1. A patient classification system is used to:
A. distinguish among different patients based on their acuity, functional ability, or resources needed
B. generate an index number assigned to variable health care services based upon the relative amount of labor and capital used to produce a service
C. establish a commitment to cost and quality improvement

2. A profit is generated when:
A. revenue exceeds expense
B. cost achieves the mission
C. revenue and expenses are equal
D. dollars are put back into the company

3. The majority of health care expenses are covered in the US by:
A. Medicaid
B. Medicare
C. out-of-pocket
D. private insurance

Answers to Study Questions

1. A. This is a tool that is broadly used. It was originally developed to predict staffing and to identify and track cost of patient care over a variety of settings.

2. A. In order to achieve profit, revenue (income) needs to be grater than expense (cost for doing business.)

3. D. Currently private insurance accounts for the highest percent (33%) of health care coverage in the U.S.