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Free CHFP Practice Questions

10 free, exam-style Certified Healthcare Financial Professional (CHFP) (CHFP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CHFP practice test to study every exam domain.

Question 1

A hospital has fixed costs of $900,000 and a contribution margin of $45 per outpatient visit. The break-even volume is:

  1. 15,000 visits
  2. 10,000 visits
  3. 20,000 visits
  4. 45,000 visits
Show answer & explanation

Correct answer: C - 20,000 visits

Question 2

The correct order of reimbursement methods from LOWEST to HIGHEST provider risk is:

  1. FFS → Cost-based → Per Diem → Case Rate → Bundled → Capitation → Global Budget
  2. DRG → FFS → Capitation → Per Diem → Bundled → Case Rate → Global Budget
  3. Global Budget → Capitation → FFS → Per Diem → DRG → Case Rate → Bundled
  4. Capitation → Bundled → DRG → Per Diem → FFS → Cost-based → Global Budget
Show answer & explanation

Correct answer: A - FFS → Cost-based → Per Diem → Case Rate → Bundled → Capitation → Global Budget

Question 3

Which combination of ratios would BEST indicate a hospital is in financial distress?

  1. High current ratio, strong ROA, and positive operating margin
  2. Low Days Cash on Hand, negative operating margin, and DSCR below 1.0
  3. High operating margin, low debt-to-equity, and strong DSCR
  4. Low Days in A/R, high total margin, and strong cash position
Show answer & explanation

Correct answer: B - Low Days Cash on Hand, negative operating margin, and DSCR below 1.0

Question 4

A hospital budgeted 60% commercial and 40% Medicare payer mix, but actual results were 50% commercial and 50% Medicare. Since commercial rates are higher, this shift would create:

  1. A favorable mix variance
  2. A volume variance only
  3. No variance impact
  4. An unfavorable mix variance
Show answer & explanation

Correct answer: D - An unfavorable mix variance

Question 5

A hospital's revenue cycle team reviews the following KPIs at their monthly meeting: Days in A/R increased from 44 to 58, clean claim rate dropped from 96% to 89%, and denial rate rose from 4% to 9%. The MOST likely root cause is:

  1. A transition to a new EHR system causing temporary billing workflow disruptions
  2. A shift in payer mix toward higher-denial government programs during this period
  3. Deteriorating front-end processes in registration, eligibility verification, or coding accuracy
  4. Payer-initiated claim reprocessing and recoupment activity affecting multiple service lines
Show answer & explanation

Correct answer: C - Deteriorating front-end processes in registration, eligibility verification, or coding accuracy

Question 6

A hospital participating in a bundled payment program for hip replacements reduces its 90-day episode cost from $28,000 to $23,000 against a target price of $25,000. The financial result is:

  1. No financial impact since costs are below the target price
  2. A $2,000 savings per episode shared according to program terms
  3. A $3,000 loss per episode relative to the target price
  4. A $5,000 loss per episode relative to the actual cost reduction
Show answer & explanation

Correct answer: B - A $2,000 savings per episode shared according to program terms

Question 7

A large group health plan collects $100 million in premium revenue, pays $82 million in claims, and spends $3 million on quality improvement activities. The MLR is:

  1. 82%
  2. 97%
  3. 85%
  4. 80%
Show answer & explanation

Correct answer: C - 85%

Question 8

A hospital pays a cardiologist $800,000 annually. The cardiologist generates 7,000 wRVUs. Compensation surveys show the 75th percentile for cardiology is $750,000 for 6,500 wRVUs. The compliance concern is:

  1. No concern because total compensation falls within the 75th percentile benchmark range
  2. FMV analysis is only required when compensation exceeds the 90th percentile threshold
  3. The per-wRVU rate may exceed market benchmarks, raising Stark and AKS compliance concerns
  4. Compensation is acceptable because it is directly tied to documented productivity output
Show answer & explanation

Correct answer: C - The per-wRVU rate may exceed market benchmarks, raising Stark and AKS compliance concerns

Question 9

A health system tracks 'physician enterprise value' by combining direct practice financials with downstream revenue contribution. A family physician generating $600,000 in professional revenue at $700,000 in total cost appears to be a $100,000 loss. However, the physician generates $1.2 million in downstream hospital revenue. The true financial contribution is:

  1. A $1.1 million gain from combined direct and downstream revenue minus total cost
  2. A $1.2 million gain based on downstream hospital revenue contribution alone
  3. An indeterminate result without additional data on downstream margin rates
  4. A $100,000 loss based solely on the direct practice financial performance
Show answer & explanation

Correct answer: A - A $1.1 million gain from combined direct and downstream revenue minus total cost

Question 10

An ACO's financial model projects $2 million in infrastructure costs in Year 1 and $1.5 million in shared savings. The Year 1 net financial result is:

  1. A $3.5 million net gain from combined savings and infrastructure returns
  2. A $1.5 million net gain after deducting infrastructure from shared savings
  3. A $2.0 million net gain from shared savings exceeding the infrastructure cost
  4. A $500,000 net loss requiring organizational commitment to absorb startup costs
Show answer & explanation

Correct answer: D - A $500,000 net loss requiring organizational commitment to absorb startup costs

What's on the CHFP exam

The Certified Healthcare Financial Professional (CHFP) (CHFP) exam is organized into 2 knowledge domains. These free practice questions are drawn from across them so you can see where you're strong and where to study:

  1. The Business of Healthcare
  2. Operational Excellence

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