Question 1

Which of the following is recommended when setting up a home office?

Accepted Answer

Using a fax machine for rapid transmission of printed documents that cannot be emailed is recommended when other digital methods are not feasible, ensuring efficient document sharing. Choices A, B, and C can introduce distractions, reduce productivity, or compromise professionalism in a home office setting.

Question 2

The initial CMS Recovery Audit Contractors (RAC) program identified problems with ________________________________.

Accepted Answer

The initial CMS Recovery Audit Contractors (RAC) program identified issues primarily with incorrect coding and a failure to document medical necessity, leading to improper payments.

Question 3

Which of the following is NOT a major factor in determining the fee charged by a consultant?

Accepted Answer

Household operational costs are generally not considered a major factor in determining the fee charged by a consultant. Fees are typically based on the costs to provide services, the market rates (fees charged by other consultants), and the consultant's reputation and experience, rather than personal or household expenses.

Question 4

A multipurpose machine acts as _________________________.

Accepted Answer

A multipurpose machine typically combines the functions of a printer, fax machine, scanner, and copier into one device.

Question 5

Individuals whom the consultant knows professionally and personally are the best source of referrals.

Accepted Answer

Referrals from individuals known both professionally and personally tend to be highly reliable because these individuals understand the consultant's work ethic, skills, and personality, making their recommendations more credible and tailored.

Question 6

In preparing for preliminary meetings with potential clients, the consultant should document the time spent on the initial presentation in order to include it in the first bill presented to the client after the contract has been signed.

Accepted Answer

The time spent preparing for preliminary meetings or initial presentations is typically considered part of the business development or sales process and is not usually billable to the client. Billing usually starts once an agreement or contract is in place for specific services.

Question 7

It is not advisable for a consultant to network with other consultants because of the risk of losing clients to competitors.

Accepted Answer

Networking with other consultants can lead to opportunities for collaboration, knowledge sharing, and referrals, which can ultimately benefit one's business rather than harm it.

Question 8

Completion of the audit cycle may involve educating those who document in the records and then conducting a follow-up audit to determine improvement.

Accepted Answer

The audit cycle includes identifying areas for improvement, implementing changes, and then re-auditing to assess the effectiveness of those changes, which often involves educating staff on proper documentation practices.

Question 9

When a Recovery Audit Contractor (RAC) identifies a pattern of improper payments that indicates possible fraud, the RAC is required to notify the office of the attorney general of the state in which the suspected offense occurred.

Accepted Answer

When a Recovery Audit Contractor (RAC) identifies a pattern of improper payments that indicates possible fraud, they are required to notify the Centers for Medicare & Medicaid Services (CMS), not the office of the attorney general. CMS may then involve the Office of Inspector General (OIG) or other appropriate authorities.

Question 10

The Patient Protection and Affordable Care Act made compliance programs mandatory for health care providers.

Accepted Answer

The Patient Protection and Affordable Care Act (PPACA), also known as Obamacare, includes provisions that make compliance programs mandatory for certain health care providers as a condition of enrollment in Medicare, Medicaid, and the Children's Health Insurance Program (CHIP). These compliance programs are intended to establish internal procedures to promote adherence to legal and programmatic requirements, thus reducing fraud, waste, and abuse within the health care system.

Question 11

Choosing to be an independent consultant is synonymous with starting a new business and being self-employed.

Accepted Answer

Choosing to be an independent consultant involves setting up your own practice, which means you are starting a new business and are self-employed, responsible for finding clients, managing your work, and handling all aspects of your business operations.

Question 12

Organizations use the online yellow pages to select consultants more than any other method.

Accepted Answer

Organizations typically use a variety of methods to select consultants, including referrals, professional networks, industry reputation, and direct outreach, rather than relying primarily on online yellow pages.

Question 13

There is no need for an independent, self-employed consultant to develop formal documents such as a mission statement or business objectives

Accepted Answer

Even independent, self-employed consultants benefit from developing formal documents like a mission statement or business objectives as they provide direction, clarify goals, and help in communicating their purpose and plans to clients and stakeholders.

Question 14

Leadership has been defined as an influence process.

Accepted Answer

Leadership is often defined as the process by which an individual influences others to achieve a common goal, emphasizing the role of influence in guiding and directing the efforts of others.

Question 15

Interpersonal intelligence is the ability to understand other people, what motivates them, how they work, and how to work cooperatively with them.

Accepted Answer

Interpersonal intelligence is indeed defined as the capacity to understand and interact effectively with others, involving sensitivity to emotional cues, motivations, perspectives, and the ability to cooperate and work in a group.

Question 16

High hourly charges by consultants mean that self-employment will be financially lucrative and provide more personal freedom.

Accepted Answer

High hourly charges by consultants do not guarantee financial success or more personal freedom, as these charges must cover business expenses, taxes, and periods without work, and the workload can often be as demanding as traditional employment.

Question 17

It is common for an independent consultant to experience gaps in workload.

Accepted Answer

Independent consultants often face fluctuations in their workload due to the project-based nature of their work, leading to periods of high activity followed by gaps where they may have fewer or no projects.

Question 18

A window makes an excellent backdrop for a computer workstation.

Accepted Answer

A window can cause glare on the computer screen and lead to eye strain, making it a less ideal backdrop for a computer workstation.

Question 19

Transmitting protected health information to and from a client across networks by regular email is preferable to faxing.

Accepted Answer

Regular email is not considered secure for transmitting protected health information (PHI) due to the lack of encryption and potential for interception, whereas faxing, although not entirely secure, is generally considered more secure than unencrypted email for transmitting PHI.

Question 20

The HITECH Act has placed additional obligations for privacy and security on business associates and also extends the threat of civil and criminal penalties for violations of privacy and security standards to business associates.

Accepted Answer

The HITECH Act, part of the American Recovery and Reinvestment Act of 2009, expanded the responsibilities of business associates under HIPAA, making them directly liable for compliance with certain HIPAA Privacy and Security Rules, and subject to civil and criminal penalties for violations.

Quiz 16: Consulting