Starting and Growing Your Own Telehealth Private Practice

Course #9118L-


Self-Assessment Questions

    1 . A clinician launches a telehealth-only private practice and uses a standard Zoom account for video sessions because it is free and familiar to clients. Which statement best describes the compliance concern?
    A) Acceptable, because Zoom uses end-to-end encryption
    B) Acceptable temporarily, until a paid platform can be afforded
    C) A HIPAA violation, because standard Zoom does not have a BAA and is not approved for PHI
    D) Compliant, as long as the client provides written consent to use the platform

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    2 . A telehealth therapist in Texas wants to see clients located in Oklahoma. Which step is MOST critical before beginning those sessions?
    A) Register a new LLC in Oklahoma
    B) Verify that each client's insurance covers out-of-state telehealth
    C) Obtain licensure or a compact privilege in the state of Oklahoma
    D) Update the practice's National Provider Identifier (NPI) to reflect Oklahoma

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    3 . Which Place of Service (POS) code is used on the CMS-1500 form for a telehealth session where the client is located in their home?
    A) 11 (Office)
    B) 02 (Telehealth, general)
    C) 10 (Telehealth, patient's home)
    D) 22 (On Campus-Outpatient Hospital)

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    4 . A telehealth private practice owner wants to ensure HIPAA compliance. Which of the following actions is REQUIRED, not optional?
    A) Using a virtual background during all video sessions
    B) Conducting an annual Security Risk Assessment (SRA)
    C) Encrypting all email communications with clients
    D) Obtaining a dedicated phone number for the practice

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    5 . A newly licensed therapist forms an LLC for her telehealth practice and then files IRS Form 2553 to elect S-Corporation tax status. Which of the following is TRUE?
    A) She now has two separate legal business entities.
    B) The LLC and the S-Corp election coexist; the LLC remains the legal entity, and the S-Corp election is a tax treatment.
    C) S-Corporation status eliminates self-employment tax entirely.
    D) She must dissolve the LLC and re-form as a corporation to be taxed as an S-Corp.

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    6 . A group telehealth practice bills a session under the associate clinician's Type 1 NPI in Box 33 (Billing Provider) instead of the group's Type 2 NPI. What is the MOST likely result?
    A) The claim is processed normally since the Type 1 NPI is valid.
    B) The claim is denied or requires resubmission; the group NPI must appear in Box 33.
    C) The practice receives payment but at a lower rate.
    D) The payer contacts the clinician directly for clarification.

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    7 . CAQH ProView attestation lapses after 120 days. What is the PRIMARY consequence for a telehealth practice?
    A) The practice's license is placed on inactive status.
    B) The clinician's profile becomes inactive, which can halt credentialing and recredentialing with payers.
    C) The practice loses its Type 2 NPI.
    D) Existing insurance contracts are automatically terminated.

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    8 . A telehealth group practice owner is preparing to onboard a new clinician. Which step is MOST important to complete before the clinician begins seeing clients?
    A) Add the clinician's biography to the practice website.
    B) Verify licensure, complete required exclusion or background checks, and confirm onboarding documentation is complete.
    C) Assign the clinician a full caseload to accelerate revenue growth.
    D) Allow the clinician to begin seeing private-pay clients while credentialing is pending.

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    9 . A telehealth practice owner sets the schedules for all associates, provides the EHR, and assigns all clients. She classifies associates as 1099 contractors. Under IRS criteria, this classification is MOST likely
    A) compliant because the contract specifies contractor status.
    B) compliant because clinicians set their own clinical goals.
    C) misclassification because the degree of control indicates an employer-employee relationship.
    D) compliant because telehealth clinicians are always independent contractors.

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    10 . A telehealth clinician has a net profit margin of 8% of gross revenue. Based on the practice benchmarks described in the course, what does this indicate?
    A) Strong performance; 8% exceeds industry standards
    B) Break-even performance; no action is needed
    C) Below-benchmark performance; healthy practices target 15% to 25% net margin
    D) The practice is operating at a loss.

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    11 . A telehealth practice owner wants to expand into three additional states. What is the MOST critical compliance step before providing services in those states?
    A) Registering as a foreign LLC in each state
    B) Verifying insurance coverage for out-of-state telehealth
    C) Ensuring clinicians hold licensure or compact privileges in each client's state
    D) Updating the practice website

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    12 . Which telehealth informed consent element is most specific to telehealth practice and is not typically required for in-person therapy?
    A) Therapist's malpractice insurance carrier
    B) Client's right to a Good Faith Estimate
    C) Telehealth platform used, encryption standards, and procedures for technology failure
    D) Cancellation policy and fee schedule

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    13 . A telehealth group practice owner with five clinicians manages billing, credentialing, HR, scheduling, and maintains a clinical caseload. She is considering hiring another clinician. What is the MOST appropriate recommendation?
    A) Hire immediately to increase revenue
    B) Reduce her clinical caseload and hire administrative support before adding another clinician
    C) Outsource billing and hire simultaneously
    D) Delay hiring until profit margins reach 20%

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    14 . Which statement best describes the financial risk created by a credentialing gap for a new telehealth associate?
    A) Associates cannot see any clients until credentialing is complete.
    B) Associates can see insurance clients but cannot file claims.
    C) The practice may generate clinical services but receive no insurance revenue during credentialing.
    D) The credentialing gap affects only Medicaid clients.

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    15 . A telehealth practice receives a claim denial with reason code CO-4, which indicates that the service is inconsistent with the modifier used. The claim included modifier 95. What should the practice investigate first?
    A) Whether the client's deductible has been met
    B) Whether the payer requires a different modifier or no modifier for telehealth claims
    C) Whether the CPT code matches the session length
    D) Whether the clinician's CAQH profile is current

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