HSM 340 Week 3 Quiz

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HSM 340 Week 3 Quiz

 1.Question :(TCO 3) From a hospital’s perspective, what is most likely to be the highest risk arrangement with a payer?
Student Answer: DRG/Per Case
 Per diem
 Discounted charges
 none of the above.
 2.Question :(TCO 3) SKF Primary Care Clinic is deciding whether to purchase MRI equipment that would enable it to perform MRI imaging services in-house rather than sending its patients to its competitor’s hospital three miles away. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know (or at least reasonably estimate) which of the following information?
Student Answer: Unavoidable fixed cost, volume, variable cost, and indirect costs
 Variable costs, volume, avoidable fixed cost, and total revenue
 Total unit cost, indirect costs, profit, and volume
 Revenue per unit, indirect costs, volume, and total revenue
 Avoidable fixed costs, revenue per unit, volume, and contribution margin
 3.Question :(TCO 3) Assume that the clinic used the price that they need to exactly break even at 10,000 shots. Fewer people than expected showed up and purchased the flu shot. The clinic would:
Student Answer: earn a profit.
 have a loss.
 have a reduced unit contribution margin.
 none of the above.
 4.Question :(TCO 3) Which of the following is the first step in any budgetary process?
Student Answer: Define standard treatment protocols
 Define required departmental volumes
 Define standard cost profiles
 Define volumes of patients
 5.Question :(TCO 3) David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.

Square FootageDirect ExpensesLab Tests
Day-op Suite3,0001,400,0004,000

Based on the scenario above, what are the Day Op Suite’s total expenses?

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 6.Question :(TCO 3) 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:

Average Charge$15,000
Average LOS5 Days
Routine Charge$3,600Cost/Charge 0.80Variable Cost % 60
Operating Room2,6570.8080
Medical Supplies4,5240.5090
Other Ancillary1,3160.8060
Total Ancillary$11,4000.7550

The HMO in the above example has indicated that their doctors use less expensive joint implants. If this less expensive implant were used, your medical supply charges would be reduced by $2,000. What is the estimated reduction in variable cost?

 7.Question :(TCO 3) How are costs classified?




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