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AHM-530 Network Management Questions and Answers

Questions 4

Health plans often negotiate compensation arrangements that transfer some or all of the financial risk associated with delivering healthcare services to network providers. The following statements are about these compensation arrangements. Select the answer choice containing the correct statement.

Options:

A.

A per diem system typically places a healthcare facility at risk for controlling utilization and costs internally.

B.

One likely reason that an health plan would use a fee schedule system to compensate providers is that this system transfers most of the financial risk to the provider.

C.

Under a salary system, a provider assumes no service risk.

D.

The use of a FFS or a salary system allows an health plan to transfer a greater proportion of financial risk to providers than does the use of capitation.

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Questions 5

The Gladspell HMO has contracted with the Ellysium Hospital to provide subacute care to its plan members. Gladspell pays Ellysium by using a per diem reimbursement method.

If Gladspell’s per diem contract with Ellysium is typical, then the per diem payment will cover such medical costs as

Options:

A.

Laboratory tests

B.

Respiratory therapy

C.

Semiprivate room and board

D.

Radiology services

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Questions 6

In contracting with providers, a health plan can use a closed panel or open panel approach. One statement that can correctly be made about an open panel health plan is that the participating providers

Options:

A.

must be employees of the health plan, rather than independent contractors

B.

are prohibited from seeing patients who are members of other health plans

C.

typically operate out of their own offices

D.

operate according to their own standards of care, rather than standards of care established by the health plan

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Questions 7

The Sweeney Health Plan uses the discounted fee-for-service (DFFS) method to compensate some of its providers. Under this method of compensation, Sweeney calculates payments based on

Options:

A.

The standard fees of indemnity health insurance plans, adjusted by region

B.

The Medicare fee schedules used by other health plans, adjusted by region

C.

Whichever amount is higher, the billed charge or the DFFS amount

D.

Whichever amount is lower, the billed charge or the DFFS amount

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Questions 8

Participating providers in a health plan’s network must undergo recredentialing on a regular basis. During recredentialing, a health plan typically reviews

Options:

A.

a provider’s current, updated application information, as well as provider’s peer reviews and performance reports on the provider

B.

a provider’s current, updated application information, as well as the provider’s education and prior work history

C.

a provider’s education and prior work history only

D.

peer reviews and performance reports on a provider and the provider’s prior work history only

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Questions 9

The following paragraph contains an incomplete statement. Select the answer choice containing the term that correctly completes the statement.

One important activity within the scope of network management is ensuring the quality of the health plan’s provider networks. A primary purpose of __________________ is to review the clinical competence of a provider in order to determine whether the provider meets the health plan’s preestablished criteria for participation in the network.

Options:

A.

authorization

B.

provider relations

C.

credentialing

D.

utilization management

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Questions 10

Some jurisdictions have enacted corporate practice of medicine laws. One effect that corporate practice of medicine laws have had on HMO provider networks is that these laws typically

Options:

A.

require incorporated HMOs to practice medicine through licensed employees

B.

require HMOs to form exclusive contracts with physician groups who agree to dedicate all or most of their practices to HMO patients in return for a set payment or revenue-sharing

C.

restrict the ability of staff model HMOs to hire physicians directly, unless the physicians own the HMO

D.

encourage incorporated HMOs to obtain profits from their provisions of physician professional services

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Questions 11

By definition, a measure of the extent to which a health plan member can obtain necessary medical services in a timely manner is known as

Options:

A.

Network management

B.

Quality

C.

Cost-effectiveness

D.

Accessibility

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Questions 12

The Enterprise Health Plan has indicated an interest in delegating its medical records review activities to the Teal Group and has forwarded a typical letter of intent to Teal. One true statement about this letter of intent is that it:

Options:

A.

Is a contract that creates a legally binding relationship between Enterprise and Teal

B.

Cannot include a confidentiality clause

C.

Serves as a delegation agreement between Enterprise and Teal

D.

Outlines the delegation oversight process

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Questions 13

With regard to the compensation of dental care providers in a managed dental care system, it is correct to state that, typically:

Options:

A.

dental PPOs compensate dentists on a capitated basis

B.

group model dental HMOs (DHMOs) compensate general dental practitioners on a salaried basis

C.

independent practice association (IPA)-model dental HMOs (DHMOs) capitate general dental practitioners

D.

staff model dental HMOs (DHMOs) compensate dentists on an FFS basis

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Questions 14

The following statements are about fee-for-service (FFS) payment systems. Select the answer choice containing the correct statement:

Options:

A.

A discounted fee-for-service (DFFS) system is usually easier for a health plan to administer than is a fee schedule system.

B.

A case rate payment system offers providers an incentive to take an active role in managing cost and utilization.

C.

One reason that health plans use a relative value scale (RVS) payment system is that RVS values for cognitive services have traditionally been higher than the values for procedural services.

D.

One reason that health plans use a resource-based relative value scale (RBRVS) is that this system includes weighted unit values for all types of procedures.

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Questions 15

The Foxfire Health Plan, which has 20,000 members, contracts with dermatologists on a contact capitation basis. The contact capitation arrangement has the following features:

Foxfire distributes the money in the contact capitation fund once each quarter and the distribution is based on the point totals accumulated by each dermatologist.

Foxfire's per member per month (PMPM) capitation for dermatology services is $1.

The dermatologist receives 1 point for each new referral that is not classified as a complicated referral and 1.5 points for each new referral that is classified as complicated.

During the first quarter, Foxfire's PCPs made 450 referrals to dermatologists and 100 of these referrals were classified as complicated. One dermatologist, Dr. Shareef Rashad, received 42 of these referrals; 6 of his referrals were classified as complicated. Statements that can correctly be made about Foxfire's contact capitation arrangement include:

Options:

A.

that the value of each referral point for the first quarter was $120

B.

that the value of Foxfire's contact capitation fund for dermatologists for the first quarter was $20,000

C.

that the payment that Foxfire owed Dr. Rashad for the first quarter was $6,120

D.

all of the above

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Questions 16

Health plans can often reduce workers’ compensation costs by incorporating 24-hour coverage into their workers’ compensations programs. Twenty-four-hour coverage reduces costs by

Options:

A.

Maximizing the effects of cost shifting

B.

Eliminating the need for utilization management

C.

Requiring members to use separate points of entry for job-related and non-job related services

D.

Combining administrative services for workers’ compensation and non-workers’ compensation healthcare and disability coverage

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Questions 17

Social health maintenance organizations (SHMOs) and Programs of All-Inclusive Care for the Elderly (PACE) are federal programs designed to provide coordinated healthcare services to the elderly. Unlike PACE, SHMOs

Options:

A.

are reimbursed solely through Medicaid programs

B.

provide extensive long-term care

C.

are reimbursed on a fee-for-service basis

D.

limit benefits to a specified maximum amount

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Questions 18

In order to evaluate and manage the performance of individual providers in its provider network, the Quorum Health Plan implemented a program that focuses on identifying the best and worst outcomes and utilization patterns of its providers. This program is also designed to develop and implement strategies such as treatment protocols and practice guidelines to improve the performance of Quorum's providers. This information indicates that Quorum implemented a program known as:

Options:

A.

An integrated delivery system (IDS)

B.

A coordinated care program

C.

Ostensible agency

D.

Continuous quality improvement (CQI)

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Questions 19

The following statement(s) can correctly be made about hospitalists.

1. The hospitalist’s main function is to coordinate diagnostic and treatment activities to ensure that the patient receives appropriate care while in the hospital.

2. The hospitalist’s role clearly supports the health plan concept of disease management.

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 20

The following statements are about the organization of network management functions of health plans. Select the answer choice containing the correct response:

Options:

A.

Compared to a large health plan, a small health plan typically has more integration among its network management activities and less specialization of roles.

B.

It is usually more efficient to have a large health plan's provider relations representatives located in the health plan's corporate headquarters rather than based in regional locations that are close to the provider offices the representatives cover.

C.

An health plan's provider relations representatives are usually responsible for conducting an initial orientation of providers and educating providers about health plan developments, rather than recruiting and assisting with the selection of new providers.

D.

In general, a health plan that uses a centralized approach for some of its network management activities should not use a decentralized approach for other network management activities.

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Questions 21

Although ambulatory payment classifications (APCs) bear some resemblance to diagnosis-related groups (DRGs), there are significant differences between APCs and DRGs. One of these differences is that APCs:

Options:

A.

typically allow for the assignment of multiple classifications for an outpatient visit

B.

always apply to a patient's entire hospital stay

C.

typically serve as a payment system for inpatient services

D.

typically include reimbursements for professional fees

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Questions 22

The following activities are the responsibility of either the Nova Health Plan's risk management department or its medical management department:

Options:

A.

Protecting Nova's members against harm from medical care

B.

Improving the overall health status of Nova members by coordinating care across individual episodes of care and the different providers who treat the member

C.

Protecting Nova against financial loss associated with the delivery of healthcare

D.

Establishing outreach programs to encourage the use of preventive health services by Nova's members of these activities, the ones that are more likely to be the responsibility of Nova's risk management department rather than its medical management department are activities:

E.

A, B, and C

F.

A, C, and D

G.

A and C

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Questions 23

The two basic approaches that Medicaid uses to contract with health plans are open contracting and selective contracting. One true statement about these approaches to contracting is that:

Options:

A.

Open contracting requires health plans to meet minimum performance standards outlined in a state's request for proposal (RFP)

B.

Open contracting makes it possible for the Medicaid agency to offer enrollment volume guarantees

C.

Selective contracting requires any health plan that meets the state's performance standards and the federal Medicaid requirements to enter into a Medicaid contract

D.

Selective contracting requires health plans to bid competitively for Medicaid contracts

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Questions 24

The Adobe Health Plan complies with all of the provisions of the Newborns' and Mothers' Health Protection Act (NMHPA) of 1996. Kristen Netzger, an Adobe enrollee, was hospitalized for a cesarean delivery. Amy Davis, also an Adobe enrollee, was hospitalized for a normal delivery. From the following answer choices, select the response that indicates the minimum length of time for which Adobe, under NMHPA, most likely must provide benefits for the hospitalizations of Ms. Netzger and Ms. Davis.

Options:

A.

Ms. Netzger = 48 hours

Ms. Davis = 48 hours

B.

Ms. Netzger = 72 hours

Ms. Davis = 72 hours

C.

Ms. Netzger = 96 hours

Ms. Davis = 48 hours

D.

Ms. Netzger = 96 hours

Ms. Davis = 72 hours

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Questions 25

The Portway Hospital is qualified to receive Medicaid subsidy payments as a disproportionate share hospital (DHS). The DHS payments that Portway receives are

Options:

A.

Made for services rendered to specific patients

B.

Made with matching state and federal funds

C.

Included in the Medicaid capitation payment made to patients’ health plans

D.

Defined as cost-based reimbursement (CBR) equal to 100% of Portway’s reasonable costs of providing services to Medicaid recipients

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Questions 26

With respect to contractual provisions related to provider-patient communications, nonsolicitation clauses prohibit providers from

Options:

A.

Encouraging patients to switch from one health plan to another

B.

Disclosing confidential information about the health plan’s reimbursement structure

C.

Dispersing confidential financial information regarding the health plan

D.

Discussing alternative treatment plans with patients

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Questions 27

The following statements are about the specialist component of a provider panel. Select the answer choice containing the correct statement.

Options:

A.

Ideally, a health plan should have every specialist category represented on its provider panel with appropriate geographic distribution.

B.

Most specialist contracts do not ensure the provider’s adherence to UM policies set up by the health plan.

C.

No-balance-billing clauses are not desirable in health plan contracts with specialists.

D.

In geographic regions where there is a shortage of PCPs, a health plan is not permitted to contract with specialists to perform primary care services, even for patients with chronic conditions.

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Questions 28

In the paragraph below, two statements each contain a pair of terms enclosed in parentheses. Determine which term correctly completes each statement. Then select the answer choice that contains the two terms you have chosen.

In most states, a health plan can be held responsible for a provider’s negligent malpractice. This legal concept is known as (vicarious liability / risk sharing). One step that health plans can take to reduce their exposure to malpractice lawsuits is to state in health plan-provider agreements, marketing collateral, and membership literature that the providers are (employees of the health plan / independent contractors).

Options:

A.

Vicarious liability / employees of the health plan

B.

Vicarious liability / independent contractors

C.

Risk sharing / employees of the health plan

D.

Risk sharing / independent contractors

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Questions 29

The provider contract that Dr. Huang Kwan has with the Poplar Health Plan includes a typical scope of services provision. The medical service that Dr. Kwan provided to Alice Meyer, a Poplar plan member, is included in the scope of services. The following statement(s) can correctly be made about this particular medical service:

Options:

A.

Dr. Kwan most likely was required to seek authorization from Poplar before performing this particular service.

B.

Dr. Kwan most likely was paid on a FFS basis for providing this service.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Questions 30

The following statements are about factors that health plans should consider as they develop provider networks in rural and urban markets. Three of the statements are true, and one of the statements is false. Select the answer choice that contains the FALSE statement.

Options:

A.

Compared to providers in urban areas, providers in rural areas are less likely to offer discounts to health plans in exchange for directed patient volume.

B.

In urban areas, limiting the number of specialists on a panel usually affects the network’s market appeal more than does limiting the number of primary care physicians.

C.

The greatest opportunity to create competition in rural areas is among the specialty providers in other nearby communities.

D.

Typically, hospital contracting is easier in urban areas than in rural areas.

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Exam Code: AHM-530
Exam Name: Network Management
Last Update: Nov 16, 2024
Questions: 202

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