q1--45

· Question 1

	The majority of hospitals in the United States are classified as private for-profit hospitals. · True · False

· Question 2

	Charity Care is defined as care for services when it is expected that the patients will not pay. · True · False

· Question 3

	The capitation method of payment is one of the many strategies used by managed care companies to control costs. · True · False

· Question 4

	In 2004, there was nationwide litigation against several large not-for-profit health systems. Please explain the following: the reason for the legal action; the reason why the law targeted not-for-profit hospitals; the government response (federal, state and local level) to this occurrence.

· Question 5

	Please explain the organization purpose and also identify why each point is important to the management of health care organizations.

· Question 6

	The prepaid group practice was the forerunner of the BlueCross/ Blue Shield plans that are in existence today.

· True

· False.

· Question 7

Please list and discuss the characteristics of the three methods of payment. Please also list at least one strength and weakness of each of the chosen methods.

· Question 8

In the Statement of Cash Flows, cash flows from investing activates contain information regarding the purchases and sale of PPE (Property, Plant, and Equipment).

· True

· False

· Question 9

In cost allocations, the direct method recognizes the interdependencies between the various support departments (e.g., relationship human resources, housekeeping, and administration).

· True

· False

· Question 10

As you move down the asset section of the balance sheet, assets become more liquid.

· True

· False

· Question 11

Please list and define the three measures of charity care. Which level is most likely to be performed by hospitals?

· Question 12

Cost that occur with relative certainty, and occur regardless of the level of volume over a relevant range are known as adjusted costs.

· True

· False