Professional Documents
Culture Documents
e) Medicare number
f) Medicade number
g) CLIA certificate
h) Local business license
i) Insurance credentialing
5) Which of the following would benefit from the use of technology (electronic)?
a) Medical records
b) Scheduling
c) Billing
d) Hospital linking
e) Communication between physicians and staff
f) All of the above
6) Which of the following deals with receiving payment for the medical services
provided by the practice?
a) Fee schedule
b) Billing/coding
c) Collections
d) Bookkeeping
e) Payroll
c) Accountant (CPA)
d) Management consultant
5) Which of the following questions would NOT be helpful to ask when interviewing a
potential practice management adviser?
a) What do you know about opportunities for my specialty in this neighborhood?
b) How do you charge for your services?
c) What should I expect from you in the first three months?
d) Will you be available to complete medical coding and billing documents?
e) What documents will you be producing for me and what input do I have?
6) Lending instaurations do not need to see start-up cost and cash-flow projections in
detail before loaning you money, thus time can be saved by skipping this task.
a) True
b) False
7) For a solo medical practice, how much space would be sufficient and not wasteful?
a) 135 square feet
b) 1,350 square feet
c) 6,850 square feet
d) 13,500 square feet
e) 68,500 square feet
8) Which of the following budget items will likely be the most expensive on a month to
month basis?
a) Rent
b) Utilities
c) Clinical supplies
d) Malpractice premiums
e) Staffing
9) To estimate how much cash will come in, you and your adviser will need to find out
what the insurance companies pay per current procedural terminology (CPT) code, and
project how many patients you'll see each month for the first how many months?
a) 24
b) 14
c) 9
d) 6
e) 3
10) Which of the following is a component of the cash-flow forecast?
a) Placing an ad in the Yellow pages
b) Determining the age of the population in the area
c) Deciding if you want to have mid-level practitioners on staff
d) Hiring a management consultant
HCM #5 – Starting a Practice: 9-10 months out: Loans, leases, and credentialing
1) Which of the following typically has a variable rate and is used to cover cash-flow
shortfalls for routine operating expenses, such as payroll, and would not be used to cover
start-up costs and long-term expenses?
a) Loan
b) Mortgage
c) Line of credit
d) Cash on hand
e) Loan shark
2) When choosing a private practice location, it should be near ____ if you are a
specialist and near ____ if you are a generalist.
a) A hospital; A hospital
b) A hospital; Population centers
c) Population centers; A hospital
d) Population centers; Population centers
3) What rental term is recommended for a new medical practice?
a) 3 months
b) 3 years
c) 10 years
d) 15 years
e) 25 years
4) Which of the following would be an additional cost if you failed to pay your building
rent on time?
a) Liability
b) Exclusivity
c) Accessibility
d) Operation cost
e) Default provisions
5) Which of the following is a medical licensing requirement that may NOT be required
by all states?
a) Periodic competency exams
b) Written licensing exam
c) Graduation from an accredited medical school
d) Completion of a recognized postgraduate training program
6) Some states require a separate Drug Enforcement Administration (DEA) license for
the prescription of what type of drugs?
a) Hypnotics
b) Amphetamines
c) Barbituates
d) Paralytics
e) Narcotics
7) Which of the following is needed in order to get paid by Medicare?
a) DEA
b) CLIA
c) EIN
d) UPIN
e) ECGMG
a) Business Owners
b) Business Continuation
c) Employee Dishonesty
d) Worker’s Compensation
e) Umbrella
9) What type of coverage is mandatory in most states and covers employee lost wages
due to on-the-job injury?
a) Business Owners
b) Business Continuation
c) Employee Dishonesty
d) Worker’s Compensation
e) Umbrella
HCM #7 – Starting a practice: 5-6 months out: Office design and supplies
1) Planning a medical office well can improve overall efficiency and effectiveness.
Experts say primary care doctors need how many exam rooms for top productivity?
a) None
b) 1
c) 2
d) 3
e) As many as possible
2) When determining the waiting room size, patient families should be accounted for and
exam rooms should be subtracted. A waiting room should hold how many times the
maximal number of patients seen during the busiest hour of the day?
a) 1
b) 1.5
c) 2
d) 2.5
e) 3
3) When calculating the floor size of a waiting room, the number of chairs calculated
should be multiplied by what floor-space size?
a) 5 square feet
b) 20 square feet
c) 50 square feet
d) 100 square feet
e) 200 square feet
4) What is the benefit of having an aquarium in the waiting room?
a) Provides heat
b) Has a calming affect
c) Provides a good smell
d) Provides entertainment for the elderly
e) Helps dehumidify the air
5) When purchasing furniture, prices should be limited to wholesale plus 25%. For chairs,
it is necessary to buy some chairs with arm rests and some without arm rests for what
type of patients?
a) Elderly
b) Sick
c) Obese
d) Infants
e) Sleeping
6) When looking to use an electronic medical record (EMR) system, which of the
following should be purchased first?
a) Software
b) Computers
c) Flat-panel monitors
d) Backup data drives
e) Wireless routers
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d) 5 Years
e) 10 Years
3) Having a collections system in place would ensure which of the following?
a) The insurance company know your commonly performed services
b) A health care attorney reviews all insurance contracts
c) When your reimbursement schedule expires
d) Maximize the amount of money you can earn
e) That insurance companies are reimbursing properly
4) All of the following tasks should be assigned to certain responsible individuals (one
individual has a task) EXCEPT:
a) Patient care
b) Book keeping
c) Payroll
d) Lab test results
e) Ordering supplies
HCM #11 – The Medical Home: An idea whose time has come…again
1) Which of the following is a key issue standing in the way of the medical home
concept?
a) Whether there is value
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c) Quality
d) Care coordination
4) Which of the following has the primary goal of enhancing the doctor-patient
relationship?
a) Efficiency
b) Access
c) Quality
d) Care coordination
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e) 250 days
8) In general, an internal medicine physician will see over 21 patients per day in an
office. How many patients a day will a hospital physician see?
a) 1
b) 5
c) 10
d) 15
e) 30
9) A visit with a relative value unit (RVU) of 3.00 would be considered?
a) Minimal
b) Problem focused
c) Expanded problem focused
d) Detailed
e) Complex
10) A multispecialty group is most likely to use what classification of compensation plan
for pay-by-performance?
a) 100% productivity
b) 50-99% productivity
c) 50-99% guaranteed
d) 100% salary
e) 100% equal share
11) An Evergreen (perpetual) agreement is general associated with what type of group?
a) Solo specialty group
b) Multi-specialty group
c) Family practice group
d) Internal medicine group
e) Hospital-owned group
12) What is tail coverage?
a) Malpractice insurance while at a practice (cover your tail)
b) Insurance in the event of a disability
c) Insurance in the event of an illness
d) Malpractice insurance after leaving a practice
e) Maternity leave insurance
13) Which of the following compensation arrangements would be most likely seen in
private practice?
a) Salary
b) Base salary with incentive compensation
c) Straight production
14) Which of the following is NOT a fringe benefit?
a) Continuing medical education (CME)
b) 401(k)
c) Salary
d) Sick days
e) Dental insurance
15) Occurrence-based professional liability (malpractice) insurance requires tail
coverage.
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a) True
b) False
16) Which of the following locations has the highest professional liability insurance rate
for internal medicine (2004-2006)?
a) Chicago
b) Cleveland
c) Erie
d) Los Angeles
e) Miami
17) Two times annual earnings is considered reasonable for a non-compete provision
within an employment contract. What is a reasonable time period?
a) Two years
b) Five years
c) Seven years
d) Ten years
e) Indefinite
18) What is a non-solicitation provision within an employment contract?
a) Prevents leaving physician from selling services to old employer
b) Prevents leaving physician from starting a new practice
c) Prevents leaving physician from practicing within ten miles
d) Prevents leaving physician from recruiting old coworkers
e) Prevents leaving physician from applying for tail coverage
19) An employment contract may require controversy to be settled by arbitration.
Arbitration is often less costly than litigation.
a) True
b) False
20) Which of the following is NOT true regarding Buy/Sell Agreements?
a) Historically they involved an economic apprenticeship
b) Today physicians feel value comes from annual earnings
c) Modest buy/sell transactions with predetermined terms are becoming popular
d) Partnership is guaranteed after a contract limited time (1-3 years)
e) They may be executed at the end of the employment term
21) The value for accounts receivable is usually calculated based on:
a) Book value
b) Subjective value
c) Fair market value
d) Historical collection rates
22) Which of the following is NOT a successful characteristic of a buy/sell agreement?
a) Methodology is established up front
b) Price is established up front
c) The agreement services the short-term strategic interest of the group
d) The price of the transaction is not an unreasonable financial burden
e) Equity holders can purchase equal share and equal vote
23) Dispute negotiations should be done in good faith and in fairness to all involved.
a) True
b) False
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James Lamberg
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