FACHE Exam Study Guide: Healthcare Management and Policy, Exams of Nursing

Download FACHE Exam Study Guide: Healthcare Management and Policy and more Exams Nursing in PDF only on Docsity! BOG Practice Exam – FACHE exam with 100% correct answers 2024 According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the negative implications of conflict of interest is to: a. Develop a public relations plan to address potential conflict- of- interest scenarios. b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual lists of major activities and holdings for inspections. d. Make the conflict known to those in superior positions. - answer- d. Make the conflict known to those in superior positions The principles of quality improvement require that healthcare executives change their management philosophy from: a. Finding fault with employees to finding problems in processes. b. Finding fault with employees to involving them in the improvement of processes. c. Focusing on enhanced inspection techniques to focusing on variance. d. Focusing on employees' roles to focusing on process outcomes. - answer-a. Finding fault with employees to finding problems in processes. What type of problem arises when a healthcare executive knowingly allows the organization to continue double billing? a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational policy is not clearly stated. BOG Practice Exam – FACHE exam with 100% correct answers 2024 b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive. c. An ethical problem for the employee if the healthcare executive receives direct economic benefit. d. An ethical problem if it clearly violates state or federal law. - answer-b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive. Which of the following is a unit of measure commonly used to determine physicians' clinical productivity? a. RVU b. CMS c. IPO d. CPU - answer-a. RVU Which of the following third-party reimbursement methods provides the largest financial incentive for the provider to reduce cost? a. Charge-based b. Cost-based c. Prospective payment d. Per diem - answer-c. Prospective payment Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all: BOG Practice Exam – FACHE exam with 100% correct answers 2024 Internal members of the healthcare organization's governing body: a. Serve on an ad hoc basis and are rarely voting members. b. Are kept to a minimum due to concerns regarding confidentiality. c. Often include the CEO, medical director and CFO. d. Often include the executive staff in planning and information management - answer-c. Often include the CEO, medical director and CFO. In assessing the advantage of using a focus group over a survey in evaluating a program, one could say that focus groups: a. Are likely to use a larger sample size. b. Are more useful in designing improvements to a program. c. Are more precise in designing improvements to a program. d. Are useful only when maintaining objectivity is not important - answer-b. Are more useful in designing improvements to a program. From a marketing viewpoint, the development of standards of practice, clinical pathways, clinical guidelines and protocols can all be viewed as efforts to deal with which unique aspect of delivering services: a. Inseparability. b. Intangibility. c. Heterogeneity. d. Perishability. - answer-c. Heterogeneity. BOG Practice Exam – FACHE exam with 100% correct answers 2024 What purpose do market plans fulfill for the healthcare organization? a. Provide a business plan (or plans) as a subset of the organization's marketing plan. b. Present general goals for the organization to attain in the next three to five years. c. Develop promotion methods to be used in attaining the organization's objectives. d. Provide specific objectives for utilization attainment the next fiscal year. - answer-d. Provide specific objectives for utilization attainment the next fiscal year. The five major functions of marketing are: a. Identifying markets, promoting the organization, recruitment of providers, managing external relationships, patient selection. b. Identifying markets, health promotion, managing external relationships, patient selection, attracting capable workers. c. Identifying markets, promoting the organization, managing external relationship, convincing patients to select the organization, attracting capable workers. d. Identifying markets, promoting the organization, managing external relationships, strategic planning, physician recruitment. - answer-c. Identifying markets, promoting the organization, managing external relationship, convincing patients to select the organization, attracting capable workers. Forecasting organizational need for human resources by focusing on BOG Practice Exam – FACHE exam with 100% correct answers 2024 specific position openings that are likely to occur and using these for planning is called: a. Demand-pull approach. b. Supply-push approach. c. Succession analysis. d. Transition matrix. - answer-a. Demand-pull approach. A health services organization should use which of the following sequential processes to help establish human resources (HR) objectives and policies? a. Analyze the current HR situation, forecast HR demand, reconcile with the budget, forecast HR supply. b. Design HR recruitment and selection activities, develop an HR compensation plan, and establish HR appraisal systems. c. Determine best HR job structure, perform HR job evaluations, establish HR training and development plan. d. Conduct HR job analysis, determine best HR job structure, and establish HR information system. - answer-a. Analyze the current HR situation, forecast HR demand, reconcile with the budget, forecast HR supply. Probability models that forecast the internal flow of employees from one job category to another use a: a. Graphic rating approach. b. Supply-push approach. BOG Practice Exam – FACHE exam with 100% correct answers 2024 b. Amount of supplies used. c. Hours worked. d. Square footage. - answer-b. Amount of supplies used. The effective cost of debt is roughly the same for both not-for-profit and investor-owned organizations because: a. Both types of organizations can issue tax-exempt debt. b. The interest rate is the same on both tax-exempt and regular debt. c. Neither type of organization can issue tax-exempt debt. d. The tax deductibility of interest for investor-owned firms offsets the lower coupon rate on tax-exempt debt. - answer-d. The tax deductibility of interest for investor-owned firms offsets the lower coupon rate on tax-exempt debt. The master site plan (or master facility plan) for a healthcare organization: a. Describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs. b. Provides detailed design documents for all construction programs along with specific costs for each project. c. Must be prepared by an outside planning or architectural firm to ensure sufficient objectivity. d. Is necessary to ensure that the organization complies with certificate of need and other regulatory requirements. - answer-a. Describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs BOG Practice Exam – FACHE exam with 100% correct answers 2024 Which of the following statements best describes the statistics budget? a. It combines volume and expense rates to forecast costs. b. It is a profit forecast for the coming year. c. It combines volume and reimbursement data to forecast revenues. d. It provides input date for other budgets. - answer-d. It provides input date for other budgets. All areas of healthcare facilities are subject to safety, convenience and other regulatory requirements as dictated by the state life safety codes, JCAHO, OSHA, state fire marshal, etc. Which area of the facility typically has the highest standards? a. The energy plant. b. Highly used public areas. c. Areas under construction. d. Patient care areas. - answer-d. Patient care areas. The best way to reduce/contain the costs of distributing supplies throughout an organization is to: a. Purchase the most modern supply distribution system for your organization. b. Minimize the number of times an item is handled from the time it is received by the organization to the time it is used. c. Utilize a computerized materials management system that allows the organization to minimize inventory levels. BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. Negotiate a contract with an outside vendor who specializes in supply distribution to provide these services. - answer-b. Minimize the number of times an item is handled from the time it is received by the organization to the time it is used. The objective of maintenance and repair services is to keep the facility and its equipment operating like new. This goal is best achieved by emphasizing: a. Prevention. b. Efficiency. c. Productivity. d. Safety. - answer-a. Prevention. The facility's plan for a healthcare organization may include plans for renovation or new construction, energy requirements, acquisition of new property, financing options, etc. However, the facility plan begins with an estimate of each service or department's: a. Operational needs. b. Parking needs. c. Staffing needs. d. Equipment needs. - answer-a. Operational needs. An important management principle that should guide the development of information systems in healthcare organizations is to: a. Treat information as an essential organizational resource. BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. Changes. - answer-d. Changes. A master patient index (MPI) can best be described as: a. A relational database containing all identification numbers assigned to patients. b. A system for converting social security numbers to medical record numbers. c. A system for converting medical record numbers to patient account numbers. d. A longitudinal record of all patient encounters for a fixed period of time. - answer-a. A relational database containing all identification numbers assigned to patients. A typical use of the Internet by healthcare organizations is to: a. Deliver educational programs to employees. b. Provide the medical staff with electronic access to patient records. c. Advertise services available to the community. d. Communicate financial information to business units of the organization. - answer-c. Advertise services available to the community. The best way to facilitate information system integration within a healthcare organization is to: a. Centralize all computer activities. b. Use computer equipment from only one manufacturer. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Use computer software from only one vendor. d. Standardize data definitions and data structures. - answer- d. Standardize data definitions and data structures. Which of the following is a developing technology that will help control unauthorized access to computerized information? a. Optical scanners. b. Biometric access control devices. c. Wireless terminals. d. High-speed modems. - answer-b. Biometric access control devices. In negotiating a contract for an information system, healthcare organizations should: a. Form a negotiating team and utilize legal counsel. b. Use the standard contract provided by the system vendor. c. Employ a consultant from among a list provided by the vendor. d. Use a cost-plus contract to maximize flexibility in system design - answer-a. Form a negotiating team and utilize legal counsel. Which of the following is the most important factor to consider in evaluating vendor software packages? a. Size of the vendor's marketing staff. b. Ability of the software to interface with existing systems. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Programming language used to write the software. d. Geographic location of the vendor's corporation office - answer- b. Ability of the software to interface with existing systems. The CIO for a healthcare organization is typically responsible for which of the following functions? a. Information systems and finance. b. Medical Records and patient registration c. Telecommunications and public relations. d. Information systems and telecommunications. - answer- d. Information systems and telecommunications. In selecting an information system, a consultant can best be used to: a. Chair the selection committee. b. Make the final selection decision. c. Provide technical information and an outside prospective. d. Handle all communications and prospective vendors. - answer- c. Provide technical information and an outside prospective. The Information Systems Steering Committee for a healthcare organization should perform which of the following duties? BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. Executive decision support system. - answer-d. Executive decision support system. Which of the following would represent the most common cause of adverse drug events (ADEs)? a. Lack of standardization. b. Lack of knowledge of drug. c. Preparation errors. d. Transcription errors. - answer-b. Lack of knowledge of drug. What is the primary advantage of the corporate form of organization for a healthcare provider? a. It exists by virtue of a statute providing for its formation. b. It has powers granted to it by its charter. c. Its continued existence is not affected by the death or disability of an owner. d. It has limited liability. - answer-d. It has limited liability. Law and tradition have established basic criteria for healthcare governing boards. One criteria is that: a. All members agree to receive care at the governed organization. b. Board members provide a specified amount of financial support. c. The actions of the board are reasonable and prudent. BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. The board must meet a minimum of two times each year. - answer- c. The actions of the board are reasonable and prudent. Continuous quality improvement assumes that: a. Achievement will be rewarded. b. There is direction from top management. c. There is no upper limit to excellence. d. Interconnected work teams are in place. - answer-c. There is no upper limit to excellence. Which of the following best describes the responsibility of a hospital with an emergency department (ED) when a person comes to the ED for Examination or treatment? a. The hospital must admit the patient for observation and treatment if an emergency condition exists. b. The hospital must provide an appropriate medical screening to determine whether an emergency condition exists and, if so, stabilize the condition. c. The hospital may inquire as to the individual's method of payment or insurance status prior to rendering services. d. If the individual is uninsured, the hospital must transfer the patient to the nearest public hospital designated for the care and treatment of medically indigent persons. - answer-b. The hospital must provide an appropriate medical screening to determine whether an emergency condition exists and, if so, stabilize the condition. What was the first major law to have a significant impact on individual BOG Practice Exam – FACHE exam with 100% correct answers 2024 privacy in the workplace? a. Civil Rights Act b. Fair Credit Reporting Act c. Polygraph Protection Act d. Privacy Act - answer-a. Civil Rights Act How does physician self-referral or Stark laws apply to Medicare payments? a. The law applies to private party insurance and does not apply to Medicare payments. b. The law establishes an additional payment to the normal Medicare payment fees due to the added complexity of referrals. c. The law allows a claim to be filed with Medicare for a service provided by a physician who has a financial interest in the DHS. d. The law prohibits a provider from presenting a claim to Medicare or to any person or other entity for a prohibited DHS referral. - answer-d. The law prohibits a provider from presenting a claim to Medicare or to any person or other entity for a prohibited DHS referral. Which of the following is not an advantage of an effective Corporate Compliance Program for a healthcare organization? a. Initiating immediate and appropriate corrective actions. b. Costs of implementation and operations. c. Developing processes to allow employees to report potential problems BOG Practice Exam – FACHE exam with 100% correct answers 2024 a. Physiological, safety, esteem, belonging, self-actualization. b. Safety, physiological, belonging, esteem, self-actualization. c. Physiological, safety, belonging, esteem, self-actualization. d. Safety, esteem, physiological, belonging, esteem, self-actualization. - answer-c. Physiological, safety, belonging, esteem, self- actualization. Communication Health Intranet Networks (CHINs) were developed for what purpose? a. To provide a platform for an electronic medical record. b. To provide a way to disseminate community-level health data. c. To provide an inexpensive way of sharing health information. d. To provide a community-based hub for sharing health information. - answer-d. To provide a community-based hub for sharing health information. Which organizational theory is illustrated by governing activities with explicit and specific procedures, arranging offices in a hierarchal fashion, and selecting candidates on the basis of their technical competency? a. Bureaucratic b. Contingency c. Institutional d. Technological - answer-a. Bureaucratic BOG Practice Exam – FACHE exam with 100% correct answers 2024 In planning for future community health services, it is important to understand population health needs. Which ethnic category tends to proportionally use physician services the most? a. African-American b. Asian c. Latino d. White - answer-d. White Which of the following limitations would cause a hospital OB unit to see no change in volume over a four year period? a. Organizational b. Market c. Financial d. Clinical - answer-b. Market According to CMS Conditions of Participation, under what circumstances, if any, is it permissible to deny a patient access to his or her medical record? a. The information requested consists of psychotherapy notes. b. The request comes from the patient's personal representative instead of directly from the patient (if allowed under state law). BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. The provider organization will incur significant costs in copying or forwarding the requested records. d. It is never permissible to deny a patient access to his or her records. - answer-a. The information requested consists of psychotherapy notes. The overall goal of the HIPPA Act of 1996 is: a. To ensure the privacy and confidentiality of patient medical records. b. To standardize the sharing of clinical and administrative information. c. To strengthen healthcare data security standards and practices. d. Improve portability and continuity of health insurance, combat fraud. - answer-d. Improve portability and continuity of health insurance, combat fraud. Congress enacted Stark II to prohibit which of the following? a. A physician or an immediate family member from referring a patient to an entity with which they have a financial relationship. b. Hospitals and physicians from partnering to build in-patient acute care facilities. c. Hospitals and physicians from joint venturing in the offering of outpatient imaging centers. d. A hospital from referring a patient to a wholly-owned entity of which it has total ownership. - answer-a. A physician or an immediate family member from referring a patient to an entity with which they have a financial relationship. BOG Practice Exam – FACHE exam with 100% correct answers 2024 The role of a not-for-profit healthcare organization's governing board includes all of the following except: a. Delineate clinical privileges. b. Ensuring that quality healthcare is delivered. c. Overseeing the day to day operations. d. Setting broad institutional policy. - answer-c. Overseeing the day to day operations. Medicare Conditions of Participation for hospitals require that a prescribing practitioner authenticate a verbal order within , if not defined by the state. a. 24 hours. b. 48 hours. c. 7 days. d. 30 days. - answer-b. 48 hours. Cost accounting is an important tool which enables the CFO to: a. Meet Joint Commission fiscal requirements. b. Ensure supplies are competitively purchased. c. Determine the actual cost of providing patient care. d. Improve revenue cycle returns. - answer-c. Determine the actual cost of providing patient care. BOG Practice Exam – FACHE exam with 100% correct answers 2024 What is true about the relationship between acute care hospitals and longterm care organization? a. Hospitals and patients frequently have difficulty arranging for nursing home care services. b. Hospitals generally do not want to refer patients to nursing homes since part of the patient care revenue must be shared. c. Nursing homes generally do not want to refer patients to hospitals since this interferes with state or federal length-of stay requirements. d. Nursing homes are generally thought to be superior to hospitals at chronic disease management. - answer-a. Hospitals and patients frequently have difficulty arranging for nursing home care services. The first step in any strategic management scenario planning is to: a. Develop "what if" scenarios b. Gather information from as many sources as possible. c. Develop courses of action that fit within future organizational resources. d. Conduct a make vs. buy analysis. - answer-b. Gather information from as many sources as possible. Which of the following is the least serious limitation to decision analysis? a. Oversimplifying the problem. b. Inadequate data. c. The decision maker's values. d. The statistical model. - answer-d. The statistical model. BOG Practice Exam – FACHE exam with 100% correct answers 2024 In a unionized organization, what is the most effective contract dispute resolution finalization alternative? a. Mediation. b. Corporate Campaigns. c. Arbitration. d. Strike. - answer-c. Arbitration. What does a liquidity ratio measure? a. A firm's ability to meet its current obligations in a timely manner. b. Size of dividends to be paid to shareholders. c. The percent of total funds provided by creditors. d. Days in accounts receivable. - answer-a. A firm's ability to meet its current obligations in a timely manner. The real value of financial statements lies in the fact they can be used to help: a. Predict the firm's future financial condition. b. Compute total margin versus periodic gain. c. Relate the industry average to net profit/loss over time. d. Understand that a large portion of a hospitals net income may come from nonoperating gains. - answer-a. Predict the firm's future financial condition. BOG Practice Exam – FACHE exam with 100% correct answers 2024 What is the most common operating indicator used to measure overall staff productivity? a. Full-time equivalents per occupied bed. b. Total salaries and benefits as a percent of operating expenses. c. Full-time equivalents per adjusted averaged daily census. d. Nursing salary and benefits as a percentage of total expenses. - answer-c. Full-time equivalents per adjusted averaged daily census. Determining whether the help desk function is effective and whether projects are well managed are examples of measuring an information system department's: a. Strategic competency. b. Political competency. c. Vendor competency. d. Operational competency. - answer-d. Operational competency. When seeking information about fixed assets, payroll, regulatory and tax reporting, and accounts payable, an administrator will access what information management system? a. Physician practice management. b. Patient administration and management. c. Home health management. d. General financial management. - answer-d. General financial management. BOG Practice Exam – FACHE exam with 100% correct answers 2024 The main role of the board is: a. Selecting the CEO. b. Overseeing operations. c. Setting institutional policy. d. Running the institution in the absence of the CEO. - answer- c. Setting institutional policy. Which of the following is not considered part of the labor budget? a. Staff salaries. b. Hourly wages. c. Employee benefits. d. Contract staff expenses. - answer-d. Contract staff expenses. Health Savings Accounts (HSAs), were established through which law? a. Consolidated Omnibus Budget Reconciliation Act b. Medicare Prescription Drug Improvement and Modernization Act c. Health Insurance Portability and Accountability Act d. Americans with Disabilities Act - answer-b. Medicare Prescription Drug Improvement and Modernization Act The only law that mandates a particular type of payment for time not BOG Practice Exam – FACHE exam with 100% correct answers 2024 worked. a. FMLA b. EMTALA c. ADA d. CMS - answer-a. FMLA Which position is included in the NRLB Bargaining rules? a. Physician independent contractor b. Nurse supervisors c. Pharmacists. d. Certified accountants - answer-c. Pharmacists. One method for evaluating relative value of different jobs is: a. Broad banding. b. Gant charting. c. Scalability. d. Benchmarking. - answer-d. Benchmarking. When discharging a patient from a hospital, the institution can be held liable: a. For providing post-discharge medications for ongoing care. BOG Practice Exam – FACHE exam with 100% correct answers 2024 a. Financial performance. b. New technology. c. Competitor activity. d. Board/management team. - answer-a. Financial performance. The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions and determines that her institution has no competitive advantage. Which strategy should she pursue? a. Target many market segments based on demographics. b. Prioritize market segments and heavily promote to key groups. c. Advertise broadly to increase general awareness. d. Recruit more physicians to admit to the institution. - answer- b. Prioritize market segments and heavily promote to key groups. If the average daily census on an inpatient medical surgical unit is 19, and the productive hours per patient day target is 7.2, and the productive percentage calculation is 8.5, how many fulltime equivalents (FTEs) should be budgeted for the productive core staffing? a. 24. b. 26. c. 30. d. 35. - answer-a. 24. What in the revenue cycle process is a major impediment to prompt BOG Practice Exam – FACHE exam with 100% correct answers 2024 payment? a. Payment receipt and posting. b. Claims submission. c. Poor financial counseling. d. Claim denial. - answer-d. Claim denial. When evaluating capital budgeting performance, what is the best indicator of operating leverage? a. Debt to capitalization ratio. b. Expense ratio. c. Average age of plant. d. Depreciation ratio. - answer-b. Expense ratio. An analysis of proposed capital investment typically includes all of the following except: a. Cost of capital b. Cash flow projections c. Liquidity ratio. d. Risk assessment. - answer-c. Liquidity ratio. Revenue cycle billing management typically includes what broad activities? BOG Practice Exam – FACHE exam with 100% correct answers 2024 a. Billing and collections for inpatient, outpatient and surgical services. b. Claims processing, denial management and claims payment. c. Processing accounts payables, denial management and billing for outpatient services. d. Activities before services are rendered, activities that occur simultaneously with the services and activities after services are rendered. - answer-d. Activities before services are rendered, activities that occur simultaneously with the services and activities after services are rendered. Who gives final approval of the medical staff bylaws? a. The board. b. The medical staff. c. The board executive committee. d. The medical staff executive committee. - answer-a. The board. Which of the following courts is often given jurisdiction to hear cases involving such matters as surgery for an incompetent person or the involuntary commitment of a mentally ill person? a. Family court. b. Juvenile court. c. Appellate court. d. Probate court. - answer-d. Probate court. BOG Practice Exam – FACHE exam with 100% correct answers 2024 Which of the following regulations exempted self-funded employer sponsored health insurance plans from state insurance regulation? a. BBA b. TEFRA c. COBRA d. ERISA - answer-d. ERISA Hospitals that were acquired by hospital systems generally have which characteristic? a. They operate at a net gain. b. They incur higher debt levels. c. They are located in markets with a smaller number of HMOs. d. They are younger, not-for-profit hospitals with higher occupied beds. - answer-b. They incur higher debt levels. Hospitals known for their ability to attract and retain nurses despite the significant nursing shortages are called: a. Professional excellence centers. b. Shared Governance facilities. c. Magnet hospitals. d. Baldrige award winners. - answer-c. Magnet hospitals. BOG Practice Exam – FACHE exam with 100% correct answers 2024 The reimbursement method that was first adopted by Medicare and later by most third party payers is known as: a. ICD-9. b. RBRVS. c. RUG. d. DRG. - answer-d. DRG. The principal goal of a Health Service Organization's medical/hospital model is a. Security. b. Disease treatment. c. Quality of life. d. Comfort. - answer-b. Disease treatment. Which segment of the healthcare delivery system is exclusively dedicated to terminally ill patients? a. Level I trauma centers b. Tertiary care centers c. Hospice programs. d. Pastoral care services. - answer-c. Hospice programs. Emerging physician organizations are usually private, for-profit BOG Practice Exam – FACHE exam with 100% correct answers 2024 corporations. In order to gain not-for-profit status, such organizations must: a. Give 50% of profits to charity. b. Have a community-dominated board of governance. c. Create a partnership with a nonprofit hospital. d. Minimize double taxation to members by passing proceeds directly to the members. - answer-b. Have a community-dominated board of governance. Which of the following is a key responsibility of a governing board? a. Recruit and select the CEO. b. Operationalize the organization's strategic plan. c. Assist the CEO with evaluation of the rest of the management team. d. Develop a physician recruitment plan. - answer-a. Recruit and select the CEO. Which of the following networks is intended to reduce costs and improve quality by giving access to financial, clinical and administrative information? a. Community health information network (CHIN) b. Local area health network (LAHN) c. Virtual private health network (FPHN) d. Health file transfer network (HFTN) - answer-a. Community health information network (CHIN) BOG Practice Exam – FACHE exam with 100% correct answers 2024 a. It is based on an expressed or implied contract, from which certain elements of duty arise. b. It is based on acceptance of remuneration for services rendered unless charity care is designated. c. It has no legal status in that it is a private business relationship, unless the patient is a Medicare beneficiary. d. It is governed by the hospital or health system's medical staff bylaws. - answer-a. It is based on an expressed or implied contract, from which certain elements of duty arise. A major advantage of capitation for primary care gatekeepers is it: a. Guarantees primary care physicians will make more money than they ever made in fee-for-service. b. Encourages primary care physicians to be more judicious in their referrals to specialists. c. Elevates the primary care physician's status in the eyes of his/her patients. d. Makes it easier for health plans to collect utilization data from physicians. - answer-b. Encourages primary care physicians to be more judicious in their referrals to specialists. Bundled pricing (paying a single fee for all services) for such services as total hip replacement or coronary artery bypass surgery affects physician hospital relationships by: a. Reducing the need to devote administrative effort to measuring outcomes and performance indicators. b. Putting the physician and hospital at each other's throat fighting over the distribution of the fee BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Promoting efforts to collaborate and integrate efforts to provide more efficient care. d. Guaranteeing that only top quality physicians will be allowed to participate in such programs. - answer-c. Promoting efforts to collaborate and integrate efforts to provide more efficient care. A healthcare executive is serving on the board of a community mental health center. The mental health center board is evaluating proposals for inpatient psychiatric services. Proposals were received from the executive's facility and several other facilities. The healthcare executive should: a. Participate in the discussion and the vote if the benefits to the community outweigh possible conflicts of interest. b. Not participate in the discussion or the vote. c. Declare a potential conflict-of-interest and excuse himself or herself from participating in both the discussion and the vote. d. Participate in the discussion but not vote on the proposals. - answer-d. Participate in the discussion but not vote on the proposals. What is a primary reason for conducting continuing education for staff? a. Staff will think the organization cares about them. b. There are significant short-term operating efficiencies. c. It is a long-term commitment to the patient. d. The Joint Commission and NCQA required it. - answer-c. It is a long-term commitment to the patient. BOG Practice Exam – FACHE exam with 100% correct answers 2024 What is the first effect of demographic trends on a health services organization's strategic planning process? a. Appraising financing sources and payment levels for programs. b. Establishing future staff by type and estimating staffing levels. c. Determining the locations of delivery units for the next period. d. Determining the range and types of services to be offered. - answer-d. Determining the range and types of services to be offered. Managers who use their authority to greatly enhance their salaries, benefits, and accoutrements of office may be causing a disbenefit to patients. This personal aggrandizement is known as self dealing and can: a. Be seen most commonly in for-profit HMOs. b. Occur only in for-profit organizations. c. Occur in any health service organization. d. Be seen only in non-health services field charities. - answer- c. Occur in any health service organization. The primary stimuli that causes educational programs to be made available to and required of staff are the: a. Legal demands resulting from medical malpractice. b. Regulations issued by governments at all levels. c. Demands and expectations of stakeholders. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Mission statement development. d. Action planning. - answer-b. Situation analysis Which of the following analyses is used for workforce planning and forecasting? a. Qualifications inventory analysis. b. Job analysis. c. Productivity analysis. d. Ratio analysis. - answer-d. Ratio analysis. Which of the following techniques would play a central role in an organization being able to demonstrate equal employment compliance? a. Job questionnaires. b. EEOC postings in the human resource department. c. A job analysis procedure. d. An established complaint process. - answer-c. A job analysis procedure. An organization has made a commitment to begin training its employees to fill anticipated job openings in upcoming years. This is an Example of: a. Succession planning. BOG Practice Exam – FACHE exam with 100% correct answers 2024 b. Reengineering. c. Position control. d. Quality improvement. - answer-a. Succession planning. Which of the following is an Example of direct costs? a. Utility bills. b. Parking operations. c. Dept service. d. Drug prescriptions. - answer-d. Drug prescriptions. Healthcare organizations require the filing of annual disclosure statements on the part of board members and officers. This policy is intended to address: a. Inurement. b. Theft. c. Exploitation. d. Incompetence. - answer-a. Inurement. Healthcare organizations are routinely faced with accommodating competing space needs. The key considerations in resolving such issues should be based upon which of the following? a. Long-range facility plan. b. Return on investment for each use. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Prospective donor's interest in the program. d. Board of trustee preference. - answer-a. Long-range facility plan. Information systems management security is concerned with the policies and procedures for ensuring the security of: a. Data. b. Software. c. Hardware. d. Firmware. - answer-a. Data. A patient files a complaint relating to a negative hospital experience. The proper handling of this patient's complaint is to: a. Cite organizational policy. b. Side against the organization. c. Minimize the complaint. d. Clarify the problem. - answer-d. Clarify the problem. The single most important way patients can help prevent medical errors from affecting them is to: a. Interact with their caregivers. b. Research medical error rates among organizations. c. Read and understand consent forms. BOG Practice Exam – FACHE exam with 100% correct answers 2024 The purpose of the ACHE Ethics Committee is to review and recommend action on ethical violations to which group? a. Executive Committee. b. Board of Governors. c. Council of Regents. d. Membership Committee. - answer-b. Board of Governors. According to the ACHE Code of Ethics, what action can the Ethics Committee take against an affiliate after a grievance procedure has been initiated? a. Fine the affiliate. b. Report the violation to the affiliate's employer. c. Issue a written reprimand to the affiliate. d. Recommend expulsion of the affiliate. - answer-d. Recommend expulsion of the affiliate. ACHE's Ethical Policy Statement on Ethical Issues Related to Downsizing recommends that healthcare executives should consider providing which of the following when downsizing? a. Financial aid. b. Child care. c. Family counseling d. Out-placement assistance. - answer-d. Out-placement assistance. BOG Practice Exam – FACHE exam with 100% correct answers 2024 According to the ACHE's Ethical Policy Statement in Creating an Ethical Environment for Employees, the organization should: a. Ensure maximum utilization of an employee's skills and abilities. b. Create a working environment that provides freedom from coercion. c. Develop a committee that addresses employee diversity and compliance. d. Provide sensitivity training to new employees at orientation. - answer-b. Create a working environment that provides freedom from coercion. What are the three basic categories of quantitative performance measures used in conventional accounting systems? a. Market share, customer satisfaction, and quality. b. Demand, sales, and cost. c. Demand, cost, and output/productivity. d. Services rendered, market share, and access. - answer-c. Demand, cost, and output/productivity. Under a capitated payment system, the risk sharing arrangements involve which parties? a. Insurers and patients. b. Physicians and purchasers. c. Hospitals and patients. BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. Hospitals and insurers. - answer-d. Hospitals and insurers. Which concept of profitability analysis listed below is correct? a. Internal Rate of Return (IRR) measures a project's percentage of cash flow. b. Net Present Value (NPV) is a profitability measure that uses discounted cash flow. c. Modified Internal Rate of Return (MIRR) is a less accurate measure than a project's actual rate of return. d. Profitability Return Rate (PRR) provides the most accurate measure. - answer-b. Net Present Value (NPV) is a profitability measure that uses discounted cash flow. Which of the following must be included when determining a capital project's incremental cash flow? a. Opportunity costs. b. Cash inflows. c. Inflation. d. Internal rate of return. - answer-a. Opportunity costs. The critical link that brings patients and providers together is: a. Marketing. b. Advertising. c. Strategic planning. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Medical staff officers. d. Senior management. - answer-b. Board of directors. Medicare DRG payment is highly dependent upon a hospital's case mix index. This index represents the average relative weight for all Medicare patients treated in a: a. Specific nursing unit or specialty area. b. Specific period. c. Common geographic market. d. Specific facility. - answer-b. Specific period. If a CEO wanted to look at a "snapshot" of the financial condition of the healthcare organization, he/she would review which of the following? a. Income Statement. b. Balance Sheet. c. Retained Earnings Statement. d. Investment Portfolio. - answer-b. Balance Sheet. Where should charity care be shown in a healthcare organization's financial statement? a. In the balance sheet. b. In the statement of operations. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. In the statement of changes in net assets. d. In the notes to the financial statements. - answer-d. In the notes to the financial statements. Which of the following is the best way to assign costs in responsibility management? a. Allow each department manager to be responsible for a different type of fixed cost. b. Allow each department manager to choose the cost that he/she prefers to control. c. Assign costs to the department manager who is responsible for making decisions about those costs. d. Assign costs equally to all managers thus allowing equal responsibility for costs. - answer-c. Assign costs to the department manager who is responsible for making decisions about those costs. You are planning to conduct an assessment of the utilization patterns in your organization's emergency department over the past three years. Which of the following techniques would be most appropriate? a. Strategic Planning. b. Trend Analysis. c. Situational Analysis. d. Survey Research. - answer-b. Trend Analysis. A manager who seeks input from others prior to making a decision is BOG Practice Exam – FACHE exam with 100% correct answers 2024 engaging in which leadership style? a. Autocratic. b. Participative. c. Democratic. d. Laissez-faire. - answer-b. Participative. When a specialist within the organization provides a directive or states an opinion, there is recognition of that individual as an expert in the field. This is an Example of what type of authority? a. Positional. b. Functional. c. Personal. d. Charismatic. - answer-b. Functional. Which of the following is not an Example of marketing function? a. Promoting the organization. b. Convincing patients to select the organization. c. Managing external relationships. d. Reviewing organizational costs. - answer-d. Reviewing organizational costs. The arrival of women for obstetrical deliveries or patient flow in an BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Monitor the scope of health services provided in a given area. d. Protect the public's economic interest. - answer-d. Protect the public's economic interest. The primary function of an extended-care unit is to provide: a. Post-acute care services in a rehabilitation-oriented environment. b. Self-care facilities for ambulatory patients. c. Additional facilities for geriatric cases. d. More intensive nursing care for chronically ill patients. - answer- a. Post-acute care services in a rehabilitation-oriented environment. All of the following are essential components of strategic planning except: a. The corporate mission statement. b. Timetables for activity completion. c. Competitive analysis. d. Assessment of the external environment. - answer-b. Timetables for activity completion. Which one of the following conditions must be met for human subjects to be used in a medical research program? a. No suitable animal model exists for use instead of people. b. The research program has been approved by the medical staff. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. The research program has been approved by the governing authority. d. Risk should be clearly explained in understandable language to each individual subject. - answer-d. Risk should be clearly explained in understandable language to each individual subject. Controlling the costs of accounts receivable is heavily affected by: a. The time or length of the payment cycle. b. The dollar amount of credit granted to individuals. c. The total dollar amount of receivables carried on the books. d. Working capital management. - answer-a. The time or length of the payment cycle. Operational planning can be correctly defined as: a. A function of establishing the annual budget by accumulating departmental information. b. The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan. c. An annual process of developing, evaluating and implementing goals based on community needs. d. Determining the major types of services offered based on profit margins. - answer-b. The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan. BOG Practice Exam – FACHE exam with 100% correct answers 2024 Short-range planning is enhanced if a strategic plan has been adopted because: a. Potential program can be eliminated easily if not part of the strategic plan. b. Use of space has already been determined. c. A frame of reference is already in place. d. Operational problems can be quickly resolved. - answer-c. A frame of reference is already in place. In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systematic credentialing processes in healthcare facilities? a. The increased number of independent healthcare practitioners. b. The expansion of governmental regulations covering the operation of healthcare facilities. c. The growth of ambulatory healthcare services. d. The growth of liability of healthcare facilities for malpractice by health practitioners. - answer-d. The growth of liability of healthcare facilities for malpractice by health practitioners. In a sound human resources program, the primary purpose of the job classification system is to: a. Develop position descriptions for employees. b. Establish a total wage and salary administration program. c. Rank jobs by kind and level of work performed. BOG Practice Exam – FACHE exam with 100% correct answers 2024 Incident reports should be initiated by: a. A member of the medical/professional staff or by any employee. b. Any person with direct patient-care responsibilities. c. The department director or supervisor. d. The risk manager/quality assurance coordinator. - answer-a. A member of the medical/professional staff or by any employee. The governing authority of a healthcare facility can terminate the privileges of any member of the medical/professional staff: a. At any time, if it follows its own adopted procedures. b. At any time, with or without due process. c. Only if termination is recommended by the medical/professional executive committee. d. Only if termination is recommended by the medical/professional staff. - answer-a. At any time, if it follows its own adopted procedures. Materials management can best be defined as a system of effective: a. Purchasing of materials at the lowest possible cost. b. Distribution of materials on a scheduled basis. c. Allocation of materials. d. Control of inventories. - answer-c. Allocation of materials. BOG Practice Exam – FACHE exam with 100% correct answers 2024 When facility maintenance is deferred, which of the following outcomes is predictable? a. Higher costs. b. Lower costs. c. Deferred risk. d. Higher liability exposure. - answer-a. Higher costs. The major purpose of a code of ethics for members of a healthcare executives association is to: a. Provide guidance to members in their own professional conducts. b. Increase public understanding of the professional association. c. Provide a framework for disciplining members when necessary. d. Provide a framework for annually evaluating professional performance. - answer-a. Provide guidance to members in their own professional conducts. The volume that would be realized if each prospective consumer were to purchase a specified amount of a particular service during a defined future time frame is called: a. A sales forecast. b. A market forecast. c. Operational capacity. d. Market potential. - answer-d. Market potential. BOG Practice Exam – FACHE exam with 100% correct answers 2024 As an internal control method, a budget is most commonly used to: a. Allow managers to control expenditures in the current year and to justify increases in future budgets. b. Provide feedback concerning operational expenditures to the governing authority and to allow management to satisfy the governing authority's requirements of accountability. c. Serve as a numerical specification of plans and to function as a standard of control against which results can be compared. d. Allow management to monitor operational expenditures and to justify future requests for decreased or increased expenditures to rate-setting agencies. - answer-c. Serve as a numerical specification of plans and to function as a standard of control against which results can be compared. The most useful way for a healthcare organization to deal with outside regulatory and credentialing bodies is to: a. Identify opportunities to influence political outcomes. b. Regularly maintain both formal and informal relationships with these agencies. c. Deal with these agencies only in written form so as to have a clear paper trail for subsequent review and analysis. d. Provide only the minimum amount of information required to comply with the regulations of the agency. - answer-b. Regularly maintain both formal and informal relationships with these agencies. The cultural climate of an organization affects its recruiting procedure because: a. It reduces employee turnover and absenteeism. BOG Practice Exam – FACHE exam with 100% correct answers 2024 The primary reason for the decision to move from a freestanding voluntary facility to an investor-owned healthcare organization: a. Economy of scale. b. Access to the equity market. c. Access to patients. d. Improved visibility in the community. - answer-b. Access to the equity market. Most products and services enter a period of decline. Unless compelling reasons prevail, continuing a declining product or service is costly because: a. Increased turnover of personnel will occur. b. Continuation will set an undesirable precedent concerned with maintaining the status quo. c. The program will consume a disproportionate amount of management time and delay the search for a replacement. d. The organization will be perceived as being insensitive to the marketplace. - answer-c. The program will consume a disproportionate amount of management time and delay the search for a replacement. After a marketing research problem has been identified, the researcher's next step is to: a. Conduct a literature search. b. Conduct focus groups and collect data. BOG Practice Exam – FACHE exam with 100% correct answers 2024 c. Specify information needs. d. Design a data-collection instrument. - answer-c. Specify information needs. Which of the following statements is in accordance with the principle of delegation? a. The executive who subscribes to the principle of delegation knows what he/she wants to accomplish and exercises control over the work schedule of subordinates. b. An executive explains how he/she wants things done and points out how the subordinate's contribution fits into the overall plan. c. A successful executive gives instructions, telling subordinates exactly how and in what sequence things should be done. d. In applying the principle of delegation, an executive makes relatively few decisions personally and frames orders in broad general terms. - answer-d. In applying the principle of delegation, an executive makes relatively few decisions personally and frames orders in broad general terms. Before submission of the annual business plan to the governing authority, the plan should be developed by: a. Recommendations from the finance committee, on the basis of its estimate of income for the budget year. b. The heads of the profit centers, considering each center's anticipated revenues and expenses, with the CEO collating. c. Key executives, after receiving recommendations from the head of operating divisions. BOG Practice Exam – FACHE exam with 100% correct answers 2024 d. The heads of the operating divisions, with the CEO collating. - answer-c. Key executives, after receiving recommendations from the head of operating divisions. Memorial Hospital offers a screening test as a public service for $0.50 per test. Variable costs per unit are $0.32. Fixed costs are $43,200 per month for the department performing the test. It is the only test done by this special department. The break-even point in tests is: a. 240,000 tests. b. 172,000 tests. c. 135,000 tests. d. 86,400 tests. - answer-a. 240,000 tests. A positive net present value indicates that the investment has a rate of return: a. Higher than the discount rate used in the calculation. b. Lower than the discount rate used in the calculation. c. Equal to the discount rate used in the calculation. d. Equal to the accounting profit averaged over the life of the investment - answer-a. Higher than the discount rate used in the calculation. The asset turnover ratio is useful in measuring managerial performance because it indicates the: a. Amount of resources required to generate a dollar of revenue. b. Profitability per dollar of revenue.