CPHQ Questions Bank

A payment system is a method of reimbursing providers for the services they deliver to patients.

Different payment systems have different implications for the financial risk that providers face, which is the possibility of losing money or not making a profit from their activities.

Financial risk can be influenced by factors such as the volume and mix of services, the cost and quality of care, the patient population, and the market conditions.

Fee for service (FFS) is a payment system whereproviders are paid for each service they perform, regardless of the outcome or value of the service. This payment system carries the least financial risk for providers, as they can increase their revenue by increasing the quantity of services. However, this payment system may also create incentives for overutilization, inefficiency, and low quality of care.

Capitation is a payment system where providers are paid a fixed amount per patient or per member per month, regardless of the number or type of services they provide. This payment system carries the most financial risk for providers, as they have to cover all the costs of care for their patients within the fixed budget. However, this payment system may also create incentives for efficiency, coordination, and prevention of care.

Pay for performance (P4P) is a payment system where providers are paid based on the quality and outcomes of the care they provide, rather than the quantity or type of services. This payment system carries a moderate financial risk for providers, as they have to meet certain performance measures or benchmarks to receive the full payment or bonus. However, this payment system may also create incentives for quality improvement, patient satisfaction, and value of care.

Upside-only bundles are a payment system where providers are paid a fixed amount for a bundle of services related to a specific condition or episode of care, such as a hip replacement or a hospitalization. This payment system carries a low financial risk for providers, as they can only share in the savings if they deliver the bundle of services at a lower cost than the fixed amount, but they do not have to bear any losses if they exceed the fixed amount. However, this payment system may also create incentives for coordination, standardization, and efficiency of care.

When recommending a quality improvement project, the first consideration should be how the project aligns with the organization's strategic goals. Alignment ensures that the project supports the broader objectives of the organization, making it more likely to receive support from leadership and necessary resources. Projects that are in sync with strategic priorities are also more likely to yield significant and relevant outcomes, contributing to the organization’s overall mission and vision.

When and how the project outcomes will be measured (A): While important, this step comes after ensuring the project aligns with strategic goals.

Who will provide the resources for the quality project (C): Resource allocation is a critical consideration, but only after the project’s relevance to strategic goals is established.

What departments and stakeholders need to be engaged (D): Stakeholder engagement is crucial, but first, the project must align with strategic objectives.

References

NAHQ Body ofKnowledge: Strategic Alignment and Project Selection

NAHQ CPHQ Exam Preparation Materials: Quality Improvement Project Planning

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Monitoring performance indicators directly aligned with strategic goals ensures that improvement activities are measurable and relevant to organizational priorities. This alignment is fundamental for effective strategic performance management (Balanced Scorecard Institute, Linking Performance and Strategy, 2024; The Joint Commission, Strategic Planning, 2024).

Communication and committees support strategy but are less direct.

Monitoring waste is important but may not be tied specifically to strategic goals.

Probability sampling ensures every individual in a population has a known, non-zero chance of being selected, providing a representative sample for statistical analysis.

Option A (Random sampling): This is the correct answer. Random sampling, where each patient has an equal chance of selection (e.g., using a random number generator), is a probability sampling method. NAHQ CPHQ study materials highlight random sampling as a rigorous approach for surveys to ensure unbiased results.

Option B (Convenience sampling): Convenience sampling (e.g., surveying available patients) is non-probability sampling, as it does not ensure representativeness and is prone to bias.

Option C (Focus group sampling): Focus group sampling is typically purposive (non-probability), selecting participants based on specific criteria, not random chance.

Option D (Quota sampling): Quota sampling is non-probability, as it involves selecting a fixed number of participants from predefined groups, not ensuring equal selection probability.