ACHE BOARD OF GOVERNORS
HEALTHCARE EXAM – STUDY
GUIDE & PRACTICE QUESTIONS
AND CORRECT ANSWERS
2026/2027
CEO Compensation should be based on:
a. the compensation arrangement with prior CEO
b. executive compensation in local corporations with similar gross revenues
c. present day salary plus cost-of living adjustment
d. what the institution would have to pay for a similarly prepared person if that person were employed
elsewhere - ANSWER-d. what the institution would have to pay for a similarly prepared person if that
person were employed elsewhere
An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers - ANSWER-a. approve the mission, vision, and
long-range plan
The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work - ANSWER-d. organizing the board's work
,Members of the medical staff are eligible for full membership on the governing board in the same
manner as other individuals:
a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals - ANSWER-a. when not legally prohibited
The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board - ANSWER-b. represents the board internally and externally
Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing opportunities - ANSWER-d.
establishes guidelines and makes final choices among competing opportunities
The individual or group responsible for establishing policy, maintaining quality of care, and providing for
institutional management planning is the:
a. COO
b. Medical Staff Medical Committee
c. Governing Body
d. CEO - ANSWER-c. Governing Body
, A correct statement regarding trustee serving as fiduciaries is that they can:
a. be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal
reasons.
b. be released from responsibility by giving the audit committee final authority in high risk areas of
financial matters, without any action by the whole board
c. be held personally liable for wrongful acts or omissions by corporate officers or co-trustees by virtue
of their position as trustees
d. waive their fiduciary responsibility as a community organization - ANSWER-a. be indicted for alleged
theft of facility funds and improper expenditures of facility funds for personal reasons.
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO - ANSWER-b. Governing Board
A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can - ANSWER-b. of what they can do for the organization
The bylaws of healthcare organization should include which of the following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
HEALTHCARE EXAM – STUDY
GUIDE & PRACTICE QUESTIONS
AND CORRECT ANSWERS
2026/2027
CEO Compensation should be based on:
a. the compensation arrangement with prior CEO
b. executive compensation in local corporations with similar gross revenues
c. present day salary plus cost-of living adjustment
d. what the institution would have to pay for a similarly prepared person if that person were employed
elsewhere - ANSWER-d. what the institution would have to pay for a similarly prepared person if that
person were employed elsewhere
An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers - ANSWER-a. approve the mission, vision, and
long-range plan
The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work - ANSWER-d. organizing the board's work
,Members of the medical staff are eligible for full membership on the governing board in the same
manner as other individuals:
a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals - ANSWER-a. when not legally prohibited
The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board - ANSWER-b. represents the board internally and externally
Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing opportunities - ANSWER-d.
establishes guidelines and makes final choices among competing opportunities
The individual or group responsible for establishing policy, maintaining quality of care, and providing for
institutional management planning is the:
a. COO
b. Medical Staff Medical Committee
c. Governing Body
d. CEO - ANSWER-c. Governing Body
, A correct statement regarding trustee serving as fiduciaries is that they can:
a. be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal
reasons.
b. be released from responsibility by giving the audit committee final authority in high risk areas of
financial matters, without any action by the whole board
c. be held personally liable for wrongful acts or omissions by corporate officers or co-trustees by virtue
of their position as trustees
d. waive their fiduciary responsibility as a community organization - ANSWER-a. be indicted for alleged
theft of facility funds and improper expenditures of facility funds for personal reasons.
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO - ANSWER-b. Governing Board
A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can - ANSWER-b. of what they can do for the organization
The bylaws of healthcare organization should include which of the following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
