Certified Revenue Cycle Representative (CRCR) Practice Exam

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Study for the Certified Revenue Cycle Representative Exam. Prepare with flashcards and multiple choice questions. Each question offers hints and explanations. Get ready for your exam!

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Which activity must tax-exempt hospitals complete to comply with Section 501(r)?

A financial audit
A community needs assessment
An employee training program
A tax compliance report

The correct answer is: A community needs assessment

Tax-exempt hospitals are required to complete a community needs assessment to comply with Section 501(r) of the Internal Revenue Code. This requirement is designed to ensure that these facilities understand and address the health needs of the communities they serve. The community health needs assessment (CHNA) must be conducted every three years and involves evaluating the health resources, demographics, and health concerns of the local population. By conducting a CHNA, hospitals can identify areas of improvement and develop strategies for providing services that will effectively meet the needs of their community. This process not only helps to maintain their tax-exempt status but also plays a crucial role in fostering community health and wellness. Other activities listed, while important for various aspects of operational accountability and compliance, do not specifically relate to the requirements outlined in Section 501(r).