Which of the following is an example of an indirect cost in healthcare?

Prepare for the HFMA Business of Health Care Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Ace your exam with confidence!

In the context of healthcare, an indirect cost is an expense that is not directly tied to patient care but is necessary for the overall operation of the healthcare facility. Salaries paid to executives represent such an indirect cost, as they contribute to the administration and management of the organization rather than directly impacting patient services or care.

Indirect costs are generally related to supporting functions that enable the healthcare system to operate effectively but do not have a direct correlation to patient treatment or services.

The other choices reflect expenses that are more directly associated with providing healthcare services to patients. Salaries of patient caregivers are direct costs because they directly contribute to patient care. Purchased services may include outsourced functions like cleaning or maintenance, which also support direct patient care. Medications are considered direct costs as they are specific to the treatment and care required for patients. Thus, the salary of executives is classified as an indirect cost due to its supporting role in the overall structure of the healthcare organization.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy