1. What is the primary financial objective of a healthcare organization? A) Maximizing shareholder wealth B) Providing community service C) Ensuring patient satisfaction D) Maintaining a balanced budget Answer: D) Maintaining a balanced budget Rationale: While healthcare organizations aim to provide community service and ensure patient satisfaction, the primary financial objective is to maintain a balanced budget to ensure sustainability and continuous operation. 2. Which of the following best describes the term 'capitation' in healthcare finance? A) A payment model where providers receive a fixed amount per patient B) A fee-for-service payment model C) A method of depreciating fixed assets D) A type of health insurance plan Answer: A) A payment model where providers receive a fixed amount per patient Rationale: Capitation is a payment arrangement where healthcare providers are paid a set amount for each enrolled person assigned to them, regardless of whether that person seeks care. 3. In the context of healthcare, what does the term 'payer mix' refer to? A) The ratio of healthcare providers to patients B) The distribution of a hospital's revenue sources C) The variety of health insurance plans available D) The mix of medications prescribed to patients Answer: B) The distribution of a hospital's revenue sources Rationale: Payer mix refers to the percentage of hospital revenue coming from different sources such as private insurance, Medicare, Medicaid, or out-of-pocket payments from patients. 4. What is the significance of the 'break-even analysis' in healthcare financial management? A) It determines the viability of new treatments. B) It calculates the minimum volume of services required to avoid financial loss.