Federal Nursing Home Administrator Practice Exam

What impact can a well-managed collections policy have on a nursing facility?

1. Improved patient satisfaction ratings

2. Reduction in overall operational costs

3. Mitigation of potential fraud accusations

4. Increased community service opportunities

The correct answer is: Mitigation of potential fraud accusations

A well-managed collections policy is instrumental in mitigating potential fraud accusations. When a facility has a clear and transparent collections policy, it establishes structured protocols for billing, collection processes, and handling payments. This transparency is crucial because it helps safeguard the facility against disputes and misunderstandings regarding financial transactions, which can often lead to accusations of fraudulent practices. By effectively outlining how payments are processed and how debts are collected, the facility demonstrates a commitment to ethical financial practices. This can prevent misinterpretations or malicious allegations of fraud, as there is a clear framework in place that can be referenced in case of disputes. While improved patient satisfaction ratings, a reduction in operational costs, and increased community service opportunities are indeed beneficial outcomes of efficient management practices, they do not directly correlate to the proactive prevention of fraud. A solid collections policy particularly addresses the financial integrity of the facility, emphasizing the importance of maintaining trust and transparency in financial dealings.