Nursing home administrator exam
questions and CORRECT ANSWER s
2026\2027 update
1. The most likely single cause for the series of bankruptcies among larger nursing home chains
around the year 2000 was ____.
1. Too small increases in government reimbursement rates
2. Paying too much for acquisitions in 1998 and 1999
3. Not taking advantage of falling interest rates
4. Thinking too small - CORRECT ANSWER -2
2. In a chance conversation with the owner of an eight-facility chain, the newly hired
administrator for the oldest facility in the chain indicates that, because the mortgage is fully
retired, the administrator will concentrate more on being effec- tive than efficient since the
Quality Indicators are all at or above the state's aver-age. The owner would likely ____.
1. Be pleased
2. Be distressed
3. Be content
4. Praise the newly hired administrator - CORRECT ANSWER -2
3.
Occupancy of Facility A has been a steady 70% since the Prospective Payment System was
introduced. Two weeks ago, a new 120-bed, equally equipped facil- ity opened several blocks
away. The Facility A administrator tells the admissions counselor to continue the usual
recruitment approach. The chain owners ought to _____.
1. Rest comfortably
2. Seek a new administrator
3. Appoint a new admissions counselor
4. Take no action - CORRECT ANSWER -2
4. Bankruptcies among larger nursing home chains prior to 2000 _____.
1. Were frequent
2. Were ubiquitous
3. Were highly unusual
4. Were routinely declared to avoid too much accumulated debt - CORRECT ANSWER -3
5. Under the Prospective Payment System, nursing facilities' reimbursed costs _____.
1. Were about the same as previously
2. Were more bundled
3. Used an unbundled cost structure
4. Were reimbursement for actual costs - CORRECT ANSWER -2
6. In recent years, Medicare has _____.
1. Allowed facilities to make a modest profit
,2. Shifted more costs onto nursing facilities
3. Eased up on economic pressures previously placed on facilities
4. Remained relatively unchanged in its reimbursement structure -
CORRECT ANSWER -2
7. The nurse newly promoted to director of nursing insists on giving four RN hours of patient
care each day on the Alzheimer's wing in the 175-bed facility. The administrator should _____.
1. Praise the new director of nursing for her resident centeredness
2. Appoint an assistant director of nursing
3. Adapt the job description to fit her pattern
4. Seek a new director of nursing - CORRECT ANSWER -4
8. The applicant for the administrator position in a facility near a large teaching hospital insists
that, as before in his rural facility, if hied he would not let the Medicare reimbursement policies
affect his case mix. This applicant _____.
1. Should be hired
2. Is likely to succeed if hired
3. Can likely succeed in his goal
4. Is out of touch - CORRECT ANSWER -4
9. The newly hired assistant to the administrator insists that the organizational chart dotted line
between this position and the Department of Nursing be a solid line. The administrator should
_____.
1. Agree in general
2. Agree to this special case
3. Ask the director of nursing for his or her opinion 4. Be forewarned - CORRECT ANSWER -4
10. The medical supplies provider tells the administrator of a facility that has not paid bills for the
past 3 months but is now operating under a bankruptcy judge's approved plan for restructuring,
that no more deliveries will be made until past bills are fully paid. The medical supplies provider
_____.
1. Is smart to cut losses at that point
2. Does not understand how bankruptcy works 3. Will now likely get his past due bills paid
4. Is farsighted - CORRECT ANSWER -2
11. An administrator who adopts the leadership-by-walking-around (LBWA) approach by walking
through the facility weekly and intently observing has _____.
1. Become an effective leader
2. Chosen a good management style 3. Failed to understand LBWA
4. Implemented a useful strategy - CORRECT ANSWER -3
12. The nursing facility administrator who, using the leadership-by-walking around (LBWA)
technique, succeeds in actually making appropriate corrections on the spot during her rounds
_____.
1. Is effectively implementing the concept
2. Gains additional power through the process 3. Exhibits appropriate leadership
4. Does not understand LBWA - CORRECT ANSWER -4
,13. The rate of increase in the total number of nursing facilities in the United States during the
years 2008 to 2012 is _____.
1. Likely to be about level
2. Likely to double
3. Likely to triple to accommodate the baby boomer generation 4. Likely to decrease markedly -
CORRECT ANSWER -1
14. The applicant for administrator of the facility insists that he has successfully used democratic
leadership to the exclusion of all other leadership styles. The interviewer should _____.
1. Recommend hiring this candidate
2. Praise the candidate
3. Be favorably impressed
4. Continue to interview candidates - CORRECT ANSWER -4
15. The candidate for administrator said that she used a variety of administrative styles, but
could not say exactly which she would use in every circumstance. The interviewer should be
_____.
1. Favorably impressed
2. Unfavorably impressed
3. Concerned about possible indecisiveness 4. Looking for one leadership style - CORRECT
ANSWER -1
16. The candidate for administrator indicated that he consistently chose the charis- matic style
of leadership. This should _____ the interviewer.
1. Reassure
2. Alert
3. Confirm the candidate's qualifications to 4. Please -
CORRECT ANSWER -2
17. The costs of providing subacute care to nursing home residents _____. 1. Is perhaps triple
that of the more typical patient
2. Covered by Medicare
3. Absorbed by Medicaid if Medicare coverage is inadequate
4. Mostly covered by private insurance -
CORRECT ANSWER -1
18. The nurse supervisor who had just been appointed director of nursing announced at the first
department head meeting that she had circulated a memo among the nurses that only formal
communications were to be allowed in the nursing department. The administrator should _____.
1. Be relieved
2. Confirm the decision 3. Be supportive
4. Anticipate problems -
CORRECT ANSWER -4
19. The department head was not surprised to learn that an employee had heard only the
positive comments to the employee and ignored the criticisms. The department head's grasp of
the communication process is _____.
, 1. Deficient
2. Appropriate 3. Out of focus 4. Inadequate - CORRECT ANSWER -2
20. The administrator routinely accepted as a nearly exclusive information source the director of
nursing's positive reports that nursing was going well. The administrator is _____.
1. Showing appropriate confidence in the director of nursing
2. Utilizing the director of nursing properly
3. Realizing a successful appointment has been made 4. Placing himself at risk - CORRECT
ANSWER -4
21. Periodic shortage of nurses available for nursing home employment _____. 1. Is being
solved by community college programs
2. Is decreasing
3. Can be readily solved by hiring temporary nurses
4. Is likely to remain for the foreseeable future -
CORRECT ANSWER -4
22. Congress and the federal rule makers behave as if the facility will run success- fully if
Congress and the Centers for Medicare and Medicaid Services can write enough rules. They
are _____.
1. Incorrect
2. Correct, according to behavior theory
3. Pessimistic about the need for rules
4. Correct, according to emerging management theory - CORRECT ANSWER -1
23. When the administrator notices that the director of nursing seeks to turn as many duties as
possible over to housekeeping, the administrator should con- clude that the director of nursing is
_____.
1. Behaving normally
2. Holding a grudge against housekeeping 3. Unwilling to be cooperative 4. Wielding
power desirably - CORRECT ANSWER -1
24. The administrator insists that a timely copy of all reports generated within the facility come
across her desk before anyone signs them. The administrator is _____.
1. Not rationalizing her management information system
2. Making appropriate and desirable requests
3. Exercising good judgment
4. Initiating an appropriate management information system -
CORRECT ANSWER -1
25. The administrator notices that incident reports are being insufficiently filled out, but does
nothing, believing that the situation will likely correct itself. The administrator is _____.
1. Practicing effective control
2. Likely to be correct
3. Failing to control effectively
4. Right to monitor the situation for a period of time - CORRECT ANSWER -3
26. Corporate sends a directive to its flagship facility administrator directing the administrator's
questions and CORRECT ANSWER s
2026\2027 update
1. The most likely single cause for the series of bankruptcies among larger nursing home chains
around the year 2000 was ____.
1. Too small increases in government reimbursement rates
2. Paying too much for acquisitions in 1998 and 1999
3. Not taking advantage of falling interest rates
4. Thinking too small - CORRECT ANSWER -2
2. In a chance conversation with the owner of an eight-facility chain, the newly hired
administrator for the oldest facility in the chain indicates that, because the mortgage is fully
retired, the administrator will concentrate more on being effec- tive than efficient since the
Quality Indicators are all at or above the state's aver-age. The owner would likely ____.
1. Be pleased
2. Be distressed
3. Be content
4. Praise the newly hired administrator - CORRECT ANSWER -2
3.
Occupancy of Facility A has been a steady 70% since the Prospective Payment System was
introduced. Two weeks ago, a new 120-bed, equally equipped facil- ity opened several blocks
away. The Facility A administrator tells the admissions counselor to continue the usual
recruitment approach. The chain owners ought to _____.
1. Rest comfortably
2. Seek a new administrator
3. Appoint a new admissions counselor
4. Take no action - CORRECT ANSWER -2
4. Bankruptcies among larger nursing home chains prior to 2000 _____.
1. Were frequent
2. Were ubiquitous
3. Were highly unusual
4. Were routinely declared to avoid too much accumulated debt - CORRECT ANSWER -3
5. Under the Prospective Payment System, nursing facilities' reimbursed costs _____.
1. Were about the same as previously
2. Were more bundled
3. Used an unbundled cost structure
4. Were reimbursement for actual costs - CORRECT ANSWER -2
6. In recent years, Medicare has _____.
1. Allowed facilities to make a modest profit
,2. Shifted more costs onto nursing facilities
3. Eased up on economic pressures previously placed on facilities
4. Remained relatively unchanged in its reimbursement structure -
CORRECT ANSWER -2
7. The nurse newly promoted to director of nursing insists on giving four RN hours of patient
care each day on the Alzheimer's wing in the 175-bed facility. The administrator should _____.
1. Praise the new director of nursing for her resident centeredness
2. Appoint an assistant director of nursing
3. Adapt the job description to fit her pattern
4. Seek a new director of nursing - CORRECT ANSWER -4
8. The applicant for the administrator position in a facility near a large teaching hospital insists
that, as before in his rural facility, if hied he would not let the Medicare reimbursement policies
affect his case mix. This applicant _____.
1. Should be hired
2. Is likely to succeed if hired
3. Can likely succeed in his goal
4. Is out of touch - CORRECT ANSWER -4
9. The newly hired assistant to the administrator insists that the organizational chart dotted line
between this position and the Department of Nursing be a solid line. The administrator should
_____.
1. Agree in general
2. Agree to this special case
3. Ask the director of nursing for his or her opinion 4. Be forewarned - CORRECT ANSWER -4
10. The medical supplies provider tells the administrator of a facility that has not paid bills for the
past 3 months but is now operating under a bankruptcy judge's approved plan for restructuring,
that no more deliveries will be made until past bills are fully paid. The medical supplies provider
_____.
1. Is smart to cut losses at that point
2. Does not understand how bankruptcy works 3. Will now likely get his past due bills paid
4. Is farsighted - CORRECT ANSWER -2
11. An administrator who adopts the leadership-by-walking-around (LBWA) approach by walking
through the facility weekly and intently observing has _____.
1. Become an effective leader
2. Chosen a good management style 3. Failed to understand LBWA
4. Implemented a useful strategy - CORRECT ANSWER -3
12. The nursing facility administrator who, using the leadership-by-walking around (LBWA)
technique, succeeds in actually making appropriate corrections on the spot during her rounds
_____.
1. Is effectively implementing the concept
2. Gains additional power through the process 3. Exhibits appropriate leadership
4. Does not understand LBWA - CORRECT ANSWER -4
,13. The rate of increase in the total number of nursing facilities in the United States during the
years 2008 to 2012 is _____.
1. Likely to be about level
2. Likely to double
3. Likely to triple to accommodate the baby boomer generation 4. Likely to decrease markedly -
CORRECT ANSWER -1
14. The applicant for administrator of the facility insists that he has successfully used democratic
leadership to the exclusion of all other leadership styles. The interviewer should _____.
1. Recommend hiring this candidate
2. Praise the candidate
3. Be favorably impressed
4. Continue to interview candidates - CORRECT ANSWER -4
15. The candidate for administrator said that she used a variety of administrative styles, but
could not say exactly which she would use in every circumstance. The interviewer should be
_____.
1. Favorably impressed
2. Unfavorably impressed
3. Concerned about possible indecisiveness 4. Looking for one leadership style - CORRECT
ANSWER -1
16. The candidate for administrator indicated that he consistently chose the charis- matic style
of leadership. This should _____ the interviewer.
1. Reassure
2. Alert
3. Confirm the candidate's qualifications to 4. Please -
CORRECT ANSWER -2
17. The costs of providing subacute care to nursing home residents _____. 1. Is perhaps triple
that of the more typical patient
2. Covered by Medicare
3. Absorbed by Medicaid if Medicare coverage is inadequate
4. Mostly covered by private insurance -
CORRECT ANSWER -1
18. The nurse supervisor who had just been appointed director of nursing announced at the first
department head meeting that she had circulated a memo among the nurses that only formal
communications were to be allowed in the nursing department. The administrator should _____.
1. Be relieved
2. Confirm the decision 3. Be supportive
4. Anticipate problems -
CORRECT ANSWER -4
19. The department head was not surprised to learn that an employee had heard only the
positive comments to the employee and ignored the criticisms. The department head's grasp of
the communication process is _____.
, 1. Deficient
2. Appropriate 3. Out of focus 4. Inadequate - CORRECT ANSWER -2
20. The administrator routinely accepted as a nearly exclusive information source the director of
nursing's positive reports that nursing was going well. The administrator is _____.
1. Showing appropriate confidence in the director of nursing
2. Utilizing the director of nursing properly
3. Realizing a successful appointment has been made 4. Placing himself at risk - CORRECT
ANSWER -4
21. Periodic shortage of nurses available for nursing home employment _____. 1. Is being
solved by community college programs
2. Is decreasing
3. Can be readily solved by hiring temporary nurses
4. Is likely to remain for the foreseeable future -
CORRECT ANSWER -4
22. Congress and the federal rule makers behave as if the facility will run success- fully if
Congress and the Centers for Medicare and Medicaid Services can write enough rules. They
are _____.
1. Incorrect
2. Correct, according to behavior theory
3. Pessimistic about the need for rules
4. Correct, according to emerging management theory - CORRECT ANSWER -1
23. When the administrator notices that the director of nursing seeks to turn as many duties as
possible over to housekeeping, the administrator should con- clude that the director of nursing is
_____.
1. Behaving normally
2. Holding a grudge against housekeeping 3. Unwilling to be cooperative 4. Wielding
power desirably - CORRECT ANSWER -1
24. The administrator insists that a timely copy of all reports generated within the facility come
across her desk before anyone signs them. The administrator is _____.
1. Not rationalizing her management information system
2. Making appropriate and desirable requests
3. Exercising good judgment
4. Initiating an appropriate management information system -
CORRECT ANSWER -1
25. The administrator notices that incident reports are being insufficiently filled out, but does
nothing, believing that the situation will likely correct itself. The administrator is _____.
1. Practicing effective control
2. Likely to be correct
3. Failing to control effectively
4. Right to monitor the situation for a period of time - CORRECT ANSWER -3
26. Corporate sends a directive to its flagship facility administrator directing the administrator's
