10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CHBME questions are organized by exam domain, so you can see how each part of the Certified Healthcare Business Management Executive blueprint is tested. Reveal the answer and explanation under each question.
An RCM firm's revenue has grown, but one health system still supplies nearly half of it. All of that system's locations are covered by one agreement that can be terminated together. The board's next growth objective is to reduce dependence on that client without shrinking its existing business. Which proposal most directly advances that objective?
Correct answer: D - Build recurring revenue from independently owned practices under separate client agreements.
A vendor proposes taking over an RCM firm's payment-posting function. The internal cost report shows $144,000 in annual labor that would be eliminated and $48,000 in allocated corporate overhead that would remain. The vendor would charge $150,000 annually, and retained vendor oversight would cost $18,000 annually. Quality, capacity, and transition costs are otherwise equivalent. What is the annual financial effect of outsourcing?
Correct answer: D - A $24,000 cost increase, comparing vendor fees and oversight with avoidable internal labor.
What net collection rate belongs in this practice's performance report? For one service-date cohort, gross charges are $600,000, contractual allowances are $180,000, payments are $390,000, refunds are $12,000, and bad-debt write-offs are $20,000. All entries use the same measurement cutoff. The measure compares net cash with the amount the practice was entitled to collect before bad-debt write-offs.
Correct answer: B - 90.0%
Which month-end treatment is correct under accrual accounting when a collectible fee has been fully earned but remains unpaid, while a separate cash advance covers next month's services that have not yet begun?
Correct answer: A - Recognize revenue and a receivable for completed work; record the advance as a liability.
A billing supervisor sees an accepted 999 acknowledgment for yesterday's claim file and tells the team to wait for payment. The payer's subsequent 277CA identifies 18 claims rejected for invalid member identifiers; the other claims were accepted. What should happen to the 18 claims now?
Correct answer: B - Verify and correct the member identifiers, then resubmit the rejected claims and track acceptance.
An automated edit holds a physician's same-day E/M and minor-procedure charges because both use the same diagnosis. Review establishes that the E/M included substantial, separately documented work beyond deciding on the procedure or providing its routine pre- and post-service care. The chosen E/M level is supported. Which reporting correction is justified under Medicare rules?
Correct answer: B - Report both supported services and append modifier 25 to the E/M code.
A 68-year-old retiree has Original Medicare based on age and coverage through a spouse who is still working. The spouse's single-employer group health plan covers a company that has consistently employed 45 people. These are the patient's only health coverages, and the claim is for a routine office visit. Which payer sequence applies?
Correct answer: A - Bill the spouse's group plan first, then Medicare with the primary payer's adjudication information.
An uninsured patient asks, 'Your bill is $650 more than the written good faith estimate for the same services. I received the initial bill 45 calendar days ago. Can someone outside your billing office review it?' The estimate and bill came from the same provider, and no dispute has been filed. Select the accurate explanation of the federal remedy.
Correct answer: C - The patient may initiate patient-provider dispute resolution within 120 calendar days of receiving the initial bill.
A ransomware warning appears as a billing workstation encrypts files on a shared drive. The workstation's network connection can be cut immediately, and incident responders are available. Select the first containment order.
Correct answer: C - Disconnect the workstation from the network and activate incident response.
An account is ready for a patient statement after Original Medicare paid for a covered office visit. Eligibility verification confirms that the patient was a Qualified Medicare Beneficiary on the service date. Medicaid paid none of the remaining Medicare coinsurance, and the practice does not participate in Medicaid. The posting system still labels the coinsurance as patient responsibility. How should the manager handle the coinsurance before statements are released?
Correct answer: A - Correct the account so Medicare coinsurance is not billed to this patient.
The full bank has 1,020 more CHBME questions with explanations.
Continue in the free practice test →
View plans