Adult-Gerontology Clinical Nurse Specialist (CNS) Practice Exam

Which financial term represents resources allocated for claims that cover partial services rendered?

1. Line of credit

2. Interim financing

3. Cost recovery

4. Indirect costs

The correct answer is: Interim financing

Interim financing refers to temporary funding designed to cover short-term expenses or to support ongoing operations until permanent financing can be secured. In the context of healthcare, it can specifically be appropriated to manage costs associated with claims that cover partial services rendered, allowing healthcare providers to maintain functioning while waiting for payments or reimbursements. This kind of financing ensures that there are adequate funds to address immediate obligations despite delays in receiving payment for the services rendered, which is crucial in a sector where cash flow can be highly variable. Other terms, like line of credit, typically involve broader access to credit for general expenses rather than specifically for claims on partial services. Cost recovery usually refers to measures taken to recover costs incurred rather than to cover immediate obligations. Indirect costs relate to expenses that cannot be directly tied to specific services but support overall operations, which do not align with the concept of financing claims for specific services.