Charging policy and labelling requirements for hospital dispensing MCQs With Answer
Understanding charging policy and labelling requirements is essential for B. Pharm students involved in hospital dispensing. This topic covers hospital drug pricing, billing components, exemptions, reimbursement schemes, and transparent charging policies alongside regulatory labelling elements such as generic name, strength, batch number, expiry date, storage instructions, directions for use, patient identity, and legibility. Emphasis on patient safety, legal compliance, inventory control, and antimicrobial stewardship links policy to practice. Mastery helps pharmacists ensure accurate charges, safe dispensing, clear labels, and better communication with patients and clinicians. Now let’s test your knowledge with 30 MCQs on this topic.
Q1. What is the primary goal of a hospital charging policy for dispensary services?
- Maximize profit margins for the hospital pharmacy
- Standardize charges and ensure transparent billing
- Reduce the number of prescriptions dispensed
- Encourage patients to purchase from private pharmacies
Correct Answer: Standardize charges and ensure transparent billing
Q2. Which of the following is an essential labelling element for a dispensed medication?
- Patient’s favorite color
- Drug name, strength and dosage instructions
- Pharmacist’s home address
- Physician’s bank details
Correct Answer: Drug name, strength and dosage instructions
Q3. In hospital charging policies, what is typically excluded from patient bills in many public hospitals?
- Cost of generic drugs
- Government-subsidized or free essential medicines
- Consumables like syringes
- Laboratory tests
Correct Answer: Government-subsidized or free essential medicines
Q4. Which labelling practice improves patient safety for look-alike/sound-alike drugs?
- Using identical packaging for all drugs
- Applying tall-man lettering and clear brand/generic names
- Printing labels in tiny font to save space
- Omitting strength on labels
Correct Answer: Applying tall-man lettering and clear brand/generic names
Q5. Which item on a dispensing label helps with adverse event tracing and recalls?
- Patient’s occupation
- Batch or lot number
- Pharmacist’s nickname
- Generic marketing slogan
Correct Answer: Batch or lot number
Q6. A hospital charging policy should clearly state which of the following for outpatient dispensing?
- Billing rates, exemptions, and reimbursement procedures
- The pharmacist’s personal fees for services
- Which private pharmacy to use for refills
- How to appeal a criminal charge
Correct Answer: Billing rates, exemptions, and reimbursement procedures
Q7. What label information is critical for safe paediatric dosing?
- Number of tablets in the original blister pack only
- Patient weight-based dose and clear administration schedule
- Only the adult dosing schedule
- Pharmacist’s opinion on the medicine’s taste
Correct Answer: Patient weight-based dose and clear administration schedule
Q8. Which charging component is commonly itemized on hospital pharmacy bills?
- Cost of unrelated hospital meals
- Medicine cost, dispensing fee, and taxes if applicable
- Doctor’s travel allowance
- Patient’s transportation expenses
Correct Answer: Medicine cost, dispensing fee, and taxes if applicable
Q9. For controlled substances in a hospital, which labelling feature is most important?
- Omitting prescribing physician’s name
- Clear statement of controlled status and strict storage instructions
- Using decorative fonts to differentiate them
- Labeling them as OTC for easier access
Correct Answer: Clear statement of controlled status and strict storage instructions
Q10. Which practice helps ensure label legibility in hospital dispensing?
- Using minimal information to save space
- Using clear, sufficiently large font and high-contrast printing
- Printing on glossy reflective labels only
- Handwriting entire labels in cursive
Correct Answer: Using clear, sufficiently large font and high-contrast printing
Q11. How should a hospital pharmacy handle charging for medicines under government insurance schemes?
- Charge full retail price and let patient claim later without documentation
- Follow scheme-specific reimbursement rates and documentation procedures
- Refuse to dispense medications under any scheme
- Charge double to cover administrative work
Correct Answer: Follow scheme-specific reimbursement rates and documentation procedures
Q12. Which label instruction reduces dosing errors for complex regimens?
- Use medical abbreviations only
- Provide explicit stepwise administration times and short plain-language directions
- Give no administration time to encourage flexibility
- Only include the drug name and leave dosing to memory
Correct Answer: Provide explicit stepwise administration times and short plain-language directions
Q13. What is a common reason for implementing exemption policies in hospital charging?
- To reduce pharmacy workload
- To ensure vulnerable populations receive free or reduced-cost essential medicines
- To increase overall hospital revenue
- To complicate billing procedures
Correct Answer: To ensure vulnerable populations receive free or reduced-cost essential medicines
Q14. Which labelling item informs the patient about safe storage at home?
- Manufacturer’s profit margin
- Storage instructions such as “Store below 25°C” or “Keep refrigerated”
- Prescriber’s salary
- Pharmacy opening hours only
Correct Answer: Storage instructions such as “Store below 25°C” or “Keep refrigerated”
Q15. In hospital dispensing, what is the purpose of a dispensing fee?
- To penalize patients for refilling prescriptions
- To cover pharmacy operational costs and professional services
- To fund unrelated hospital departments
- To discourage medication adherence
Correct Answer: To cover pharmacy operational costs and professional services
Q16. Which labelling practice supports bilingual patient populations in a hospital?
- Using only one language preferred by staff
- Providing label information in both the local language and a widely understood second language
- Printing labels in obscure technical jargon only
- Using pictograms without any text
Correct Answer: Providing label information in both the local language and a widely understood second language
Q17. What should a hospital charging policy specify about emergency medicine dispensing?
- That emergency medicines are charged at triple the normal rate
- Clear procedures for immediate supply, documentation, and subsequent billing or waiver
- That no records are kept for emergency dispensing
- That emergency medicines are only available to staff
Correct Answer: Clear procedures for immediate supply, documentation, and subsequent billing or waiver
Q18. Which label detail assists caregivers in administering medications correctly to elderly patients?
- Small font instructions to protect privacy
- Clear administration times, dose form, and any warnings about swallowing or crushing
- Only the prescription number
- Astrological compatibility notes
Correct Answer: Clear administration times, dose form, and any warnings about swallowing or crushing
Q19. How should price transparency be achieved according to good hospital charging policies?
- By hiding charges until final billing
- By providing patients with clear itemized cost information before or at dispensing
- By only verbal communication without documentation
- By showing costs only to hospital administrators
Correct Answer: By providing patients with clear itemized cost information before or at dispensing
Q20. Which of the following is a regulatory requirement often applied to dispensing labels?
- Inclusion of promotional claims
- Indication of expiry date and manufacturing details
- Use of colorful logos for each product
- Listing competing products
Correct Answer: Indication of expiry date and manufacturing details
Q21. For unit-dose dispensing in hospitals, what labelling element is key?
- Patient’s employment history
- Clear patient identification and dose-specific information on each unit pack
- Only a barcode without human-readable text
- Expiration year only
Correct Answer: Clear patient identification and dose-specific information on each unit pack
Q22. Which measure minimizes charging disputes between patients and hospital pharmacies?
- Not providing any receipts
- Issuing detailed receipts and explaining charges at dispensing
- Collecting cash without records
- Changing prices arbitrarily
Correct Answer: Issuing detailed receipts and explaining charges at dispensing
Q23. Labelling of injectable medications should prominently include which information?
- Patient’s favorite food
- Concentration, route of administration, and dilution instructions if applicable
- Only the generic name without strength
- Prescriber’s telephone number only
Correct Answer: Concentration, route of administration, and dilution instructions if applicable
Q24. How should hospitals address charging for expired or recalled medicines already dispensed?
- Keep charges and avoid informing patients
- Initiate recall procedures, notify patients, and provide refund or replacement per policy
- Blame patients for not checking expiry
- Charge extra for replacements
Correct Answer: Initiate recall procedures, notify patients, and provide refund or replacement per policy
Q25. Which label practice supports medication adherence post-discharge?
- Providing minimal label information to reduce confusion
- Including clear dosing schedule, duration, and follow-up instructions
- Using medical shorthand only
- Removing prescriber details
Correct Answer: Including clear dosing schedule, duration, and follow-up instructions
Q26. Which is a key consideration when setting hospital pharmacy prices for generic drugs?
- Price should always be higher than branded alternatives
- Balance affordability, procurement cost, and sustainability of supply
- Limit stock to expensive brands only
- Ignore procurement costs completely
Correct Answer: Balance affordability, procurement cost, and sustainability of supply
Q27. What label warning is especially important for photosensitive medicines?
- “May cause overeating”
- “Protect from light / Keep in original protective container”
- “No special precautions”
- “Store in direct sunlight”
Correct Answer: “Protect from light / Keep in original protective container”
Q28. When dispensing under third-party billing (e.g., insurance), the hospital should ensure what?
- No documentation is required
- Accurate coding, itemized invoices, and authorization per insurer rules
- Always charge cash and refuse insurer claims
- Only bill the patient for the entire amount
Correct Answer: Accurate coding, itemized invoices, and authorization per insurer rules
Q29. Which label addition can help non-literate patients take medications correctly?
- Complex chemical names in Latin
- Pictograms showing dose timing and route along with simple text
- Only barcodes unreadable without a scanner
- Random symbols without explanation
Correct Answer: Pictograms showing dose timing and route along with simple text
Q30. What is a pharmacist’s responsibility in enforcing hospital charging and labelling policies?
- Ignore policies and act by personal judgment
- Adhere to policies, provide clear labels, document dispensing, and explain charges to patients
- Delegate all responsibilities to non-pharmacy staff
- Always charge the maximum without disclosure
Correct Answer: Adhere to policies, provide clear labels, document dispensing, and explain charges to patients

I am a Registered Pharmacist under the Pharmacy Act, 1948, and the founder of PharmacyFreak.com. I hold a Bachelor of Pharmacy degree from Rungta College of Pharmaceutical Science and Research. With a strong academic foundation and practical knowledge, I am committed to providing accurate, easy-to-understand content to support pharmacy students and professionals. My aim is to make complex pharmaceutical concepts accessible and useful for real-world application.
Mail- Sachin@pharmacyfreak.com
