate victims
E) none of the above
Q3) Allowing physicians to patent and license practice strategies could help decrease price variations.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Hospital Services Industry
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78420
Sample Questions
Q1) Third-party payers representing a _______ market share have _______ negotiation power to obtain lower prices for hospital services.
A) small; greater
B) small; reduced
C) large; reduced
D) large; greater
E) both b and d
Q2) Which of the following reasons might serve as a barrier to entry within the hospital services industry?
A) Scale economies
B) Standardized products
C) Certificate of need
D) Both a and c
E) All of the above
Q3) Certificates of need promote price competition amongst hospitals.
A)True
B)False
Q4) Most hospitals in the U.S. operate as for-profit firms.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: The Pharmaceutical Industry
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78419
Sample Questions
Q1) Which of the following accounts for the largest share of expenditures on prescription drugs?
A) Private insurance
B) Medicare
C) Medicaid
D) Medigap
E) Out-of-pocket
Q2) The FDA tends to focus more on reducing _______ errors since the victims are _______ identifiable than those from _______ errors.
A) type 1; less; type 2
B) type 2; more; type 1
C) type 2; less; type 1
D) type 1; more; type 2
E) None of the above
Q3) The U.S. government decreases competition within the pharmaceutical industry through the issuing of patents.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Long-Term Care Industry
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78418
Sample Questions
Q1) Evidence suggests that nursing homes can substantially reduce their average total cost of production by increasing the amount of patients served due to substantial economies of scale.
A)True
B)False
Q2) According to the Scanlon model, a decrease in Medicaid reimbursement rates will lead to _______.
A) increase in the amount of privately-insured patients served
B) increase in the amount of Medicaid patients served
C) decrease in the price charged to privately-insured patients
D) no changes in the patient mix served
E) increase in the price charged to privately-insured patients
Q3) Which of the following best describes a typical nursing home?
A) For-profit ownership with 200 beds
B) Non-profit ownership with 50 beds
C) For-profit ownership with 100 beds
D) For-profit ownership with 50 beds
E) Non-profit ownership with 100 beds
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Health Insurance Reform
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/78417
Sample Questions
Q1) A national health insurance plan would provide significant cost advantages through scale economies.
A)True
B)False
Q2) While the U.S. spends more per capita on medical care, it possesses the lowest infant mortality rate amongst developed countries.
A)True
B)False
Q3) An individual mandate system reins in cost through highly competitive medical insurance markets.
A)True
B)False
Q4) Health reform based on managed competition would be financed primarily through_______.
A) an income tax
B) individual contributions
C) employer mandates
D) premium payments
E) none of the above
To view all questions and flashcards with answers, click on the resource link above. Page 18