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HSM 340 Final Exam – DeVry

HSM 340 Week 8 Final Exam

(HSM 340 Health Services Finance- DeVry)

1. Question: (TCO 4) When would it make sense to use a flexible budget as compared to a forecast budget?

2. Question: (TCO 7) Explain the difference between a horizontal merger and a vertical merger.

3. Question: (TCO 1) Describe the Outpatient Code Editor.

4. Question: (TCO 1) What is the primary provision of the EMTALA.

5. Question: (TCO 3) Use the following data to calculate the variances in problem. data Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: The HMO in the above example has indicated that their doctors use less expensive joint implants. If this less expensive implant is used, your medical supply charges would be reduced by $2,000. What is the estimated reduction in variable cost?

6. Question: (TCO 2)Explain the difference between the accrual basis of accounting and the cash basis of accounting.?

7. Question: (TCO 2) What are the double-entry accounting system and the duality concept? How are they related?

8. Question: (TCO 5) Define an annuity.

9. Question : (TCO 5) What avenues are available for for-profit healthcare providers to increase their equity position?

10. Question: (TCO 6) Describe the two major components of a working capital management strategy?

11. Question: (TCO 6) What is the general rule of thumb about when to borrow long-term or short-term?

12. Question: (TCO 5) How should the interest rate and n periods of compounding be modified if compounding for less than one year?

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