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ACHE BOG Practice Exam 2024- 2025
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 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 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. 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 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
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 Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all: a. Publicly owned healthcare organizations. b. Privately owned healthcare organizations. c. Government owned healthcare organizations. d. Faith-based owned healthcare organizations. - ANSWER>>A Which of the following is an Example of a capital expenditure? a. Land that is purchased for resale. b. Surgical equipment with a useful life of six months. c. A building with a useful life of 20 years. d. Medical supplies used for patient care. - ANSWER>>C What is the correct order of stages for accomplishing organization change?
management. - ANSWER>>C 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 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 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 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 Forecasting organizational need for human resources by focusing on 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 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 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. c. Transition matrix. d. Curriculum path. - ANSWER>>C
b. Unrestricted net assets would increase. c. Unrestricted net assets would neither, increase or decrease. d. Unrestricted net assets would decrease. - ANSWER>>D Which would be a reasonable basis on which to allocate administrative overhead costs? a. Salaries. b. Amount of supplies used. c. Hours worked. d. Square footage. - ANSWER>>B 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 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 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 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 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. d. Negotiate a contract with an outside vendor who specializes in supply distribution to provide these services. - ANSWER>>B 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 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:
c. Property, plant and equipment d. Unrealized gain. - ANSWER>>C Which statement about short-term debt reduces liquidity? a. Increased use of short-term debt reduces liquidity. b. Short-term debt provides greater certainty about interest costs over time c. The interest rates for short-term debt are typically higher than interest rates for long-term debt. d. An organization that relies on short-term debt replaces the need for working capital. - ANSWER>>A Which of the following is likely to provide useful information for evaluating the profitability of a hospital's managed care business? a. Payor mix. b. Fixed. c. Contract terms. d. Changes. - ANSWER>>D 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 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
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. c. Use computer software from only one vendor. d. Standardize data definitions and data structures. - ANSWER>>D 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 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 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. c. Programming language used to write the software. d. Geographic location of the vendor's corporation office. - ANSWER>>B The CIO for a healthcare organization is typically responsible for which of
Information system departments most often utilize which one of the following methods to ensure confidentiality? a. Issue security codes and limit access to the system. b. Centralize access to the computer system. c. Do not allow physician and vendor access to the system. d. Monitor and audit all entries into the system. - ANSWER>>A Who has the primary responsibility to assure and maintain the integrity and security of electronic data in a healthcare organization? a. The Information Services Steering Committee. b. The Information Services Department. c. The CIO. d. The Safety and Security Department. - ANSWER>>B An efficient Formulary and Therapeutics Committee in many hospitals evaluates all of the following except: a. Symptoms of adverse reactions. b. Patients' current medication effectiveness. c. Contraindications. d. Specific drugs in terms of appropriateness to caseload. - ANSWER>>B Healthcare organizations often utilize special purpose software which allows rapid access to large archives of integrated data to assist management with decision making. This is typically referred to as a (an): a. System analysis program. b. Report writer. c. Decision matrix management tool. d. Executive decision support system. - ANSWER>>D 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 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 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. d. The board must meet a minimum of two times each year. - ANSWER>>C 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 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.
a. Documented in the patient's medical records. b. Substantiated by the patient's nurse. c. Related to the care and treatment of the patient. d. Confirmed and documented by the patient. - ANSWER>>C Participating providers in the federal Medicare program must: a. Be accredited by the Joint Commission. b. Serve Medicaid beneficiaries. c. Meet the Conditions of Participation. d. Be in compliance with state Certificate of Need laws. - ANSWER>>C Which physician organization is responsible for accrediting residency training programs? a. ACGME b. AAMC c. CAT d. BPQA - ANSWER>>A Which of the following are important aspects to consider when establishing a joint venture? a. Joint ventures involve independent management teams and independent governance structures. b. Joint ventures involve capital investment by all parties, can be difficult to dissolve, and are usually expected to be permanent. c. Joint ventures are managed like an internal organization and are usually renegotiated annually. d. Joint ventures are developed to acquire portions of the parent organizations and are generally accepted as irreversible. - ANSWER>>B A balanced scorecard is a set of performance measurements used to: a. Assess patient satisfaction. b. Ensure the organization does not exceed one performance metric at the expense of another.
c. Provide a scorecard for annual performance monitoring. d. Gather and monitor financial data. - ANSWER>>B What is the correct order, from bottom to top, of Maslow's Hierarchy of Needs? 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 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 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 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
d. A hospital from referring a patient to a wholly-owned entity of which it has total ownership. - ANSWER>>A Which of the following activities should be performed by the Board of Directors? a. Calculating patient care fees. b. Determining staffing patterns. c. Recruiting new medical staff. d. Hiring the CEO. - ANSWER>>D Performance improvement teams should consist of: a. Experts in process management. b. Members from the involved Microsystems. c. Middle managers with experience. d. Physicians and other users. - ANSWER>>B The four important aspects of clinical support services are technical quality, patient satisfaction, continuity or integration, and: a. Cost-benefit analysis. b. Outcome. c. Appropriateness. d. Health promotion. - ANSWER>>C A bar chart format, with the items rank ordered on a dependent variable, such as cost, profit, or satisfaction that Examines the components of a problem in terms of their contribution to it is known as: a. A run chart. b. A frequency table. c. Pareto analysis. d. Deming cycle. - ANSWER>>C Governing boards are typically more effective at what size?
a. 10 to 15 members. b. 15 to 25 members. c. 5 to 10 members. d. More than 25 members. - ANSWER>>A What type of review involves evaluation of management staff by their superiors, subordinates, and internal and external customers? a. Annual review. b. 360 - degree review. c. Competency review. d. Peer review. - ANSWER>>B 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 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
Cost accounting is an important tool which enables the CFO to: a. Meet Joint Commission fiscal requirements.
