HAC Healthcare Analyst Financial Management & Budgeting 1 — Questions and Answers
Question 1: Which financial metric measures the percentage of billed services that a healthcare organization actually collects?
- Collection rate (Correct answer)
- Accounts receivable turnover
- Gross margin
- Operating ratio
Correct answer: Collection rate
The collection rate measures the percentage of billed charges that are actually collected after adjustments and write-offs.
Question 2: In healthcare budgeting, what does a 'variance analysis' primarily examine?
- Differences between budgeted and actual financial results (Correct answer)
- Variance in patient diagnoses
- Statistical variation in lab results
- Staff scheduling differences
Correct answer: Differences between budgeted and actual financial results
Variance analysis compares budgeted (planned) figures to actual results to identify discrepancies and their causes.
Question 3: What is the primary purpose of a healthcare organization's operating budget?
- To plan and control day-to-day revenues and expenses (Correct answer)
- To fund capital equipment purchases
- To manage long-term debt obligations
- To track investment portfolio performance
Correct answer: To plan and control day-to-day revenues and expenses
The operating budget plans and controls the routine revenues and expenses necessary for daily healthcare operations.
Question 4: Which of the following best describes 'days in accounts receivable (AR)' in healthcare?
- The average number of days it takes to collect payment after service delivery (Correct answer)
- The number of days a patient account remains open
- The time between billing and insurance adjudication
- The average length of stay for insured patients
Correct answer: The average number of days it takes to collect payment after service delivery
Days in AR measures the average time between providing a service and receiving payment, indicating billing and collection efficiency.
Question 5: A healthcare analyst notices that supply costs increased by 15% while patient volume increased by only 5%. This is an example of what type of variance?
- Unfavorable efficiency variance (Correct answer)
- Favorable volume variance
- Favorable price variance
- Neutral budget variance
Correct answer: Unfavorable efficiency variance
An unfavorable efficiency variance occurs when costs grow faster than the corresponding volume or output, indicating inefficient resource use.
Question 6: Which reimbursement model pays healthcare providers a fixed amount per patient per month regardless of services used?
- Capitation (Correct answer)
- Fee-for-service
- Bundled payment
- Per diem
Correct answer: Capitation
Capitation pays a set monthly fee per enrolled patient, transferring financial risk to the provider to manage care efficiently.
HAC Healthcare Analyst Financial Management & Budgeting 1
Which financial metric measures the percentage of billed services that a healthcare organization actually collects?