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Healthcare Management: An Introduction Questions 151–155 (page: 32)

Updated On: 10-Feb-2026

Patrick Flaherty's employer has contracted to receive healthcare for its employees from the Abundant Healthcare System. Mr. Flaherty visits his primary care physician (PCP), who sends him to have some blood tests. The PCP then refers Mr. Flaherty to a special

  1. an integrated delivery system (IDS)
  2. a Management Services Organization (MSO)
  3. a Physician Practice Management (PPM) company
  4. a physician-hospital organization (PHO)

Answer(s): A



Paul Gilbert has been covered by a group health plan for two years. He has been undergoing treatment for angina for the past three months. Last week, Mr. Gilbert began a new job and immediately enrolled in his new company's group health plan, which has a

  1. Can exclude coverage for treatment of Mr. Gilbert's angina for one year, because HIPAA does not impact a group health plan's pre-existing condition provision.
  2. Can exclude coverage for treatment of Mr. Gilbert's angina for one year, because Mr. Gilbert did not have at least 36 months of creditable coverage under his previous health plan.
  3. Can exclude coverage for treatment of Mr. Gilbert's angina for three months, because that is the length of time he received treatment for this medical condition prior to his enrollment in the new health plan.
  4. Cannot exclude his angina as a pre-existing condition, because the one-year pre-existing condition provision is offset by at least one year of continuous coverage under his previous health plan.

Answer(s): D



PBM plans operate under several types of contractual arrangements. Under one contractual arrangement, the PBM plan and the employer agree on a target cost per employee per month. If the actual cost per employee per month is greater than the target cost, t

  1. fee-for-service arrangement
  2. risk sharing contract
  3. capitation contract
  4. rebate contract

Answer(s): B



Pharmacy benefit management (PBM) companies typically interact with physicians and pharmacists by performing such clinical services as physician profiling. Physician profiling from a PBM's point of view involves

  1. ascertaining that physicians in the plan have the necessary and appropriate credentials to prescribe medications
  2. compiling data on physician prescribing patterns and comparing physicians' actual prescribing patterns to expected patterns within select drug categories
  3. monitoring patient-specific drug problems through concurrent and retrospective review
  4. establishing protocols that require physicians to obtain certification of medical necessity prior to drug dispensing

Answer(s): B



Phillip Tsai is insured by both a indemnity health insurance plan, which is his primary plan, and a health plan, which is his secondary plan. Both plans have typical coordination of benefits (COB) provisions, but neither has a nonduplication of benefits p

  1. $0
  2. $300
  3. $400
  4. $900

Answer(s): C



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