IHP450 Healthcare Management & Finance Final Exam Review Q & A 2026 Complete And Study material 24pages LEARNEXAMS

1. What is the primary goal of financial management in healthcare? A. Maximizing staff B. Minimizing operational costs C. Improving patient outcomes D. Increasing revenue streams Answer: C. The primary goal of financial management in healthcare is improving patient outcomes, as financial decisions directly impact the quality of care provided. 2. Which performance improvement model emphasizes the Plan-DoStudy-Act (PDSA) cycle? A. Six Sigma B. Total Quality Management (TQM) C. Lean methodology D. Continuous Quality Improvement (CQI) Answer: D. Continuous Quality Improvement (CQI) emphasizes the PDSA cycle, which is a systematic series of steps for gaining valuable learning and knowledge for the continual improvement of a product or process. 3. In managing healthcare operations, what does the term 'benchmarking' refer to? A. Setting the highest standard of care by comparing with topperforming institutions B. The process of comparing business processes and performance metrics to industry bests and best practices C. A financial strategy to increase the profitability of healthcare services D. The use of balanced scorecards to measure financial performance Answer: B. Benchmarking in healthcare operations refers to the process of comparing business processes and performance metrics to industry bests and best practices. 4. What is the significance of cost-volume-profit (CVP) analysis in healthcare management? A. It helps in determining the pricing of healthcare services. B. It is used to calculate the total variable costs associated with patient