1. What is the primary goal of healthcare financial management? a) Maximizing staff retention b) Minimizing operational costs c) Maximizing patient satisfaction d) Ensuring financial viability Answer: d) Ensuring financial viability Rationale: The primary goal is to ensure that the healthcare organization remains financially viable to continue providing services. 2. Which financial statement best reflects the profitability of a healthcare organization? a) Balance sheet b) Statement of cash flows c) Income statement d) Statement of changes in equity Answer: c) Income statement Rationale: The income statement provides information on revenues, expenses, and profits over a period of time, reflecting profitability. 3. What is the significance of the payer mix in healthcare financial management? a) It determines the facility's service pricing. b) It influences the organization's risk management strategies. c) It affects the reimbursement rates and revenue. d) It dictates the healthcare facility's location. Answer: c) It affects the reimbursement rates and revenue. Rationale: Payer mix refers to the percentage of revenue coming from different types of payers (e.g., private insurance, Medicare, Medicaid), which affects reimbursement rates and overall revenue. 4. How does capitation payment model affect healthcare providers? a) Providers receive a fixed amount per patient regardless of services provided. b) Providers are reimbursed after services are rendered based on fee-forservice. c) Providers are paid based on the quality and efficiency of care. d) Providers are compensated based on patient health outcomes.